One of the perceived advantages of sales leases is that they foster a sense of partnership between the landlord and the tenant. The above proposals and recommendations cannot be imposed on the tenant, but must be negotiated. The approach should not be to penalize the tenant (note that any attempt to impose a fine is in any case considered invalid), but rather to encourage the tenant to run his page of the good deal, namely to provide the lessor with accurate information on the turnover so that the rent can be calculated. A rental-sale contract is a rental agreement in which the rent payable by the tenant is calculated either in whole or in part by the actual turnover of the athanurt tenant`s business. They can be used as an alternative to more traditional forms of open leasing, with rent determined by a number of factors and largely determined by market conditions. Turnover leasing is most often used in retail establishments and almost exclusively in factory outlet centers, airports and train stations. The debtor turnover formula shows how quickly you make payments relative to your credit sales. If the sales of credits for the month are $300,000 and the balance of the account`s receivables, for example, is $50,000, the turnover is six. The goal is to maximize revenue, minimize the balance of receivables and generate a high turnover rate. Cautious tenants may be tempted to take over a new unit based on the rent of turnover if the risk of failure is shared. The tenant`s rental liability is reduced under poor commercial conditions (subject to the agreed base rent). A tenant`s commercial position within a building is also protected to some extent, as it is not in the landlord`s interest to increase competition and thereby reduce turnover and rent by renting a unit adjacent to a tenant`s competitor.
As a general rule, leases provide for the payment of interest for payments that are not paid on the due date. In order to ensure the effective application of the interest rate clause, the provision for turnover should include: in the investment sector, turnover is defined as the percentage of a portfolio sold in a given month or year. A rapid fluctuation rate generates more commissions for trades placed by a broker. Receivables represent the total amount of unpaid debtor invoices at any time. Assuming that credit sales are sales that are not immediately paid in cash, the debit sales formula is the sale of credit divided by average receivables. The average exposure is simply the average of the initial and final balances for a fixed period. B for example a month or a year. The rent of the turnover is calculated on the basis of the turnover achieved by the tenant.
It goes without saying that if the landlord can calculate the rent of the turnover, he must have access to accurate information on turnover, but tenants do not always provide the information or make it available in a timely manner.