Influence of lease agreement conditions for current rent value Cover Image

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Influence of lease agreement conditions for current rent value

Author(s): Anna Banaszek, Sebastian Banaszek
Subject(s): Economy, Geography, Regional studies
Published by: Wydawnictwo Uniwersytetu Warmińsko-Mazurskiego w Olsztynie
Keywords: rent;lease;methods;valorization;current value;NPV;

Summary/Abstract: In the paper general issues concerning the payment of the lease rent is presented. Negotiating conditions of the lease agreement has the direct effect to the economic situation of the real estate, especially with reference to such elements of the lease agreement as: the period, the rate of the rent and principles of restoring. Authors presented the advantages and disadvantages of individual elements of the lease agreement which have the significant effect to its contents, methods of calculating rents and ways of valorization of the amount of rates of the rent. With a view to taking the rational decision as for conditions of the conclusion of a lease agreement an acquaintance of her current value is necessary. The changeability causes discounted cash flows, that the nominal value of the lease agreement is usually different from an current value. In connection with the above, one should effect calculations being aimed at determining the current value of the lease agreement – to this purpose authors presented the example, exploiting the NPV function for this purpose.

  • Issue Year: 8/2009
  • Issue No: 4
  • Page Range: 17-23
  • Page Count: 7
  • Language: Polish