Page 34 - Commercial Lease FlipBook 2020

• Some leases require tenants to report sales (see lease abstract for specifics).
• Some leases require tenants to pay a percentage of their sales to landlord as additional rent. It is up to the

Community Manager to track these requirements.
• There will most likely be a threshold before tenant pays percentage rent. This is called the breakeven point.

Tenant reports $300,000 in annual sales.
Tenants pays $200,000 in annual base rent.
Tenant’s lease states tenant shall pay 3% of sales above base rent.
(($300,000 - $200,000) X 3%) = $3,000