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Percentage Rent Lease Agreement

A legal contract outlining terms for calculating and paying rent based on a percentage of the tenant’s gross sales.

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Original price was: $211.96.Current price is: $103.26.

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Service Description

A Percentage Rent Lease Agreement is a type of commercial lease agreement that is commonly used in retail and shopping center environments. In this type of lease agreement, the tenant pays a base rent, as well as a percentage of their gross sales, to the landlord. The percentage of gross sales that is paid as rent is usually negotiated between the tenant and the landlord, and can vary depending on the industry, location, and other factors.

One of the main benefits of a Percentage Rent Lease Agreement is that it can be a mutually beneficial arrangement for both the landlord and the tenant. The landlord has the potential to earn extra income if the tenant’s sales increase, while the tenant benefits from having a lower base rent and the potential to pay less in rent during slower months.

However, it is important for both parties to carefully review and negotiate the terms of the Percentage Rent Lease Agreement to ensure that it is fair and beneficial for all involved. For example, the agreement should clearly define how gross sales are calculated, what expenses can be deducted from gross sales, and how frequently the rent payment is calculated and paid.

Additionally, the agreement should specify any additional fees or charges that the tenant may be responsible for, such as maintenance and repair costs. It should also outline the landlord’s responsibilities for maintaining the property and ensuring that the tenant’s business can operate smoothly.

Overall, a Percentage Rent Lease Agreement can be a useful option for both landlords and tenants in certain situations. However, it is important to carefully consider and negotiate the terms of the agreement to ensure that it is a fair and beneficial arrangement for all parties involved.

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