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welcome to another burger bite as a landlord the reason that you want to give free rent and live a lower base rent theres a couple reasons first of all you want to be able to offer free rent as incentive to lure the tenant in but keep that face rent high because thats what your increases in future years are based on and thats also when you either go to refinance or sell the building thats what the buyer or bank will look at is what is the face rate it helps keep the value of your building up versus starting out with a lower base rate have increases on a smaller base over time so you want to keep that face rate as high as possible now if you give free rent what you want to also do is try to have the tenant pay the cam or the operating expenses so the only add a pocket that you really have would be the net rent for that period of time but you have at least some cover of cost for your fixed costs founded in 1998 burger commercial provides client centric third-party brokerage property
