Leasing assignment help is often required by students of finance and accounting. Leasing is a process by which a firm can obtain the leasing of a certain fixed assets for which it must pay a series of contractual, periodic and tax deductible payments. The legal document which outlines the terms under which one party agrees to lease out a property to another party is called the lease agreement. Leasing assignment help is now provided by Australia’s number one leasing assignment help provider, MyAssignmenthelp.com. We have plenty of leasing experts to give you leasing help.
What are the terms of agreement for leasing?
Leasing assignment help requires understanding of the various terms of agreement for leasing. Our leasing experts have come up with a detailed explanation of the various terms of agreement for leasing for those who need leasing help.
- The ‘lessee’ or the renter is the receiver of the services or the assets under the lease contract and the ‘lessor’ or the list property for lease owner is the owner of the assets.
- The relationship between the tenant and the landlord is called a tenancy and can be for a fixed or an indefinite period of time. This is called the term of the lease. The money exchanged for the leaseis called the rent.
Leasing assignment help needs a good understanding of the concepts of lease, lessee and lessor. For leasing assignment help, we need to explain things a little further.
- A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property and utility charges incurred on the maintenance of the property. Under normal circumstances, an owner of property is at liberty to do what he/she wants with the property However, if the owner has surrendered possession to another (i.e. the tenant) then any interference with the quiet enjoyment of the property by the tenant in lawful possession is illegal.
- The tenant, on the other hand, may decide to lease the property to another tenant. This is called sub-leasing, an act that can be expressly prohibited by the tenancy contract between the owner and the original lease-holder.
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Advantages of leasing
Leasing assignment help includes all the information you need on the advantages of leasing. For businesses, leasing property may have significant financial benefits. They can be summarized under the following heads. Here are the main points needed for leasing assignment help online:
- Less expensive than purchasing: Leasing is less capital-intensive than purchasing. If a business has capital constraints, it can grow more rapidly by leasing property than it could by purchasing the property outright. If you need to talk to leasing experts on the advantages of leasing then log on to MyAssignmenthelp.com.
- Immunity against fluctuation in asset valuation: Capital assets may fluctuate in value. Leasing shifts risks to the lessor rather than the lessee. For more leasing help, log on to MyAssignmenthelp.com.
- More flexible and practical: Leasing may provide more flexibility to a business which expects to grow or move in the relatively short-term because a lessee is not usually obliged to renew a lease at the end of its term.
In some cases, a lease may be the only practical option; such as for a small business that wishes to locate in a large office building at a particular geographical location. For instance most of the office spaces in the chief financial centers like New York, London, Tokyo and Hong Kong are rented because of the high real estate value. If you need to talk to leasing experts on the advantages of leasing, then log on to MyAssignmenthelp.com.
- Protection from depreciation costs: In order to get the net profit, a company must subtract the costs from the profits. But some of the costs are the costs of the assets which are not immediately consumed or utilized. They are called depreciation costs. They are equal to the reduction in the value placed on the asset. However, if a business does not own a property then technically depreciation costs are not borne by the company. Rent is not a depreciation cost since it can be set off against revenue earned. Further, a company can get tax benefits on lease. This is not possible if the company owns the property since the tax structure would differ significantly for owned properties. If you need leasing help then log on to MyAssignmenthelp.com.
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Disadvantages of leasing:
Students needing leasing assignment help service have to be aware of the possible disadvantages of leasing. Students writing leasing thesis needs to get thesis help. For businesses, leasing property may also have significant drawbacks:
- Maintenance costs: A lease may shift some or all of the maintenance costs onto the tenant. As a result some of the costs which should have been legitimately borne by the owners are passed on to the lease holder. Large corporations owning large real estate spaces spent a significant sum of money on maintenance and refurbishment of the real estate space. For more on leasing assignment help, log on to MyAssignmenthelp.com.
- Termination of lease contract: If circumstances dictate that a business must change its operations significantly, it may be expensive or otherwise difficult to terminate a lease before the end of the term. Sometimes the leaseholder may have to lose the security deposit paid to the owner. For more on leasing assignment help, contact our experts.
- Limited benefits on leased property: A leased property does not beget the same amount of benefits like an owned property. A lease-holder does get ownership benefits on the leased property. As such the lessee cannot pledge the asset for loans from banks. In some cases, a business enterprise may be able to sublet property, but this may not recoup the costs of the original lease, and in any event, usually requires the consent of the original lessor. The lessor may expressly debar the lessee from subletting the leased property. For more on leasing assignment help, contact our writers.
- Legal disadvantages: Tactical and legal considerations usually make it expedient for lessees to default on their lease payments. Although the loss of face value is small and any litigation can usually be settled on terms in favor of the lease holder, there are other disadvantages of payment defaults. In several cases, the owner may take over the leased space and initiate legal proceedings which may result in loss of time and energy. Further, faulty payments might give the lessor an upper hand during the renewal negotiations. The lessee has to accept the conditions put forward by the lessor, especially if value of the company depends on the leased space. For more on leasing assignment help, log on to MyAssignmenthelp.com.
To summarize, then, there are both advantages and disadvantages of leasing when compared to ownership. Small businesses which do not have huge funds at their disposal are particularly confronted with this choice when it comes to their business space. While there are several advantages of renting or leasing an office space like fixed costs, lack of depreciation costs, tax deductions etc; the benefits are often offset by the potential disadvantages. Small companies cannot take loans by pledging the leased space as a bank security. Bigger companies that can afford both leasing and buying often tend to prefer leasing. If you think that all these are very confusing then log on to MyAssignmenthelp.com for leasing assignment help.
While leasing an office space, the following points should be kept in mind:
- How much space is required? The amount of space required would often determine whether to buy or lease.
- How much cost is involved? A comparative study of depreciation, maintenance and buying and leasing costs must be carried out in order to determine whether leasing would be profitable r buying.
- What are the legal and logistical requirements of the business? These would also play an important role in the decision process.
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