Re:More than half of American retailers didn't pay their ren...
by toast0 on Thursday June 04, 2020 @06:41PM
(#23422840)
Rentals are a useful innovation because the transaction is beneficial for both parties.
The leasor turns their large investment into a stream of payments, and the leasee turns their stream of payments into use of a large investment without having to make such an investment and without needing to have the capability to make that investment.
Avoiding making a large investment in property makes it easier for the leasee to move if needed, since there aren't significant costs to unwind a lease like there are to unwinding property ownership.
The leasor turns their large investment into a stream of payments, and the leasee turns their stream of payments into use of a large investment without having to make such an investment and without needing to have the capability to make that investment.
Avoiding making a large investment in property makes it easier for the leasee to move if needed, since there aren't significant costs to unwind a lease like there are to unwinding property ownership.