DC Property Managers Study Guide || Guaranteed Pass!!

What does the term "Triple Net" mean when referring to commercial leases correct answers refers to commercial tenant paying ALL Operating Expenses including real estate taxes, insurance, roof maintenance, landscaping, etc. This is the most commonly found in industrial leases. Percentage Lease correct answers A lease, that requires tenant to pay rent based on a calculation that relates directly to the tenant's gross sales. Usually stipulates a base monthly rental plus a percentage of any gross sales above a certain amount. The rights of a property owner include........ correct answers The right of possession, the right of control, the right of exclusion, the right of enjoyment, the right to sell. What is a Leasehold Interest? correct answers When the owner leases a property, it temporarily transfers to the tenant a portion of the right of possession. Escalator Clause correct answers When multi-year leases contain a provision for the owner to increase the rent on the lease's anniversary date. Separation of Funds correct answers Funds must be kept separate from property manager's accounts. Funds that the property generates belong to the owner and should be deposited into owner's account. Asset Management focuses on correct answers The property's long term planning, leasing and asking rates, negotiates commercial leases, evaluates mortgages & opportunities to refinance the loan,considers strategies to maximize value and when to market the property for sale. What common method is used to determine a property's Investment Value? correct answers Net Operating Income is divided by the Capitalization Rate (NOI/Cap Rate= Value) What are the four categories related to Maintenance? correct answers Curative, Deferred, Routine, & Prevenative Curative Maintenance involves...... correct answers Fixing or repairing something after it has already broken. An example would be fixing a broken sink Deffered Maintenance correct answers Involves delaying needed repairs and maintenance to save money.Is an ordinary maintenance item that is not performed at the time when a problem is discovered. An example a manager notices some minor paint peeling in stairwell. Routine Maintenance correct answers Relates to the cleaning and upkeep that is needed every day. An example is vacuuming the carpet in the building hallways. Depreciated Value correct answers This is used for income tax purposes and affects a property's tax basis List Price correct answers The only price that the owner has offered to sell a property for.