Leases and leasing articles

Lease Abstraction (02/26/2012)
... These modifications can substantially impact cash flow and the value of the property. Following are some of the lease terms which should be considered when conducting a lease abstraction: Renewal rights; First right of refusal; Co-tenancy clauses (tenant A can terminate lease if tenant B leaves the center); Right to terminate if the building does not have adequate space to meet the tenants requirements or if other factors occur; Escalation clauses; Pricing for after-hours electric; Parking rights and pricing; Signage rights; First right of refusal to purchase the building; Right to reduce rent if certain conditions are met to; Write to give back space which is no longer needed; Right to take additional space at a predetermined price.A complete lease abstraction must be prepared before it is possible to perform financial modeling for an acquisition. The lease terms will dramatically affect current and future cash flows. The combination of lease abstraction and financial modeling (performed using a program such as Excel or Argus) provides the investor meaningful insights into the probable cash flow for the investment....

Steps you can take to vet prospective tenants (12/21/2011)
... The others you may wish to undertake depending on time and resources. They are as follows: 1. Credit referencing. Referencing agencies are also used by letting agents. They carry out checks on the prospective tenant’s cred it worthiness and authenticate their personal details....

Should I lease my new car (04/18/2011)
... MRP – This is the manufacturer’s recommended price residual value. P11D Value – This is used by the Inland Revenue for tax purposes and relates to the value of the vehicle after the cost of extras. PCP - Personal contract purchase (also known as personal contract plans). A PCP agreement you have an option to pay a final sum to the leasing / contract hire company and own the vehicle instead of giving it back. Residual value - The residual value is the manufacturers predicted value of the vehicle at the end of the lease / contract term, the higher the residual value the lower the monthly payments will be....

Equipment Lease Tips for A Restaurant Business (03/10/2010)
... Avoid Overbuying. With all the excitement of starting a business and having a restaurant place, some entrepreneurs may be overspending by taking on too many gadgets or equipment. Before ordering equipment to be leased, you should be realistic about your needs and consider your budget and the space. Follow Local Regulations. You should know that there are specific regulations in furnishing a commercial kitchen....

Choose Car Hire of Your Choice and Take pleasure in the Experience (03/04/2010)
... d) Discover if your car hire company computes price according to usage or for each kilometer or free kilometers with pre-imposed limitations. e) Check if your car insurance handles car hire fees. Otherwise, really does your debit card offer insurance plan or you will need to get car insurance through car Hire Company. f) Find what records the particular car hire company will need, and total all document nicely prior to your journeying. Make sure you request a proof in writing of the reserving and exactly what their own contact numbers are usually on vacations....

Leasing Retail Space: Preparing Your Space (08/28/2009)
... This includes items such has common area utilities, common area maintenance, insurance, property taxes and management. It would not include items such at tenant improvements for new tenants and leasing commissions for new tenants. Depreciation Non-cash expenses such as depreciation and amortization would also be excluded. While each lease is negotiable, most retail leases are done on a net basis with the tenant paying for most operational expenses. Who Pays for Repairs and Replace for Tenant Space Repair and replacement of the roof is typically handled by the landlord....

Leasing Retail Space: Terminating the Lease (05/24/2009)
... In many cases, these large initial assessments have been successfully reduced to a level much closer to the prior year's value. Cap Example However, the property tax assessment process can be arbitrary at times. If the property taxes did increase by 20% or 100%, the landlord would be responsible for the increase in excess of 5% for the example given. There are also sometimes expense escalation caps for utilities, insurance, total expenses and other items. Co-tenancy Termination Clause A co-tenancy clause for retail defines a tenant's right to terminate the lease if another tenant ceases operations....

Leasing Retail Space: Location Facilities and Future Development (03/24/2009)
... If you are considering opening a coffee shop which also sells pastries and sandwiches, you would either have to obtain a variance or move on to the next option. Approval Process If the approval process for the deed restrictions or local government are subjective, obtain written information regarding the restrictions and the approval process. Also consider visiting with both the retail tenant rep broker and tenants within the retail property. Condemnation Plans? Research the possibility of a condemnation proceeding. Visit with the relevant city, county or highway department officials to determine whether there are any plans to widen any of the streets contiguous to the retail center....

Simple Guide to Loss Mitigation Leads (03/07/2009)
... The internet is crowded with this type of leads and a simple online search would lead to countless websites offering internet leads. However, you will be exposing yourself to great amounts of risks in doing so. Internet leads are rarely complete so it will be near impossible to successfully trace them. And those that can be trailed are most of the time non-exclusive which makes closing deals with them almost unattainable. The best way to solve this predicament is to know everything you can about the companies behind this websites....

3 Lead Generation Myths That Will Clog Your Sales Funnel and Keep You From Closing More Sales (03/07/2009)
... Picture the funnel from the traditional “olden” days. If you just stuff as much as you can into the top of the funnel, it’s more likely that weeds, rocks, sand, and other debris will clog the opening and prevent the steady entry and flow of good business. Try pouring water in a funnel that is filled with debris. The water backs up and nothing moves through. Not a pleasing picture, and not functional business model....

Bank Loans: What Banks are Looking For in a Loan Candidate (09/24/2008)
... The lender will analyze the cash flow from your business venture and factor in a projection for repayment. Having a previous loan experience with the bank where the loan was repaid in a timely fashion can be helpful, as well as having an established deposit account. Capital: The lender will consider how personally invested you are in this new entrepreneurial enterprise. The logic is that someone with a larger stake in their own undertaking will work diligently to seek success. This can also refer to your ability to acquire additional capital in the event that an infusion is needed....

Preparing a Lease Agreement (11/21/2007)
... A landlord must always ensure that, when they get a lease that it is from a reputable lawyer, and it is up to date. Bail forms printed before 2002 may not take into consideration the guidelines of ownership issued by the Office of Fair Trading on unfair terms in consumer contracts 1999. Once the owner has downloaded or purchased a lease, they should read it just to make sure they agree with its content. Most rental purchased cover the main points and include clauses concerning the tenant to use the property, termination of the agreement, and so on . The modification of a lease So, reading a lease, the landlord is unhappy with a part of it, the owner must be very careful about the change of wording in any way....

Outright Purchase vs. Long Term Lease (07/24/2007)
... Free of these restrictions, the lessee may be able to increase his base, as lease obligations are generally not reflected on the balance sheet, although the lease obligation will probably require footnote disclosure in the financial statements. (It should be noted, however, that a number of the more recent loan indentures restrict lease commitments.) General allowability of rental deductions for the term of the lease, without problems or disputes about the property's depreciable life. Possibly higher net book income during the earlier years of the basic lease term than under outright ownership. Rental payments in the lease's earlier years are generally lower than the combined interest expense and depreciation (even on the straight-line method) that a corporate property owner would otherwise have charged in the income statement....

Analyzing Cash Flows (07/24/2007)
... The lessee's cash flows are easier to define than the buyer's. The lessee pays a yearly rental, which is fully deductible. The lessee will thus have level annual outflows offset by the related tax benefit over the lease period. Salvage or residual value does not enter the picture because the lessee generally has no right of ownership in the asset. The table below is a comparison of cash flows developed under both buying and leasing....