Commercial Leasing

Commercial leasing refers to a process by which a property is rented by a business entity for a certain period of time. Common types of commercial leasing include office space, retail shops and warehouses.

1,370 Questions
Auto Loans and Financing
US in WW2
Commercial Leasing

How is a lease agreement terminated?

Read the contract. It generally contains a termination clause specifying how and under what circumstances it can/will be terminated.

251252253
Commercial Leasing
Australia

How much space per person in Australia?

The population density of Australia is less than three people per square kilometre.

207208209
Business Accounting and Bookkeeping
Commercial Leasing

Definition of over budget?

-adjectivecosting or being more than the amount alloted or budgeted: The building is half-finished and it's already overbudget.

171172173
Commercial Leasing

How does a lease to buy work?

Agree with most everything below but there are caveats that both Seller and Purchaser should be aware of.

First and foremost is a Lease Purchase Option is usually a unilateral contract. Meaning the buyer has an "option" to purchase or not purchase the property at or before contract end. This is key as a normal Real Estate sales agreement is bi-lateral an requires one party to sell and the other to purchase. Bottom line is both parties are tied into the contract (we won't discuss contract contingencies here), whereas in an Option to buy, only the Seller is tied into selling . So why would a seller agree to this arrangement? The obvious reason is, it is more financially beneficial to him/her. I can discuss this further if anyone is interested - just post it here.

Secondly, seller's need to realize that the Lease part of the agreement may or may not allow the purchaser certain rights over and above what is typically allowed for a "rental".

Usually this involves a lease for a specific term, during which the lessee has an option to purchase either before or at the end of the lease. All or part of the rental payments may be credited towards the purchase price. The purchase price or option price needs to be stated up front.

Actually people get "lease" and "options" messed up and believe they are one in the same when they are not!!!!!!

A lease purchase is when you put some money down upfront and then maybe some of the monthly rental payment goes toward a deposit on purchasing the home.At the end of the lease purchase you have agreed to purchase that home at a specified price and terms,usually there is a dispute that arises as to who keeps the earnest money if the deal falls through,investors are shying away from lease purchases because it creates a "beneficial interest"in the property for the buyer which gives them a stake in the home and complicates things.

Lease options is what most investors are using now,a lease option gives the buyer no beneficial interest in the property.For example i own a property for 150k i will give the buyer a lease option for which they will pay me 3,000 for the OPTION of purchasing the home at that fixed price by the date specified in the contract,if they decide they don't want to buy at that time i can sell to someone else but the 3,000 is mine and is not a deposit on the property merely consideration for me giving them the option to buy my house at that price.

164165166
Law & Legal Issues
Minnesota
Commercial Leasing
Landlord-Tenant Issues

Can a former landlord charge the tenants to change the locks on the property?

No, a former landlord can't charge the tenants to change the locks on the property. All sorts of situations can happen between landlords and tenants when it comes to changing locks. Whether landlords change the locks or tenant changes them, both need to know what otherone can and cannot do. So all should know evrything before going to buy a property. I have some idea regarding Las Vegas Eviction Services of RocketEviction, which offers quick, efficient Nevada eviction services for apartment complex owners, high-rise condominium owners and other multi-family rentals in Clark County, Nevada.

137138139
Apartments and Home Rentals
Property Law
Commercial Leasing
Landlord-Tenant Issues

What is the difference between 'for rent' and 'for lease' rent and lease?

When you rent out a property, you will need to decide if you wish to offer your tenants a lease or a rental agreement. Although these terms are often used interchangeably, they are not the same.

A lease for a rental property has a finite term, such as six months or a year, for which

a tenant will agree to rent the property. During this time period, also known as the duration of the lease, the tenant and the landlord are bound to uphold the terms of the written agreement.

Having a lease means that neither party may change any terms of the agreement until the lease expires, unless both parties agree to the change. For example, if the current amount of rent is $500 per month, you may not increase this amount until the lease expires.

Under a lease, tenants are obligated to make monthly rent payments as agreed upon, as well as follow any code of conduct or other stipulations in the lease while it's in effect. It also means that a tenant may not vacate the property without breaking their lease. In some cases, the tenant may be held liable for the remaining amount of rent due under the lease, or they may be required to find another person to fulfill their end of the lease.

A lease is generally used for landlords who prefer the stability that comes with locking in a tenant for a specified period of time. If you have a mortgage payment to meet, having this set amount of income can help you budget your expenses. Most tenants are familiar with long-term leases, and will not have a problem committing.

Rental agreements differ from leases in a number of ways. Standard rental agreements are month-to-month, and there is no set period of residence. Both the landlord and tenant are free at the end of each 30-day period to make changes to the rental agreement, subject to any rent control laws.

These changes may include a rent increase, modification of terms of the rental agreement, or a request to vacate the property. However, in most states, both landlord and tenant are required to give 30 days' notice before any changes can be made. If your state does not require a notice, you are free to change any part of the rental agreement at your discretion.

Rental agreements are useful for landlords who are having difficulty attracting new tenants, especially if they are in areas that cater to students or professionals on the move. They appreciate the freedom a month-to-month agreement provides, and landlords who offer these arrangements may have an edge over landlords who require long-term leases.

A rental agreement is typically auto-renewed without notice after each 30-day period has elapsed, as long as neither party has stated that the tenant will vacate the premises.

Before you rent out your property, you will need to take into account the differences between a lease and a rental agreement. This will allow you to make the best decision for your needs.
Leasing is when you are renting but you have a contract to rent for a certain amount of time. If you leave before this time is over, you will still be charged with that rent.

596061
Computers
Computer Buying
Commercial Leasing

For a high technology item such as computer equipment is a lease option preferable to buying and why or why not?

Definitely Buying as a general guideline, and in most cases . However, if you plan to use your computer for a short period and then return it, or if for tax expenses purposes, your accountant could tell you that a lease is may or may not be a better way(in your case), because considered as an expense for your business. Do not forget that if you lease, you can choose an option to buy the computer and use already the amounts paid(or portion of them) to pay the machine. Today a good computer is not that expensive to justify the option of a lease. I hope to have answered your question

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Computers
Business & Finance
Computer Buying
Commercial Leasing

For a high-technology item like computer equipment is the lease option preferable from the very outset and why?

This argument has changed thru time as tax and accounting law has evolved. In the past, if you purchased an expensive piece of equipment like a computer (which used to cost about $10k in 1982) and paid for it outright, you had to use standard depreciation tables and could only take a portion of the value each year as a deduction. It might take you 10 years to finally write off that computer even though you through it away 7 years before. This was because a computer at the time cost about as much as a pick up truck and the IRS depreciated many expensive items the same way regardless of their "real" lifespan. (Computer equipment becomes obsolete in a short amount of time lets say compared to a bulldozer or industrial compressor which could last for 20 years or more.)

Leases solved that problem for many companies. Because a lease in really only a long term rental agreement (with a cheap buyout), businesses wrote off every payment as they were made. They didn't have to wait for 10 years or more. They also didn't have to take an accounting hit as the lease was cloaked as "equipment rental" and there was no visible long term liability. This created a huge tax and accounting incentive to lease over buy.

When FASB accounting principals changed a few years ago, leases of computers, car and other expensive items now had to be "capitalized", and the company had to show on their balance sheets a corresponding liability for each lease. This made leasing not as attractive for some businesses already saddled with lots of debt on their books.

Regardless of buy or lease, unless there is a substantial (say 40% or more) residual value, it really doesn't matter. Just be warned that many small item leases have buried interest rates (they call them "factors") of 20% APR or more. So buy it if you want to save money and don't pay an outrageous interest rate just to say you "leased it". The hidden lease charges will usually more than offset any tax advantage.

A lease option is preferable for the following reasons:

1. You are not saddled with obsolescence (typical of a high tech item). You can return the item / upgrade without much trouble (depending on the type of lease).

2. Usually high tech items depreciate very fast - hence if you plan to use the computer equipment for a short period of time, it is a good idea to lease it.

129130131
Property Law
Commercial Leasing
The Difference Between

What is the difference between a license and a lease of property?

A license is a contractual right to do something on a property, whereas a lease is a property interest that includes possession of the property, often containing the right to sub-license specified uses of the property.

For example, you could lease a warehouse from someone and have a license to use it as a public storage facility, provided you paid a percentage of the generated income to the landlord.

858687
Apartments and Home Rentals
Commercial Leasing
Landlord-Tenant Issues

If you move before your lease is over do you have to follow the rules of the lease since you never received a copy?

Yes you have to follow the terms of the lease. You are however entiltled to a copy of it, and I owuld ask for it. Some leases will include a clause that gives the renter the option to break the lease early if 30 written notice is given. Some rental companies will also allow a lease to be broken if they are given enough notice to rerent the place before the current residents vacate. I would get a copy of the lease and see how it reads and if any of these options are available to you!

919293
Real Estate
Commercial Leasing
Commercial Bank and Checking Accounts

In relation to commercial office leasing what does encumbered space mean?

It means clustered, or full.

777879
Business Accounting and Bookkeeping
Commercial Leasing
Business Finance

What is the difference between hire purchase and lease?

A lease transaction is a commercial arrangement whereby an equipment owner or Manufacturer conveys to the equipment user the right to use the equipment in return for a rental. In other words, lease is a contract between the owner of an asset (the lessor) and its user (the lessee) for the right to use the asset during a specified period in return for a mutually agreed periodic payment (the lease rentals). The important feature of a lease contract is separation of the ownership of the asset from its usage. Lease financing is based on the observation made by Donald B. Grant: "Why own a cow when the milk is so cheap? All you really need is milk and not the cow." Hire purchase is a type of instalment credit under which the hire purchaser, called the hirer, agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of principal as well as interest, with an option to purchase. Under this transaction, the hire purchaser acquires the property (goods) immediately on signing the hire purchase agreement but the ownership or title of the same is transferred only when the last instalment is paid. The hire purchase system is regulated by the Hire Purchase Act 1972. This Act defines a hire purchase as "an agreement under which goods are let on hire and under which the hirer has an option to purchase them in accordance with the terms of the agreement and includes an agreement under which: 1) The owner delivers possession of goods thereof to a person on condition that such person pays the agreed amount in periodic instalments 2) The property in the goods is to pass to such person on the payment of the last of such instalments, and 3) Such person has a right to terminate the agreement at any time before the property so passes". Hire purchase should be distinguished from instalment sale wherein property passes to the purchaser with the payment of the first instalment. But in case of HP (ownership remains with the seller until the last instalment is paid) buyer gets ownership after paying the last instalment. HP also differs form leasing. Meaning A lease transaction is a commercial arrangement, whereby an equipment owner or manufacturer conveys to the equipment user the right to use the equipment in return for a rental. while Hire purchase is a type of instalment credit under which the hire purchaser agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of principal as well as interest, with an option to purchase. In lease financing no option is provided to the lessee (user) to purchase the goods. Where by in Hire purchase option is provided to the hirer (user). Lease rentals paid by the lessee are entirely revenue expenditure of the lessee. While in case of higher purchase only interest element included in the HP instalments is revenue expenditure by nature. Components Lease rentals comprise of 2 elements (1) finance charge and (2) capital recovery. HP instalments comprise of 3 elements (1) normal trading profit (2) finance charge and (3) recovery of cost of goods/assets.

414243
Real Estate Leasing
Commercial Leasing
Landlord-Tenant Issues

Do you need money down for a triple net lease?

There is no law requiring money down on a triple net lease, so any required down payment would be up to your landlord. Keep in mind that you will need to start paying property taxes, building maintenance, tenant improvements, etc. immediately after you sign the lease. Those expenses can add up quickly, so be sure to have sufficient funds set aside before signing the lease.

575859
Commercial Leasing

What is superannuation in private sector in India?

Hi !

Here is some information on Superannuation Fund.

a) Superannuation Fund is a retirement benefit given to employees by the

Company.

b) Normally the Company has a link with agencies like LIC

Superannuation Fund, where their contributions are paid.

c) The Company pays 15% of basic wages as superannuation

contribution. There is no contribution from the employee.

d) This contribution is invested by the Fund in various securities as per

investment pattern prescribed.

e) Interest on contributions is credited to the members account. Normally

the rate of interest is equivalent to the PF interest rate.

f) On attaining the retirement age, the member is eligible to take 25% of

the balance available in his/her account as a tax free benefit.

g) The balance 75% is put in a annuity fund, and the agency (LIC) will

pay the member a monthly/quarterly/periodic annuity returns

depending on the option exercised by the member. This payment

received regularly is taxable.

h) In the case of resignation of the employee, the employee has the

option to transfer his amount to the new employer. If the new

employer does not have a Superannuation scheme, then the employee

can withdraw the amount in the account, subject to deduction of tax

and approval of IT department, or retain the amount in the Fund, till

the superannuation age.

Normally Companies do not extend the Superannuation benefits to all employees- but only to a specific category of employees - like for example Level-1 of Managers onwards..

373839
Commercial Leasing
Project Management
Buildings

Are utility cost part of common area maintenance costs?

This article covers CAM fairly well. The simple answer is yes. http://www.goulstonstorrs.com/uploadedFiles/Newsstand/Media_Articles/goulstonstorrsreprint.pdf NO......................

575859
Michigan
Commercial Leasing

What is the average cost per square foot for leasing a commercial building in Milwaukee county?

That's way too vague a question...Milwaukee County has ritzy areas, blue collar areas, and a full blown ghetto. When looking for residential or commercial property in the Milwaukee area, I suggest that if the address is north something, you go with a numbered street over 60. eg 1234 N. 61st street or 7240 N. 89th street. If the address is south something, look for addresses 3000 or more when looking at numbered streets. eg 3200 S 18th street or 5740 S 92nd street. If the address is south and then a name, anywhere is okay. eg 4139 S Taylor. East and west: I suggest you stay away from any address 2900 south thru 100 south and 100 north thru 4000 north. If you look at a map, avoid Oklahoma to Capital and the lake to 60th, but know that there are a lot of nice places scattered within that area. You really need to TALK to someone who lives in Milwaukee. Good luck.

535455
Business & Finance
Commercial Insurance
Sales and Customer Service
Commercial Leasing
How To

How to calculate commission?

multiply the money by the percent and divide the sum by the amount of people working on the deal

91011
Real Estate Leasing
Commercial Leasing
Landlord-Tenant Issues
Mutual Funds

What is an NNN Lease?

NNN lease means triple net lease which is common in commercial leases. "Net Lease" is a term used to signify a lease structure in which the tenant or lessee is responsible for paying a portion all of the common expenses related to real estate ownership.

474849
Apartments and Home Rentals
US in WW2
Commercial Leasing
Landlord-Tenant Issues
How To

How to terminate a lease agreement?

Is it possible to terminate an office lease that is 36 months and we are 6 months into it. Three partners, one deceased, cannot afford the monthly rent; we'd split the rent in 3 and honestly it is a big office and we dont need as much space anymore either. Located in Texas.

474849
History, Politics & Society
Geography
Commercial Leasing
Mapping and Cartography

What color is found on a map more than any other?

Blue, used to designate water - and there is more water on the globe than land.

454647
Companies
Commercial Leasing
Punctuation and Capitalization

Did a company from Australia buy liberty travel company?

FLIGHT CENTRE

373839
Australia in WW2
Commercial Leasing
Australia
New South Wales

What is PW for a home in Australia?

PW for a house in Australia is...the price per week.

333435
Apartments and Home Rentals
Commercial Leasing
Landlord-Tenant Issues

If you change your locks do you have to give duplicates of the new keys to your landlord?

Answer

You should check your lease. In addition, generally a landlord has the right of access in an emergency. You need to check your local landlord/tenant laws.

333435
Business Accounting and Bookkeeping
Commercial Leasing
UFC-Mixed Martial Arts

Definition of interim budget?

objectif de budget prévisoire

212223
Commercial Leasing
Apartments and Home Rentals
Landlord-Tenant Issues

Can a landlord break a rental lease agreement early?

Of course. As a matter of contract law, a lease (which has contract and property law issues) can be "broken" by either party at any time, as long as the breaching party is willing to pay any damages arising from the breach.

For example, the landlord should expect to have to pay something to help the tenant find another suitable place to live, and perhaps part of the moving costs.

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