What is the Meaning of Lessor & Lessee?

By Beverly Bird
A rental agreement.

eccolo74/iStock/Getty Images

A lease is a binding legal contract, so you need to know what you’re signing. If you’re the person or business that is contracting to rent property, you’re the lessee, while your landlord is the lessor. You'll both have certain obligations and responsibilities.

Responsibilities and Restrictions of the Lessor

A lessor, or landlord, is responsible for providing a habitable and safe property. He must meet state code for basic requirements, such as ventilation. After a lease is signed and the lessee takes possession of the property, the lessor typically is not permitted to access the property at will -- particularly if it’s residential. Commercial property is often open to the public during business hours, but the landlord can’t access it when the business is closed. The lessor is responsible for most structural repairs, such as a leaky roof, but if the lessee causes damage, the cost of these repairs typically fall to him.

Duties of the Lessee

The lessee has a duty to perform according to the terms of the contract or lease. He might have to refrain from taking certain actions, as well as have to make rent payments by an appointed time. When a lessee pays a security deposit as a condition of the lease, the lessor typically has a right to keep this money if the terms of the lease are broken such as if the lessee fails to pay as agreed.

About the Author

Beverly Bird has been writing professionally for over 30 years. She specializes in personal finance, divorce and family law, bankruptcy, and estate law, and she writes as the tax expert for The Balance. She is the author of more than 30 novels.

Cite this Article A tool to create a citation to reference this article Cite this Article