Compensatory damages are awarded in legal cases to compensate for actual losses or damages suffered by the injured party, aiming to make them whole again. These damages cover measurable losses, such as medical expenses, lost wages, and repair costs, and do not include punitive or non-economic damages.
Deficit Rent refers to the difference between the market rent and the contractual rent for a specific property. It can indicate potential income loss for property owners when actual collected rent is less than the prevailing market rates.
Economic rent refers to the excess payment made to a factor of production over and above the amount needed to bring that factor into production. This term is often used in economics and appraisal contexts.
Excess rent refers to the amount by which the rent specified in an existing lease exceeds the rental rate currently demanded in the market for similar properties. It carries implications for property valuation and investor decision-making.
Leasehold value refers to the valuation of a tenant's interest in a property, especially beneficial when the rent is below the current market rates and the lease term is significant. It plays a crucial role in investment decisions where there is a discrepancy between market rent and the agreed lease rent.
Market rent refers to the rental income a property can be expected to earn in the open market under typical conditions. It is contrasted with contract rent, which is the actual rent agreed upon by both parties.
A reappraisal lease (also known as a revaluation lease) involves periodically reassessing the value of the leased property to adjust the rent accordingly based on prevailing market conditions. This ensures both the lessor and lessee engage under fair market terms over the lease duration.
