Renting

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Renting , also known as hiring or letting , is an agreement in which payments are made for the temporary use of goods, services or property owned by other. The gross rent is when the lessee pays a flat rent and the owner pays all the property costs that are regularly issued by the ownership.

Video Renting

Reasons to rent

There are many possible reasons to rent rather than buy, for example:

• In many jurisdictions (including India, Spain, Australia, United Kingdom and the United States), rentals used in commerce or business may be tax deductible, while residential leases are not tax deductible in most jurisdictions.
• Financial inadequacy, such as renting a house when a person can not afford it. One may not want to pay the full price of ownership required, allowing smaller payments over a period of time.
• Reduce financial risk due to depreciation and transaction costs, especially for real estate that may be needed only for a short time.
• When something is needed only temporarily, as in the case of special tools, trucks or jumps.
• When something is needed that may or may not have been owned but not close for use, such as renting a car or bicycle when traveling.
• Need a cheaper alternative to buying, like renting a movie: someone does not want to pay full price for a movie, so they rent it for a lower price, but give it a chance to see it again later.
• The renter may want to leave the property maintenance burden (mowing, shoveling snow, etc.) to the owner or his agent.
• No need to worry about age and maintenance.
• Hire saves off-balance-sheet debt that will burden the company's balance sheet if the property is purchased.
• Hire is good for the environment if the product is used more efficiently by maximizing the utility than it is thrown away, overproduced and underutilized.

Maps Renting

Rising industrial growth

Short-term leases for all types of products (excluding real estate and holiday apartments) already represent an annual market forecast of EUR108 billion ($ 160 billion) in Europe and are expected to continue to grow as the internet makes it easier to find certain items available for rent. According to a poll by YouGov, 76% of people who want to rent will go to the internet first to find what they need; rose to 88% for those aged 25-34 years.

It has been widely reported that the 2007-2010 financial crisis may have contributed to the growth of the online rental market, such as erento, as consumers are more likely to consider renting than buying in times of financial difficulties. Environmental concerns, rapid depreciation of goods, and a more transient workforce also mean that consumers are increasingly looking for online rentals.

The 2010 US survey found 27% of the tenants planning to never buy a home.

Rent investment

The net income received, or losses suffered, by investors from renting one or two properties subject to idiosyncratic risk because of many things that can happen to the real property and the variable behavior of the tenant.

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Rental agreement

There is usually an implied, explicit or written lease agreement or contract involved to determine the lease terms, which are governed and managed under contract law.

Examples include releasing real estate (real property) for the purpose of residential ownership (where the tenant rents a residence), parking space for vehicle (s), storage space, whole or part of property for business, agriculture, institutional or governmental use, others.

When renting real estate, the person (s) or parties that live in or occupy real estate are often called tenants, paying rent to the property owner, often called the owner (or landlady). Rented real estate can be any or all of almost any real estate, such as an apartment, a house, a building, an office or a suite, a land, a farm, or just a room inside or outside to park a vehicle, or keep it all under Real estate law.

Lease agreements for real estate are often called rent , and usually involve certain property rights in real property, as opposed to moving goods.

In India, rental property income is taxed under the head of "income from home property". A 30% reduction is allowed from the total rent charged to tax.

The use of time of a chattel or else called "private property" is covered under general contract law, but the term lease is also now extended to the term contract long lease contracts from more expensive non-Real property such as cars, ships, planes, office equipment and so forth. The difference in this case is the long term rent versus the short term. Some of the non-real properties that are usually available for rent or lease are:

• moving pictures on VHS or DVD, audio CD, computer program on CD-ROM.
• transport equipment, such as cars or bicycles.
• ships and boats, where the lease case is known as chartering, and the lease is known as hire or delivery (depending on the type of charter)
• the aircraft, in which case leases are known as chartering, or leasing if long term lease
• special tools, such as chainsaws, laptops, IT equipment, or something more substantial, such as forklifts.
• great equipment such as cranes, oil rigs, and submarines.
• deck chairs or beach chairs and umbrellas.
• furniture
• designer handbags, jewelry, sunglasses, and watches.
• electrical items such as washing machines

At various levels, renting can involve purchasing services for various amounts of time, such as staying in a hotel, using a computer in an internet cafe, or taking a taxi (some forms of English use the term "hire" for this activity).

As can be seen from the example, some rental items are used in place, but usually they are brought together; to help ensure that they are taken back, one or more of the following applies:

• showing identity document
• someone signed a contract; any existing damage while renting may be recorded to avoid that the tenant is blamed for it when the item is returned
• someone pays a damage deposit (a refundable fee that can be partially used to pay for damage caused by the tenant)

If customers have credit accounts with rental companies, they may rent for several months (or years) and will receive recurring or ongoing invoices each rental period until they return the equipment. In this case deposits are rarely needed.

In certain types of rentals (sometimes known as rent operated or wet) the cost can be calculated by the operator's rental timesheets or driver fees provided by the rental company to operate the equipment. This is highly relevant for crane rental companies.

Sometimes the risk that a stored item is reduced by it becomes a special model or has signs on it that can not be easily removed, making it clear that it is owned by the rental company; This is very effective for items used in public places, but even when used at home may be helpful due to social control.

People and businesses that regularly lease goods from certain companies generally have accounts with that company, which reduces administrative procedures (transaction costs) at every opportunity.

The signing of books from the library can be considered rented when there is a cost per book. But the term borrowing is more common.

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Leasing

Rental long-term personal property (for a period of more than one year) is known as leasing. Leasing is usually used for high-value capital equipment, both in business and by consumers (especially for cars). Lease agreements that transfer most of the risks and rewards of ownership, usually for the life of the asset, are known as finance leases. Lease agreements that are not leased are known as operating leases.

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Rent to own

The lease agreement may provide for the lessee or lessee to become the owner of the asset at the end of the lease period, usually on the tenant's option for the payment of the nominal fee. Such an arrangement can be known as

• Rent-to-own, a term used in the United States for furniture or equipment rentals. The term is also used in the US for real estate transactions, in which the lessee has the option to purchase the property at a fixed price in the future. Such arrangements are also known as option-lease options, rent-to-own or lease to purchase.
• Rent purchases, used in the UK and other countries for the purchase of cars, consumer equipment and other business equipment. The lease-purchase terms are also used.
• Closed rentals, used in the US and Canada for car rentals. Unlike in lease purchases, assets are sold with residual value at the end of the semester, not for a nominal amount.

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See also

• Economic access
• Share economy
• Equipment rental

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References

Source of the article : Wikipedia