Additional Rent refers to the amounts of rent that are due above the minimum or base rent. This covers a variety of potential extra charges that a tenant may be responsible for, depending on the lease agreement.
Overage Rent, also known as Percentage Rent, is an additional rent payment that tenant retailers pay to their landlords based on a percentage of their sales over a specified base amount. Often used in shopping centers or retail spaces, it helps landlords share in the tenant’s success.
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.
