Exam (elaborations)
unit 10 quiz REE 4103 (1).
unit 10 quiz REE 4103 (1).
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unit 10 quiz REE 4103Effective gross income is income after an allowance for: - ANS-Vacancy and collection
Rental data would not include: - ANS-reproduction costs
When does an appraiser need to describe the source of information and verification of
lease terms? - ANS-When the appraiser reads the terms of the lease themselves.
A lease clause that limits the expenses of the landlord is termed a: - ANS-expense cap
If a renewable lease option were found to be favorable to a tenant an appraiser: -
ANS-can assume the tenant would exercise the option to renew
The operating expense ratio for income property is typically: - ANS-under 100 %
Any required adjustments in the division of expenses in comparable properties should: -
ANS-Reflect the same lease terms and division of expenses as the subject property
Lease renewals or extensions negotiated with existing tenants: - ANS-
Stabilized Net Operating Income should recognize the tenant improvements made to a
property that are appropriate for the market. - ANS-true
Consider a property with potential gross income of $113,897, effective gross income of
$81,051, and operating expenses of $50,240. What is the net operating income? -
ANS-30811
The monthly rental being paid for a comparable rental property is called: - ANS-Contract
Rent
The income capitalization approach supports what two basic methodologies? -
ANS-Direct and Yield Capitalization
Generally, higher overall cap rates are associated with: - ANS-less desirable properties
The appraisal approach that normally would be most useful in valuing investment
property is the: - ANS-income approach
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