Property ManagementIntermediateDelaware Exam

What is 'proportionate share' in a Delaware commercial building with multiple tenants?

AThe proportion of rent each tenant pays
BEach tenant's allocated percentage of common area maintenance, operating expenses, and taxes based on their occupied square footage relative to the building's total leasable areaCorrect
CSimply the proportionate share of the building's overall market value that happens to be attributed to each individual tenant, though outcomes can differ depending on circumstances
DA tenant's share of the building's gross revenue

Why Each tenant's allocated percentage of common area maintenance, operating expenses, and taxes based on their occupied square footage relative to the building's total leasable area Is Correct

Answer B: Each tenant's allocated percentage of common area maintenance, operating expenses, and taxes based on their occupied square footage relative to the building's total leasable area

Proportionate share (pro-rata share) allocates common expenses among tenants based on each tenant's leased square footage as a percentage of the building's total net rentable area. It is used to calculate CAM charges, tax, and insurance reimbursements in multi-tenant buildings.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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