What Is Lessor and The Role of It

tháng 5 21, 2021

If you want to rent an office, you need to know who the lessor is and what they can do.

WHAT IS LESSOR?

WHAT IS LESSOR?
A lessor is a person entering into a lease to own the property and makes it available as a rental object for the tenant’s temporary possession.
For example, in rental property, the lessor is the one and the lessee is the other. The lessor can be the owner of the property or an authorized agent on behalf of the owner. Commercial banks, non-bank credit institutions, and rental companies often act like them.

TERMS

They can be legal entities and individuals. However, the term “leasing company” is sometimes used as a synonym for the term “lessor”.
The Seller and the lessor can be the same person.

ROLE OF LESSOR

ROLE OF LESSOR
Lessor’s interaction with other parties to the Lease is as follows:

Lessee chooses a seller whose property they need
Lessor transfers the property to the Lessee for temporary use with an agreed payment.
After the completion of the contract, depending on the terms of the contract, the property will be returned to them.

For the entire term of the Lease Contract, the property belongs to the ownership of the Lessor. In the event of failure to refund the rental payments according to the schedule specified in the contract, they have the right to waive the property to the Lessee.
In the event of the lessee’s bankruptcy, they have the priority to be paid.
In the case of implementing a high-priced project, they can engage in trading additional financial assets (through a bank, insurance company, investment fund, etc.).

FOR RENTAL AGENT

A formal rental service provider (or rental agent) is a typical form of a lessor.
Agents are an official supplier directly to an end consumer or through a rental company.
Agent cooperates with manufacturers according to the agreement.
For leasing companies, agents operate as:

Officially certified supplier;
Dealers provide consumers – customers;
Insurance agent and liquidator

For consumers, official rental operators operate as:

Officially certified supplier;
Leasing brokerage (selecting the rental company that best suits the client’s requirements, based on the customer’s needs and capabilities);
Adviser

For Foreign companies that want to start or expand businesses and look for an office in Vietnam: