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Rate base is the value of property on which a public utility is permitted to earn a specified rate of return, in accordance with rules set by a regulatory agency.In general, the rate base consists of the value of property as used by the utility in providing service.
Uncontrollable CAM charges are taxes, security costs, utilities, and snow removal expenses. All other expenses charged as a CAM charge are considered controllable. In certain leases, CAM charges also consists of administrative and management fees. Administrative fees are a negotiated percentage of all costs of operating and maintaining a property.
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Utility ratemaking is the formal regulatory process in the United States by which public utilities set the prices (more commonly known as "rates") they will charge consumers. [1] Ratemaking, typically carried out through "rate cases" before a public utilities commission , serves as one of the primary instruments of government regulation of ...
Continue reading → The post How to Calculate Cash Flow in Real Estate appeared first on SmartAsset Blog. Investing in cash flow real estate, also known as rental property, can be an effective ...
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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.).
By billing only the owner, they can place liens on real property if not paid (as opposed to tenants they may not know exist or who have little to lose if they move without paying). Utilities also generally prefer not to have water meters beyond their easement (i.e., the property boundary), since leaks to a service line would be before the meter ...