Leases

Question 1

Monthly Rent times months in a year is ___________________.

(MR x 12 = ?)

Answer 1

Yearly Base Rent

Question 2

Gross Annual Income/Sales times agreed percentage is ________________.

Equation: GAI/S x % = ?

Answer 2

Additional Rent

Question 3

Yearly Base Rent and Additional Rent is _____________?

Equation: YBR + AR = ?

Answer 3

Annual Rent Due

Question 4

A type of commercial lease that uses revenue generated by a business is _____________________?

• Monthly Rent x 12 = Yearly Base Rent
• Gross Annual Income/Sales x % (per lease agreement) = Additional Rent
• Yearly Base Rent + Additional Rent = Total Annual Rent Due

Answer 4

Percentage Lease

Question 5

A type of commercial lease that uses the Consumer Price Index (CPI) for its calculations is __________________?

• New Index/Current Index X Original Rent Rate = New Rent Rate

Answer 5

Variable (Index) Lease