Question

DQuestion 10 20 pts Assume the following facts and answer the following question: How much additional rent must the tenant pay in the second year (12 month total) of this lease? Do not include any punctuation in your answer. 1. Suite A-112 comprises 15% of the entire shopping 2. Property taxes in the second year of this lease are 3. Insurance premium in the second year of this lease is 4. Common area maintenanée cost in the second year of center (by square footage of leaseable area). $10,000 more than in the first year of this lease. $7,500 more than in the first year of this lease. this lease for the entire shopping center are $5,000 more than in the first year of this lease. 5. Tenant gross sales in year two are $550,000 6. Tenant makes one "late rent" payment during the second year.

Answer 1

Following will be additional rent payment by the tenant in the second year as compared to first year

Property tax (15% of 10000)	$10000
Insurance premium (15% of 7500)	$7500
Common area maintenance cost (15% of 5000)	$750
Less : late rent (thus excluding maintenance cost of 750/12	($62.5)
Additional payment	$18187.5

Note :- if any rental amount is mentioned then deduct 1 month rental amount since it has not been made . However, if any late rent payment is paid in the second year itself then additional rent payment will be $18250.