Question

.The dollar amount by which total rent exceeds base rent under a percentage lease for retail is referred to as:

(A) Overage rent

(B) Excess rent

(C) Percentage rent

(D) Marginal rent

Answer 1

The dollar amount by which total rent exceeds base rent under a percentage lease for retail is referred to as Overage Rent

1. Overage Rent - is a rent wherein the tennant has to pay the landlord the base rent and over and above a certain percentage of the revenue which he has earned while running a business in the same premises.

2.Excess rent - It is a rent wherin the tenant is paying excess amount as compared to the agreed rent. For example if $10 is the agreed rent per sq ft for 5 yrs and later on it reduces to $7 per sq ft during the term, then $3 per sq ft is the excess rent.

3.Percentage Rent - It is a rent wherin the tenant pays only a certain percentage of the Revenue earned to the landlord.

4.Marginal Rent - It is the minimum amount that the owner should receive in order to use the land or premises by the tenanats