Question

What was called ‘rent’?

Answer 1

Hint:
- It's also referred to as hiring or letting.
- It could be a sharing economy example.

Complete answer:
Rent has two meaning -
i) A 'rent' is a resource obtained from farmers, such as peasants, cattle-keepers, and artisans, who were frequently persuaded or forced to surrender a portion of what they made. The lord who owned the land takes this.
Ii Renting, also known as hiring or letting, is a contract in which one party pays for the temporary use of another's good, service, or property. A gross lease is one in which the occupant pays a set monthly rent and the landlord covers all of the property's daily expenses.

Reasons for renting –
i) The tenant may choose to delegate responsibility for property maintenance (mowing the lawn, shoveling snow, etc.) to the owner or his agents.
ii) There's no need to be concerned about longevity or upkeep.
iii) Renting keeps debt off the balance sheet that would otherwise be a burden on a company's balance sheet if the property had been purchased.
iv) Renting is environmentally friendly if goods are used more effectively by optimizing utility rather than being discarded, overproduced, or underutilized.
v) Instead of excessively relying on a sluggish or slowing retailing market climate, renting also becomes an alternative revenue stream for idle inventory.
vi) Inadequacy of funds, such as renting a home while unable to buy one, i.e., "renting by need."
vii) Reducing financial risk due to depreciation and transaction costs, especially for real estate that will only be used for a short time.

Note: Leasing is the renting of personal or real property for periods longer than a year that is regulated by the signing of a contract. Leasing is widely used in industry and by customers for high-value capital equipment. A finance lease is one in which the renter profits from a rise in the asset's value. An operating lease is a rental arrangement that is not a finance lease.