A rental agreement has increasing or decreasing rent if the annualized fixed rent
allocated to a rental period exceeds the annualized fixed rent
allocated to any other rental period.
1.467-1(c)(2)(ii), if fixed rent
is not specifically allocated to any rental period by the parties in the rental agreement, the amount of the fixed rent
allocated to a rental period is the amount of fixed rent
payable during that rental period.
On April 2, the bankruptcy court ordered Green Valley Oil LLC to pay $18.9 million in fixed rent
(for December through February), as well as the fixed rent
for March (the amount was not indicated on the order) by the end of the month.
Many residents who had been told that they would have fixed rent
for the rest of their lives have now received eviction notices, while others are trying to manage rent that has nearly tripled.
(ii) the fixed rent
(such increase hereinafter referred to as the "Cost of Living Adjustment").
The major forms were compania, fixed rent
, and yanaconaje.
The first determination that must be made with respect to any rental agreement that does not meet the de minimis exception is whether the lease provides for "increasing or decreasing rent." A rental agreement has increasing or decreasing rent if during the lease term the annualized fixed rent
allocated to any rental period exceeds the annualized fixed rent
allocated to any other rental period.(23) A rental agreement allocates fixed rent
only if the rental agreement unambiguously specifies, for periods of no longer than a year, a fixed amount of rent for which the lessee becomes liable on account of the property during that period, and the total amount of fixed rent
specified is equal to the total amount of fixed rent
payable under the lease.
Lease: The building lease called for fixed rent
payments, not conditioned on HMI's financial performance.
Rental agreements that provide for the specific allocation of fixed rent
, regardless of when actual payments are due, will be respected in determining the gross rental income allocable to each period.