Bit of a "How long is a piece of string" question this one. In my travels as a motel broker I come across all sorts of answers. Some owners just give the extra years if they have a really good tenant - who maybe be good at keeping up ongoing renovations etc (Tenant may just pay legal costs for the lease extension) - Others may tack it onto the rent rather than having to come up with a stack of cash..

5% of Adjusted Net or $5k P/A would be a ballpark for an "Average" lease. But I have seen owners asking $10k for that same average lease... (Average Lease showing a return of around $100k PA Net Profit)

Wayne@rnrmotelsales.com.au