Wednesday, October 27, 2010

The Escalating Lease

In the good old days the leases for property at The Rez were fixed amounts over a 60 year term. In 1983 things changed. We wrote about "The Lawsuit" a short time back and the escalating lease was one of the changes brought about by the legal action.

If you missed the lawsuit article you can see it HERE.

Today's bit of history is an article that explains the PRV's logic for implementing the new type lease where the rate increased 10% every 5 years.

The article was published July 14, 1983.

Read it HERE.

The Rez News
Ross Barnett Reservoir
Brandon, Mississippi


Anonymous said...

What a "honet's nest!" It might be interesting to discuss PRV Services rendered in 1983 against those offered now.

Anonymous said...

so the lease goes up 10% from the original lease amount? or from tax assessed value? or what?

The Rez News said...

The leases goes up 10% of the lease amount. The older leases were a fixed amount for 60 years. Some of the original leases are very cheap by today's standards, many were written for amounts under $200 a year.

Anonymous said...

All I want to know is where does the money go and what do they do with it? It sure isn't used for customer service or keeping the roads in decent repair.

Anonymous said...

When you buy your house you pay a monetary consideration for the lot. It's built into the price of the house. Effectively you buy a lot that you do not own, then you get to pay an escalating annual lease. The price of my house was not discounted by the value of the lot. Anywhere else in the World you either buy or lease.......not both! Welcome to the Rez!

chris said...

anon 4:06-
very observant...and yes it stinks. most dont get that your home's price has the land (in our cases-lots) factored in. just like when someone comes to us and tells us a builder is going to build their new house for 80/ft. but he doesnt include the cost of the lot in that quote. dont know why many miss this.