What Does My Rent Cover? - MSNewsNow.com - Jackson, MS

What Does My Rent Cover?

Your Monthly Rent Bill

The total rent you pay each month is the sum of all the costs involved in providing you with a space that meets your needs. If the space is in leased space, the rent represents a direct pass-through to you of the actual costs GSA incurs, plus a fee for our services. If the space is in GSA-owned space, your rent is based on market comparables.

The categories of costs are shown in the summary on the next page. They are itemized in a similar fashion on both the Financial Summary Page of your OA and your monthly rent bill, so that you know exactly what you are paying and what you are receiving in return.

In the subsequent sections of this chapter, these cost categories are described in detail. Note that some of them may not apply in individual rental situations.

The Costs Included in Your Monthly Rent

What does "shell rent" mean?

Shell rent is the rate charged in the real estate marketplace for a building shell-a structure in which the house systems are present and operational but which has only perimeter walls. It is, in essence, the rent for an office envelope. The shell rent includes no services or operating costs. It also does not incorporate tenant improvements or alterations, such as the configuration, partitioning, finishing or furnishing of interior spaces.

How is the shell rent computed?

For leased space, the amount of the shell rent is established in one of two ways:

By a direct quote from the lessor

By subtracting operating costs, tenant fitout costs, security costs and parking (if separable) from the total lease cost. The starting point for this calculation is the overall lease cost that GSA pays to the lessor for your space. From this amount, we deduct the portion of the lease cost that goes to operating costs (including real estate taxes) and amortized tenant improvements. What remains is the shell rent.

For government-owned space, shell rent is based on independent professional appraisals. The shell (base) rate will be reappraised every five years during the occupancy term.

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