What is the exam-ready answer?
| Roadmap lesson | 103 of 500 |
|---|---|
| Official syllabus topic | Rental Market Analysis and Setting Lease Rates |
| Official PSI area | Property Management |
| Published area weight | 3% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Comparable rentals
Use properties competing for the same tenants and verify whether quoted rates are asking, signed, renewed, or effective after concessions.
Effective rent
Free months, improvement allowances, parking, utilities, and other concessions change economic rent. Convert comparisons to a consistent period and inclusion basis.
Vacancy and absorption
Vacancy measures unavailable or unoccupied space under the stated definition. Absorption tracks how quickly inventory is occupied over time and helps judge demand.
Owner strategy
Higher face rent can increase vacancy and turnover. The manager evaluates stabilized income, lease length, expense recovery, tenant quality, compliance, and maintenance plans.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A unit is advertised at $2,000 monthly with one free month on a 12-month lease.
Reason it through. The tenant pays for 11 months: $22,000 total divided by 12.
Answer. The effective monthly rent is about $1,833.33 before other concessions or fees.
Common exam traps
- Comparing asking rent with achieved rent
- Ignoring concessions
- Mixing furnished and unfurnished units
- Using neighborhood protected-class makeup
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1What is effective rent?
- A. Economic rent after concessions
- B. Always the advertised rent
- C. Property value
- D. Security deposit
Show answer and explanation →
Answer: A. Economic rent after concessions
Effective rent reflects the actual economic payment after free rent and comparable concessions.
Question 2Why adjust for included utilities?
- A. They change the economic occupancy cost
- B. They change title
- C. They create an easement
- D. They eliminate vacancy
Show answer and explanation →
Answer: A. They change the economic occupancy cost
A tenant paying utilities separately bears a different cost than one whose rent includes them.
Question 3May protected-class composition set rent?
- A. Yes
- B. No
- C. Only for renewals
- D. Only in commercial leasing
Show answer and explanation →
Answer: B. No
Rent decisions must not be based on protected characteristics.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Property-Manager Duties, Maintenance, Risk, Reporting, and Contracts. Continue to roadmap lesson 104 and build on this decision rule.
Return to the Property Management hub to see every official branch and the complete lesson sequence for this content area.