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Ree 4103 unit 3 quizzes Questions with 100% correct answers | verified | latest update 2024
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Ree 4103 unit 3 quizzes Questions with 100% correct answers | verified | latest update 2024
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Ree 4103 unit 3 quizzesA gross lease is one that:
Tenant pays for all operating expenses
Landlord pays for all operating expenses
Applies only to commercial properties
Rent rises with the cost of living - ANS-Landlord pays for all operating expenses
A lease on a 8,000 square foot industrial building, where the rent is specified as
$3,500/month, for a 5-year term with level income throughout the lease term. When the
lease was negotiated, the tenant received free rent for the first month of each year as a
concession. What is the effective rent per square foot per year?
$7.28
$2.18
$39.75
$4.81 - ANS-$4.81
A property has potential gross income of $30,000, effective gross income of $27,000,
and operating expenses of $8,100. What is the operating expense ratio?
10%
25%
27%
30% - ANS-30%
, A property sold for $555,000. The buyer anticipated the potential gross income would
be $93,000, the vacancy would be 5%, and expenses would be 53% of EGI in the year
after the purchase. What is the overall capitalization rate (RO)?
7.48%
6.78%
10.35%
11.83% - ANS-7.48%
A small office building sold for $120,000. The monthly net operating income is $1,300
per MONTH. What was the overall capitalization rate?
9.2 percent
15.29 percent
11.14 percent
13 percent - ANS-13 percent
All are used in valuation of income-producing property except:
Rental rates
Operating expenses
Income taxes
Net leasable area - ANS-Income taxes
An allowance for vacancy and collection loss is estimated as a percentage of:
Net operating income
Before tax cash flow
Effective gross income
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