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hi this Bob Miller over to Bob Miller Realty Group today were gonna take a couple minutes and try and cover rent increases but first a big question why have them at all and the easy answer to that is especially on our short term lease meanings five years period of time you want to see some rent increases because at the expiration of that lease period youre going to want to rillette and retain that tenant so that tenant is going to be paying the rent that you foresee it to be in five years based upon inflation rates of a approximately say 3% so its not going to come to a big shock to that tenant and have a monumental rent increases in in your six so you want to increase them slowly as time goes along now various ways of doing that are for example fixed-rate perhaps theyre paying $18 per square foot in our manual basis youre - youre just gonna have to bump it a little bit to $18.50 another way of doing it is just saying a 3% compounded annually 3% generally used a lot on to say a
