Property Management

A Maine commercial tenant has a 'percentage lease' in which they pay base rent plus a percentage of gross sales. If base rent is $2,000/month and the percentage is 5% of gross sales over $200,000 annually, and the tenant's sales are $280,000, the annual overage rent is:

A$2,000
B$4,000✓ Correct
C$4,500
D$14,000

Explanation

Overage = ($280,000 − $200,000) × 5% = $80,000 × 5% = $4,000 annual overage rent. To solve this, multiply the relevant values: $2,000 and $200,000 at 5%.. The correct answer is $4,000.. This is a common calculation on the Maine real estate exam.

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