How / When are rent charges considered an asset?

Answer 1

Assets make you money. Liabilities cost you money. Renting is a liability never an asset, unless renting is allowing you to turn some sort of profit.

Answer 2

Wouldn't one way be when you rent a store for your business? Any time that you rent property for business purposes, that would be considered an asset, wouldn't it? My last accounting class was in 1990. That seems lodgical, doesn't it?

Answer 3

Prepaid rent can be considered an asset in the accounting world.

If you paid 6 months rent in advance, you would show an asset which you would reduce accordingly as each month passed.

For your average apartment dweller who pays rent each month, rent is not considered an asset.

Answer 4

Rent is never considered an asset since you will never own anything in you name or gain any credit in your name. Might as well burn your money. Renting never gets you anywhere and is , in my book, considered more of a liability. tmarie

Answer 5

if your paying rent then it is never an asset? its money down the drain. you are better off trying to get a cheap condo that you own.

Answer 6

when you own the property. but they would be revenue on the IS not in the balance sheet. so technically they would never be an asset.