What type of financial arrangement includes both a rental agreement and the asset's usage?

A lease is a legal agreement in which one party (the lessee) pays the other party (the lessor) for the right to use an asset for a specified period. This arrangement typically involves the rental of property, equipment, or vehicles, and it grants the lessee the right to use the asset while the lessor retains ownership. The important aspects of a lease are that it defines the terms of usage, rental payments, and the duration of the arrangement, differentiating it from mere rental agreements which may not provide the same level of access or rights over the asset.

In contrast, alternative options like a rent-to-own agreement usually involve a path toward ownership, where part of the rental payments may eventually be applied toward the purchase price of the asset. Short-term rentals, on the other hand, are typically for brief periods and may not provide the same legal structure as a lease, as they often lack the detailed rights and obligations. A sales contract, meanwhile, signifies a transaction where ownership is transferred from one party to another, rather than just granting usage rights.

Thus, a lease stands out as the most comprehensive type of financial arrangement that encompasses both the rental aspect and enables the usage of the asset according to the agreed terms.