Tenant and Owner Relations Flashcards

A landlord refuses to renew a commercial tenant's lease because the tenant filed a complaint with the health department about building conditions. This is an example of:

Answer: Retaliatory eviction

Retaliatory eviction occurs when a landlord takes adverse action against a tenant in response to the tenant exercising a legal right.

Which of the following best describes the 'percentage rent' component common in retail commercial leases?

Answer: Additional rent calculated as a percentage of the tenant's gross sales above a natural breakpoint

Percentage rent is extra rent due when a retail tenant's gross sales exceed a predetermined threshold, aligning landlord income with tenant performance.

A building owner wants to demolish the property for redevelopment while a long-term tenant is still under lease. What clause would have given the landlord the right to terminate early for this purpose?

Answer: Demolition or recapture clause

A demolition clause explicitly grants the landlord the right to terminate a lease early when the property is being redeveloped or demolished.

A commercial tenant fails to pay rent for two months. Before filing for eviction, the landlord should typically first:

Answer: Serve a formal written notice to pay or quit as required by state law

Most states require landlords to serve a formal pay-or-quit notice giving the tenant a specified period to pay overdue rent before eviction proceedings can begin.

What is the typical legal effect when a commercial landlord accepts rent from a holdover tenant?

Answer: It creates a new periodic tenancy, often month-to-month, on the prior lease terms

Accepting rent from a holdover tenant generally creates an implied month-to-month tenancy on the existing lease terms rather than eviction for trespass.

Which document provides a prospective commercial tenant with detailed financial information about operating expenses in a multi-tenant building?

Answer: Operating expense reconciliation statement

An operating expense reconciliation statement shows tenants how estimated CAM charges compared to actual costs for the year, resulting in credits or additional charges.

A commercial landlord includes an 'exclusive use' clause in a retail tenant's lease. What does this clause primarily protect?

Answer: The tenant's right to be the only business of its type in the property

An exclusive use clause prevents the landlord from renting space in the same property to another tenant operating the same type of business.