If a renewable lease option were found to be favorable to a tenant an appraiser: - can assume the tenant would exercise the option to renew
Stabilized Net Operating Income should recognize the tenant improvements made to a property that are appropriate for the market. - true
In determining in...
If a renewable lease option were found to be favorable to a tenant an appraiser: - can
assume the tenant would exercise the option to renew
Stabilized Net Operating Income should recognize the tenant improvements made to a
property that are appropriate for the market. - true
In determining income and expenses the first step is: - Lease and rent analysis
A lease clause that limits the expenses of the landlord is termed a: (select all the
answers that are correct) - expense stop clause and expense cap
The anticipated income that remains after deducting all operating expenses from
effective gross income but before mortgage debt service is: - net operating income
A rent survey reveals that apartment buildings offering one-bedroom units have a
considerably higher occupancy factor than those with two- bedroom units. If the subject
property includes only units with two bedrooms, the appraisal should probably project: -
A higher vacancy factor than found in the one-bedroom units
All of the following relate to the rent level or payment schedule of a lease except: -
sandwich or sublease
General payroll expenses: - include payments to all employees whose services are
essential to the property operation and management
REE 4103 Final Exam
, Consider a property with potential gross income of $113,648, effective gross income of
$72,515, and operating expenses of $25,909. What is the net operating income? -
46606
Which of the following is an example of a specific expense item rather than a category?
- property taxes
A lease with the following annual payments: Year 1: $10,000 Year 2: $12,000 Year 3:
$14,000 Year 4: $16,000; would be called what type of lease? - step-up lease
In an appraisal of income property, which of the following items should be excluded
from the expense statement? - mortgage loan interest payments
In income capitalization, value is measured as the present worth of the: - Forecast NOI
plus the reversion
Full recovery of amount invested is the: - Return of investment
Value is said to be the present worth of future benefits. This defines the principle of: -
anticipation
In a high rise 100-unit apartment building there is a basement laundry area that brings
in $100 monthly from the concessionaire. The laundry income is: - Would commonly be
included as a miscellaneous income and added to the potential gross income.
Generally, higher overall cap rates are associated with: - less desirable properties
When estimating the market value of an income-producing property, the appraiser will
not consider: - Income taxes attributable to the property
REE 4103 Final Exam
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