Whoever becomes involved with real estate leasing should spend some time dealing with the fundamental leasing costs and with the individual cost parameters:

  • leasing costs
  • cost parameters

leasing costs

  • leasing payments
    • =   combination of interest on capital and rent
  • fees and property taxes (property taxes)
    • notary and land registry fees
    • possible real estate transfer tax (if provided for in the canton of domicile)
    • real estate taxes (if provided for in the canton of domicile)
  • operating costs
    • maintenance costs
    • upkeep costs
    • repair costs
    • insurance premiums 

cost parameters 

  • investment costs
    • =  funds dispensed for the purchase of land and the erection of building structures (overall investment costs)
    • lacking specific information about the investment volume, one speaks of so-called “budgeted investment costs”
  • leasing payments
    • =  periodically made payments to satisfy the contractual provisions for the use and right to use the leasing property
    • calculation in percentages of the final overall investment costs of the leasing agreement taking the interest and amortisation share into account
  • processing fees
    • =  payment for the processing of the leasing agreement; depending on the provider, an additional fee is invoiced if the lessee allows for charges for different variations for the optimum financing of the leasing property
  • option fees
    • =  fee charged to the lessee when exercising a purchase right at the end of the ordinary term, for the work of the lessor
  • residual book value of the leasing property
    • =  total of the investment costs of the leasing less amortisation paid by the lessee up to a specific time of measurement
    • or: asset value of the leasing property on the lessor’s books taking the depreciation schedule permitted under the tax provisions into account
  • refinancing
    • =  outside sourcing of money through the lessor, corporate-internal or in the open market > refinancing costs (interest for the loan and loan costs)
  • early discharge compensation
    • =  for the premature dissolution of the leasing agreement for important reasons or as a consequence of late payments, under most leasing agreements so-called early discharge compensation is owed (as a consequence the early notice of the refinancing by the lessor) in addition to the projected residual book value as part of the damage claim settlement
Further information: terminology
Drucken / Weiterempfehlen: