lease-sourcing
Acquire assets
- plant & machinery
- vehicle on Lease Rental payable every month
Benefits to Lessor
- Claim depreciation
- pay less tax
Lessee
- No capital outlay.
- Lease Rental becomes admissible expenses, so you save Income Tax on LR
Property Inspection
Once potential lease options are identified, it is important to physically inspect the properties or assets to ensure they meet the required standards, are in good condition, and align with the lessee's needs.
Identifying Lease Needs
The process begins by determining the specific requirements for the lease. This includes defining the type of property or asset needed, the desired location, lease duration, budget constraints, and any special features or amenities required.
Market Research
Lease sourcing requires extensive market research to identify available properties or assets that meet the defined criteria. This involves searching online listings, working with real estate agents or leasing companies
Negotiation
Negotiating lease terms is a critical part of the process. This includes discussing rental rates, lease duration, maintenance responsibilities, security deposits, and any other terms or conditions that may be negotiable.
Due Diligence
Before finalizing a lease agreement, lessees typically conduct due diligence to verify the legal and financial aspects of the lease. This may involve reviewing lease documents, assessing the property's legal status, and confirming the landlord's financial stability.
Lease Agreement
Once both parties agree on the terms and conditions, a lease agreement is drafted. This legal document outlines the rights and responsibilities of both the lessor (property owner) and the lessee (tenant) during the lease period.
Signing and Execution
The lease agreement is signed by both parties, and any required deposits or fees are paid. The lease is considered executed and binding once all necessary documentation is complete.
Move-In and Commencement
For property leases, the lessee typically conducts a move-in inspection and takes possession of the property. For equipment or vehicle leases, the lessee may take delivery of the leased items.
Lease Management
Throughout the lease period, lessees are responsible for complying with the terms of the lease agreement, making regular lease payments, and managing any maintenance or repairs as specified in the agreement.
Renewal or Termination
At the end of the lease term, lessees may have the option to renew the lease or terminate it, depending on the terms negotiated in the original lease agreement.