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Question 82/86
A landlord has just completed a major capital improvement in a multi-tenant commercial building. The property manager is responsible for determining if the costs of the project can be recovered from the tenants. What is NOT part of the process?
Correct Answer: B
Capital cost recovery must be aligned with lease agreements and amortized properly.TheIFMA Real Estate and Property Management competencystates that costs should beallocated fairly based on lease terms and not simply split evenly in a single year.
* Option B (Splitting costs evenly in one year) is incorrectbecause itdoes not account for lease agreements and amortization.
* Option A (Checking lease agreements)is necessary todetermine legal recoverability.
* Option C (Annual cost recovery assessment)ensuresfair tenant billing over time.
* Option D (Finance charge consideration)determines ifadditional costs should be included.
Facility managersmust follow lease agreements and ensure fair cost allocation among tenants.
* Option B (Splitting costs evenly in one year) is incorrectbecause itdoes not account for lease agreements and amortization.
* Option A (Checking lease agreements)is necessary todetermine legal recoverability.
* Option C (Annual cost recovery assessment)ensuresfair tenant billing over time.
* Option D (Finance charge consideration)determines ifadditional costs should be included.
Facility managersmust follow lease agreements and ensure fair cost allocation among tenants.
- Question List (86q)
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