Where this fits on the exam
| Official syllabus topic | Rental Market Analysis and Setting Lease Rates |
|---|---|
| Official PSI area | Property Management |
| Published area weight | 3% of the national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 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.
The lesson
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 1A comparable apartment advertises $1,500 a month on a 12-month lease with the first month free. What is its effective monthly rent?
- A. $1,500
- B. $1,375
- C. $1,364
- D. $1,250
Show answer and explanation →
Answer: B. $1,375
Effective rent spreads the concession over the full term: 11 paid months x $1,500 = $16,500, and $16,500 divided by 12 months = $1,375. $1,500 is the advertised face rent, which is the trap when a concession applies.
- A. Incorrect. $1,500 is the advertised rent before spreading the free month's concession over the year.
- B. Correct. Eleven payments total $16,500; divided by all 12 lease months, that is $1,375 monthly.
- C. Incorrect. $1,364 does not equal the stated $16,500 paid over the 12-month term.
- D. Incorrect. $1,250 would reflect two free months, rather than the single free month offered.
Question 2Unit A rents for $1,300 with all utilities included. Unit B rents for $1,150, and its tenant pays about $175 a month in utilities. On a like-for-like basis, which unit costs the tenant less each month?
- A. Unit B, by $150
- B. Unit B, by $25
- C. They cost the same
- D. Unit A, by $25
Show answer and explanation →
Answer: D. Unit A, by $25
Put both units on the same utility basis: Unit B costs $1,150 + $175 = $1,325, which is $25 more than Unit A's $1,300. Picking Unit B by $150 compares face rents without adjusting for utilities.
- A. Incorrect. The $150 difference compares advertised rents and ignores Unit B's separate utility costs.
- B. Incorrect. After utilities, Unit B costs $1,325, which is $25 more, rather than less.
- C. Incorrect. Unit A costs $1,300 and Unit B costs $1,325, so the totals differ.
- D. Correct. Adding $175 utilities to Unit B's $1,150 rent makes Unit A $25 cheaper.
Question 3An owner tells the manager to set higher rents at a building because of the religion of most residents in the neighborhood. What should the manager do?
- A. Decline and set rent from market comparables
- B. Follow it, since pricing is the owner's decision
- C. Charge the higher rent only to new applicants
- D. Use the demographics only in the rent survey
Show answer and explanation →
Answer: A. Decline and set rent from market comparables
Rent decisions must never rest on protected-class composition, so the manager should decline and price from market data. Following the owner is the trap: an owner's authority over pricing does not make a discriminatory instruction lawful.
- A. Correct. Market rents should reflect legitimate property and market factors, not religious composition.
- B. Incorrect. An owner's pricing instruction does not authorize discriminatory terms.
- C. Incorrect. Applying the discriminatory rate only to new applicants does not remove its unlawful basis.
- D. Incorrect. Using religion to drive the survey would carry the same protected-class bias into pricing.
Ready to move on?
You are ready for the next lesson when all of these are true.
- Explain Rental Market Analysis and Setting Lease Rates in one clear answer without notes.
- Separate Comparable rentals from Effective rent using a fresh example.
- Apply the decision rule to a new fact pattern and name the fact that controls the result.
- State the Georgia-specific point or explain why the national rule applies unchanged.
- Answer every practice question and explain the rule each rejected option misapplies.
- Revisit this topic later in mixed practice without category labels.
Recommended next lesson
Continue with Property-Manager Duties, Maintenance, Risk, Reporting, and Contracts. Property-Manager Duties, Maintenance, Risk, Reporting, and Contracts shows where your rent recommendation goes next: into the operating budget, rent roll and variance reports that the management agreement requires.
Return to the Property Management hub to see every official branch and the complete lesson sequence for this content area.