Property Management (alternative)
A Maryland commercial property manager must understand that 'net effective rent' is:
ABase rent only, excluding all additional charges
BThe actual rent collected considering free rent periods, tenant improvement allowances, and other concessions✓ Correct
CRent after subtracting taxes and operating expenses
DGross rent minus commission
Explanation
Net effective rent accounts for all lease concessions (free rent, TI allowances, moving expenses) spread over the lease term, reflecting the true average rent the landlord receives.
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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.
Math Concepts
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