Definitions for rack rent
This page provides all possible meanings and translations of the word rack rent
an extortionate rent
a rent equal or nearly equal to the annual value of the property
an excessive rent
Rack-rent denotes two different concepts: an excessive or extortionate rent, or the full rent of a property, including both land and improvements if it were subject to an immediate open-market rental review The second definition is equivalent to the economic rent of the land plus interest on capital improvements plus depreciation and maintenance—the normal market rent of a property—and is not inherently excessive or extortionate. Also, this may be different from the rent actually being received. Historically, however, rack-rent has often been a term of protest used to denote an unjustly excessive rent, usually one paid by a tenant farmer. The two conceptions of rack-rent both apply when excessive, extortionate rent is obtained by threat of eviction resulting in uncompensated dispossession of improvements the tenant himself has made. I.e., by charging rack-rent, the landowner unjustly uses his power over the land to effectively confiscate wages, in addition to merely charging the tenant interest and depreciation on the capital improvements which the landlord himself has made to the land.
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