Lessee
Definition and meaning of Lessee in real estate.
A lessee is an individual or business entity that acquires the right to use and occupy a property under a lease agreement. The lessee is commonly referred to as the tenant and is responsible for making regular payments to the property owner.
In more detail
The lessee must adhere to all terms specified in the contract, including paying rent on time, maintaining the property, and obeying community guidelines. While the lessee holds a leasehold interest that grants them possession, they do not have ownership rights to the real estate. If the lessee breaches the lease agreement, such as by housing unauthorized pets or subleasing without permission, they can face eviction.
At the end of the contract term, the lessee must return possession of the property to the owner in good condition.
Key facts
| Category | Leasing & Property Management |
|---|---|
| Also known as | Tenant, renter, occupant |
| Who pays | The lessee pays rent and security deposits to the lessor |
| Watch out for | Eviction or legal penalties if you violate the lease terms |
A college student signs a lease to rent an apartment for the school year, officially becoming the lessee of the unit and agreeing to pay monthly rent.
Frequently asked questions
What are the basic rights of a lessee?
A lessee has the right to occupy the property, the right to quiet enjoyment, and the right to a habitable living environment that meets health and safety standards.
Can a lessee sublet the property to someone else?
A lessee can only sublet the property if the lease agreement explicitly permits it or if the landlord grants written permission.
Related terms
Sources & references
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