Contingent rent is a type of rental payment that is dependent on certain conditions or events occurring. It is typically used in commercial leases where the rent amount is determined by factors such as the tenant’s sales revenue, profits, or other performance metrics. The payment of contingent rent is usually in addition to a base rent amount and is subject to negotiation and agreement between the landlord and tenant.
Contingent rent is a type of rent that is based on a specific event or condition, such as the amount of revenue generated by a tenant’s business.
Yes, contingent rent is legal and is often included in commercial lease agreements.
Contingent rent is typically calculated as a percentage of the tenant’s revenue or profits.
Yes, a landlord can require contingent rent as part of a lease agreement.
Yes, a tenant can negotiate the amount of contingent rent with the landlord.
If a tenant does not pay contingent rent, the landlord may have the right to terminate the lease agreement.
Yes, a tenant can dispute the calculation of contingent rent if they believe it is inaccurate.
Yes, contingent rent can be waived if both the landlord and tenant agree to it.
Yes, contingent rent is taxable income for the landlord.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 4th May 2024.
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