A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant's gross receipts exceeding $5,000. This type of lease is called a

A) percentage lease.

B) net lease.

C) gross lease.

D) standard lease.

Question

Business

Olive Blackburn

11 September, 19:52

A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant's gross receipts exceeding $5,000. This type of lease is called a

A) percentage lease.

B) net lease.

C) gross lease.

D) standard lease.

+5

Answers (1)

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Kaila Bonilla · Answer 1

A) percentage lease

Explanation:

Just as its name suggests, percentage leases are determined by a fixed amount and a percentage of the total sales of the lessee business. This type of lease usually applies to renting of commercial real estate only. It is common for percentage leases to include 6-10% of the gross sales of the lessee, but the fixed amount is usually much smaller than regular rent prices.

A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant's gross receipts exceeding $5,000. This type of lease is called aA) percentage lease.B) net lease.C) gross lease.D) standard lease.

A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant's gross receipts exceeding $5,000. This type of lease is called a

A) percentage lease.

B) net lease.

C) gross lease.

D) standard lease.