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Percentage rent tenants are typically required to give landlords the monthly sales reports they use to calculate their percentage rent. All too often, though, the tenant provides only its gross sales figure—the amount on which percentage rent is calculated under the lease agreement. It omits sales from transactions that you’ve agreed to exclude from gross sales, such as discounts to sales provided to its employees. And that can cause problems. For one thing, tenants may inadvertently or deliberately omit transactions that probably should count as gross sales.
