Oregon 30-Hour Real Estate Law Practice Test

When a tenant makes changes to their unit, which type of maintenance is involved?

1. Asset maintenance

2. Tenant improvements

3. Routine maintenance

4. General upkeep

The correct answer is: Tenant improvements

The correct answer is tenant improvements because this term specifically refers to alterations or changes a tenant makes to a leased space to suit their needs. Tenant improvements can include renovations such as adding walls, new fixtures, or flooring, and they are usually negotiated between the tenant and the landlord as part of the lease agreement. This concept contrasts with other types of maintenance such as asset maintenance and routine maintenance, which typically involve the property's overall upkeep and structural integrity rather than specific enhancements made by the tenant. General upkeep, while similar, generally encompasses cleaning and minor repairs rather than significant alterations or improvements to the space. Therefore, tenant improvements accurately captures the essence of the changes initiated by a tenant in their unit.