Rental Building Accounting Question

Q: My question is whether a rental building is an asset for the person or company who pays the rent?

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Renovation Costs for Rented Building
by: Anonymous

Are the renovation costs (whose amounts are material) incurred for rented buildings, still expensed or should they be capitalised?

Thanks
Comment - Classifying Rent
by: Anonymous

The rental building is an asset to the owner of the building because it is owned by the owner, and it is generating benefits to the owner's rental business. For the company paying the rent, the rental payment is their expense, they don't own the rental building so it's not an asset to them.
Neither
by: Anonymous

It is an asset for the owner of the building. You or your company are paying a rent expense each month.

However if the rent is prepaid, the payment is an asset because you have not used your occupancy for the month.

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