Title: Leasehold Definition
Headings: Leasehold
Leasehold
What Is a Leasehold?
Key Takeaways
Understanding Leaseholds
Types of Leaseholds
Tenancy for Years
Periodic Tenancy
Tenancy at Sufferance
Tenancy at Will
Leasehold Improvements
Example of a Leasehold
Leasehold Interest
Leasehold FAQs
What Is a Leasehold Estate?
How Do You Depreciate Leasehold Improvements?
Which Type of Leasehold Has a Definite Beginning and Ending Date?
The Bottom Line
Article Sources

Content: Leasehold Definition
Corporate Finance & Accounting Accounting
Leasehold
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Alexandra Twin has 15+ years of experience as an editor and writer, covering financial news for public and private companies. Learn about our editorial policies
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Peggy James is a CPA with 8 years of experience in corporate accounting and finance who currently works at a private university. Article Reviewed on May 01, 2021
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Margaret James
Updated May 1, 2021
Table of Contents
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What Is a Leasehold? Understanding Leaseholds
Types of Leaseholds
Leasehold Improvements
Example of a Leasehold
Leasehold Interest
Leasehold FAQs
The Bottom Line
What Is a Leasehold? A leasehold is an accounting term for an asset being leased. The asset is typically property such as a building or space in a building. The lessee contracts with the lessor for the right to use the property in exchange for a series of scheduled payments over the term of the lease. Renting space in an office building for a company's use or renting a building to be used for a retail store are two examples of a commercial leasehold arrangement. Key Takeaways
A leasehold is an accounting term that refers to an asset or property that a lessee (tenant) contracts to rent from a lessor (property owner) for an agreed-upon time in exchange for scheduled payments. Owners of retail stores often use leasehold arrangements for their businesses rather than constructing their own buildings.