Rental Glossary - G
Someone who guarantees to pay the rent and other charges should the tenant fail to do so. More common for young people, a guarantor is usually required to sign a legally binding agreement (guarantor's agreement).
When using a guarantor, the landlord may perform a credit check on each of the potential tenants and the guarantors.
See the article First-time Apartment Renters.
A commercial real estate lease where the property owner pays for all the charges usually included in ownership. These charges can include utilities, taxes, and maintenance, among others.
A Gross Lease is very similar to a Full Service Lease. The tenant may agree to a "Gross Lease with stops", which means the tenant will pay if charges reach a certain amount over the landlord's operating costs. The point when the tenant starts to pay is called the "stop level", because that is where the landlord’s share of the costs end.
Gross Leasable Area
The total area, broken down in square feet, used for rental space in a building. The gross leasable area (GLA) is designed exclusively for tenant occupancy and to produce income. This area can include basements, mezzanines, and the upper floors of a building.
The GLA is measured from from the outer surface of exterior walls and windows and including all vertical penetrations (e.g. elevator shafts, etc.).
A rental agreement that allows the rent amount to vary over the leasing term. The rent amount is periodically adjusted depending on future events, such as tenant income, appraisal results, expansion, inflation, etc. For example, if a company is leasing Montreal commercial space for 25 years under a graduated lease, every 5 years the lease payments might be adjusted to reflect the current market value of the commercial space.
See Capital Lease.