Property management Practice Questions
47 questions on property management, each with an explanation. This area covers leases, landlord-tenant duties, management agreements, habitability.
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With two years left on a five-year lease, a tenant transfers the entire remaining term to a new occupant and keeps no right of return. What has occurred, and who remains liable?
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10 sample property management questions, answered
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1. With two years left on a five-year lease, a tenant transfers the entire remaining term to a new occupant and keeps no right of return. What has occurred, and who remains liable?
Why: Transferring the whole remaining term with no reversion is an assignment, and the assignor remains liable on the lease contract unless the landlord grants a release. A sublease would leave the original tenant holding a reversion for part of the term.
2. A written lease runs from January 1 through December 31 and contains no renewal clause. Which leasehold estate does the tenant hold?
Why: A lease with a fixed beginning and a fixed ending date creates an estate for years, which expires on its own without notice from either party. A periodic tenancy has no stated end date and renews until someone gives notice.
3. Under a triple net lease, the tenant typically pays:
Why: The three "nets" are property taxes, insurance and maintenance, all on top of base rent. A gross lease puts those on the landlord; a percentage lease keys rent to sales.
4. A five-year lease provides that rent increases by 200 dollars on each anniversary date. This is best described as:
Why: Rent steps written into the lease at stated intervals create a graduated lease, since the amounts are known in advance. An index lease would leave the increase to a published indicator such as a cost of living measure.
5. A stadium sells a season parking pass allowing a car in any open space on event days. The pass creates:
Why: A revocable personal privilege to use land, with no exclusive possession and no specific space, is a license rather than a leasehold. A leasehold would give exclusive possession of a described area for a stated term.
6. A tenant transfers the remaining 6 months of a 12-month lease to a third party, retaining no interest. This is a(n):
Why: Transferring the ENTIRE remaining interest is an assignment. Keeping any reversionary interest — even a single day — makes it a sublease, and the original tenant stays liable in both cases unless released.
7. A lease contains a renewal option requiring notice six months before expiration. The tenant wants to renew one month before expiration. What should be examined?
Why: An option requires compliance with its stated conditions. Late interest in renewal should not be confused with timely exercise of the contractual right.
8. Hoping long-time tenants will not renew so units can be upgraded, an owner tells them minority families are moving in and the area is going downhill. This conduct is:
Why: Using representations about the entry of a protected class to induce people to sell, rent or move out is blockbusting, and the prohibition covers rental transactions as fully as sales. The absence of a sale is no defense, and framing the remarks as opinion does not help.
9. A tenant assigns a lease, but the landlord does not release the original tenant. What should the original tenant avoid assuming?
Why: Assignment and release are different issues. Remaining liability depends on the lease, consent documents and applicable law.
10. A shopping center tenant pays a minimum monthly rent plus six percent of gross sales above a stated breakpoint. This is a:
Why: Rent tied to sales volume above a breakpoint, with a minimum base rent, is a percentage lease and is standard in retail centers. An index lease adjusts rent by a published economic measure instead of by sales.
Vocabulary this area tests
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