Common use of Rent Setting Clause in Contracts

Rent Setting. Harvard Real Estate University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below) and must charge all University tenants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: Harvard Real Estate (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost-based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include:  Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc.  Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.)  Interest expense for debt on acquisition, construction, or renewal of the building and building systems”. HRE reserves the right to determine the appropriate service level/standard for the building. Occupants that require specific service levels other than the building standard will be responsible for the resulting cost.

Rent Setting. Harvard Real Estate University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below) ), and must charge all University tenants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: Harvard Real Estate (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost-based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include:  Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc.  Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.)  Interest expense for debt on acquisition, construction, or renewal of the building and building systems”. HRE reserves the right to determine the appropriate service level/standard for the building. Occupants that require specific service levels other than the building standard will be responsible for the resulting cost.

Rent Setting. Harvard Real Estate University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below) ), and must charge all University tenants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: “Harvard Real Estate (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost-based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include:  Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc.  Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.)  Interest expense for debt on acquisition, construction, or renewal of the building and building systems”. HRE reserves the right to determine the appropriate service level/standard for the building. Occupants that require specific service levels other than the building standard will be responsible for the resulting cost.

Rent Setting. Harvard Real Estate University Portfolio is treated as a Service Center under federal cost accounting guidelines. As such, HRE sets rents according to A21 guidelines (see below) and must charge all University tenants the same rent for similar space. (The government’s cost accounting standards are structured to ensure that there are no cross-subsidies that might lead to a grant paying a disproportionate amount for any service.) Per the University budget letter: Harvard Real Estate (HRE) manages residential, commercial, and University space for Harvard. Residential and commercial rents are set at market rates. Rent for University space is cost-based, as directed by Federal regulations (A21 guidelines), which require that internal rents be set at or below the break-even, fully loaded expense level for the space. Expenses include:  ➢ Direct expenses, such as maintenance staff, building services & repairs, utilities, supplies, real estate taxes, insurance, etc.  ➢ Indirect expenses such as allocated department overhead (managers and administrative staff, rent, IT & telecom, etc.)  ➢ Interest expense for debt on acquisition, construction, or renewal of the building and building systems”. HRE reserves the right to determine the appropriate service level/standard for the building. Occupants that require specific service levels other than the building standard will be responsible for the resulting cost.