Turnover based leases
A turnover-based rent is generally calculated as a percentage of room sales and Food & Beverage (F&B) sales. Many turnover-based lease agreements also contain a basic minimum rent, which is payable regardless of actual sales and which is adjusted for changes in the CPI.
In turnover-based leases, the landlord is responsible for external maintenance and the tenant is responsible for operating costs. In several leases, the landlord is also obliged to pay for replacement costs related to the technical environment in making certain investments in the premises. Maintenance of the technical environment is normally the tenant’s responsibility.
Terms for renewals or extensions of leases upon expiry of the fixed-term have only been agreed to a limited extent. However, some lease agreements contain provisions that give the tenant the right to extend the lease on certain, more precisely, defined terms. Tenants of properties in Sweden have, according to Swedish law, an indirect right to lease extension on fair market conditions, upon expiry of the lease term.
Fixed leases For some lease agreements, the rent is charged at a fixed-rate for the lease period.
Other leases For some properties Norgani has other lease agreements with smaller tenants, for example, restaurants, bar, shops etc. Several of these contracts are not fixed-term and will remain in force until they are terminated by either the tenant or the landlord.
