Q: Explain Leasing Commissions and Related Costs?
A: Answer: Leasing commissions: Leasing commission is nothing but fees or premium paid in the form of…
Q: What is non-tax-oriented lease?
A: Non- tax Oriented lease: The lease where the lessor cannot avail tax exemptions for the capital…
Q: What is a purchase option? How does it affect accounting for a lease?
A: Purchase option : A purchase option is an agreement that gives the lessee a choice to purchase the…
Q: How does the existence of leasehold improvements can affect the determination of the lease term?
A: Leasehold Improvements are referred to as any of the changes or improvements made to the rental…
Q: What is guideline lease?
A: Guideline Lease: A tax lease was drawn up under IRS models or "guidelines" to decide the…
Q: Determine the indifference price for a property that had an assumable below-market-rate loan?
A: Indifference price is the price at which the investor is indifferent to investing in any of the two…
Q: Why should investors be concerned about market rents if they are purchasing a property subject to…
A: Lease is an agreement by which one party agrees to use the property such as land or building of…
Q: What are the advantages of lease?
A: A lease is a contract under the terms under which one party agrees to rent property owned by another…
Q: What factors might cause the highest and best use of real estate to change during the course of a…
A: The question is based on the concept of property lease, lease is a contractual arrangement to use…
Q: Explain Lease-versus-Own Analysis?
A: Owning is the right of an entitlement to an asset by purchasing it while leasing is the contract by…
Q: What is site-value tax
A: The site value tax is charged on the land's or site's value. It considers only the land and does not…
Q: What is the difference between a tax-oriented lease and a nontax-oriented lease?
A: A tax-oriented lease: A tax-oriented lease, occasionally named a true lease, which offer the lessor…
Q: What are the features of Rent discount for industrial/warehouse properties that might be added for…
A: The question is based on the concept of rent discounting for real estate.
Q: Residential rental property is rental property where at least what percentage of the income comes…
A: Residential rental property: Residential rental property refers to homes that are purchased by an…
Q: When can a lease create both an asset and a liability for the lessee?
A: Lease is an agreement between two persons in which one grants the right to another to use a…
Q: when evaluating a tenant and a lease proposal, the owner considers it?
A: Lease is an agreement where landlord and tenant agrees to certain terms and conditions. In this…
Q: e determinants of housing
A: Introduction : The housing price refers to the total amount of money that would cost a buyer to…
Q: What are the features of lease?
A: The features of lease arrangements are, Residual type, Sale type leases, Bargain purchase option,…
Q: Explain the procedure used to calculate the effective rents?
A: The question is based on the concept of rent and net effective rent. Rent is consider as a periodic…
Q: Why is lease reporting required? Justification for your answer.
A: A lease is an arrangement in which an asset is rented out, and the Lessor gets a rental payment in…
Q: When is Leasing used?
A: Fixed assets are those type of assets which are being held by the business for longer period of…
Q: What is the vacancy rate?
A: Job Vacancy Rate means the percentage of empty posts against the total number of the approved posts…
Q: advantage (disadvantage) of renting out the building?
A: Annual sales P10550000 Less Expenses Annual cost of goods sold and other operating expenses…
Q: What are the economic benefits of leasing vs ownership of assets?
A: MEANING:- Leasing of Assets - The leasing of assets refers when the owner gives the right to use…
Q: What are the features of Rent premiums for industrial/warehouse properties that might be added for…
A: Introduction: The given question is based on the notion of rent discounting in real estate finance.…
Q: What is the correct classification of Land and Building for lease? Where do assets valued at?
A: Introduction As per relevant standard lease can be of two types finance lease or operating lease,…
Q: What is meant by “loss to lease”? Explain?
A: Loss to lease: It is the term used in Real Estate in leasing of property mainly apartment complexes,…
Q: Discuss the residual value of the leased asset. How does it impact the PV of rental payments…
A: Lease means a type of agreement in which one party gives its valuable assets to other party for a…
Q: Describe about the EFFECT OF A RESIDUAL VALUE ON LEASE CLASSIFICATION?
A: Introduction Residual value is the amount, the asset's owner earns after selling/disposing that…
Q: What are the disadvantages of lease?
A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular…
Q: Explain Effective Cost of the Sale-Leaseback?
A: Sales leaseback is a type of financial transaction where the owner sold its property to the other…
Q: Which of the following is not a fixed cost?a. Direct materialsb. Depreciationc. Lease charged.…
A: Fixed cost is the cost which will be borne by the company irrespective of the units produced.
Q: What are the general desirability among users to lease rather than own the space they need in their…
A: Leasing is a method through which person can hire fixed asset or place for certain period of time by…
Q: Define the term deferred rent revenue.
A: Deferred rent revenue, also known as unearned rent revenue, refers to advance payments a company…
Q: Identify housing alternatives, assess the rental option, and perform a rent to buy analysis
A: RENTAL It is the periodic payment made by the tenant to the owner for the use of land, building,…
Q: Which are the Factors Affecting Own-versus-Lease Decisions?
A: Owning an asset involves purchase of the asset using own or borrowed sources of funds, whereas…
Q: What are the key advantages and disadvantages of leasing?
A: Leasing:Leasing is a contractual agreement between the lessor and lessee for hiring of a particular…
Q: Define tax-oriented lease
A: A contract in which terms and conditions are mentioned at which one party agrees to pay a regular…
Q: rental income to be recognized in the 2012 statement of comprehensive income of the buyer-lessor? *
A: As per our protocol we provide solution to the one question only but as you have asked two multiple…
Q: What is lease assignment? What is subletting? Explain at least one main difference between these…
A: In the world of finance in general and letting out of properties in particular the concepts of lease…
Q: What is financial lease?
A: Lease refers to the contract under which one party agrees to rent a property that is owned by…
Q: Which are Non residential properties?
A: Fixed assets are the long-term fixed assets purchased by the firm to increase the productivity of…
Q: Why do person choose to buy on lease?
A: Lease: Lease refers to a contract that outlines the terms under which one agrees to rent his or her…
Q: When using the Comparison Method of Valuation to estimate the current market rent of a house, which…
A: Property valuation is the governmental process being conducted when the property need to be sold,…
Which are the effects of Tenant Improvements and Free Rents on FFO?
Step by step
Solved in 2 steps
- Discuss the residual value of the leased asset. How does it impact the PV of rental payments computation of the Lessee and the computation of the rental payment by Lessor?What are the key differences between real estate property types? How do these differences affect the valuation of each property right?What are the general desirability among users to lease rather than own the space they need in their operations