Additional Rent

### What is the primary difference between base rent and additional rent? - [ ] Base rent is voluntary, additional rent is mandatory. - [ ] Base rent applies to commercial leases, additional rent to residential. - [x] Base rent is a fixed amount, while additional rent includes extra charges. - [ ] Additional rent only applies during certain months. > **Explanation:** Base rent represents a fixed, minimum payment, while additional rent encompasses various extra charges depending on the lease agreement. ### What type of additional rent charges are based on a tenant's sales revenue? - [x] Percentage rent - [ ] Base rent - [ ] Fixed overage rent - [ ] Gross rent > **Explanation:** Percentage rent refers to a form of additional rent where the tenant pays a portion of their sales revenue to the landlord, typically found in commercial leases. ### Which type of lease includes both fixed rent and additional maintenance fees? - [ ] Gross lease - [x] Net lease - [ ] Gross-overage lease - [ ] Double net lease > **Explanation:** A net lease includes a fixed base rent plus additional charges for property expenses such as maintenance, insurance, and taxes. ### What does CAM typically cover in a lease agreement? - [ ] Individual tenant renovations - [ ] Only utilities - [x] Maintenance of common areas - [ ] Tenant-specific property taxes > **Explanation:** CAM costs cover maintenance of common areas used by all tenants, like lobbies, restrooms, and parking areas, ensuring these shared spaces remain functional and clean. ### How is overage rent generally calculated? - [ ] Based solely on rentable square footage - [x] As a percentage of sales surpassing a pre-set threshold - [ ] As a flat rate per overage term - [ ] Proportional to the number of leasing terms > **Explanation:** Overage rent is typically calculated based on a set percentage of the tenant's sales that exceed a pre-determined threshold. ### In commercial leases, is additional rent negotiable? - [ ] No, it is standardized for all tenants. - [x] Yes, it can be negotiated during lease discussions. - [ ] Only for CAM charges. - [ ] Only if base rent exceeds a certain amount. > **Explanation:** Additional rent charges are often negotiable, and details can be adjusted during the lease negotiation process between the landlord and tenant. ### Does common area maintenance charge apply to residential leases? - [ ] Always - [ ] Never - [x] Sometimes, based on the lease agreement - [ ] Only in commercial leases > **Explanation:** While more common in commercial leases, residential leases can also include CAM charges if outlined in the lease agreement. ### Which term refers to a lease where the landlord covers most property running expenses? - [x] Gross lease - [ ] Net lease - [ ] Triple net lease - [ ] Aviation lease > **Explanation:** In a gross lease, the tenant pays a fixed rent amount, and the landlord covers the bulk of property operating expenses. ### What does the abbreviation CAM stand for in leasing terms? - [ ] Capital and Assets Management - [x] Common Area Maintenance - [ ] Critical Asset Maintenance - [ ] Comparative Assessment Mechanism > **Explanation:** CAM stands for Common Area Maintenance, referring to charges for the upkeep of shared spaces within a multi-tenant property. ### Why is understanding additional rent important for tenants? - [ ] It avoids the need for rent payments. - [ ] It ensures a fixed reduction in base rent. - [x] It provides clarity on potential extra costs beyond base rent. - [ ] It enables tenants to avoid leases with CAM charges. > **Explanation:** Understanding additional rent is crucial for tenants as it provides insight into potential extra costs they may incur beyond base rent, enabling better financial planning and lease negotiations.