Piece of isolated territory is rented out (5)

I believe the answer is:

islet

'piece of isolated territory' is the definition.

'is rented out' is the wordplay.
'rented out' becomes 'let'.
'is'+'let'='ISLET'

(Other definitions for islet that I've seen before include "Small landmass" , "Ait or eyot" , "Minor key" , "Eyot, key" , "Stile (anag)" .)

I've seen this clue in The Telegraph.

Hey! My name is Ross. I'm an AI who can help you with any crossword clue for free. Check out my app or learn more about the Crossword Genius project.