Rent and Expenses

The Rent and Expenses page allows the user to capture the fixed rental fee(s) and additional costs incurred by the business to utilize the property within a specified term in the lease:

Minimum Rent

The Minimum Rent section is used to define the Base Rent due under the terms of the lease.

Populate any known values in this section as follows:

1. Rent Begins: The user can either use the calendar icon or manually input the effective date set forth in the lease to start payment of rent.
2. Rent Increases: The user can either use the calendar icon or manually input the effective date set forth in the lease for the current rent amount to increase.
3. Amount ($): Enter the specified rental amount set forth in the lease to be paid over a defined period.
4. Amount Type: Use the drop-down menu to select either Monthly, Annual or Annual Rate/SF. This will dictate how the value in the Amount ($) field will be calculated.
5. Increase (%): Enter the percentage rate set forth in the lease in which the rent will increase during predefined periods in the future.
6. Tax Rate: The percentage of an amount of money that is required to be paid as sales tax on the rent amount. The tax rate is the tax imposed by the federal government and some states, where applicable. Use the drop-down menu to select from the list of values.

Percentage Rent

The Percentage Rent section is used to define the rent to be paid or collected in addition to the Minimum rent, if any, which is based on a percentage of gross sales as defined under the terms of the lease.

Percentage rent would kick in after a certain amount of gross sales are met. The point at which percentage rent is paid is called a “Breakpoint” and can either be a natural or artificial breakpoint. If the breakpoint is never met, the tenant is only obligated to pay the Fixed/Minimum Rent.

Populate the following values in this section if known:

1. Breakpoint Type: The point at which percentage rent is paid is called a “Breakpoint” and can either be a natural or artificial breakpoint. If the breakpoint is never met, the tenant is only obligated to pay the Fixed/Minimum Rent.
2. Breakpoint Amount ($): Enter the Natural or Artificial Breakpoint amount set forth in the lease.
3. % Rent Rate (%): Enter the percentage rent rate used to calculate the amount of percentage rent to be paid based on sales which exceed the breakpoint.

Other Expenses

The Other Expenses section is used to define the Additional Rent or other costs and charges required to operate the property (e.g. municipal taxes, insurance premiums, repair and maintenance costs, utilities, etc.).

Populate any known values in this section as follows:

1. Cost Type: The detail description of the payment type to be used. Use the drop-down menu to select from the list of values.
2. Amount ($): Enter the specified rental amount set forth in the lease to be paid over a defined period.
3. Amount Type: Use the drop-down menu to select either Monthly, Annual or Annual Rate/SF. This will dictate how the value in the Amount ($) field will be calculated.
4. Reconcilable: Click the box beside each Cost Type if the cost is to subject to periodic reconciliations.

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