Property Management
In a net lease, the tenant is responsible for paying:
ABase rent only
BBase rent plus some or all operating expenses✓ Correct
CAll construction costs for tenant improvements
DThe landlord's mortgage payment
Explanation
In net leases, the tenant pays base rent plus some or all operating expenses. The type of net lease determines which expenses the tenant bears: single net (taxes), double net (taxes and insurance), or triple net (taxes, insurance, and maintenance).
People Also Study
Related Florida Questions
- In a gross lease, who typically pays for operating expenses such as taxes, insurance, and maintenance?Property Management
- A commercial lease that requires the tenant to pay base rent plus a share of operating expenses (taxes, insurance, maintenance) is called a:Property Management
- A Florida commercial lease requires the tenant to pay base rent plus their proportionate share of operating expenses. This type of lease is called:Property Management
- A Florida commercial tenant is on a percentage lease in a retail shopping center. Their lease requires a base rent of $2,000/month plus 4% of gross sales over $500,000 annually. If annual gross sales are $700,000, what is the annual percentage rent overage?Property Management
- A Florida property generates $3,500/month gross rent. Annual operating expenses are $16,800. If the cap rate is 6.5%, what is the value?Real Estate Math
- A Florida buyer wants to purchase a duplex with a cap rate of 8.5%. The property generates $3,200/month in total gross rent with 10% vacancy and $18,000 annual operating expenses. What is the value?Real Estate Math
- A Florida rental property has the following data: Gross annual rent = $60,000; vacancy rate = 7%; operating expenses = $22,000. What is the net operating income?Property Valuation
- A Florida investor wants to receive a 10% cash-on-cash return on their $100,000 down payment investment. The property has a monthly mortgage payment of $800 and monthly operating expenses of $300. What minimum monthly rent must the investor charge?Real Estate Math
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →