Certified Pennsylvania Evaluator Practice Exam

What is the definition of contract or actual rent?

1. Estimated rent based on market conditions

2. Rent paid based on a lease

3. Rent assessed through investment analysis

4. Projected gross income from the property

The correct answer is: Rent paid based on a lease

The term "contract or actual rent" specifically refers to the rent that is actually paid by a tenant to a landlord as stipulated in a lease agreement. This rent is typically outlined in the lease document and reflects the terms that both parties agreed upon, making it a concrete figure rather than an estimation or projection. When considering the other options, estimated rent based on market conditions involves assessing what similar properties in the area might rent for, rather than what is currently being paid. Rent assessed through investment analysis involves evaluating the potential income from the property for investment purposes, which can also differ from what is currently being collected. Lastly, projected gross income from the property considers future possibilities and estimations, rather than actual payments received. Thus, the correct choice of rent paid based on a lease accurately captures the essence of contract or actual rent as it reflects the real, current financial obligations established in a rental agreement.