Property Management

A Mississippi property manager for a retail shopping center is reviewing tenant sales reports as required by percentage leases. These reports are used to calculate:

AThe tenant's credit score
BPercentage rent due above the base rent when the tenant's gross sales exceed the 'natural breakpoint'✓ Correct
CThe property's market value
DThe property manager's performance bonus

Explanation

Percentage leases require tenants to pay base rent plus a percentage of gross sales above the 'natural breakpoint' (base rent ÷ percentage rate). Tenant sales reports allow the landlord/manager to verify and calculate any additional percentage rent due, which is common in retail leases.

Related Mississippi Property Management Questions

Practice More Mississippi Real Estate Questions

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

Take the Free Mississippi Quiz →