The choice of which method to use in constructing the contracted rental rate can be impacted by the term of the lease. With a shorter lease term, which of the following methods is most likely to be observed?
A) Flat rent
B) Graduated rent
C) Indexed rent
D) Percentage rent

Question

Quizplus · Accepted Answer

With a shorter lease term, landlords may opt for a flat rent method because it offers simplicity and stability for both the landlord and the tenant. This is because the rent amount remains constant throughout the lease term, and there is no need for calculations or adjustments. Graduated rent, indexed rent, and percentage rent methods are better suited for longer lease terms where rent adjustments may be necessary to reflect changes in the market and the property's value.

The Choice of Which Method to Use in Constructing the Contracted