A principal-agent relationship establishes a fiduciary relationship, which means that the agent owes his or her loyalty to the principal. A clause inserted in leases establishing an increase in the amount of payments due. Thus the landlord is able to pass these higher costs on to the tenants and therefore protect their investment form inflation. The exterior wall of a building. A written statement of the financial position of a person or company, showing total assets and liabilities at a certain date.
Many landlords require a financial statement as part of a lease approval.
The relationship between the floor area of a building and the total area of the land under the building. Minimum and maximum floor area ratios are often established as part of a zoning ordinance. A period between the time an obligation is due and the time default actually occurs. For example, a lease payment while due the first day of each month can normally be paid by the fifth day without either financial penalty or the tenant being in default. Sometimes called a step lease, this lease has provisions calling for periodic increases in the renal payments.