Parties to a lease › Lessor vs lessee
Lessor vs lessee — who is who in a lease agreement
In every lease there are two named parties: the lessor (the property owner granting the right to use it) and the lessee (the party receiving that right and paying rent). Here is what each role means and how they differ.
Quick definition
| Lessor | Lessee | |
|---|---|---|
| Plain English | Landlord / property owner | Tenant / renter |
| Receives | Rent payments | Right to use the property |
| Owns the property | Yes | No |
| Maintains structure | Yes | No |
| Pays utilities | Usually no (varies) | Usually yes (varies) |
| Can sublet | N/A — owns it | Only with lessor's written consent |
Lessor responsibilities
- Deliver the property in a habitable condition.
- Maintain structural integrity, plumbing, heating, and any included appliances.
- Comply with all applicable housing codes and disclosure laws.
- Provide proper notice (commonly 24 hours) before entering the property.
- Return the security deposit minus any lawful deductions within the state-mandated deadline.
Lessee responsibilities
- Pay rent on time and in the agreed currency and method.
- Use the property only as a residence (or for the business purpose stated in a commercial lease).
- Keep the property reasonably clean and report damage promptly.
- Refrain from making structural changes without the lessor's written approval.
- Vacate at the end of the lease term, leaving the property in the same condition (less ordinary wear and tear).
Sublessor and sublessee
When a lessee rents the property — or part of it — to a third party, the original lessee becomes the sublessor and the new occupant is the sublessee (or subtenant). The original lease between lessor and lessee remains in force; the lessee is still liable to the lessor.
Lessor and lessee in commercial leases
The same vocabulary applies: a commercial lessor is the building owner or property manager, and a commercial lessee is the business occupying the space. Commercial leases are typically longer (3 to 10 years), include CAM (common area maintenance) charges, and are heavily negotiated rather than offered as a standard form.
Frequently asked questions
Who is the lessor in a lease agreement?
The lessor is the party that owns the property and grants the right to use it in exchange for rent. In a residential lease the lessor is the landlord; in a commercial lease the lessor is usually the building owner or property manager acting on the owner's behalf.
Who is the lessee in a lease agreement?
The lessee is the party that receives the right to use the property in exchange for paying rent. In a residential lease the lessee is the tenant; in a commercial lease the lessee is the business renting the space.
Are lessor and landlord the same thing?
In residential renting, yes — the lessor and the landlord refer to the same party: the property owner who grants occupancy. "Lessor" is the formal contract term; "landlord" is the everyday word.
Is the lessor or lessee responsible for repairs?
In most jurisdictions the lessor (landlord) is responsible for major structural repairs and code-compliance maintenance. The lessee (tenant) is responsible for day-to-day cleanliness and damage caused beyond ordinary wear and tear.