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
