Leasing real estate can be an extremely beneficial strategy for both the lessor and the lessee. For the lessor, his main benefit is that he or she does not have to put any money upfront to acquire the asset. Instead, the lessor can get a steady stream of rental income from the lessee in exchange for the use of the property. Additionally, this type of arrangement can provide the lessor with the opportunity to sell the property in the future at a higher price than what was originally paid due to the increased value of the asset.

The lessee can also benefit from a Leasehold arrangement. The lessee usually has full control of the asset and can customize the property to best suit their needs. For example, the lessee can install certain appliances or make certain repairs to the property as long as these upgrades are not deemed permanent. The lessee is also spared from many of the costs associated with owning a property. Furthermore, the lessee does not have to put any money upfront as required by mortgages.

In most cases, Leasehold agreements are long-term commitments, often lasting anywhere from 15 to 25 years. The lessee may also be obligated to pay the lessor taxes and insurance that cover the leased property, as agreed upon in the Leasehold contract. If the lessee does not keep up with their payments or otherwise breaches the terms of the contract, the lessor has the right to end the lease and repossess the property.

Overall, Leasehold agreements have become an increasingly popular real estate leasing strategy. It can be beneficial to both parties as it allows the lessor to receive regular payments in exchange for leasing out the property, and the lessee has access to the property without the financial burden associated with mortgages or buying the property outright.