what is the difference between base or face rents and effective rents course hero quizlet

What is the difference between base or face rents and effective rents?

What is the difference between base or face rents and effective rents? Base rents reflect rent that will be paid per rentable square foot of leased space. It doesn't include additional items such as finish out costs, expense pass throughs, and other costs that are included when calculating effective rents.

How does the use of leases and lease terms shift the risk from lessor to the lessee how might this affect the base rent?

How does the use of leases shift the risk from lessor to the lessee? Leases determine how much risk will be borne by the lessor versus the lessee. Future increases in market rent are compensated for by including an inflationary adjustment, such as a CPI adjustment.

Which of these is the most cost effective method for attracting tenants to a property?

Which of the following is the MOST cost effective method for attracting tenants to a property? The answer is securing referrals from satisfied tenants.

Under which of the following types of leases must a lessee pay some or all of the landlord's property expenses?

triple net leasesThere are three basic types of net leases: single, double, and triple net leases. With a triple net lease, the tenant promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These payments are in addition to the fees for rent and utilities.

How does the use of leases shift the risk of rising operating expenses from lessor to the lessee?

How may the use of leases shift the risk of rising operating expenses from the lessor to the lessee? Future increases in market rents are compensated for by including as inflationary adjustment such as a consumer price index (CPI). The lessee is responsible for any unexpected increase in the level of inflation.

How does the use of leases shift the risk from lessor to the lessee?

How does the use of leases shift the risk from lessor to the lessee? CPI Adjustment- In the case of a CPI adjustment, the risk is shifted to the lessee, because the change in rents is not known in advance. Also, by adding expense stops provisions in the lease.

How do you attract tenants in a tough market?

Ways To Attract Commercial TenantsOffer Building-Wide Fiber-Optic Internet Connectivity. ... Perform Energy-Efficient Improvements. ... Consider Offering Shared Amenities. ... Ease Parking Access. ... Facilitate Cost-Savings. ... Perform Tenant Satisfaction Surveying. ... Engage Tenants in Conservation Efforts. ... Understand Your Market.More items...•Feb 9, 2016

How do you attract a good tenant?

How to Attract Long-Term TenantsOffer New Tenants a Warm Welcome. ... Be Responsive with Tenants. ... Promptly Attend to Maintenance and Repair Issues. ... Respect Tenants' Privacy. ... Be Flexible with Rental Policies. ... Consider Safety Features and Amenities. ... Offer a Reasonable Yearly Rent Increase. ... Collect Rent and Other Payments Online.More items...•Mar 5, 2021

What law in most states indicates that most leases should be in writing to be enforceable?

Verbal and Written Agreements California's Statute of Frauds requires a lease to be in writing if it either: 1. has a term longer than one year; or 2. has a term less than one year which expires more than one year after the agreement is reached.

What are the 3 main types of lease?

The three main types of leasing are finance leasing, operating leasing and contract hire.

What are the 2 types of leases?

The two most common types of leases are operating leases and financing leases (also called capital leases). In order to differentiate between the two, one must consider how fully the risks and rewards associated with ownership of the asset have been transferred to the lessee from the lessor.

In which type of lease does a landlord receive a portion of the tenant's revenue each month in addition to a base rent?

percentage leaseA percentage lease is a type of lease where the tenant pays a base rent plus a percentage of any revenue earned while doing business on the rental premises. It is a term used in commercial real estate.

What is a play lease?

PLAY. one of two types of leases based on payment of expenses of the leased property and provides for the landlord (lessor) to pay all expenses. Expenses may include property taxes, landlords insurance, liability insurance and maintenance.

What is triple net lease?

one of two types of leases based on payment of expenses of the leased property and here the tenant (lessee) pays some for all of the expenses, sometimes called net, double net or triple net leases; it depends on how many property expenses the tenant pays. triple net lease.

What is a sale lease back?

sale lease back. a transaction in which a property owner sells a property to an individual who immediately leases back the property to the seller. dollar stop clause. also called a operating stop/tax stop or expense stop clause this provision charges the tenant for increases in operating expenses during the lease term.

What is index in leasing?

is a method of determining rent on long term leases. the rent is tied to an index. an index is a value estimate and economic indication that banks use to adjust interest rates. this is a type of escalation cost. flat lease.