Question

When Jeffrey, a property manager, and Pete, a property owner, negotiated a property management agreement, which provision of the agreement might have been based on a percentage of gross or net income, a commission on new rentals, a fixed fee, or a combination of methods?

a) Maintenance procedures

b) Lease termination policies

c) Compensation structure

d) Tenant screening criteria

Answer 1

The 'compensation structure' of the property management agreement is based on various methods like a percentage of gross or net income, a commission, or a fixed fee.

Step-by-step explanation:

The provision of the property management agreement between Jeffrey, the property manager, and Pete, the property owner, that might have been based on a percentage of gross or net income, a commission on new rentals, a fixed fee, or a combination of these methods is the compensation structure. This is because the compensation structure outlines the way in which the property manager is to be paid for their services. While maintenance procedures, lease termination policies, and tenant screening criteria are important aspects of a property management agreement, they are less likely to involve the payment method compared to the compensation structure, which directly relates to the financial arrangement between the property manager and the property owner.