Property Management
A New Mexico commercial property manager is responsible for a retail center's 'CAM reconciliation.' This annual process:
ASets the new rent for the following year
BCompares actual common area maintenance expenses to estimated amounts billed, resulting in a credit or additional payment from tenants✓ Correct
CTerminates leases that are not profitable
DCalculates the property's market value
Explanation
CAM reconciliation compares what tenants paid throughout the year in estimated CAM charges to the actual expenses incurred. If actual exceeds estimates, tenants pay the difference; if estimates exceed actual, tenants receive a credit.
People Also Study
Related New Mexico Questions
- A New Mexico commercial space leases for $18 per square foot per year (NNN). The tenant occupies 2,500 sq ft. What is the annual base rent?Real Estate Math
- A New Mexico commercial building has 15,000 rentable square feet. The lease rate is $22/sq ft/year NNN. What is the annual base rent?Real Estate Math
- A New Mexico commercial lease has 3,000 sq ft at $20/sq ft/year plus a 5% commission for procuring the tenant. What is the annual commission?Real Estate Math
- A New Mexico commercial property generates $180,000 in annual gross revenue. Operating expenses are 45% of gross revenue. What is the NOI?Real Estate Math
- A New Mexico property generates $30,000 in annual net operating income (NOI). If the capitalization rate is 6%, what is the estimated value?Property Valuation
- A New Mexico apartment manager who charges a higher security deposit to families with children than to childless adults is:Fair Housing
- A New Mexico commercial lease clause requiring the tenant to pay for their proportional share of the building's common area expenses is known as a:Property Management
- In New Mexico, a commercial property manager working with a REIT (Real Estate Investment Trust) is likely managing properties on behalf of:Property Management
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
Study This Topic
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →