What term describes the situation when a tenant pays more rent than the economic rent?

The situation when a tenant pays more rent than the economic rent is best described as excess rent. This term refers to the difference between the amount a tenant is paying and the prevailing market rate (economic rent) for similar properties in the area. When rent exceeds economic rent, it often indicates that the tenant's lease agreement includes provisions or conditions that result in a higher-than-necessary payment, or that the demand for the property exceeds supply, allowing landlords to charge a premium.

Understanding the concept of excess rent is important in property management and valuation because it affects the overall profitability of an investment property and can influence tenant retention, lease negotiations, and market perceptions. This distinction is critical for both property owners and tenants to understand their rights and obligations under a lease agreement. In other terms provided, while they relate to various aspects of rent, none accurately capture the situation of a tenant paying more than economic rent in the same way that excess rent does.