Property Management
A Pennsylvania commercial tenant with a 'percentage lease' pays rent based on:
AA percentage of the building's assessed value
BA base rent plus a percentage of gross sales above a breakpoint✓ Correct
CA percentage of the landlord's mortgage payment
DA percentage of operating expenses only
Explanation
A percentage lease, common in retail, requires the tenant to pay base rent plus a percentage of gross sales once sales exceed a 'natural breakpoint' (calculated as Base Rent ÷ Percentage Rate). This aligns landlord and tenant interests — the landlord participates in the tenant's business success.
Related Pennsylvania Property Management Questions
- Pittsburgh's 'Good Cause for Eviction' ordinance (where applicable) requires landlords to have a legally recognized reason to:
- Under Pennsylvania's Landlord and Tenant Act, the maximum security deposit a landlord may collect after the first year of tenancy is:
- What is a 'management agreement' and what key provisions should it include for Pennsylvania commercial properties?
- In commercial property management, how does a gross lease differ from a triple net (NNN) lease?
- What is a 'CAM charge' in Pennsylvania commercial property management?
- What is 'deferred maintenance' and why is it a concern for Pennsylvania property managers?
- What is a 'gross lease' versus a 'modified gross lease' in Pennsylvania commercial property management?
- A Pennsylvania property manager's duty to disclose known defects to prospective tenants:
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →