What if the new Master Lease rent is more than is collected by sublease rents?
The sublease rents are locked in by the individual sublease agreements, and will most likely not be renegotiated to a higher fee. Since the Shelter Bay Company is owned by the Community, the community homeowners association can decide to assess its members for the deficit balance. For the rent period of July 1, 2003 through June 30, 2013, the sublease rents collected by the Shelter Bay Company are less than the total rent amount due to the Tribe/BIA under the master lease. For the fiscal year 2009-2010, members of the Shelter Bay Community, Inc. ratified an assessment for “Supplemental Rent”, which works to supplement the annual leasehold income (from sublease rents) to the Shelter Bay Company. It is highly likely that similar assessments will be approved and ratified for future years. Information on this assessment can be obtained from the Shelter Bay office: (360) 466-3805.
The sublease rents are locked in by the individual sublease agreements, and will most likely not be renegotiated to a higher fee. Since the Shelter Bay Company is owned by the Community, the community homeowners association can decide to assess its members for the deficit balance. For the rent period of July 1, 2003 through June 30, 2013, the sublease rents collected by the Shelter Bay Company are less than the total rent amount due to the Tribe/BIA under the master lease. For the fiscal year 2008-2009, members of the Shelter Bay Community, Inc. ratified an assessment for “Supplemental Rent”, which works to supplement the annual leasehold income (from sublease rents) to the Shelter Bay Company. It is highly likely that similar assessments will be approved and ratified for future years.
Related Questions
- Whether lease rent paid or payable for lease of accommodation for staff (including brokerage paid for the same), against a fixed sum recoverable from employees, is liable to FBT?
- What if the new Master Lease rent is more than is collected by sublease rents?
- Can a landlord increase the rent or make a change to the lease?
