Leases 2

Variable/Index Lease: The rent changes based on an index (like the CPI - Consumer Price Index). Calculating Rent Owed for a Variable Lease. A variable lease features rent that changes at set times as specified in the lease agreement. The Formula: New Rent = Old Rent x (Old Index ÷ New Index). Ground Lease: The tenant leases the dirt for a long time (e.g., 99 years) and builds a building on it. At the end, the landlord usually keeps the building.Assignment vs. Sublease. Assignment: You transfer ALL of your rights to a new tenant. The new tenant pays the landlord directly.Sublease: You transfer LESS than all rights (e.g., just for the summer). You are still the middleman. The sub-tenant pays you; you pay the landlord.