How are property taxes treated in the rent calculation?

Property taxes are incorporated into the rent calculation as part of the carrying cost assumptions, alongside mortgage principal and interest and insurance.

Given tax variability across jurisdictions, Requity applies a standardized assumption of 1% of purchase price for underwriting and lease payment purposes throughout the lease term. This provides a practical and consistent methodology across markets.

Upon buyback, responsibility for property taxes transfers to the client, who then pays the actual taxes specific to the property.