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Tenant fees: A percentage lease is a commercial lease where the tenant pays base rent and a percentage of their monthly sales. This can be advantageous for the landlord if the tenant's business does well, but it can also be disadvantageous for the tenant if their business could be doing better.

Break-even Point The break-even point specifies how much sales must be generated in a month above which a percentage of the sales will be given to the landlord as additional rent. For example, a break-even point of $500,000 means that the landlord will capture a percentage of sales above $500,000.

If your apartment is indeed stabilized, your landlord is supposed to attach to your lease the Rent Stabilization ?Lease Rider.? The rider informs you of your rights and responsibilities as a rent stabilized tenant, and includes the prior rent for the apartment, as well as the reasons the rent was increased.

Landlords are required to provide notice to tenants if they intend to raise rent more than five percent or if they do not intend to renew the lease. The landlord must provide such notice at least: 30 days in advance of renewal if a tenant has lived in the apartment less than one year and has less than a 12-month lease.

A lease structure often depends on the landlord's preference and what is common in the market place. Some leases push all the expenses to the tenant's side of the ledger, while other leases push all the expenses to the landlord's side; and then there are many lease types in the middle.

The Natural Breakpoint is the minimum annual base rent divided by the percentage rent. For example, if the minimum annual base rent is $100,000 per year and the percentage rent is 5%, then the Natural Breakpoint is $2,000,000.

Certain tenants may enjoy percentage leases due to the lower monthly fixed rental costs. Their use often applies to high traffic areas such as shopping malls, outlets, and shopping centers since percentage leases can benefit tenants with high and low sales volumes.