CGA Tenant Relations & Retention 3

Question 1

A landlord who accepts rent from a holdover tenant without signing a new lease has likely created what type of tenancy?

Accepted Answer

Month-to-month periodic tenancy

Answer

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.

Question 2

Which factor is LEAST relevant when evaluating tenant retention risk in a commercial property appraisal?

Accepted Answer

Color scheme of tenant's store

Answer

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.

Question 3

What does a 'dark clause' in a retail lease allow a tenant to do?

Accepted Answer

Stop operating while continuing to pay rent

Answer

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.

Question 4

When appraising a property with below-market leases, how are the leased fee and leasehold interests typically valued?

Accepted Answer

Leased fee is below fee simple value; leasehold interest has positive value

Answer

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.

Question 5

In property management, what is the primary purpose of conducting regular tenant satisfaction surveys?

Accepted Answer

Identifying issues before they escalate into non-renewals

Answer

Tenant satisfaction surveys proactively identify dissatisfaction so management can address concerns before tenants choose not to renew, directly supporting retention goals.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA Tenant Relations & Retention 3