Borrower’s Responsibility to Establish Rental Rates Sample Clauses
The "Borrower’s Responsibility to Establish Rental Rates" clause assigns the borrower the duty to determine and set the rental rates for the property covered by the agreement. In practice, this means the borrower must analyze market conditions, assess comparable properties, and decide on appropriate rent amounts for tenants. This clause ensures that the borrower actively manages the property’s income potential, which is important for maintaining the property's value and ensuring the lender's security in the loan.
Borrower’s Responsibility to Establish Rental Rates. It shall be the responsibility of the Borrower and not the County Board or its designees to establish rents for the Income-Restricted Units in accordance with this Agreement and applicable HUD regulations. Borrower may seek approval of rents for Income-Restricted Units from the County Manager or his designee prior to establishing such rents in order to assure that they are not greater than the maximum rents allowed pursuant to this Agreement.