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Know your real estate: Explaining jargons: Premium Rent

Here’s a look at some commonly used jargon in real estate industry

Premium rent

A rent above the level which a property could reasonably be expected to command in the open market on normal terms. Such rents may be justified in instances where the tenant receives a present or future benefit against the market. Eg. in inflationary conditions where upward-only rent reviews are normally required at three-yearly intervals, the tenant may be prepared to pay a higher rent if fixed for a longer period of say, 5 years.

A rent which is higher than would reasonably be expected because the tenant is particularly anxious to secure the property.

 

Some more jargons:

Private treaty

The most common method of disposal of real property, in which negotiations are carried out between the vendor and prospective purchasers (or their respective agents) privately and in comparative secrecy, normally without any limit on the time within which they must be completed, before contracts are exchanged.

Project management (development management)

The leadership role which plans, budgets, co-ordinates, monitors and controls the operational contributions of property professionals, and others, in a project involving the development of land in accordance with a client’s objectives in terms of quality, cost and time.

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