Home Lease Incentive Agreement

Lease Incentive Agreement

by Renkema

XYZ Company then recorded the maintenance of the cash incentive at the end of the first year to the tune of $20,000. Just as a cash payment would reduce rental liabilities, receiving the incentive in cash increases rental liabilities. If the incentive is granted as a rent reduction, but the monthly rent reductions at the beginning of the period are greater than the rent reductions for the balance of the term, it may be reasonable for the tenant to pay a refund for the excess portion of the initial monthly reductions. The tenant would reimburse a part of the deductible that represents the part of the part not yet elapsed of the duration of the rental agreement at the time of termination. Scenario 2: Instead of offering incentives, the landlord only offers lower rents. The total net rents in the building is $4,000,000.