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| Rent |
| Rent is the
compensation paid by the tenant for the
temporary use of the owner's property. |
| |
| Rent
control |
| Rent control refers to laws or
ordinances that set price controls on the
renting of residential housing. It functions
as a price ceiling. Rent control exists in
approximately 40 countries around the world.
Rent control laws vary from one country to
another, and may vary from one jurisdiction
to another within some countries |
| |
| Unregulated rent increases may be
allowed when a tenant moves ("vacancy
decontrol"). |
| |
| Rent control is considered necessary by
some states and provinces to protect the
public and to prevent landlords from
imposing rent increases that cause key
workers or vulnerable people to leave an
area. Maintaining a supply of affordable
housing is believed to be essential to
sustaining the local society. Homeowners who
support rent control point to the
neighborhood instability caused by high or
frequent rent increases and the effect on
schools, youth groups, and community
organizations when tenants move more
frequently. |
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|
Rent Free Period |
| Rent free period is
the time granted to a tenant by the landlord
to occupy the premises at no cost as
incentive to signing a
lease, usually done in commercial
properties. |
| |
| Generally, the rent
free period applies only to base rent and
any additional rent, such as utilities must
be paid by the tenant. In a rent free
period, the landlord can maintain the
desirable per square foot rate on the lease
while still offering incentives for the
potential tenants. |
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| In most situations,
land free periods start prior to the
commencement of the actual lease. |
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|
Rent Roll |
| A term mostly used in
multi-unit residential or commercial
properties when referring to a detailed
listing of tenancies within an industrial,
office/retail or investment property. |
| |
| Rent Roll may
included: names and contact phone numbers of
all tenants, suite number, annual rent, any
prior and future rent increases, lease
expiration, original copies of all rental
contracts, last month's or security deposits
if any, additional rents, options and lease
expirations. |
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|
Rentable
Area |
|
Rentable area includes the usable area
within the office plus shared areas of the
floor and building such as:
Corridors, Lobbies, Toilet Rooms, Electrical
Closets, Mechanical Spaces |
| |
| BOMA (Building Owners and Managers
Association) has established standards for
calculating usable and rentable areas. The
calculations should be standard from
building to building. |
| |
| The rentable area is
normally used as the basis for determining
base and additional rents. For example, a
leased space for a tenant on a multi-tenant
floor may have useable are of 2,500 square
feet with a rentable are of 3,000 square
feet, the additional 500 square feet
represents the proportionate allocation of
common areas on that particular floor. |
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|
Rentable
Factor |
|
Rentable/Useable Factor; is the
mathematical relationship between rentable
and
useable areas in commercial real estate
often referred to as an efficiency factor. |
| |
| R/U Factor
Formula |
| Rentable Area ÷
Useable Area = R/U Factor |
| Rentable Area + R/U
Factor = Useable Area |
| Useable Area x R/U
Factor = Rentable Area |
