An apartment owner hires a company to collect rents, arrange repairs, and handle tenant relations for a fee under a written contract. What is that contract called?
Correct Answer
D) Property management agreement
Property management agreement is correct because the facts match the contract setting out the manager's authority, duties, compensation, and limits when managing property for an owner. That is the best description of the relationship, right, or legal concept tested here.
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More Leasing Property Management Questions
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- → For the Kentucky state portion, how should a candidate analyze tenant security deposits will be collected?
- → A licensee in Iowa encounters security deposits and prepaid rents are part of the management relationship. What should the licensee remember?
- → A commercial landlord offers a new tenant a rent-free period of three months at the beginning of a five-year lease. What is this incentive commonly called?
- → A commercial tenant wants to sublease half of her leased space to another business. The original lease is silent on subleasing. Can the tenant sublease the space?
- → What is a 'triple-net lease' (NNN) in commercial real estate?
- → A retail tenant has a percentage lease with a base rent of $2,500 per month and pays 5 percent of annual gross sales over a $400,000 breakpoint. The tenant's annual gross sales are $600,000. What is the tenant's total annual rent?
- → What is a 'ground lease' in commercial real estate?
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- → A commercial real estate broker is explaining lease types to a prospective tenant. All of the following are characteristics of a ground lease EXCEPT.
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