REE 4103 FSU FINAL QUESTIONS & ANSWERS
In a high rise 100-unit apartment building there is a basement laundry area that brings
in $100 monthly from the concessionaire. The laundry income is: - Answer -Would
commonly be included as a miscellaneous income and added to the potential gross
income.
An oral appraisal report: - Answer -Is acceptable when the client requests it
The "as of" date in an appraisal report: - Answer -Is often the date of the last inspection
An "as of" date is specified in appraisals to: - Answer -
If a property's income stream and value are not expected to change over the holding
period, the capitalization rate is: - Answer -Is the same as the yield or constant
The monthly rental being paid for a comparable rental property is called: - Answer -
Future potential income
When the landlord permits the tenant occupancy and use of the space each year for a
fixed amount of money, the lease is described as ___________. - Answer -Fixed lease
Rent pursuant to a lease that is paid over and above the guaranteed minimum based on
gross sales of a retail tenant is called: - Answer -Deficit Rent
Overage rent is the: - Answer -percentage rent above guaranteed minimum rent;
Percentage rent paid over and above the base rent; calculated as a percentage of sales
in excess of a specified breakpoint sales volume
A reconstructed operating statement for an owner operated property should include: -
Answer -• Vacancy and Collection Loss
• Effective Gross Income
• Operating Expenses
• Fixed Expenses
• Variable Expenses
• Replacement Allowance
• Total Operating Expenses
• Net Operating Income
• Additional Calculations
• Mortgage debt service, Equity Dividend, Expense & Income Ratios
*Management expense* ?
The subject property has 100% occupancy. What conclusion would you most likely draw
if the typical occupancy rate in the area were only 95%? - Answer -The rents are low
In a high rise 100-unit apartment building there is a basement laundry area that brings
in $100 monthly from the concessionaire. The laundry income is: - Answer -Would
commonly be included as a miscellaneous income and added to the potential gross
income.
An oral appraisal report: - Answer -Is acceptable when the client requests it
The "as of" date in an appraisal report: - Answer -Is often the date of the last inspection
An "as of" date is specified in appraisals to: - Answer -
If a property's income stream and value are not expected to change over the holding
period, the capitalization rate is: - Answer -Is the same as the yield or constant
The monthly rental being paid for a comparable rental property is called: - Answer -
Future potential income
When the landlord permits the tenant occupancy and use of the space each year for a
fixed amount of money, the lease is described as ___________. - Answer -Fixed lease
Rent pursuant to a lease that is paid over and above the guaranteed minimum based on
gross sales of a retail tenant is called: - Answer -Deficit Rent
Overage rent is the: - Answer -percentage rent above guaranteed minimum rent;
Percentage rent paid over and above the base rent; calculated as a percentage of sales
in excess of a specified breakpoint sales volume
A reconstructed operating statement for an owner operated property should include: -
Answer -• Vacancy and Collection Loss
• Effective Gross Income
• Operating Expenses
• Fixed Expenses
• Variable Expenses
• Replacement Allowance
• Total Operating Expenses
• Net Operating Income
• Additional Calculations
• Mortgage debt service, Equity Dividend, Expense & Income Ratios
*Management expense* ?
The subject property has 100% occupancy. What conclusion would you most likely draw
if the typical occupancy rate in the area were only 95%? - Answer -The rents are low
