Property Management

An Oregon commercial tenant has a lease with a percentage rent clause. Percentage rent means:

AThe tenant pays a percentage of the market value of the property as rent
BThe tenant pays a base rent plus a percentage of their gross sales above a natural breakpoint✓ Correct
CThe tenant's rent increases by a set percentage each year
DThe property manager receives a percentage of the collected rent

Explanation

Percentage rent is common in retail leases — the tenant pays a base rent plus a percentage of gross sales above a 'natural breakpoint' (the sales volume at which the percentage rent kicks in). This aligns landlord and tenant interests by tying rent to business performance.

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