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
What is the primary legal remedy for a commercial landlord when a tenant fails to pay rent and refuses to vacate?
Answer: Unlawful detainer (eviction) action
An unlawful detainer action (formal eviction lawsuit) is the primary legal remedy to remove a non-paying tenant, as self-help eviction is prohibited in most jurisdictions.
A lease provision requiring the tenant to keep the space open for business during specified hours is called a(n):
Answer: Continuous use clause
A continuous use clause requires tenants to remain open during agreed-upon hours, protecting landlords and co-tenants from the negative traffic impact of a dark store.
When a tenant sublets space to a subtenant, who remains primarily liable to the original landlord for rent and lease obligations?
Answer: Original tenant only
In a sublease, the original tenant (sublandlord) remains primarily liable to the landlord; the subtenant is only liable to the original tenant under the sublease agreement.
Which economic factor most directly influences a commercial tenant's decision to renew a lease?
Answer: Current market rents relative to contract rent
Tenants compare their existing contract rent to current market rents; if they are paying below market, renewal is favorable, while above-market rent incentivizes relocation.
An appraiser is told that a property's largest tenant plans to vacate upon lease expiration. What adjustment is MOST appropriate in the income approach?
Answer: Model a lease-up period with absorption assumptions and costs
Anticipated vacancy requires modeling a realistic lease-up period including downtime, tenant improvement costs, and leasing commissions before stabilized occupancy is achieved.
A landlord charging a tenant for 'common area maintenance' (CAM) in a shopping center would MOST likely exclude which expense?
Answer: Structural roof repairs
Structural repairs (roof, foundation, exterior walls) are typically the landlord's responsibility and are excluded from CAM charges passed through to tenants.
Which tenant financial metric is MOST useful to an appraiser evaluating income stability in a retail center?
Answer: Tenant's sales per square foot relative to breakpoint
Sales per square foot compared to the percentage rent breakpoint indicates the tenant's sales health and likelihood of sustaining rent obligations and renewals.