Which item can be included in base rent?

Prepare for the AAAE Certified Member (CM) Module 1 Test with comprehensive quizzes. Use flashcards and multiple-choice questions with hints and explanations to ensure you're ready for your exam!

Multiple Choice

Which item can be included in base rent?

Explanation:
Base rent is the fixed amount paid for the right to occupy space, often covering the space itself and certain basic facility costs in a gross-type lease. The cost of airfield facilities is a facility-related expense tied to using the space and can be bundled into that base rent. In contrast, marketing expenses, salaries of tenants, and tenants’ insurance requirements are typically separate costs or business expenses that are not included in base rent; they’re handled as operating expenses, pass-throughs, or tenant-borne obligations.

Base rent is the fixed amount paid for the right to occupy space, often covering the space itself and certain basic facility costs in a gross-type lease. The cost of airfield facilities is a facility-related expense tied to using the space and can be bundled into that base rent. In contrast, marketing expenses, salaries of tenants, and tenants’ insurance requirements are typically separate costs or business expenses that are not included in base rent; they’re handled as operating expenses, pass-throughs, or tenant-borne obligations.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy