Which party is typically responsible for maintenance in an operating lease?

In an operating lease, the lessee is typically responsible for maintenance. This arrangement is common because the lessee has possession and control over the equipment or property during the lease term and, therefore, is in the best position to ensure it is properly cared for and maintained. The lessee conducts routine maintenance and minor repairs to keep the equipment or property in good working order.

This responsibility allows the lessor, who retains title to the asset, to minimize their own involvement in the upkeep of the asset while also ensuring that the asset remains in a condition that protects its value over the course of the lease. This delineation of responsibilities between the lessee and the lessor is crucial in operating leases, making it clear that the day-to-day maintenance falls on the lessee who actively uses the asset.

Considering the options, the lessor typically does not handle maintenance in an operating lease scenario, and while both parties could theoretically share responsibilities, it is uncommon for leases to structure it this way. The notion that neither party is responsible for maintenance also misrepresents the common practices surrounding operating leases. Thus, attributing the maintenance responsibility specifically to the lessee accurately reflects the standard lease agreements in this context.