Contingent Rent

Contingent Rent

Rent that varies depending on a certain condition. For example, the owner of a property may index its rent to the tenant's monthly income. A contingent rent system may be more beneficial for the lessee than the lessor.
References in periodicals archive ?
To the extent CFCs are insufficient, the rental car companies are obligated to pay contingent rent to support a minimum 1.
A 2005 letter from the SEC Chief Accountant emphasizes that contingent rent amounts should be disclosed and that the basis for these rents should be disclosed with "specificity, not generality" (http://bit.
If the increase or decrease in rent is wholly attributable to a contingent rent provision, or a single rent holiday for a period of three months or less at the beginning of the lease term, or the duration of the rent holiday is reasonable and does not exceed the lesser of 24 months or 10% of the lease term.
The support will cover requested assistance in the design, implementation (including contingent rent, purchase and installation of materials, equipment, software .
These lease agreements included base rent of USD 500 per acre and contingent rent of 50% of the operating profit of the leased property as defined in the lease agreements.
3) any contingent rent that accrues during the taxable year.
While there is a general agreement among those surveyed that the renewal options and contingent rents should be included in the measurement, there are concerns about the subjectivity surrounding the estimation of renewal probability, renewal rent and contingent rent, as well as the administrative burden of the required reassessment of those estimates every reporting period.
Under the current standard, contingent rent payments are recognized as rent expense when incurred.
In addition, the company said landlords agreed to settle $29 million in contingent rent obligations on a number of Bailey Bank & Biddle stores.
Barth says that SAB 101 creates industry-specific issues that, if misinterpreted, can cause noncompliance-such as multiple- element contracts, contingent rent, layaway sales, frequent flier miles, extended payment terms, and customer acceptance/installation.
Special rules apply to rental agreements with floating rent, rent based on variable interest rates, or contingent rent.
Management may also levy contingent rent on the rental car companies.