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"Contract rent" is the fancy term we use to describe the amount of money a tenant agrees to pay their landlord for a set period of time. It's kind of like making a deal with your friend to pay them $20 every week in exchange for using their bike. The amount you agree to pay each week is your contract rent for the bike.
A working example of contract rent in real estate could be a lease agreement between a tenant and landlord. Let's say the tenant agrees to rent a house for a year at a rate of $1,500 per month. That $1,500 per month is their contract rent, and they are legally obligated to pay that amount to the landlord every month for the duration of the lease.
"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"
Contract rent, oh what a thing!
It's the money you pay, like a bird on a wing.
You make a deal with your landlord, oh yes indeed,
And agree on a price that you both will need.
It's like a friend who lets you ride their bike,
You pay them each week, that's the deal you strike.
And in real estate, it's a lease you sign,
For a home to rent, oh so divine.
So remember, my friend, when you agree to pay,
Your contract rent is the amount you'll say.
And you must pay it on time, oh yes indeed,
For breaking the contract will cause a great need.