GENERAL LEASE
A lease is a contract that allows for one party to
use the property of another party, for an extended
period of time.
The lessee is the party or individual wanting to
utilize the property.
The lessor is owner of the property.
Rental agreement
Contracts
RENTAL AGREEMENTS
Common rental agreements : landlord and tenant.
In a fixed-term tenancy, either the landlord or the
tenant may terminate a rental agreement when the
specified term is nearing completion.
An at-will tenancy is a tenancy in which either the
landlord or the tenant may terminate at any time by
giving reasonable notice.
The security deposit is initial payment paid by the
tenant and held by the landlord until the property is
returned or vacated.
Jabba The Hutt is asking for a 2000 republic credit
for a security deposit and 950 republic credit per
month rent. What will be the total cost for a 18
month lease?
2000+18*950=19,100 RC
RENTABLE OFFICE SPACES
Class A office spaces are found in the best quality
buildings and the most desirable locations.
Class B office spaces are found in buildings are
well-maintained , but also a little older. Just older
building of Class A.
Class C: older buildings in need of extensive
repairs and are found in less desirable areas.
A company owns a Class B building and charges
$3500/month to rent it. If the company spends
$90,000 to upgrade the facility , by how much would
they have to increase the monthly rent to recover the
cost of the upgrade within 5 years?
5 years = 60 months.
90000/60= $1500/month
The rent in the upgraded facility would need to be
$5000/month.
Luke has moved to New York and wish to rent his
home in Tatooine, so he hires a management
company that charges 7%of the rental price for their
fee. If the home rents for $1500/month, how much
will Luke earn from the monthly rent.
The company charges 7% of $1500, which is $105.
The rest, $1395, is sent to Luke.
LEASING A CAR
The up-front payment.
The monthly payment
The length of the lease
Possible additional charges at the end of the lease.
James wants to lease a new Aston Martin car, and
he is presented with the following three options.
Compute the total cost of each option.
Option 1: $0 up-front, with a payment of $
209/month for 36 months.
Option 2: $999 up-front, with a payment of
$189/month for 36 Months.
Option 3: $2999 up-front, with payment of $149/
month for 36 Months.
For the new Prius, Arthur is considering leasing
can be purchased for a down payment of $4000 and
36 monthly payments of $550. After 3 years, he will
own the car and , based on projections, he will be
able to sell it for $16,000. If he follows this plan,
what will be total net cost for the car?
The total net cost will be the amount paid less than
the amount recovered.
The amount paid will be 4000+550*36=$23,800
Thus, 23800-16000=$7800