IAAO 102 UPDATED FINALS ANSWERS AND
QUESTIONS SET A+
✔✔Gross Lease - ✔✔the landlord is required to pay all operating expenses associated
with the real estate.
✔✔Net Lease - ✔✔the tenant is required to pay all or part of the operating expenses
associated with the real estate.
✔✔Tenant improvements - ✔✔Terms of lease where it explains the extent of the work
that the landlord is willing to do in the form of a building or improvement allowance.
✔✔Types of Rents - - ✔✔1. Market Rent
2. Contract Rent
3. Excess Rent
4. Percentage Rent
5. Deficit Rent
6. Effective Rent
✔✔Gross Leasable Area (GLA) - ✔✔includes the entire area of the building
✔✔Net Leasable Area (NLA) - ✔✔includes only the floor area occupied by the tenant.
✔✔Gross Income Multiplier - ✔✔relationship between Effective gross income (EGI) and
the sales prices or property value
✔✔Misc. Income - ✔✔some misc income could be parking fees, vending machines,
coin operated laundries, etc
✔✔Effective Gross Income (EGI) - ✔✔obtained after determining the potential income
for the property
✔✔What kind of expenses are capital improvements? - ✔✔Improper Expenses.
QUESTIONS SET A+
✔✔Gross Lease - ✔✔the landlord is required to pay all operating expenses associated
with the real estate.
✔✔Net Lease - ✔✔the tenant is required to pay all or part of the operating expenses
associated with the real estate.
✔✔Tenant improvements - ✔✔Terms of lease where it explains the extent of the work
that the landlord is willing to do in the form of a building or improvement allowance.
✔✔Types of Rents - - ✔✔1. Market Rent
2. Contract Rent
3. Excess Rent
4. Percentage Rent
5. Deficit Rent
6. Effective Rent
✔✔Gross Leasable Area (GLA) - ✔✔includes the entire area of the building
✔✔Net Leasable Area (NLA) - ✔✔includes only the floor area occupied by the tenant.
✔✔Gross Income Multiplier - ✔✔relationship between Effective gross income (EGI) and
the sales prices or property value
✔✔Misc. Income - ✔✔some misc income could be parking fees, vending machines,
coin operated laundries, etc
✔✔Effective Gross Income (EGI) - ✔✔obtained after determining the potential income
for the property
✔✔What kind of expenses are capital improvements? - ✔✔Improper Expenses.
