Renting is an agreement where a payment is made for the
temporary use of a good owned by another person or company.
Examples:
Housing tenure, where the person who lives in the house is a
tenant, paying rent to the landlord, who owns the property.
The renting of motion pictures on VHS or DVD, of audio CD's, of
computer programs on CD-ROM.
Renting transport equipment, such as an automobile, boat or
bike.
Renting somewhat specialized tools, such as a chainsaw, or
something more substantial, such as a forklift.
Renting a beach chair.
Renting can, in various degrees, involve buying services, such
as staying in a hotel, using a computer in an Internet cafe, or
riding in a taxicab.
Reasons for renting rather than buying include:
Renting is tax attractive (in Spain & Australia); also in the
United States, it is deductible as a business expense (if the
property is used in a trade or business: rent on a dwelling is
not tax deductible).
Financial inadequacy, such as renting a house when one is unable
to buy it.
A product is needed only temporarily, as in the case of a
special tool or a truck.
Need for a similar product that is already owned but not in
close proximity, such as renting a car or bike when away on a
trip.
Needing a cheaper alternative to buying, such as renting a
movie: a person is unwilling to pay the full price for a movie,
so they rent it for a lesser price, but give up the chance to
view it again later.
Some merchants have rent-to-own programs, usually for expensive
items such as homes or appliances.
As seen from the examples, some rented goods are used on the
spot, but usually they are taken along; to help guarantee that
they are brought back, one or more of the following applies:
one shows an identity document
one signs a contract; any damage already present when renting
may be noted down to avoid that the renter is blamed for it when
the good is returned
one pays a deposit (also used for paying for small damage)
Sometimes the risk that the good is kept is reduced by it being
a special model or having signs on it than can not easily be
removed, making it obvious that it is owned by the rental
company; this is especially effective for goods used in public
places, but even when used at home it may help due to social
control.
If one regularly rents goods from a particular company, often
one has some kind of account, which reduces the administrative
procedure on each occasion.
Lending books from a library could be considered renting when
there is a fee per book. However the term lending is more
common.
This article is licensed
under the
GNU Free Documentation License. It uses material from the
Wikipedia article "Rental". |
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