Recapture Clause
Definition of 'Recapture Clause'A provision usually found in percentage leases, especially in shopping-center leases, giving the landlord the right to terminate the lease - thereby recapturing the premises - in the event the tenant does not maintain a specified minimum amount of business. For example, a poorly performing retail shop in a shopping center can damage the shopping center's image and therefore the bottom line of all tenants and the landlord. |
|
Investopedia explains 'Recapture Clause'A recapture clause is intended to protect a landlord by making sure that tenants maintain a certain amount of revenue. The recapture clause allows a means for an underperforming retail store to be removed, opening the space for a more profitable endeavor. A recapture clause also protects a landlord in an instance where the tenant attempts to sub-lease the property for a profit. |
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. -
Should You Buy Property On Leased Land?
Find out what to consider before investing in a leased-land property. -
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. -
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. -
The Complete Guide To Becoming A Landlord
Being a landlord can be a fulfilling and financially rewarding experience. However, the decision to become a landlord should not be taken lightly. -
Reasons Renting Is Better Than Buying
Owning a home is much more expensive than renting. Here are the places where the costs differ greatly. -
Retirement Living: Renting Vs. Home Ownership
Here are three simple questions you should consider when weighing this decision. -
Why You May Want To Think Twice About Renting Out Your Home
Short-term renting is not for everyone. Significant risks to opening up your home to strangers may outweigh the inflow of cash. -
6 Ways To Get Your Full Security Deposit Back
When renting an apartment, a security or damage deposit is almost always required. Here are some tips to help you avoid unforeseen circumstances and get your money back in its entirety when you ...
Free Annual Reports