Property Management

A percentage lease in commercial real estate typically requires the tenant to pay:

AA base rent plus a percentage of the tenant's gross sales above a specified threshold✓ Correct
BRent calculated as a percentage of the property's appraised value
CA percentage of the landlord's net income from the property
DRent that increases by a set percentage each year

Explanation

A percentage lease (common in retail) requires the tenant to pay a base rent plus an additional rent amount calculated as a percentage of gross sales above a specified breakeven threshold. This aligns the landlord's income with the tenant's business success.

Related Iowa Property Management Questions

Practice More Iowa Real Estate Questions

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

Take the Free Iowa Quiz →