II.

Types

Real estate rent was originally compensation to the owner of land for its use. In agricultural societies a tenant could pay for the right to use land with the income earned from the produce. Industrialization brought about an extension of rent to residential and commercial uses. Rent is no longer paid for the land alone, but for buildings and other improvements as well.

Non-real estate rent is a fee paid for the temporary use of machines and commercial equipment or for certain consumer goods, such as automobiles, appliances, and furniture. This type of leasing for a specified period of time can save the user costs in comparison to the purchase price of the item.