Question

A property manager is collaborating with a client to manage the expansion of one of their buildings. The building in question is a residential building which will now be expanded horizontally as well as vertically. The plinth area will be nearly doubled while two (2) new floors will be added, taking the total number of floors of the building to eight (8) and making it a mixed-use building.

Q12.b. Explain the uses of five (5) of the most commonly used leases for the completed project. Multiple leases can be used in the building as there will simultaneously be multiple tenants of multiple types.

The answer should include:

i. A brief description of each type of lease.

ii. The suitability of each type of lease for different types of tenants.

iii. Any single issue that might happen by using the selected lease in each situation.

Answer 1

0 type of tease clases p8 used for be an issue Solution :- (201) The uses of five of the most commonly used. Leases. for the complicated project-are ci percent leases: A percent case pe a where the tenant pays a base rent" with a percentage , any revered earned while doing business ont the rental premises. This type of typically tenantsin sistail spaces such de shopping mall. Therefore might over the sales between the landlord and tenantes Net teases: A niet tease requires that an addition to the Base sent the tenant also the tanes. This may the used in any commercial Lease. Pesulanudries hike in Vt makes the tenants mose" for the same peroperty C) Doublé cvet leases: A Niet llase requires that an addition to the base sient; the tenant also Days bfgeros bastuneen @) Single pay type may th rate that pay the tanes and insurance Premiums. This type may, the used commer'eral real estate transaktione.

of + fature one The tenants need to pay, brequent pretium which in hure lead lead to bone contention between the stakeholders C) Turiple- net lease: A met teose requires that in addition to the base cont, the tenant also pays the tares, insurance porenrikums, and ever maintenance costs. This type may be used in real estate investment-twist. the possibb 28349 98 that property may demand forquent maintenance luals adding Entia financial aheal burden on tenants serviced (81) Gross. Lease: GUOBS cease. 28 a pro- tenant rent payment method where the land lad P8 responsible all o most expenses including property taxes. playing Mointenance costs out of the scents Stectived from tenants. Thes type lease are common in multi tenant units. The rent P8 slightly high in this area. since all tanes are payed paid by the most expensiue and even less tenants may pay more than What's to the conflict of falley for of nfuge landlordy they are usually transparent. so the actual cost of Preluded leading