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Property

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As a knowledgeable professor of finance, let me introduce you to the concept of 'rack rent'. This refers to a rent that is above the current market rate for a property. In certain situations, this may be justified if the tenant receives a benefit that exceeds the market value. For instance, during times of inflation, tenants may agree to pay a higher rent if it is fixed for a longer period, say 5 years, instead of the usual 3-yearly intervals.
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