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Renting
From Wikipedia, the free encyclopedia
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This article is about an agreement for payment for temporary use. For other uses, see
Rent (disambiguation).
"Rentals" redirects here. For the rock band, see
The Rentals.
Renting is an agreement where a payment is made for the temporary use of a good, service or
Contents
Reasons for renting
There are many possible reasons for renting instead of buying, for example:
In many jurisdictions (including
India,
Spain,
Australia,
UK and the
United States) rent used in a
trade or business is
tax deductible, whereas rent on a
dwelling is not tax deductible in most jurisdictions.
Financial inadequacy, such as renting a
house when one is unable to buy it. One may not wish to pay the full price that ownership would need, allowing for smaller payments over a specified period of time.
Reducing financial risk due to
depreciation and
transaction costs, especially for real estate which might be needed only for a short amount of time.
When something is needed only temporarily, as in the case of a special
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