The term 'Demised Premises' refers to the property or portion of property that is leased or rented to a tenant under the terms outlined in a lease agreement.
An escalator clause is a provision in a lease that requires the tenant to pay additional rent based on an increase in specified costs such as real estate taxes, operating expenses, or other financial metrics.
A lease is a legal contract in which the entity entitled to the possession of real property (lessor) transfers those rights to another entity (lessee) for a specified period in exchange for payment called rent.
A long-term lease typically refers to a commercial lease agreement that spans five years or more or a residential lease agreement lasting over one year. Long-term leases offer stability and predictability for both landlords and tenants, coming with distinct advantages and potential drawbacks for each party.
A Net Lease is a type of lease agreement where the tenant agrees to pay not only the base rent but also additional costs associated with the property, such as taxes, insurance, and maintenance. This arrangement ensures that the landlord's rent receipt is 'net' of these expenses.
A percentage lease is a lease of property in which the rental is based on a percentage of the volume of sales made upon the leased premises. It usually includes a minimum base rental amount and is commonly used for retailers who are tenants.
A Relocation Clause is a lease stipulation that allows a landlord to move a tenant to another location within the same building or complex. This clause provides flexibility for the landlord to maximize space utilization and cater to new tenants seeking specific floor plans.
A rental agreement, often referred to as a lease, is a legal contract between a landlord and a tenant that outlines the terms under which the tenant agrees to rent a property owned by the landlord.
A scavenger tenant is a tenant who constantly seeks the lowest possible rent and relocates frequently whenever an opportunity to reduce rent arises. Often characterized by their transient nature, scavenger tenants are commonly found in industries such as karate schools, fortune tellers, and bingo parlors.
Trade fixtures are objects placed in rented commercial properties by tenants to facilitate their business operations. These fixtures can typically be removed by the tenant before the lease's expiration. However, if they are not removed in a timely manner after the lease ends, they may become the property of the landlord.
