Landlord & Tenant Flashcards
A freehold estate is
a form of ownership with an indeterminate length.
A leasehold interest, or leasehold estate, is
an interest in the occupation of a property established through a lease.
A lease can establish one of the following types of estates:
Estate for years: stipulates a specific starting and ending time to the lease; also known as a tenancy for years or tenancy for a specific term
Periodic estate: has a fixed lease period, after which it is automatically renewed until either party to the lease acts to cancel it; also known as a periodic tenancy, estate from period to period, or estate from year to year
Estate at will: allows a tenant to occupy a property with the landlord’s consent; the tenant or the landlord can end the lease at any time
Estate at sufferance: occurs when a tenant remains in possession of the property beyond their lease’s terms without the consent of the landlord; also called a tenancy at sufferance
holdover tenant.
The tenant who stays beyond their lease’s term
proprietary lease.
It’s a long-term and exclusive lease given to the resident and stock owner of a cooperative.
This is very similar to a standard lease between a tenant and a landlord. The difference is that, in this case:
The landlord is the cooperative.
The tenant is the shareholder (who is also residing in one of the cooperative’s units).
lease-option agreement,
is a contract in which the buyer can lease a property for a period of time (usually a year or two) and then have the option to buy the property.
lease-purchase agreement
required to buy it
gross lease
is a lease in which the tenant will be responsible for the payment of a fixed monthly charge, while the landlord is responsible for paying all operating expenses.
A net lease is
a lease in which the tenant pays a base rent rate plus all or part of the operating expenses.
There are three different types of net leases:
A single-net lease: rent + property taxes
A double-net lease: rent + property taxes and insurance
A triple-net lease: rent + prorated portion of all operation expenses
A percentage lease is
a type of (usually commercial) lease in which the tenant pays a base rent amount and a percentage of their business profits to the landlord.
To calculate rent costs under a percentage lease, let’s take a look at the formula:
Fixed rent + (Overage x Sales rate) = Rent
Overage = gross sales
Sales rate = percentage of sales applied to the rent
A variable lease is
a leasehold agreement in which the base rent changes. Simple as that! It can take the form of a graduated lease or an index lease.
A graduated lease is
a lease in which the rental rate increases over time in specific increments. This is also referred to as a step-up lease.
escalation clause, which is
a clause in a lease allowing payments to increase by a specific factor. That factor is variable
