Continuing Education

5. A lease where the tenant pays all operating expenses in addition to rent is called: *

A. Net lease

B. Gross lease

C. Modified gross lease

D. Long term lease

6. If a lease of an office building calls for the tenant to pay monthly rent of $5,000 plus all utility charges it would be a: *

A. Net lease

B. Gross lease

C. Modified gross or modified net lease

D. Short term lease

2. Rental income received from retail store tenants on the basis of their sales is called: *

A. Long term lease

B. Short term lease

C. Percentage lease

D. Net lease

10. An apartment complex contains 10 efficiency units, 20 one bedroom units, and 10 two bedroom units. Efficiencies rent for $350/month, one bedrooms rent for $440/month and two bedrooms for $550/month. What is the annual PGI? *

A. $17,800

B. $21,360

C. $213,600

D. $214,400

8. A commercial office building sold for $982,500 having an annual effective gross income of $131,800 and expenses of 18% of EGI. What is the indicated capitalization rate for this property?

A. 9.09%

B. 11.00%

C. 10.75%

D. .1100%

3. A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating expenses is known as: *

A. Net lease

B. Gross lease

C. Modified gross or modified net lease

D. Long term lease

11. The PGI for a commercial property is $84,000, vacancy and collection loss is 2% of PGI and operating expenses represent 45% of effective gross income. What is the NOI? *

A. $46,476

B. $45,720

C. $45,276

D. $44,520

1. Which of the following is the correct formula for calculating value using the income approach method? *

A. Value = Net Operating Income/Capitalization Rate

B. Value = Net Operating Income X Capitalization Rate

C. Value = Capitalization Rate/Net Operating Income

D. None of the above

4. A lease that lasts for periods of less than 10 years is known as a:

A. Percentage lease

B. Long term lease

C. Short term lease

D. Net lease

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7. The actual rental income specified in a lease is known as: *

A. Market rent

B. Contract rent

C. Overage rent

D. Excess rent

9. Five properties have been analyzed for both sale price and NOI. What is the indicated overall capitalization rate? (Use the Chart Provided)) *

A. 9.38%

B. 10.43%

C. 10.50%

D. 10.07%

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