Tenant Relations & Retention Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Tenant Relations & Retention flashcards as text
A landlord who accepts rent from a holdover tenant without signing a new lease has likely created what type of tenancy?
Answer: Month-to-month periodic tenancy
Accepting rent from a holdover tenant typically converts the tenancy to a month-to-month periodic tenancy, implying both parties consent to continue under prior lease terms.
Which factor is LEAST relevant when evaluating tenant retention risk in a commercial property appraisal?
Answer: Color scheme of tenant's store
A tenant's interior decor choices do not affect their financial ability to pay rent or their likelihood of renewing, making it irrelevant to retention risk analysis.
What does a 'dark clause' in a retail lease allow a tenant to do?
Answer: Stop operating while continuing to pay rent
A dark clause permits a tenant to cease operations (go dark) while still fulfilling rent obligations, which can harm co-tenants and reduce foot traffic.
When appraising a property with below-market leases, how are the leased fee and leasehold interests typically valued?
Answer: Leased fee is below fee simple value; leasehold interest has positive value
Below-market leases reduce the leased fee value below fee simple, while simultaneously creating a valuable leasehold interest for the tenant who pays less than market rent.
In property management, what is the primary purpose of conducting regular tenant satisfaction surveys?
Answer: Identifying issues before they escalate into non-renewals
Tenant satisfaction surveys proactively identify dissatisfaction so management can address concerns before tenants choose not to renew, directly supporting retention goals.
Which lease structure makes a tenant most responsible for operating expense increases?
Answer: Net lease
In a net lease (particularly triple-net), the tenant pays base rent plus all or most operating expenses directly, assuming the risk of expense increases.
An appraiser notes that a multi-tenant office building has a 40% rollover of leases in the next 12 months. This is BEST described as a:
Answer: Significant lease-up risk factor
High near-term lease rollover creates significant income uncertainty because multiple tenants may vacate or renegotiate at lower rates, representing a material risk to NOI.