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Which statement about fixed rent is true?

  1. It varies each month based on expenses

  2. It is a set dollar amount paid each month

  3. It is determined by the landlord at their discretion

  4. It does not require predicting monthly expenses

The correct answer is: It is a set dollar amount paid each month

The statement that fixed rent is a set dollar amount paid each month is true because fixed rent refers to a predetermined amount that remains constant throughout the lease term. This arrangement provides financial clarity and stability for both the tenant and the landlord, as it eliminates any variability in rental payments. Tenants can budget accordingly without the concern of fluctuating costs due to expenses or discretionary increases by the landlord. This predictability is a key feature that distinguishes fixed rent from other types of rental agreements, where payments can change based on various factors like operational costs or landlord decisions.