What is a premium when renting a commercial property?

Also referred to as a user premium, an occupant premium is the price an occupier of commercial real estate will pay as compared with a commercial real estate investor.

What is a premium rent?

When the owner of the freehold of a property grants a lease to a new tenant, it is not unusual for the tenant to pay a lump sum up front, as well as agreeing to pay an amount of rent monthly or quarterly during the term of the lease. Such an upfront payment is usually known as a “premium”.

What insurance should a commercial landlord have?

Most commercial landlords will require that their tenants have up-to-date insurance coverage for Public Liability to protect themselves against any legal liability due to personal injury or property damage caused by the tenant or their business, Glass coverage for plate glass replacement, and, depending on the type of …

What is insurance rent in a commercial lease?

Insurance Rent means in respect of any period for which the same is required to be calculated an amount equal to the aggregate of the total premium and other costs incurred by the Landlord for insuring the Premises against the Insured Risks.

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What is a premium fee?

Broadly speaking, a premium is a price paid for above and beyond some basic or intrinsic value. Relatedly, it is the price paid for protection from a loss, hazard, or harm (e.g., insurance or options contracts). The word “premium” is derived from the Latin praemium, where it meant “reward” or “prize.”

What is a premium?

Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. … For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc.

Who is responsible for commercial building insurance landlord or tenant?

It’s your landlord’s responsibility to organise buildings insurance. There’s no legal requirement for buildings insurance, although it’s a good idea for landlords to have it in place to protect not only their tenants but also their investment.

Who is responsible for buildings insurance on a commercial property?

Building insurance on a commercial property is arranged by the property owner. This could be the landlord or an owner-occupier. In the case of a rented property, the landlord might pass off the premiums to the tenant to pay as part of the rental contract.

Do tenants pay for buildings insurance?

As a tenant, you are responsible for paying your rent and utility bills, buildings insurance is your landlord’s responsibility. You should ensure you have contents insurance though, as this will protect your personal belongings against damage or theft.

Who pays legal costs for commercial lease?

You may have cause to wonder who is responsible for paying for the contract to be drawn up. Surprisingly there is no standardised procedure when it comes to leasing commercial space. However, it is usually the tenant who covers the cost regarding the lease document and requests the terms.

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What is a commercial landlord responsible for?

Generally speaking, the landlord is responsible for repairs and maintenance of the structural aspects of the building. This could include lifts, common areas and roofing. It is important that the commercial lease agreement clearly sets out what is defined as general repairs and structural repairs.

Who is responsible for insurance on a leased property?

Leases generally require leaseholders to contribute to insurance of their block – whether by including the cost in the general service charges or by way of a separate charge known as an “insurance rent”.

What is an example of a premium?

Premium is defined as a reward, or the amount of money that a person pays for insurance. An example of a premium is an end of the year bonus. An example of a premium is a monthly car insurance payment. … The amount that a policy holder pays an insurance company for coverage.

Why is premium pricing good?

It’s basic math—a higher price-per-unit leads to higher profit-per-unit sold. Premium pricing also improves brand value and the perception of your company. Not only does a premium-priced product accrue its own high-quality reputation, but it also improves the perception of the rest of your product portfolio.