Which formula represents the relationship between rentable area and usable area?

Prepare for the Humber College Real Estate Course 4 Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready for success!

The relationship between rentable area and usable area is a fundamental concept in real estate, particularly in the lease and rental process. Rentable area refers to the total area that is charged rent, which can include both usable area and a proportionate share of common areas, while usable area is the actual space that a tenant can use.

The formulas provided in the options illustrate different ways to calculate or express this relationship.

The first option defines the Rentable to Usable (R/U) ratio, clearly showing how the terms relate: Rentable area divided by Usable area gives you the R/U factor.

The second option rearranges the definition to solve for usable area, indicating that if you know the rentable area and the R/U factor, you can find the usable area by dividing the rentable space by the ratio.

The third option uses the previously defined R/U factor to express the rentable area as a product of usable area and the R/U factor. This reflects how the total area a tenant pays for can be derived when considering what area is actually usable.

Each of these formulas conveys a different aspect of the same relationship, making all of them valid representations. Thus, the option that states all the formulas represent the relationship accurately encompasses the understanding of how one

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