A lease schedule is a document which is attached to a master lease agreement. Its primary function is to show when the lease payments are due and in what amounts, although it may include other information such as a detailed description of the property, right or object being leased and other terms. Lease terms included on a lease schedule vary according to local laws but usually only relate to the length of the lease, the number of payments to be made, and payment dates.
When one party allows another party to use an asset in exchange for payment, the arrangement is called a lease and is a legally binding contract. The party with the asset is called the lessor and the party paying to use the asset is the lessee. Renting living space and automobiles are two common types of arrangements handled by a lease, but almost any physical or intellectual property or right can be leased. A lease includes legal terms and stipulations as set forth by the lessor and, by signing the lease, agreed to by the lessee.
The original lease agreement is called a master lease. Each time a master lease is created, a supplemental document called a lease schedule may also be created. The lease schedule sets out the payment dates and other chronological events under the lease such as inspections, maintenance, and terms of renewal. It is a way to tie the way the lease is carried out with the calendar so that both parties may be clear on when payments are due and when other events pertinent to the lease happen.
Some leases include a lease amortization schedule. This is used for leases which give the lessee the option of purchase at the end of the lease with the price based upon the amounts paid during the lease as may happen with an automobile lease. The lease amortization schedule is a table that shows how much of the lease payments are credited against the interest, how much are credited against the principal or purchase price and how much remains of the principal after each payment.
Each time the master lease is amended or changed, a new lease schedule is created to reflect these changes. It can include a change in payment amount as agreed upon by both parties or other terms such as payment frequency, date of payment or length of lease. A new lease schedule is generally only binding if agreed upon by both the lessor and the lessee.