A restaurant tenant pays $3,000 per month in base rent under a triple-net lease. Annual property taxes are $12,000, annual insurance is $3,600, and annual common-area maintenance is $6,000. What is the tenant's total monthly payment?
Correct Answer
A) $4,800
Monthly expenses: taxes $12,000/12 = $1,000; insurance $3,600/12 = $300; CAM $6,000/12 = $500. Total monthly = $3,000 + $1,000 + $300 + $500 = $4,800.
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