Download Legal Ohio Equipment Lease Forms For Free

The ownership of the leased property or equipment at the end of the agreement varies between capital and operating leasing. In capital leasing, the lessee may retain ownership of the asset. In operating leasing, though, the lessor retains ownership of the asset at the end of the lease term.

An operating lease is a set repayment schedule over an agreed period. The lessor retains ownership of the asset, and at the end of the lease period you have the following options: Return the equipment to the lessor. Return the equipment and lease another asset.

A written lease agreement must contain: The names and addresses of both parties; The description of the property; The rental amount and reasonable escalation; The frequency of rental payments, i.e. monthly; The amount of the deposit; The lease period; The notice period for termination of contract;

The lease payments are considered an operating expense on an income statement (hence the name), which is a tax advantage over slower depreciation. Plus, the equipment stays off the balance sheet (which many companies would prefer, especially starting up).

Definition: Operating lease is a contract wherein the owner, called the Lessor, permits the user, called the Lesse, to use of an asset for a particular period which is shorter than the economic life of the asset without any transfer of ownership rights.

Yes, Microsoft Word has a free lease agreement template that you can customize to create your own contract and minimize any potential problems between tenant and landlord.