question

The managers office should be on the building premises when

answer

most of the management operations are conducted there

question

Most property managers divide their office records into how many general categories for filing purposes

answer

Five: lease, general correspondence, work estimates, financial and permanent

question

The permanent property file should include

answer

the management contract

question

Which of the following should be considered when purchasing a computer system?

answer

One the spot maintenance and repairs

question

What is an example of a direct cost

answer

Payroll for the management personnel at the building

question

If management operations are too limited to justify hiring a comptroller, the comptrollers tasks should be assumed by the

answer

executive property manager

question

Who performs the general admin and daily ops of the property

answer

field manager

question

Managment fees may be computed on a percentage basis or

answer

by the per unit cost method

question

Total cost 2,500/month Gross income 50,000/month 30% of direct costs to cover overhead What percentage fee?

answer

6.5% Monthly management fee / gross income 2500 + 2500*.3 / 50,000

question

Direct costs 35000 Indirect costs 20000 750 units 20% profit Minimum per unit fee?

answer

35,000+20,000 / 750 *.20 $88

question

50 units Gross income $300,000 Vacancy 6% Per unit fee $300 Percentage management fee?

answer

300 * 50 = 15,000 300,000*.06 = 282,000 15/282 = 5%

question

The most important operating record kept by the property manager is

answer

monthly report on cash flow

question

Which of the following is a nonrecurring variable expense?

answer

An addition to the building

question

For the final quarter of the year, all of the following tax forms concerning employees must be filed by the manager except

answer

Form 1099

question

Which statement accurately described income tax withholding forms

answer

Form W-4 is filled out by the employee, but the responsibility for obtaining it is on the employer

question

A manager would MOST likely want a percentage of the collected rents in which of the following situations?

answer

Upscale apartment building with high demand

question

Unemployment taxes are levied and must be paid when filing

answer

FUTA

question

A commercial prop containing 35,000 sq. ft. is rented at 6$ per foot. Actual collected only $168,000. What occupancy rate should be used in budget forecast for next year

answer

80%

question

An apartment building has fixed costs of $75,000 per year and a variable cost ratio of 25%. What is the breakeven point?

answer

100,000

question

What is the cap rate?

answer

A method to convert future income to present value

question

A property manager had two vacancies. When a single parent and her child inquired about an apartment they were told that the building was 100% occupied. This is...

answer

Steering

question

According to the Fair Credit REporting Act, a loan applicant may

answer

Seek to correct errors on the report

question

Jones v Mayer reaffirmed the CRA of 1866 by prohibiting

answer

All racial discrimination

question

Under the federal ECOA the property manager who requires a credit report on a prospective tenant can do which of the following

answer

Evaluate the tenant based on income and debt ratios

question

The resident manager has decided to shop other properties in order to determine if her rental rates are competitive. She calls the magers of a nearby property, and finds out that the second manager is thinking about raising raters. The two of them decide to raise rates at the same time. This might be construed as an example of

answer

the illegal practice of price-fixing

question

Which of the following acts are permitted under the federal Fair Housing Law

answer

Refuse to rent to an Asian American man because he has a poor credit history

question

If someone is found guilt of violating the Fair Housing Act of 1968, he or she may be liable for actual damages and max punitive damages of

answer

an unlimited amount

question

If a person feels that she or he has been discriminated against by a property manager, a complaint may be filed with

answer

the Department of Housing and Urban Development

question

Which of the following laws requires credit bureaus to supply information to a person who has been denied credit

answer

Fair Credit Reporting Act

question

Lead-based paint disclosure forms must be retained for

answer

three years

question

Generally if the tenant and landlord do not agree on the term of the tenancy, then the tenant is a

answer

periodic tenancy

question

When the tenant makes a complaint to a government agency about a housing code violation, the landlord can

answer

correct the problem

question

Usually, if a fire destroys part of a residential property, the tenant may

answer

prorate the rent deducting the portion he cannot use

question

The Landlord Tenant Act establishes

answer

the owner's responsibilities

question

How would a parent discover that a child has lead poisoning

answer

blood test

question

The lead-based paint disclosures must be made on a house that was built

answer

any time before 1978

question

Which law requires that sex offenders register their address with the police

answer

Megans Law

question

The Uniform Landlord Tenant Act generally covers all of the following except

answer

removal of structural barriers

question

Which of the following requests may a property manager ask on the tenant application

answer

Other Landlord references

question

All of the following may be required by the ADA except

answer

someone to assist a wheelchair user in the restroom

question

Which of the following types of apartment community is MOST likely to be located in downtown urban area

answer

High-Rise luxury property

question

A tenant receiving minimal services MOST likely lives in

answer

Walkup apartment

question

WHich of the following are generally less profitable because they require more management time?

answer

Scattered site housing

question

Which is a special consideration when managing duplexes and triplexes

answer

Tenants should have a high degree of compatability

question

Neighborhood boundaries are important in a residential market analysis because

answer

Economic conditions in the neighborhood may affect the rental schedule

question

On which factor of the market anaylsis should rents be based?

answer

Comparable value to other properties

question

What is the basis for sound tenant relations

answer

Open lines of communication

question

Maintaining litter-free grounds and well-trimmed lawns are examples of

answer

curb appeal

question

An apartment building consists of 10 one-bedroom apartments renting for $180, 10 two-bedroom $210, and 10 three-bedroom for $240. All of the unites are rented except for four-three bedroom units. The vacancy rate of the three-bedrooms can be expected to decrease by 10% with a $10 rental cut. THe prop manager should establish which of the following rental schedules

answer

$190, $220, $230

question

The show list of apartments to be rented

answer

is designed for use by the manager

question

What tol can the manager use as a control for marketing and as a source of feedback on marketing success or failure?

answer

Show list

question

Which is most effective method of renting apartments

answer

Classified Ads

question

A manager who assumes maintenance responsibilities because there is no on-site help is most likely found in

answer

small walkup apartments

question

Which of the following should be carefully explained to tenants

answer

When and where rent must be paid

question

Of the following, which is most likely to be prepared by the resident manager

answer

Property condition, work performed, and jobs anticipated in the following weeks

question

Responsibility for condtrolling the daily operations of an apartment building rests with the

answer

resident manager

question

Preventative and corrective maintenance of residential units is generally coordinated by the

answer

resident manager

question

Specialists who can most effectively market the property are

answer

leasing agents

question

All of the following could be used as an additional revenue stream except

answer

deposits per child

question

Although cash flow projections appear to be complex

answer

they are based on figures from the data already gathered

question

Unlike a manager of an inverstor-owned apartment building, the manager of a cooperative or condominium has no responsibility for maintaining

answer

occupancy levels

question

A PUD is similar in management to a

answer

condo

question

In managing condos and cooperatives emphasis is on managing for

answer

value

question

The condo legal structure has been more popular than the cooperative because

answer

condominium owners do not risk losing their units in event of default of the owning association

question

Generally property taxes are assessed separately on each unit in a

answer

condo

question

When managing a manufactured home park, income can come from all of the following sources except

answer

providing nursing homes

question

Developing a sense of community spirit is often useful in encouraging referrals in

answer

manufactured home parks

question

In MOST states, the articles of Incorporation

answer

establish owners associations under most state laws

question

When a manager is concerned with the physical design of the property and who may have to handle social events and medical emergencies, he or she may be managing a

answer

housing for the elderly

question

the initial agreement for management of a new condominium is usually between the manager and the

answer

developer of the project

question

Condo and cooperative managers generally use the same financial reporting system as that used by

answer

managers of apartment buildings

question

With regard to insurance, the condo owner must

answer

purchase an HO-6 condo policy

question

The management fee for a condo generally is

answer

prorated among the occupants according to their interests in the property

question

The initial sellout of cooperative and condo properties is

answer

usually accomplished through display and classified ads

question

Fannie mae regulates condos

answer

by prescribing standards for condo mortgages that it purchases in the secondary market

question

Public housing projects for low income families

answer

have traditionally been the responsibility of local government

question

THe manager of low-cost housing should consider employing a person to handle tenant relations because

answer

this person can provide extra service to the tenants and gain their cooperation

question

under HUD Section 8 housing

answer

housing is rented on a subsidized basis

question

Collection of rent from tenants in subsidized units

answer

should follow the same firm policy as in privately owned housing

question

HUD contracts with property managers of subsidized housing

answer

are generally for a term of years

question

All of the following are useful when marketing office property except

answer

classified ads

question

While longer lease terms are most desirable, to protect the owner from missing out on rising market rates, the lease should contains

answer

An escalation clause

question

An employee of an office building tenant who is responsible for the internal arrangement and furnishing of the leased space is...

answer

facilities manager

question

One of the most effective methods to locate a new tenant for an office property is

answer

canvassing a list of qualified prospects

question

The absorption rate is determined

answer

by calculating the number of square feet that have historically been leased per year

question

Which of the following factors was most important in the selection of office facilities, according to one survey

answer

Cost

question

Office space is designated Class A,B,C, or D on the basis of guidelines

answer

based on age, location and market position

question

The base rate for an office building

answer

Should reflect the amenities of the space and competition of the area

question

An older building, recently completely renovated is located in a popular area amid several prestigious brand new buildings. By BOMA standards, the older building would be classified as

answer

Class B

question

According to BOMA method of measuring office space,

answer

construction area is determined by a procedure similar to the New York method

question

The New York method has NOt achieved wide acceptance because

answer

It accounts for all of the construction area of a building and is difficult to sell to prospects

question

The ratio of rentable space to usable space is

answer

loss factor

question

When preparing a market analysis on an office property, the manager should pay close attention to present market conditions and

answer

Current economic trends

question

Open or closed work spaces for more than one person are referred to as

answer

Multipersonnel areas

question

The manager measures all of the space on one floor. Then the manager subtracts the square footage for the restrooms, janitor closets, and elevator. The resulting square footage is called

answer

Usable Area

question

Generally, the cost of tenant alterations and remodeling expenses above the building standard in an office property is the responsibilty of the

answer

Lessee

question

The purpose of a building standard is to

answer

List those amenities and alterations that a building owner will provide to an incoming tenant without charge

question

A recapture provision

answer

Is for the benefit of the landlord

question

Proper maintenance fo most office building differs from the maintenance of residential buildings in which of the following ways?

answer

nighttime cleaning of tenant spaces

question

Chapter 14

answer

Retail Property

question

Before the advent of shopping centers, retail merchants tended to congregate

answer

in a CBD near major public transport junctions

question

Which of the following is typical of a neighborhood center

answer

Serves an area approximately three miles in diameter

question

Most regional shopping centers are

answer

dumbbell shaped

question

Which of the following businesses require the greatest number of parking places?

answer

Restaurant

question

Which type of shopping center draws customers from a five mile radius?

answer

community

question

A mixed use development encompasses

answer

A combo of two or more types of uses, such as retail, office, and residential in the same complex

question

In general, persons looking for retail property to rent

answer

look for signs

question

Most prospective tenants interested in retail space find it by

answer

Driving through the area in which they wish to locate

question

The most effective method for finding shopping center tenants is

answer

Personal contact

question

The prevailing concern in leasing retail space in a shopping center is

answer

mix of tenant types

question

Large retail properties are promoted through display ads usually placed in

answer

the financial section of metropolitan newspapers

question

A merchant signs a lease that sets a min of $600, or 6% of gross sales. If rent is computed on a monthly basis, what is the total amount of rent paid in the fourth quarter if gross sales were $8,000 in october, $11,000 in november and $12,000 in december

answer

1,980

question

Studies of tenant mix with regard to percentage of space allocated to various types of stores, based on their merchandise line have been made by

answer

International council of shopping centers

question

When evaluating a prospective tenant in terms of tenant mix, the manager should look at a variety of the tenants needs, including the tenants needs for

answer

parking facilities

question

A variable scale percentage lease sets the monthly rental rate at 6% of gross sales up to and including $15,000 plus 5% of gross sales in excess of $15,000 but not in excess of $30,000. What would the rental payment be if gross monthly sales were $42,000

answer

2,130

question

A recapture clause in a shopping center lease

answer

Allows the landlord to terminate a percentage lease if a certain level of gross sales has not been achieved

question

Overlapping obligations of landlords, coowners, and tenants are customarily set forth in

answer

reciprocal easement agreements

question

Negotiations for tenant improvements are the most complex in

answer

Centers where a long term tenant has vacated

question

The standard manual of accounting for shopping center operations is published by

answer

Urban Land institute

question

Accounting statistics of centers may be compared to other centers by referring to the

answer

Dollars and Cents of Shopping Centers

question

All of the following are examples of avoiding risk except

answer

managing hazardous properties

question

Installing fire sprinklers is an example of

answer

controlling the risk

question

Which of the following would protect the property manager from damages not caused by the managers own negligence of misconduct

answer

Indemnity clause

question

When the property manager lowers an insurance premium by increasing the deductible, the manager is making an effort to

answer

retain part of the risk

question

A building has a physically depreciated cash value of $200,000. The property manager must remember that

answer

if coinsurance coverage of $160,000 is taken out, the cost will be about equal to "straigh" insurance of $100,000

question

What type of insurance protects the owner against loss for damage to other persons or their property?

answer

General liability and workers compensation insurance

question

Which of the following hazards can generally be greatly reduced through proper ventilation

answer

Radon

question

Which statement is true concerning the insurance availible to independent property managers?

answer

The manager should be named as an additional insured under the owner's liability policy

question

Which of the following is recommended to alleviate mold problems

answer

Decrease humidity

question

Environmental impact statements for major public and private developments may be required by

answer

The federal government only

question

In order to survive and thrive, mold requires a food source and

answer

moisture

question

The CERCLA provided remedies against hazardous substances in the environment and is popularly known as the

answer

Superfund law

question

Which of the following poisons could result from an incorrectly vented space heater

answer

carbon monoxide

question

How much of a pertroleum tank must be buried to caused the tank to be classified as underground

answer

10%

question

The EPA has recognized that the least hazardous way to deal with asbestos that is in place in a building is to

answer

manage it in place

question

The standard insurance policy will not cover damages from

answer

flooding (separate insurance policy)

question

How long is the manager required to retain lead based paint disclosure records?

answer

Three years

question

Which of the following hazards could be leaking from a landfill?

answer

Polychlorinated biphenyls (PCBs)

question

Federal law now requires that only certified technicians may handle which of the following hazardous materials?

answer

Chlorofluorocarbons (CFCS)

question

The property manager should insist that the landlord buy all of the following types of insurance except

answer

renters insurance

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