Oregon 30-Hour Real Estate Law Practice Test

Which of these is generally a responsibility of a commercial property manager but not a residential property manager?

1. Negotiating leases

2. Preparing maintenance schedules

3. Collecting rent

4. Tenant relationship management

The correct answer is: Negotiating leases

Negotiating leases is a fundamental responsibility of a commercial property manager that typically sets them apart from residential property managers. In the commercial real estate sector, leases are often more complex and can involve various terms, such as options for renewal, escalation clauses, and specific provisions regarding the use of the property. Commercial leases are usually negotiated individually between the landlord and tenant, which requires a strong understanding of business operations and legal agreements. In contrast, while residential property managers might also negotiate terms, the nature of residential leases is generally more standardized, focusing on shorter durations and standard clauses, which do not require the same level of negotiation skills associated with commercial leases. Therefore, lease negotiation being primarily a responsibility of commercial property managers reflects the complexity and business-oriented nature of commercial real estate management.