BA260 Grantham University Business Law Module 5 - 2223

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  • Posted on: Sun 18 Mar, 2012
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Describe the basic type of leases based on duration. Provide an example of each type.

Solution Description

Describe the basic type of leases based on duration. Provide an example of each type.

 

            There are many types of leases- primarily when someone hears the word lease they immediately think apartments, or perhaps even leasing a car.  We should cover what a lease is first off: a lease is a transfer of the property from the owner / landlord to a tenant for a specified period of time in exchange for money.  In reality most businesses that aren’t franchised or have many, many locations lease their space and with leasing, comes a plethora of different options how said lease can work out best for the lessee, property owner, and in some cases the property manager.  Next I will list some of the most common lease types- along with their advantages, disadvantages, and some different lease terms.

  • Full Service Lease: Primarily used in densely populated, multi tenant office buildings.  The people or company renting the space will agree to pay a single lump sum for an array of services in addition to the space.  Most commonly these supplementary services will cover security, nightly cleaning services, and general utilities. 
  • Gross Lease: In a gross lease the lessee will pay the landlord / owner a gross amount for rent.