IAAO 102 EXAM STUDY GUIDE 2026
QUESTIONS WITH FULL SOLUTIONS
◉ Leases may or may not be in written form. This provides no
security for the tenant or landlord. Answer: Month to month - Short
term
◉ The tenant is required to pay all or part of the operating expenses
associated with the real estate. Answer: Net lease
◉ The tenant pays some or all of the property expenses. Answer:
Single, double or triple net lease.
◉ Degrees between the the gross lease Answer: Single and double
net leases
◉ May require specific expenses to be paid by either tenant or
landlord. Answer: Triple lease
◉ The landlord is required to pay all operating expenses associated
with the real estate. Answer: Gross lease
, ◉ When this section appears in a lease, it will usually explain the
extent of the work that the landlord is willing to do in the form of a
building or improvement allowance. Answer: Tenant improvements
◉ The amount of rent that a property should command in the open
market. Also known as economic rent. Answer: Market rent
◉ Is the rent the tenant is paying according to the lease in affect at
the time of appraisal or analysis. Answer: Contract rent
◉ The amount which contract rent exceeds market rent. Answer:
Excess rent
◉ The amount of rent received in accordance with the terms of a
percentage clause in a percentage lease contract. Answer:
Percentage rent
◉ Occurs when market rent is greater than contract rent. Answer:
Deficit rent (leasehold rent or leasehold income)
◉ The lease base rent less rent concessions. Used as a common
denominator to compare leases with different provisions. Answer:
Effective rent
QUESTIONS WITH FULL SOLUTIONS
◉ Leases may or may not be in written form. This provides no
security for the tenant or landlord. Answer: Month to month - Short
term
◉ The tenant is required to pay all or part of the operating expenses
associated with the real estate. Answer: Net lease
◉ The tenant pays some or all of the property expenses. Answer:
Single, double or triple net lease.
◉ Degrees between the the gross lease Answer: Single and double
net leases
◉ May require specific expenses to be paid by either tenant or
landlord. Answer: Triple lease
◉ The landlord is required to pay all operating expenses associated
with the real estate. Answer: Gross lease
, ◉ When this section appears in a lease, it will usually explain the
extent of the work that the landlord is willing to do in the form of a
building or improvement allowance. Answer: Tenant improvements
◉ The amount of rent that a property should command in the open
market. Also known as economic rent. Answer: Market rent
◉ Is the rent the tenant is paying according to the lease in affect at
the time of appraisal or analysis. Answer: Contract rent
◉ The amount which contract rent exceeds market rent. Answer:
Excess rent
◉ The amount of rent received in accordance with the terms of a
percentage clause in a percentage lease contract. Answer:
Percentage rent
◉ Occurs when market rent is greater than contract rent. Answer:
Deficit rent (leasehold rent or leasehold income)
◉ The lease base rent less rent concessions. Used as a common
denominator to compare leases with different provisions. Answer:
Effective rent
