Rack rent – this term finds application within the area of Law of Contracts. It refers to the total amount of annual rent, agreed in the concluded rental agreement. Usually, they agree that the rack rent will be paid as a bulk sum towards the landowner, at a particular moment of the year.
Also, the term could refer to the total rental sum which the owner could receive if he rents the property out. It could be equal to the full annual value of a real estate.
In addition, sometimes people use the term to detail extremely high amount of rent.
Example: “The property owner and the tenant agree that the rack rent for 2017 will be due in January”.