Lease Rate
Definition of 'Lease Rate'The amount of money paid over a specified time period for the rental of an asset, such as real property or an automobile. The lease rate that the lender earns from allowing someone else to use his property compensates him for not being able to put that property to another use during the term of the lease. |
|
Investopedia explains 'Lease Rate'In commercial real estate, the lease rate is commonly stated as a dollar amount per square foot of space per year. To get a true idea of the cost of renting a space, in addition to the lease rate, the potential tenant will need to know if the lease is single, double or triple net. In other words, whether it is he or the property owner who will be responsible for expenses such as utilities, maintenance and property taxes.In the case of an automobile lease, the monthly payment on the vehicle is based on the car's expected depreciation and residual value (a predetermined amount that the car will be worth at the end of the lease term) as well as the lease rate, which is usually stated as a percentage. Through monthly payments, the lessee compensates the automobile dealer for both the vehicle's depreciation and for tying up assets in vehicles instead of investing that money elsewhere. |
Related Definitions
Articles Of Interest
-
Tips For The Prospective Landlord
Investing in rental property can generate serious income, but there's more to it than collecting rent. -
Top 10 Features Of A Profitable Rental Property
Find out what factors you should weigh when searching for income-producing real estate. -
Tax Deductions For Rental Property Owners
Besides creating ongoing income and capital appreciation, real estate provides deductions that can reduce the income tax on your profits. -
Simple Ways To Invest In Real Estate
Owning property isn't always easy, but there are plenty of perks. Find out how to buy in. -
Find Fortune In Commercial Real Estate
Investing in big buildings means big money - and bigger risks. -
Should You Offer Alternative Investments?
Find out what problems arise for financial representatives when they start to diversify their client offerings. -
How To Properly Research For The Best Mortgage Rate
You’ve probably been told to shop around for the best rate, but what exactly does that entail? Find out how to ensure you're getting the best possible rate on your mortgage. -
To Rent Or Buy? There's More To It Than Money
Your lifestyle, level of commitment and the trade-offs need to be carefully weighed. -
To Rent Or Buy? The Financial Issues
Thinking of buying a home? We look at the initial and ongoing costs, as well as the so-called benefits. -
An Overview Of Commodities Trading
Commodities markets, both historically and in modern times, have had tremendous economic impact on nations and people. Investing in commodities can quickly degenerate into gambling or speculation ...
Free Annual Reports