Property Management
A Mississippi commercial property manager is negotiating a lease renewal with an existing tenant. The tenant is requesting a rent reduction. The manager should tell the owner:
AAlways accept any reduction to keep tenants
BThe current market rent for comparable space, the cost of re-tenanting (broker commissions, tenant improvements, vacancy period), and allow the owner to make an informed decision✓ Correct
CReject the request without analysis
DConsult MREC for guidance on market rents
Explanation
The property manager serves as an advisor to the owner. When a tenant requests a rent reduction, the manager should provide market data (comparable rents), calculate the total cost of losing the tenant versus the cost of the reduction, and present these to the owner for an informed decision.
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