question

High tenant turnover means increases for the landlord in

answer

advertising expenses

question

A record of lease renewal dates should be kept so that the property manager will know when to

answer

contact good tenants in an attempt to retain them

question

The establishment of good tenant relations begins with

answer

joint inspection of the premises by the manager and tenant before move-in

question

In which property is inspection of the premises with new tenant the most important?

answer

residential

question

What is most important in establishing tenant loyalty and friendliness?

answer

the manager's personal efforts

question

Tenant relations can be aided by

answer

reviewing rent collection procedures with the tenant in a conference at the beginning of the lease

question

The basic prerequisite for enlightened property maintenance is

answer

getting the tenant's service requests to the appropriate parties

question

What should be done when a tenant makes a service request?

answer

Tenant should be told when it will be taken care of, or why it will not be

question

What is the foundation of a good landlord and tenant relationship?

answer

Good reputation for maintenance and management

question

What should the manager do if a good tenant terminated the lease?

answer

Immediately contact the tenant to find out why he is moving and, if possible, correct the situation

question

The most critical factor in determining whether and how much of a rent increase to make is

answer

the total net increase in income after accounting for move-outs due to the increase

question

If rents are increased, the manager should

answer

learn the logic behind the increase so he or she can explain it to the tenants

question

The best way to get prompt payment of rent is to

answer

have a clear-cut understanding of the requirements for payment and provisions for default

question

The time between the rent due date and the announcement of action for recovery should be

answer

a fixed, determined period

question

Three copies of an eviction notice should be prepared- one for the tenant, one for the manager's attorney and a third for the

answer

manager's file

question

Upon termination by a tenant, the property manager should

answer

inspect the space after the tenant has removed all personal property

question

What form should the manager use when inspecting the property after the tenant has vacated?

answer

move-in/move-out checklist

question

In most states, detailed and stringent security deposit statutes have been passed. What must the landlord do?

answer

He must itemize the deductions in a written statement.

question

Deductions from the security deposit are authorized by

answer

nonpayment of rent, nonstandard decorating, excessive cleaning charges, and damages to the premises.

question

Leases should be written to prohibit using security deposits as

answer

last months rent

question

Jones vs. Mayer reaffirmed the Civil Rights Act of 1866 by prohibiting

answer

all racial discrimination

question

Telling a potential tenant that there are no vacancies when there are is an example of

answer

steering

question

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

answer

seek to correct errors on the report

question

Under the federal Equal Opportunity Act, the property manager who requires a credit report on a prospective tenant can

answer

evaluate the tenant based on income and debt ratios

question

When two managers negotiate rental rates it is known as

answer

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 guilty of violating the Fair Housing Act of 1968, he or she may be liable for actual damages and maximum punitive damages of

answer

an unlimited amount

question

If a person feels that 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

answer

for three years

question

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

Megan's 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 Americans with Disabilities Act except

answer

someone to assist a wheelchair user in the restroom

question

Which of the following types of apartment communities is MOST likely to be located in downtown urban areas?

answer

High rise luxury property

question

A tenant receiving minimal services most likely lives in a

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 compatibility

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 analysis 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

If each type of apartment is priced correctly, the different units should have the same

answer

rate of demand

question

The show list of apartments to be rented

answer

is designed for use by the manager

question

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

answer

show list

question

Which is the 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 walk-up 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 week

question

Responsibility for controlling the daily operation of an apartment building rests with the

answer

resident manager

question

Preventive 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

Before agreeing to the lease, the prospective tenant is asking himself all of the following except

answer

Who else is considering the property?

question

When renting or leasing space, good closing techniques include

answer

summarizing the benefits of the space and explaining how they satisfy the prospect's needs

question

The marketing goal has been achieved when the prospect

answer

signs a lease

question

Qualifying a tenant includes examining the applicant's

answer

rental history

question

The property manager of a ten-unit strip shopping center is negotiating with a beauty shop owner. The beauty shop owner does not want the manager to rent to another beauty shop. What concession is the beauty shop owner asking for?

answer

noncompete restriction

question

If an outside leasing agent is involved in lease negotiations, coordination of the transaction is the responsibility of the

answer

property manager

question

The proper role of an attorney in lease negotiations is to

answer

formalize the agreement

question

The manager can facilitate lease negotiations by

answer

securing agreement on basic terms and conditions before the attorneys are involved

question

All of the following are factors to decide how far to go in granting concessions except

answer

the prospect's financial condition

question

Concessions should always be granted to a prospective tenant

answer

reluctantly, to show how valuable the concession is

question

When forced to make rental rate concessions during poor market conditions, the manager tries to

answer

grant a temporary rental concession such as a few months' free rent

question

A long term lease is generally to the owner's advantage when

answer

the owner has made significant alterations in the spar to suit the tenant

question

Before finally agreeing to the lease, the manager must determine that the tenant meets qualifying standards and that the

answer

total value of the lease justifies the cost of the concessions

question

Tenant alteration costs

answer

are a major negotiating point with commercial and industrial tenants

question

The property manager should keep in mind that expansion options

answer

are not common with fully tenanted, established properties

question

In an office building, who is responsible for complying with ADA accessibility requirements in each individual office?

answer

whoever agrees in the lease

question

Many misunderstandings with tenants can be avoided by

answer

establishing clear guidelines at the beginning of the lease

question

Alterations to residential property are often

answer

performed by the property manager after being agreed to in writing

question

What is a building standard?

answer

specific number of outlets, light fixtures, windows, etc., included in the rent

question

Which type of property should rarely have non-competing tenant restrictions in leases?

answer

a large shopping mall

question

The hiring and firing of maintenance personnel should be the responsibility of the

answer

a. property manager

question

To command premium rental rates, a property manager might operate with

answer

d. all possible tenant services

question

Preventative maintenance is aimed at

answer

b. eliminating corrective maintenance costs

question

The addition of a sauna to the common area of a multitenant development would be an example of

answer

d. new construction

question

Loss of building value resulting from postponing repairs, etc., is called

answer

b. deferred maintenance

question

The MOST critical factor is deciding whether to hire on-site maintenance personnel or contract out for certain services is

answer

d. the relatively cost of each

question

Which of the following is considered when hitting outside services on a regular basis?

answer

d. whether the cost of the contract service is greater than the cost of using in-house personnel

question

The first decision confronting the property manager when contracting for construction is to

answer

d. decide whether to act as the general contractor or to hire a prime contractor

question

Which of the following is TRUE of negotiated contracts?

answer

d. the estimate of cost should be the end result of collaboration among various suppliers and subcontractors

question

A type of construction that proceeds as plans are being drawn is called

answer

b. fast-track

question

A contract for construction work typically states

answer

b. percentage of the fee will be held back until all work has been completed

question

What is the first step in designing a preventive maintenance program?

answer

Make a complete inventory of all equipment

question

Of the following, which is the MOST important in determining the property manager's effectiveness as a maintenance administrator?

answer

The thoroughness of routine inspections and the manager's ability to pinpoint and correct omissions of the maintenance team

question

when the term retrofit is used in connection with energy management, it encompasses

answer

replacing or upgrading heating and air conditioning equipment

question

often, the greatest savings come from energy management systems or measures that

answer

are simple and cost little or nothing

question

life-cycle costing

answer

considers both initial and operating costs over the useful life of equipment

question

how are computers used in maintenance applications

answer

useful in monitoring, scheduling, controlling, and operating functions

question

a type of building that is made up of nonspecialized interior floor space is called a(n)

answer

loft

question

All of the following management situations would most likely have to comply with ADA EXCEPT

answer

single-family dwellings

question

Which of the following protects the owner from a contract who goes out of business before finishing the contract?

answer

performance bond

question

The manager's office should be one 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

on-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 comptroller's tasks should be assumed by the

answer

executive property manager

question

who performs the general administration and daily operation of the property?

answer

field manager

question

management fees may be computed on a percentage basis or

answer

by the per-unit-cost method

question

in computing a management fee using the pricing worksheet, a manager determines that the total direct and indirect cost for all management activities for that property is $2,500 per month. If the gross collectible income from the property is $50,000 per month and the manager needs an additional 30% of the direct costs to cover overhead and profit, what percentage fee should be charged?

answer

6.5%

question

A small management operation has direct costs of $35,000 and indirect costs of $20,000 annually. It can handle about 750 units and wishes to make a 20% profit. What is the minimum per unit fee that should be charged?

answer

$88

question

An apartment building with 50 units has a gross possible annual income of $300,000 per year and an estimated vacancy rate of 6%. The management firm has computed an adjusted per-unit fee of $300 for this property. What percentage management fee should be charged?

answer

5%

question

The MOST important operating record kept by the property manager?

answer

monthly report on cash flow

question

Which of the following is a nonrecurring variable expense?

answer

an addition to the buidling

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 describes 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 apartments building with high demand

question

unemployment taxes are levied and must be paid when filing

answer

FUTA

question

A commercial property containing 35,000 square feet is rented at $6 per square foot. However, the actual rental collections over the past year amount to only $168,000. What occupancy rate should be used in the budget forecast for the next year?

answer

80%

question

An apartment building has fixed costs of $75,000 per year and a variable costs ratio of 25%. What is the break-even point for the property expressed in dollars per year?

answer

$100,000

question

What is the capitalization rate?

answer

a method to convert future income to present value

question

A property manager initiated a program of regularly schedule maintenance activities where both the interior and exterior of the premises, including all the equipment and grounds, are regularly inspected. Such a program is called

answer

preventative maintenance

question

the manager of a large commercial building became preoccupied with paperwork and did not inspect the premises as he should have, which resulted in lots of wear and tear from the tenant. The loss of value due to postponing repairs is called

answer

deferred maintenance

question

Jones v. Mayer reaffirmed the Civil Rights Act of 1866 by prohibiting

answer

all racial discrimination

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 an example of

answer

Steering

question

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

answer

Seek to correct errors on the report

question

Under the federal Equal Credit Opportunity Act, 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 manager of a nearby property, and finds out that the second manager is thinking about raising rates. 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 guilty of violating the Fair Housing Act of 1968, he or she may be liable for the actual damages and maximum punitive damages of

answer

An unlimited amount.

question

If a person feels that he or she 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 tenancy 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 disclosure 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

Megan's 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 applications?

answer

Other landlord references

question

All of the following may be acquired by the Americans with Disabilities Act EXCEPT

answer

Someone to assist a wheelchair user in the restroom.

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

Which of the following should be consulted first before making any investment into new technology?

answer

software program

question

What financial report tells the owner the sources of income and expenses, net operating income, and net cash flow?

answer

budget comparison statement

question

One of the MOST important things for a manager to keep in mind while preparing an operating budget is to

answer

be conservative in all forecasts

question

Depreciation is divided into three categories

answer

economic, functional, and physical

question

The Revenue Reconciliation Act of 1993 modified the 1986 passive loss restrictions by allowing individuals who materially participate in rental real estate to deduct rental losses from other income. To qualify, how much time must a person devote to personal services to real property trades or business during a tax year?

answer

50%

question

Property #1 has a capitalization rate of 12% and property number #2 has a capitalization rate 14%. Both properties are comparable to each other and have a net operating income of $12,000 per year. Which of the following is TRUE?

answer

Property #1 has a lower value than property #2

question

Which of the following will be located in a permanent file?

answer

management agree and mortgage information

question

All the correspondence from tenants should be kept in a

answer

general correspondence file

question

in a large management organization, the general administration of the daily operation of a property is performed by the

answer

property management executive

question

An apartment building has fixed costs of $75,000 per year and a variable cost ratio of 25%. What is the break-even analysis point for the property expressed in dollars per year?

answer

$100,000

question

Which Sunshine Apartments rental policy is considered legal under the Fair Housing Act of 1968?

answer

rentals are refused to prospects who have long hair and ride motercyles

question

The owners of an apartment complex have given specific instructions to their rental manager is NOT rent to Hispanics or African Americans. Who is liable?

answer

Both the manager and the owners are liable

question

A property manager may deny a lease to someone because the individual

answer

has insufficient income

question

Owners and managers of older residential rental properties must

answer

test all paint for lead

question

Managers must make a lead-based paint disclosure when the property they manage was built before

answer

1978

question

Of the following, which generally offers a marginal financial return for management?

answer

Time share rentals Cooperatives Single family housing Condominium communities

question

Lead-based paint disclosure forms must be retained

answer

For three years

question

The Landlord Tenant Act establishes

answer

the owner's responsbilities

question

Jones v. Mayer reaffirmed the Civil Rights Act of 1866 by prohibiting

answer

all racial discrimination

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 an example of

answer

steering

Property Management Exam 2 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards