Oregon 30-Hour Real Estate Law Practice Test

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Study for the Oregon Real Estate Law Test. Explore multiple choice questions and flashcards with hints and explanations. Prepare for success!

Practice this question and more.

Investing in capital improvements can help to prevent what issue in a property?

Market saturation
Tenant turnover
Obsolescence
Decreased property value

The correct answer is: Obsolescence

Investing in capital improvements primarily helps to prevent obsolescence in a property. Obsolescence refers to the reduction in desirability or usefulness of a property due to factors such as age, wear and tear, shifting market trends, or changes in technology or consumer preferences. By upgrading features, modernizing facilities, or enhancing the overall aesthetic of a property, investors can maintain its appeal and functionality, making it more attractive to potential tenants or buyers. This proactive approach can significantly extend the life and relevance of a property in a competitive market, thereby ensuring it continues to meet the expectations of current and future occupants. By mitigating the risks associated with obsolescence, property owners can safeguard their investment and often enhance property value over time.