About: Internal rent

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Internal rent is a form of transfer pricing where a company owning its own premises forces single departments in that company to pay rent for the real estate they use. This is typically organized by one department—the holding department—functioning as a landlord, while the other departments—the occupying departments—functioning as tenants. One study lists two advantages with internal rents:

Attributes	Values
rdfs:label	Internal rent (en)
rdfs:comment	Internal rent is a form of transfer pricing where a company owning its own premises forces single departments in that company to pay rent for the real estate they use. This is typically organized by one department—the holding department—functioning as a landlord, while the other departments—the occupying departments—functioning as tenants. One study lists two advantages with internal rents: (en)
dct:subject	Renting
Wikipage page ID	23580645 (xsd:integer)
Wikipage revision ID	940183664 (xsd:integer)
Link from a Wikipage to another Wikipage	Benchmarking Renting Departmentalization Landlord Real estate Renting Asset Free good Tenants Open market Transfer pricing Profit centre dbr:Tenure_pattern
sameAs	Internal rent Internal rent Internal rent
dbp:wikiPageUsesTemplate	dbt:Realestate-stub dbt:Reflist dbt:Use_British_English dbt:Use_dmy_dates
has abstract	Internal rent is a form of transfer pricing where a company owning its own premises forces single departments in that company to pay rent for the real estate they use. This is typically organized by one department—the holding department—functioning as a landlord, while the other departments—the occupying departments—functioning as tenants. One study lists two advantages with internal rents: * It requires the occupying department to "contribute" an amount to the business equivalent to the open market rental value of the space that it occupies. This prevents the treating of space as a free good and, as an individual profit centre, each department will then rationalise its holdings to minimise its costs. * The second advantage is from a strategic viewpoint: by charging an asset rent, the holding department can identify the performance of its real estate holdings. This can then be compared to an internal or external benchmark to help determine whether the company has adopted the most efficient for its properties. (en)
gold:hypernym	Form
prov:wasDerivedFrom	wikipedia-en:Internal_rent?oldid=940183664&ns=0
page length (characters) of wiki page	1696 (xsd:nonNegativeInteger)
foaf:isPrimaryTopicOf	wikipedia-en:Internal_rent
is Link from a Wikipage to another Wikipage of	Bundesimmobiliengesellschaft Swedish Fortifications Agency Holding department Holding departments Occupying department Occupying departments System of internal rent Internal asset rent Internal asset rents Internal rent system Internal rents
is Wikipage redirect of	Holding department Holding departments Occupying department Occupying departments System of internal rent Internal asset rent Internal asset rents Internal rent system Internal rents
is foaf:primaryTopic of	wikipedia-en:Internal_rent

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