An operating lease is a rental agreement where the lessee (the user) pays to use an asset, such as equipment or property, without owning it. This type of lease typically lasts for a shorter term than the asset's useful life, allowing the lessee to return the asset at the end of the lease period without any obligation to purchase it. In an operating lease, the lessor (the owner) retains ownership and is responsible for maintenance and other costs. This arrangement is common for businesses that need flexibility and want to avoid the long-term commitment of purchasing assets outright, such as vehicles or office equipment.