Operating leasing

3. The lessee acquires the right to use a durable good for a certain period of time, which may be long or short and not necessarily settled in advance. When the leasing period expires, the lessor expects to receive his good back in more or less the same condition as when he hired it out, apart from normal wear and tear. The lessor is then likely to hire out the good to another lessee or to use it otherwise. Thus, the leasing period does not cover all, or a predominant part of, the good's economic lifetime.

Units engaged in operating leasing possess expert knowledge about the kinds of durable goods they hire out. They keep stocks of these goods to be able to hire them out on demand or at short notice. Usually they offer a variety of models to choose from. In order to keep their durable goods in good working order, lessors must carry out maintenance and repair services on goods awaiting hire. Lessors also normally assume responsibility for repairs and maintenance of a good, as well as replacement in case of a breakdown, while the good is hired out to a lessee.

Operating leasing does not cover situations where the owner of equipment also provides staff to operate the equipment, or the hiring of non-produced assets, as these activities are classified elsewhere (see paragraph 7.).