Renting equipment is common practice among many industries. When an organization lacks equipment for their business, they make an agreement to rent from someone or a company. This is called an equipment rental agreement. The owner of the equipment then becomes the lessor, and the party who receives those pieces is called the lessee. Many companies can’t buy all the equipment that they need for the project they engage in. Equipment, especially machinery, is expensive. So instead of buying expensive equipment that they might not even use often, they rent for periods of time.