Property Management

A Florida property manager for a retail center must understand 'percentage rent' clauses in leases. A percentage rent clause means:

AAll tenants pay the same percentage of their income as rent
BThe tenant pays a base rent plus a percentage of gross sales that exceed a natural breakpoint✓ Correct
CThe rent increases by a fixed percentage each year
DThe rent is set as a percentage of the property's appraised value

Explanation

Percentage rent clauses (common in retail leases) require tenants to pay a base minimum rent plus a percentage of gross sales above a breakpoint. The natural breakpoint is calculated as Base Rent ÷ Percentage Rate.

Related Florida Property Management Questions

Practice More Florida Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Florida Quiz →