A Leasehold title in the Motel Industry is similar to owning a Freehold Motel. Usually the period of the lease(Including Options) is in excess of 10 years with up 30 years for a new lease.

Leasehold Motel Value – Basics

The article below attracted my attention by its simple straight forward logic broken down into four areas. I have created a basic program within Motel Assist to help me guide the anybody who is inquisitive in understanding the metrics in assessing a motel using Motel Industry Benchmarks. In my program I have applied general benchmark percentagesContinue Reading

Structure of a Lease is the back bone of your business [L3]

It is very important you have a Solicitor evaluate the legal wording within the lease. You may read the lease and interpret it to your liking. Beware the legal meaning can be totally different to the way it has been written. You must seek a legal interpretation of the lease. click here to review or downloadContinue Reading

Splitting a Motel

Splitting a motel means that the Freehold title is split in the following way. A lease is created from the Freehold title which divides the motel three ways. Freehold title – in the original form incorporating the Land, Building & Motel Business Leasehold – being the motel business only – can be periods of upContinue Reading

About Lease Calculations

The value of a lease has many factors to consider the main ones being: Term in years Net profit of motel business before rent Condition of property being the Landscaping, Buildings & Equipment Terms within the lease The benchmark average yield for a leasehold is 30% when the annual rental is no higher than 45%Continue Reading