Rental Rights

Contractual rent (Passing rent or rent contract). Rent that based on the existing lease agreement; although the contractual lease may be the same as the Rental Market, in practice, can vary substantially, especially for the long lease with a fixed price of rent. 
Rent Participation (Participation turnover rent or rent). A form of a lease agreement where the rent received in the form of rent associated with the income received by the tenant. One example is the participation of rent Expenditure rent. 

Sell and Rent Back (Sale and Leaseback): Sales of real estate that followed simultaneously with the rental of property by the same seller. Buyers become the rent, or the owner (landlord), while the seller becomes the tenant. Because there are situations and relationships between the parties that may be unique, transactions and rental return may or may not involve the requirements of a public market. 

Relations With Accounting Standards: Rights rent based on the general principles of the same property, but to acknowledge the differences caused by the rental agreement that limits the interest of property, which could cause interest that can not be marketed or limited. Rental rights, in particular, often involve agreements that limit or burdensome provisions. Property of the above, there are operational lease, for the purpose of accounting is usually classified as investment property, and therefore considered the primary market value. Rights rent parent also usually votes with a market value basis. In some cases, the tenant may have rights based on the agreement (Statutory right) to purchase the interests of rights owners to rent, usually proprietary, or may have absolute rights or rights to renew rent parole in a period of time. Assessors should be clearly revealed the existence of rights based on the agreement and acceptance in the report whether the assessment should be considered in this assessment. Importance to distinguish between the physical aspects of the law and the interests of (tenure) is critical in the assessment. For example, the rent that tenants may not have the right to sell or transfer the interest of rent, so the cause can not be traded during the rental period. Therefore, the value for tenants only based on the rights to use and occupy. Rental value can be expressed in monetary terms but is not a value market because they can not be sold in the market. Anyway, the interests of the owner (leased fee value) that have market value, based on the value of the rental income during the period plus the rental value of residue remaining at the end of the lease. Each of interest law (tenure) in the property should be considered as a separate entity and not be treated as if combined with other interests. Any calculation of the value of consolidating the rights (merged interest value) or the value of compounding (Marriage value) should be stated in the additional suggestions only and may be implemented as an assessment based on certain assumptions and are properly stated in the assessment report. Rental agreement that can limit the negative effect on the market value of the interests of rent. Assessors should be clearly revealed in the report about the existence of rating the condition. The most frequently occur and the negative effect is the restriction on the rights to rent or restriction to rent again. 

Inter-rental company If the property bound by the lease or rental agreement between the two companies in the same group, is acceptable to consider the existence of the agreement, provided that the agreement is free of ties (arm's-length) in accordance with the general commercial practice. When the assessment was conducted for the purpose of financial reporting, is acceptable to reflect the lease between the companies, with the condition that the assessment is done against the interests of one of the parties in the rental agreement. However, if the assessment is done for interest groups associated with the recording in the account consolidation, the existence of rent between the company does not consider (IAS 40, eggs B21). 
Physical changes to the tenant 
At the rate of interest that the property bound by the lease, it is important for the Evaluation identify whether changes or adaptations have been made to the property by the tenant. If so, Evaluation should consider the following: 

a) Does the tenant have been eligible to rent or restriction associated with the changes? 
b) What is the impact of regulations on the rights of the parties in relation to the changes? 
c) What changes are mandatory or voluntary? 
d) Is there an obligation for owners to provide compensation to the tenants of the cost or value of the work, or for tenants to return to the original condition at the end of the lease? 
Physical changes to the tenants divided into 2 categories: 

a) Changes in the mandatory (obligatory alterations): This usually happens when the properties are in the basic conditions or replica with the specification is not ready uses tenants before conducting further work building or charging (fixture-out). Rental agreement condition that usually apply do is implemented by the tenant in a period of time. 
b) Changes in the voluntary (Voluntary alterations); usually happens when the properties are in ready condition used, but the tenants choose to implement renovate or repair work in accordance with the specific needs of tenants. Although tenants may consider this as a change, the market in general, this may look different. 
The changes are generally requirement will have beneficial impact on the Rental Market. Changes that could result in a voluntary benefit, neutral or detrimental to the Rental Market, depending on the nature and magnitude of the changes that are special. The impact of Rent reflected in the market value of the interests of the owner or tenant depends on the answers to questions on grain 

Market Value of Negative :Negative market value may occur when the rights of smaller rental obligations must be fulfilled. 

Common :Due to the complexity of the assessment of relative tenure, it is important for the client or the client's legal counsel to provide good Evaluation copy of the entire rental agreement or, for properties with the number of tenants that many, the sample from the rental agreement that is typical with a summary of the agreement to rent the other.

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