What must a present interest holder avoid doing regarding the property they manage?

A present interest holder must avoid committing waste regarding the property they manage. This concept refers to any actions taken by a holder of a present interest that could result in the permanent harm or depletion of the property's value.

Committing waste can take several forms, including physical waste (damaging or destroying the property), permissive waste (neglecting necessary repairs), and ameliorative waste (making improvements that change the property’s character, which may not be permissible without the consent of the future interest holders). The underlying principle is that the present interest holder has the duty to preserve the property for the benefit of future interest holders and to protect its economic value.

The other choices do not accurately capture the core responsibility of a present interest holder. For instance, creating a lease agreement, while it may have implications for use, is generally permissible and often a common practice to generate income from the property. Entering into a new mortgage, under certain conditions, can also be allowable as it may enhance the financial leverage of the present interest holder. Increasing property taxes is typically beyond the control of the interest holder and can vary based on external factors set by local governing bodies. Therefore, of the options presented, committing waste represents the critical concern that needs to be avoided to