A Percentage Lease is a lease agreement where the rental payment is based on a percentage of the tenant's sales volume made at the leased property, often with a stipulated minimum rent. This type of lease is frequently used by retailers.
Percentage Rent is a component of a rental agreement, specifically under a percentage lease, where rent is partially determined by the income or sales generated by the tenant's business operating within the leased property.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.