leasehold improvements

  

Definition

Improvements performed on a leased property, such as additions, alterations, remodeling, or renovations.

For accounting purposes, all leasehold improvements are capitalized (recorded as an asset with a corresponding liability) and amortized over the remaining life of the lease term or the life of the improvement (whichever is shorter). Upon termination of the lease, such improvements normally become the property of the owner (lessor) without any cost or obligation.


Use this term in a sentence

  • You should try to ask the person you are renting from if they are ok with any of the leasehold improvements that you make.

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  • There were a lot of leasehold improvements and it made all of us happy because before everything was impvoed it was bad.

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  • The leasehold improvements indicated a rise of standard of living in the area so expected property values to rise as well.

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