Quick Answer: A lease is a contractual arrangement calling for the user to pay the owner for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment are also leased. In essence, a lease agreement is a contract between two parties: the lessor and the lessee. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. For example, a person leasing a car may agree to the condition that the car will only be used for personal use. The term rental agreement can refer to two kinds of leases: • A lease in which the asset is tangible property. Here, the user rents the asset let out or rented out by the owner. Examples of a lease for intangible property include use of a computer program, or use of a radio frequency. • A periodic lease agreement internationally and in some regions of the United States.