Question

You have a three-year fixed rate lease of $750/month due to expire next month. Your landlord is willing to renew the three-year lease with a 4% total rent increase. What is your rent over the three-year life of the new lease?

Answer 1

A three-year fixed rate lease = $750/month

The new rent in one month = (1+(4/100)) x 750 $/month

= 780 $/month

The rent in one year = 12 x 780 $/month = 9360 $/year

The rent in three years = 9360 $/year x 3 year = $ 28,080