© OnCourse Learning Chapter 17 : Real Estate Leases

 A tenant’s right to occupy land and/or buildings thereon. LEASEHOLD ESTATE © OnCourse Learning

 Lessee = Tenant  Lessor = Owner = Landlord  Reversion = right of owner to retake the property at end of leased period. LEASEHOLD ESTATE © OnCourse Learning

 Lessor & Lessee  Description of premises  Agreement to convey & accept possession  Rent payment provisions  Start date and duration of lease  Signature of parties to lease VALID LEASE © OnCourse Learning

 Estate for years- specific starting & ending date  Estate at will- terminated anytime by either party  Periodic estate- one that renews itself automatically  Tenancy at sufferance- holdover tenant ESTATE PERIODS © OnCourse Learning

 Conveyance  Contract  Landlord – Tenant laws  Setting Rents  Option Clauses  Assignment and Subletting © OnCourse Learning THE LEASE DOCUMENT

Sample Lease © OnCourse Learning

 Gross lease = Fixed rent  Graduated rent = Step-up rent payments over term  Percentage lease = Rent is percent of gross income  Net lease = Rent plus increases in expenses  Index lease = Rent tied to economic indicator RENT © OnCourse Learning

 Option clause  Assignment  Subletting  Ground lease  Lease termination  Eviction LEASE TERMS © OnCourse Learning

 Tenant selection  Security deposit  Tenant retention  Collecting rents  On-site management  Off-site management PROPERTY MANAGEMENT © OnCourse Learning

 Eviction  Eminent Domain © OnCourse Learning LEASE TERMINATION

 (1) to discourage the construction of new housing so that the resources could be channeled to war needs.  (2) to set ceilings so that American households would not drive up prices by bidding against each other for available rental housing. © OnCourse Learning RENT CONTROL

 Before Buying  Advertising  Tenant Selection  Security Deposit © OnCourse Learning PROPERTY MANAGEMENT

 Tenant Retention  Leases  Collecting Rent  Eviction Problems © OnCourse Learning PROPERTY MANAGEMENT

 a term that refers to property management duties that are performed on the premises.  called a resident manager or superintendent.  resident manager and management company are fiduciaries of the property owner. © OnCourse Learning ON-SITE MANAGEMENT

 A rule of thumb in apartment management is that one on-site manager can handle 50 or 60 units alone. © OnCourse Learning MANAGEMENT-UNIT RATIOS

Key Terms Assignment CPM, RPA Gross lease Lessee Lessor Net lease Option clause Quiet enjoyment Reversion Sublessee Sublessor Sublet © OnCourse Learning