{"id":3393,"date":"2019-02-06T12:23:01","date_gmt":"2019-02-06T12:23:01","guid":{"rendered":"http:\/\/localhost\/outsourcinghubindia\/?p=3393"},"modified":"2024-05-01T12:53:26","modified_gmt":"2024-05-01T12:53:26","slug":"a-glossary-of-common-lease-terms","status":"publish","type":"post","link":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/a-glossary-of-common-lease-terms\/","title":{"rendered":"A Glossary of Common Lease Terms"},"content":{"rendered":"

Understanding lease words and terms help you fully comprehend your lease agreement. Below are some commonly used words and terms in lease agreements and their definitions:<\/span><\/p>\n

Common Lease Terms<\/span><\/h3>\n

Base Rent<\/span><\/h4>\n

The minimum rent payable by a tenant excluding all other charges and dues.<\/span><\/p>\n

Breakpoint<\/span><\/h4>\n

The gross sales amount point after which a tenant is required to pay percentage rent of the excess.<\/span><\/p>\n

Common Area<\/span><\/h4>\n

An area of a lease under the management and control of the landlord but commonly used by all tenants.<\/span><\/p>\n

CAM (Common Area Maintenance)<\/span><\/h4>\n

CAM charge is a tenant\u2019s appropriate share of the total CAM fees, where common area fees are reimbursable by tenants to the landlord.<\/span><\/p>\n

Capital Expenditures<\/span><\/h4>\n

Money spent to improve the quality, functionality, production or the life of an asset and added to the overall cost of the asset.<\/span><\/p>\n

Consumer Price Index<\/span><\/h4>\n

A computed value issued monthly by the Bureau of Labor Statistics (U.S. Department of Labor) used in measuring changes in the prices of a group of goods and services intending to indicating the improvement of or declining standard of living.<\/span><\/p>\n

Depreciation<\/span><\/h4>\n

A reduction in the value of an asset over a period attributed to wear and tear or obsolesce computed by various methods.<\/span><\/p>\n

Eminent Domain<\/span><\/h4>\n

Power to take over private property for public use by any person or entity authorized by law.<\/span><\/p>\n

Estoppel Certificate<\/span><\/h4>\n

A certificate signed by a tenant or other party containing attestation to some facts as of a particular date with a view to preventing denial of such facts at a future date.<\/span><\/p>\n

Fiscal Year<\/span><\/h4>\n

Twelve serial months defined by a tenant as his accounting period for the purpose of annual reports.<\/span><\/p>\n

Holdover<\/span><\/h4>\n

Applies to the situation where a lease has expired or terminated but the tenant remains in the property without the Landlord\u2019s authorization.<\/span><\/p>\n

HVAC<\/span><\/h4>\n

An acronym for Heating, Ventilation and Air-Conditioning system.<\/span><\/p>\n

Improvement<\/span><\/h4>\n

Extra-ordinary repairs and a replacement made to a property with the intent of improving its value, condition, beauty or position it for new or enhanced uses.<\/span><\/p>\n

Indemnification<\/span><\/h4>\n

When Party A agrees not to hold Party B liable for claims arising from Party A.<\/span><\/p>\n

Lease Year<\/span><\/h4>\n

The period of time defined as the starting and ending date of a lease.<\/span><\/p>\n

Lien<\/span><\/h4>\n

Right or claim upon a debtor\u2019s asset to ensure the payment of a debt or obligation.<\/span><\/p>\n

Natural Breakpoint<\/span><\/h4>\n

That percentage rent breakpoint that is related to the minimum rent payable by a tenant to a landlord.<\/span><\/p>\n

Option to Purchase<\/span><\/h4>\n

An option, granted by the landlord to a tenant, to buy a piece of a property within a specific period of time.<\/span><\/p>\n

Percentage Rent<\/span><\/h4>\n

Percentage of gross retail sales paid to the landlord in excess of an agreed breakpoint.<\/span><\/p>\n

Rent Bump<\/span><\/h4>\n

Date on which an increase in a tenant\u2019s minimum rent becomes effective.<\/span><\/p>\n

Right of First Refusal<\/span><\/h4>\n

A tenant\u2019s right to satisfy the conditions of a proposed contract before the contract is offered to other parties.<\/span><\/p>\n

Subordination<\/span><\/h4>\n

The ranking of a person\u2019s claims or rights in comparison with others.<\/span><\/p>\n

Subrogation<\/span><\/h4>\n

The process of substituting another person to receive the claims, debts and rights of another party.<\/span><\/p>\n

Tenant Allowance<\/span><\/h4>\n

Some form of rent relief or grant given by a landlord to a tenant to fund a relocation or tenant\u2019s improvements.<\/span><\/p>\n

Tenancy at Sufferance<\/span><\/h4>\n

A situation arising wherein a tenant occupies a lease even after termination of the lease.<\/span><\/p>\n

Tenancy at Will<\/span><\/h4>\n

When a tenant occupies a lease, after its expiration, with the authorization of the landlord but for no agreed period.<\/span><\/p>\n

Triple Net Lease<\/span><\/h4>\n

A lease arrangement in which the tenants pays all expenses related to the lease.<\/span><\/p>\n

These are common lease terms and expressions in lease agreements. Understanding them will help you execute your lease agreements appropriately.<\/span><\/p>\n

For a detailed list of our Lease Abstraction Services<\/a> please visit outsourcinghubindia.com<\/a><\/p>\n

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Learn more about our Lease Abstraction Service: <\/b>Call us at 1-646-367-8976<\/a>,\u00a0Email at sales@localhost<\/a> – CONTACT US<\/strong><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n

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Understanding lease words and terms help you fully comprehend your lease agreement. Below are some commonly used words and terms in lease agreements and their definitions: Common Lease Terms Base Rent The minimum rent payable by a tenant excluding all […]<\/p>\n","protected":false},"author":2,"featured_media":5180,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[682],"tags":[148,151,306,307,308,309,310,311,312,313],"class_list":["post-3393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lease-abstraction","tag-commercial-lease-abstraction","tag-lease-abstract","tag-commercial-lease-agreement","tag-commercial-lease-terms","tag-common-lease-terms","tag-glossary-of-lease-terms","tag-lease-abstraction","tag-lease-agreement","tag-leasing-glossary","tag-residential-leases"],"_links":{"self":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts\/3393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/comments?post=3393"}],"version-history":[{"count":2,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts\/3393\/revisions"}],"predecessor-version":[{"id":11590,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/posts\/3393\/revisions\/11590"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/media\/5180"}],"wp:attachment":[{"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/media?parent=3393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/categories?post=3393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dev.uiplonline.com\/ohi-wordpress\/wp-json\/wp\/v2\/tags?post=3393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}