Property Management
When managing an office building, a Texas property manager must ensure that the building's 'base year stop' in a gross lease is accurately tracked because it determines:
AWhen the lease expires
BThe base expenses that the landlord absorbs, above which the tenant pays increases✓ Correct
CThe starting rent amount
DThe building's construction year
Explanation
In a modified gross or full-service gross lease, the 'base year stop' establishes the landlord's baseline operating expenses. If expenses increase above the base year amount in subsequent years, the tenant pays their proportionate share of the increase. Accurate tracking of the base year expenses is critical for proper CAM reconciliation.
Related Texas Property Management Questions
- A Texas property manager discovers the building's HVAC system needs emergency repair costing $4,500. The management agreement authorizes emergency expenditures up to $3,000 without owner approval. The manager should:
- A Texas landlord wishes to enter a tenant's apartment to make necessary repairs. Under Texas Property Code, the landlord:
- In Texas, a property manager who self-contracts repair work for a managed property is:
- A Texas commercial property manager who manages a retail center must understand the concept of 'anchor tenants' because:
- A Texas commercial property manager signs a lease with a new tenant. The lease contains a 'personal guarantee' clause. This means:
- When a tenant in a Texas commercial lease requests 'tenant improvements' (TIs), the lease typically addresses:
- When managing a commercial property in Dallas or Houston, a Texas property manager's primary responsibility regarding CAM charges is to:
- Under Texas Property Code § 91.006, a landlord must make reasonable efforts to re-rent a unit after a tenant breaks the lease. This duty to mitigate damages means:
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →