Property Management
A 'percentage lease' is commonly used in retail real estate and provides that rent is:
AFixed for the entire lease term
BCalculated as a percentage of the tenant's gross sales, often with a minimum base rent✓ Correct
CTied to the Consumer Price Index
DBased on the square footage of the tenant's sales floor only
Explanation
A percentage lease requires the tenant to pay base rent plus a percentage of gross sales above a natural breakpoint. It is common in retail centers where the landlord shares in the tenant's business success.
Related Massachusetts Property Management Questions
- The Massachusetts 'right of first refusal' for tenants in a condominium conversion means:
- A Massachusetts residential landlord wants to increase the rent of a current tenant with a fixed-term lease. The landlord may:
- A Massachusetts landlord who wishes to terminate a month-to-month tenancy must give the tenant:
- Under Massachusetts law, a landlord may deduct from a security deposit for all of the following EXCEPT:
- A Massachusetts commercial property manager who collects common area maintenance (CAM) charges from tenants must:
- Under Massachusetts Chapter 186, a landlord must return a tenant's security deposit within how many days of tenancy termination?
- A Massachusetts landlord who fails to provide a written statement of the condition of the premises before accepting a security deposit may:
- A Massachusetts commercial landlord exercises a 'recapture clause' in a lease. This means the landlord:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →