What is a Lessor?

A lessor is the owner of leased property. The lessor allows a lessee to use the property in exchange for periodic rental payments. These payments are usually made in accordance with a monthly payment schedule, but may also be paid out in a lump sum. A leasing arrangement is defined in a lease agreement, which can include a number of special terms, such as the ability of the lessee to extend a lease or to buy the leased asset at a bargain price.