It could be useful for landowners who have free land they wish to develop. The BTS agreement reduces the country`s development risk, as the lease is blocked. Tenants get capital through a BTS lease. Miller Thomson LLP uses your contact information to electronically send you information about legal topics, seminars and corporate events that may be of interest to you. If you have any questions about our information practices or our obligations under Canadian anti-spam legislation, please contact us at privacy@millerthomson.com. Under these conditions, the lessee is considered to be the owner of the asset during construction. It must therefore take into account the progress of construction with ASC 360 - Property, Plant and Equipment. The rule obliges the tenant to bear the construction costs through a loan accepted by the lessor. When the construction is completed, the lessee follows the rules of sales and rental accounting. Rent is generally based on a return applied to project costs, with this rate being determined in part by current market conditions, the type of facility and the user`s credit quality. In the case of full-service leases, the rent will also include a component covering operating costs. Since rent is proportional to costs, it is important to understand the cost issues associated with it, as described below. Rental, appointment and design control creates an inherent tension in a BTS leasing.

The tenant should not expect the developer to set rent for a building that is not yet designed, but the structure of the agreement should ensure that the tenant will receive fair rent. The client cannot expect the tenant to waive any influence on the layout of the building, but a tenant must respect the developer`s fundamental interest in the design of the project. If the developer is selected only when the building is designed and the project is rewarded, the desired schedule will not be reached and the tenant will not receive the support of his developer partner during the decisive design and pricing phases. Less upfront costs – The main advantage of renting commercial equipment is that you can access the necessary technology with minimal upfront fees. Our leasing contracts do not require a reward; so you can receive your machine without significantly affecting cash flow. The Financial Account Standards Board (FASB) has just published new accounting standards for leases (Theme 842). The new standards cover BTS leasing contracts that sometimes use sales and rental accounting. Duration of a rental contract, a fixed and non-cancellable period. We believe we are meeting short-term demand in this rapidly changing business world. Our short-term rental package allows businesses to rent a device for at least three months.

This option gives access to the same range of products, but you don`t have to commit to long-term contracts or long-term leases.. . . .