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A credit tenant lease (also known as a "bondable lease") is a method of financing real estate. [1] [2] A "credit tenant lease" is a lease from a landlord to a tenant that carries sufficient guarantees that lenders will perceive the rent cash flows from the lease are as reliable as a corporate bond. This typically requires that the tenant have ...
If a tenant stays beyond the end of a lease for a term of years (one or more), then the parties may agree that the lease will be automatically renewed, or it may simply convert to a tenancy at will (month-to-month) at the pro-rated monthly cost of the previous annual lease. If a tenant at will is given notice to quit the premises, and refuses ...
The second determinant of value is the quality of the credit tenant. This is generally determined by the tenant's current credit rating and past financial reports. Most investors use the Standard and Poor's credit ratings. In order to qualify as an investment grade tenant, the company must be rated at lease BBB− by Standard and Poor's.
A triple net lease (triple-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance, and maintenance (the three "nets") on the property in addition to any normal fees that are expected under the agreement (rent, utilities, etc.).
A lease option (more formally Lease With the Option to Purchase) is a type of contract used in both residential and commercial real estate.In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property.
Typically, when a tenant's rental payment exceeds the unit rent, the tenant becomes unassisted, and the unit in which they reside is removed from the HAP contract. Since a key purpose of RAD is to leverage private capital investment, the removal of a unit from the HAP contract would be counterproductive.
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