Property Management

A Virginia property manager is negotiating a lease for a commercial tenant. A percentage lease is one where:

AThe tenant pays only a percentage of market rent
BThe tenant pays a base rent plus a percentage of gross sales✓ Correct
CThe landlord retains a percentage of the security deposit
DThe management fee is a percentage of net income

Explanation

A percentage lease (common in retail) requires the tenant to pay a base rent plus a percentage of gross sales above a specified threshold (the breakpoint). This aligns the landlord's income with the tenant's business success.

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