4 Terms To Understand Before You Rent

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MAXHEALTHLAW 4 TERMS TO UNDERSTAND BEFORE YOU RENT

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1. RENTABLE SQUARE FEET RSF VS. USABLE SQUARE FEET USF The distinction between rentable and usable square feet can be confusing. After all many people in the real estate industry use both terms. But the distinction is far from inconsequential and can be the difference between a bad deal and a great deal.

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2. LOSS FACTOR LOSS FACTOR REPRESENTS THE PERCENTAGE DIFFERENCE BETWEEN RENTABLE SPACE AND USABLE SPACE. THIS IS VALUABLE BECAUSE IT GIVES YOU A CLEAR UNDERSTANDING OF THE VALUE OF THE USABLE SPACE.

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3. Rent Escalation Rent escalation is a provision that requires the tenant to pay a rate that increases by some factor over the life of the lease. From a landlord’s perspective this ensures a consistent increase in revenue and helps keep the base rent current with inflation.

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4. Triple Net Lease Different types of leases vary in how rates are calculated. Commercial real estate leases fall into two main categories: gross and net. Gross leases include all expenses and net leases do not. One type of lease that is increasingly common is the triple net lease.

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HOW TO REACH US CONTACT DETAILS 5339 Spring Valley Rd 200 Dallas PHONE NUMBER 972 226-9700 WEBSITE ADDRESS https://maxhealthlaw.com/