What is often a key benefit of a percentage lease for landlords?

A key benefit of a percentage lease for landlords is the potential for increased income based on tenant sales performance. In a percentage lease arrangement, the landlord receives a base rent plus a percentage of the tenant's sales, which aligns the landlord's income with the tenant's business success. This structure incentivizes landlords to seek out high-performing tenants, as their earnings can directly increase with the tenant's sales growth. It allows landlords to benefit from thriving businesses and can lead to higher overall rental income compared to a traditional fixed rent model. This method not only maximizes the landlord's income possibilities but also fosters a cooperative relationship with tenants by encouraging them to boost their sales, which benefits both parties.