Property Managment – Flashcards
Unlock all answers in this set
Unlock answersquestion
The high-rise office buildings were made possible because of: a. the moldboard plow. b. structural steel. c. the electric elevator. d. both b and c.
answer
D: Both B and C
question
Which of the following property management areas employ the largest number of people? a. Franchise leasing b. Government c. REIT management d. Private management firms
answer
B: Government
question
Characteristics of REITs include: a. publicly traded. b. purchasers of large properties. c. not taxed on profits passed on as dividends. d. all of the above.
answer
D: All of the above
question
Benefits offered by professional property management include: a. lower vacancy factors. b. higher rents. c. prolonging economic life. d. all of the above.
answer
D: All of the above
question
Personal attributes for success in property management include: a. people skills. b. goal oriented. c. flexibility. d. all of the above.
answer
D: All of the above
question
CPM stands for: a. Certificate in Property Management. b. Corporate Property Manager. c. Certified Property Manager. d. Consumer Protection Marketing.
answer
C: Certified Property mangager
question
ARM stands for: a. Association of Retail Managers. b. Accredited Residential Manager. c. American Restaurant Management. d. Alliance of Residential Managers.
answer
B: Accredited Residential Manager
question
AMO stands for: a. Accredited Management Organization. b. American Maintenance Organization. c. Association of Management Officers. d. Alliance of Management Organizations.
answer
A: Accredited Management Organization
question
BOMA stands for: a. Benevolent Order of Managing Agents. b. Building Owners and Managers Association. c. Builders, Operators, and Managers Alliance. d. Building Operators Maintenance Association.
answer
B: Building Owners and Managers Association
question
RPA stands for: a. Real Property Administrator. b. Residential Property Administrator. c. Real Estate Professional Alliance. d. Repair, Protect, and Administer.
answer
A: Real Property Administrator
question
Benefits of ownership of investment property include all, except: a. risk. b. appreciation. c. pride of ownership. d. capital gains tax on sale profits.
answer
A: Risk
question
A property analysis included in a management plan would cover: a. the locational advantages and disadvantages of the property. b. the physical structure. c. current tenants and rents. d. all of the above.
answer
D: All of the above
question
What is a Pro-Forma Statement? a. The current rent schedule b. An audited operating statement c. A statement as to anticipated rents and expenses d. A chart showing the changes in vacancies
answer
C: A statement as to anticipated rents and expenses
question
Zero-based budgeting is based on: a. no expenses for maintenance. b. 100 percent occupancy. c. starting with zero and justifying every budgeted item. d. anticipated revenue equaling anticipated expenses.
answer
C: starting with zero and justifying every budgeted item.
question
A property manager should consider refusal of management when: a. the manager lacks the expertise to properly handle management. b. the owner refuses to allow the manager to take any action without prior approval. c. the owner wants the manager to avoid making repairs. d. for all of the above situations.
answer
D: for all of the above situations.
question
A slumlord wants: a. maximum rents with minimum tenant services. b. minimum rents and minimum tenant services. c. maintenance to take precedence over revenue. d. the manager to think in terms of long-term benefits of properly maintaining property.
answer
A: maximum rents with minimum tenant services.
question
Negative cash flow management involves: a. tax free income. b. continued infusion of cash by the owner. c. unreported cash income. d. preparing records showing cash expenses that were not actually paid.
answer
B: continued infusion of cash by the owner.
question
The length of a management contract should: a. never be less than five years. b. be under one year. c. ideally be on a month-to-month basis. d. be related to problems to be corrected and services to be provided.
answer
D: be related to problems to be corrected and services to be provided.
question
A management contract can be terminated because of: a. bankruptcy of either party. b. mutual agreement between owner and manager. c. impossibility of performance. d. any of the above.
answer
D: any of the above.
question
A management contract cannot be unilaterally canceled by an owner when: a. the manager does not wish cancellation. b. the manager has an interest coupled with an agency. c. the owner owes the manager an outstanding debt. d. the contract is for a stated period and it has yet to expire.
answer
B: the manager has an interest coupled with an agency.
question
Which of the following is NOT a requirement for every lease? a. Mutuality b. Legal purpose c. In writing d. Consideration
answer
c: In writing
question
A lease that automatically renews itself, in the absence of notification by either party, is what kind of lease? a. A gross lease b. A percentage lease c. A periodic tenancy d. An estate for years
answer
c: A periodic tenancy
question
A tenant pays taxes, insurance and all maintenance expenses. What kind of lease does she have? a. Net lease b. Gross lease c. Percentage lease d. Flat lease
answer
a: Net lease
question
Which of the following tenants would be MOST LIKELY to have a percentage lease? a. Residential tenant b. Manufacturer c. Government agency d. Jewelry store
answer
d: Jewelry store
question
A transfer by a lessee of all interest in a lease to a third party, who agrees to accept the lease obligations, would be a: a. sublease. b. assignment. c. contract of adhesion. d. percentage lease.
answer
b: assignment.
question
When the value of the premises has increased significantly above the rent specified in the lease, an economic tenant would be better off to: a. assign the lease. b. sublease the premises. c. void the lease. d. renegotiate a higher rent.
answer
b: sublease the premises.
question
In qualifying a prospective tenant, you should be interested in the tenant's: a. income. b. credit history. c. rental history. d. all of the above.
answer
d: all of the above.
question
If you believe that rents will increase significantly in the near future, the leases you negotiate for owners, should: a. prohibit assignment. b. be for relatively short terms. c. include renewal options. d. be estates for years.
answer
b: be for relatively short terms.
question
Rent incentives are most likely to be given when: a. there is low unemployment. b. the rent is set below-market rent. c. there is a high vacancy factor. d. the tenant only marginally qualifies.
answer
c: there is a high vacancy factor.
question
When is a lessor most likely to successfully obtain an above-market rent? a. When giving rent incentives b. When negotiating a lease renewal c. Both a and b d. Neither a nor b
answer
c: Both a and b
question
A purchaser of a commercial building would want the tenant to furnish a(n): a. estoppel certificate. b. notice of nonresponsibility. c. right of first refusal. d. lead-based paint disclosure.
answer
a. estoppel certificate.
question
When a prospective tenant has had credit problems, a lessor is MOST LIKELY to request a(n): a. accelerated payment clause. b. guarantor. c. holdover provision. d. recapture clause.
answer
b. guarantor.
question
A hold harmless clause would likely be unenforceable by a lessor of: a. a retail store. b. office space. c. industrial property. d. a residential property.
answer
b. guarantor.
question
A clause that discourages a tenant from remaining in possession after the lease expires would be a(n): a. holdover clause. b. right of first refusal. c. estoppel certificate. d. nonwaiver clause.
answer
a. holdover clause.
question
Tenants A and B sign a lease in which they agree to be jointly and severally liable. If past rent is due, who can the lessor sue? a. Tenant A alone b. Tenant B alone c. Tenants A and B together d. Any of the above
answer
d. Any of the above
question
A tenant hires a contractor to remodel a store. The lessor would be concerned with: a. attornment. b. the recapture clause. c. a notice of nonresponsibility. d. a nonwaiver clause.
answer
c. a notice of nonresponsibility.
question
The right to cancel a lease when the tenant's sales are not up to expectations would be set forth in the: a. quiet enjoyment clause. b. attornment clause. c. recapture clause. d. accelerated payments clause.
answer
c. recapture clause.
question
In California, boldface eight-point type face would most likely be required in a residential lease that provides for: a. lead-based paint removal. b. automatic renewal if no notice is given. c. a purchase option. d. any of the above.
answer
b. automatic renewal if no notice is given.
question
A furniture store had a percentage lease specifying rent at 16 percent of net sales for the first $1,000,000 of sales. Sales over $1,000,000 would MOST LIKELY have a percentage of: a. 14 percent. b. 18 percent. c. 24 percent. d. 32 percent.
answer
a. 14 percent.
question
A tenant has a right to buy the property from the lessor, but this right only applies should the lessor decide to sell to another. If the lessor is not obligated to sell, this right would be a(n): a. option. b. right of first refusal. c. attornment. d. nonwaiver agreement.
answer
b. right of first refusal.
question
Which of the following would be a factor of rental housing needs in an area? a. The growth in the number of family units b. Changes in the local economy c. A lowering of interest rates d. All of the above
answer
d. All of the above
question
A moratorium on new construction could be expected to: a. reduce the vacancy factor. b. result in rent increases. c. both a and b. d. neither a nor b.
answer
c. both a and b.
question
Rent control can be expected to result in: a. reducing new construction. b. minimum maintenance of rent controlled units. c. uneconomic utilization of property. d. all of the above.
answer
d. all of the above.
question
A property management contract is likely to provide for compensation based on all of the following, except: a. a percentage of an owner's net income. b. a percentage of an owner's gross income. c. a fee for leasing. d. a fee for supervision of improvements.
answer
b. a percentage of an owner's gross income.
question
A residential lease may properly: a. provide for the tenants to waive legal rights. b. provide for a confession of judgment should the tenant default. c. provide that the tenant pay the lessor's legal fees in any dispute, regardless of fault. d. none of the above.
answer
d. none of the above.
question
Reasons why an owner would allow pets include: a. to reduce the vacancy factor. b. to increase rents. c. to increase the average tenancy period. d. all of the above.
answer
d. all of the above.
question
Which of the following is TRUE when comparing furnished and unfurnished residential units? a. Unfurnished units command higher rents. b. People stay for longer periods of time in furnished units. c. Maintenance costs are greater for furnished units. d. Management fees are lower for furnished units.
answer
c. Maintenance costs are greater for furnished units.
question
The best way to set rents would be to consider: a. the cost of the property. b. the return that is desired by the property owner. c. operational costs. d. rents asked for comparable properties having reasonable vacancy factors.
answer
d. rents asked for comparable properties having reasonable vacancy factors.
question
If the vacancy rate remains the same when rents and operational expenses both increase by 10 percent, the owner, whose debt service is a fixed expense cash flow, should see his/her cash flow: a. remain the same. b. increase less than 10 percent. c. increase 10 percent. d. increase more than 10 percent.
answer
d. increase more than 10 percent.
question
Lessors of residential units have certain legal duties. They include all, except: a. the duty to supply heating facilities. b. the duty to provide air conditioning facilities. c. the duty to provide a working toilet. d. the duty to provide for natural lighting in every room.
answer
b. the duty to provide air conditioning facilities.
question
Which of the following would be of importance in determining the amount of commercial space required by a community? a. The number of households b. Discretionary purchasing power of residents c. The age breakdown of residents d. All of the above
answer
d. All of the above
question
An established shopping street that is restricted to foot traffic only would BEST describe a(n): a. urban pedestrian mall. b. strip center. c. neighborhood shopping center. d. mini-mall.
answer
a. urban pedestrian mall.
question
A shopping center with a single, large department or discount store as an anchor tenant, best describes a: a. neighborhood shopping center. b. mega-mall. c. community shopping center. d. mini-mall.
answer
c. community shopping center.
question
A symbiotic relationship would apply to: a. industrial sites. b. selecting tenants who will benefit by each other. c. freestanding single-tenant structures. d. the quality of life offered by a community.
answer
b. selecting tenants who will benefit by each other.
question
The best office quality of a building in a community would be: a. Class A. b. Class B. c. Class C. d. Class D.
answer
a. Class A.
question
A two- or three-story office building would be a: a. garden building. b. low-rise building. c. mid-rise building. d. high-rise building.
answer
b. low-rise building.
question
A sick building would MOST LIKELY be the result of: a. a tenant going bankrupt. b. having elderly tenants. c. chemical fumes from construction products and/or furnishings. d. desirability of the building.
answer
c. chemical fumes from construction products and/or furnishings.
question
Demolition could be an economic decision for a sound building when: a. interest rates rise. b. land values rise dramatically but rents do not. c. the vacancy factor reaches five percent. d. never.
answer
b. land values rise dramatically but rents do not.
question
Office tenants generally have what kind of lease? a. Gross b. Net c. Percentage d. Percentage plus minimum
answer
a. Gross
question
An industrial plant that locates next to its largest customer would be: a. supply oriented. b. labor oriented. c. utility oriented. d. market oriented.
answer
d. market oriented.
question
SRO stands for: a. selective residential opportunities. b. single-room occupancy. c. subsidized residential occupancy. d. semi-resort operation.
answer
b. single-room occupancy.
question
A property manager who was hired by a Board of Directors would most likely be involved in: a. the management of a single-family dwelling. b. clothing-optional management. c. condominium association management. d. medical office management.
answer
c. condominium association management.
question
Hotel management differs from condominium management in: a. housekeeping supervisory duties. b. food service supervision. c. both a and b. d. neither a nor b.
answer
c. both a and b.
question
Elderly housing where a resident has his or her own apartment without nursing, health services, or food services would best be described as a(n): a. independent living facility. b. semi-independent living facility. c. nursing facility. d. life care facility.
answer
a. independent living facility.
question
A facility for the elderly that provides all levels of care and charges a high entry fee is most likely to be a(n): a. nursing home. b. SRO. c. independent living facility. d. life care facility.
answer
d. life care facility.
question
Problems confronting publicly owned, low-income housing include: a. vandalism and graffiti. b. crime. c. drug and alcohol abuse. d. all of the above.
answer
d. all of the above.
question
Managers of government-owned projects are hampered in their operation because: a. they often lack the ability to choose tenants and evict tenants. b. of budgetary restraints. c. of gang activity. d. of all of the above.
answer
d. of all of the above.
question
A fractionalized interest in a specific dwelling unit would BEST describe a: a. cooperative. b. time share. c. condominium. d. manufactured home lease.
answer
b. time share.
question
What type of owner would want his or her farm manager to place a greater emphasis on appearance than on financial return? a. Corporate owner b. Gentleman farmer c. Family farmer d. Lender-owner
answer
b. Gentleman farmer
question
Which of the following would be a duty of a condominium association manager? a. Management of insurance b. Supervision of maintenance c. Contracting for services d. All of the above
answer
d. All of the above
question
Ownership of rental property makes an owner strictly liable for injury to a tenant: a. when there is no injury. b. when the negligence was not perceived. c. when the owner had no knowledge. d. when reasonable inspections would have revealed the problem
answer
d. when reasonable inspections would have revealed the problem
question
Slander that damages a person would be described as a(n): a. intentionally false written statement. b. unintentionally false written statement. c. true statement that damages a person's reputation. d. false verbal statement.
answer
d. false verbal statement.
question
An owner's liability for acts of a tenant would be based on: a. foreseeability. b. agency law. c. strict liability. d. an insurable interest.
answer
a. foreseeability.
question
Obtaining insurance protection before the issuance of a policy is known as a(n): a. option. b. binder. c. bond. d. right of first refusal.
answer
b. binder.
question
The standard policy of fire insurance protects an owner for all of the following, except: a. fire loss. b. lightning damage. c. hail damage. d. loss suffered in removal of fire-damaged property.
answer
c. hail damage.
question
Inland marine coverage would be applicable for: a. a bailee's stored property. b. insuring an expensive painting. c. both a and b. d. neither a nor b.
answer
c. both a and b.
question
Fidelity bonds provide protection against: a. employees leaving for other employment. b. employee theft. c. inflation because of rising interest rates. d. mysterious disappearance.
answer
b. employee theft.
question
Who is required to provide worker's compensation insurance? a. Firms having in excess of 10 employees b. Firms having in excess of five employees c. Firms having in excess of one employee d. Firms having any employees
answer
d. Firms having any employees
question
A property manager accidently rented the same property to two separate tenants. The manager's protection, in this case, would be provided by: a. homeowner's insurance. b. errors and omissions coverage. c. leasehold insurance. d. innkeeper liability.
answer
b. errors and omissions coverage.
question
A property manager is considering awarding a $300,000 contract for renovation of a commercial building. The protection the property manager would be interested in would be: a. a fidelity bond. b. a surety bond. c. worker's compensation coverage. d. errors and omissions coverage.
answer
b. a surety bond.
question
A landlord's duty to provide for security may be determined by: a. cost of the property. b. foreseeability of harm. c. prior criminal activity on the premises. d. both b and c.
answer
d. both b and c.
question
You could be liable to a tenant who was the victim of a crime if you advertised an apartment as being: a. behind security gates. b. managed by a security conscious firm. c. safe. d. patrolled by security guards.
answer
c. safe.
question
Which of the following helps in providing for security of the tenants? a. A well-lighted parking area b. The absence of high bushes and trees around entryways c. Emergency lighting in halls and entrances d. All of the above
answer
d. All of the above
question
The best break-in resistant doors are: a. hollow core. b. solid core. c. those having peepholes. d. interior doors.
answer
b. solid core.
question
The most secure type of door lock is: a. one with the fewest tumblers. b. mortised into the door. c. one with a knob key. d. a dead bolt.
answer
d. a dead bolt.
question
The more difficult padlocks to force open have: a. long shanks. b. hasps. c. short shanks. d. tumblers.
answer
c. short shanks.
question
Ways to prevent lower windows from being entered include: a. replacing glass with glass block. b. replacing glass with Lexan. c. window bars. d. all of the above.
answer
d. all of the above.
question
The LEAST desirable electronic gate employs: a. a radio controlled opener. b. a sliding gate. c. a gate that swings open from the center. d. a wooden bar that drops.
answer
d. a wooden bar that drops.
question
A proactive guard patrol would: a. question persons who appear out of place. b. respond quickly to alarms. c. investigate crimes. d. all of the above.
answer
a. question persons who appear out of place.
question
Alarms can be activated by: a. breaking or opening a circuit. b. movement. c. vibration. d. any of the above.
answer
d. any of the above.
question
Which of the following repairs should be given the highest priority? a. Dripping faucet b. An inoperable commode c. An electrical outlet that does not work d. A broken bath tile
answer
b. An inoperable commode
question
A roof with a one-inch pitch every 12 inches needs new roofing. You would NOT use: a. a built-up roof. b. tile. c. rubber roofing. d. foam roofing.
answer
b. tile.
question
The location of a roof leak is not evident. Areas to consider as to likely spots would be: a. around vents. b. around the chimney. c. where the roof meets a wall or parapet. d. all of the above.
answer
d. all of the above.
question
To reduce summer air conditioning costs, the best color for roof shingles would be: a. white. b. black. c. brown. d. green.
answer
a. white.
question
Dirty air filters: a. reduce cooling and heating effectiveness. b. cause additional wear on equipment. c. both a and b. d. neither a nor b.
answer
c. both a and b.
question
Pigeons can be completely eliminated as a problem by: a. using recordings of wounded birds. b. placing plastic owls on the property. c. placing plastic snakes on window ledges. d. none of the above.
answer
d. none of the above.
question
The advantages in using temporary service workers rather than a contractor for unskilled labor jobs would be: a. speed in getting the job done. b. a likely lower cost. c. both a and b. d. neither a nor b.
answer
c. both a and b.
question
From an owner's point of view, the difference between improvements and repairs would be: a. repairs are more costly. b. improvements must be written off over the life of the improvement. c. repairs can be shown as an expense in the year of the repair. d. both b and c.
answer
d. both b and c.
question
An insulated blanket would likely be used to cover a(n): a. water heater. b. air filter. c. sprinkler system. d. solar collector.
answer
a. water heater.
question
The purpose of placing bricks in a commode tank would be to: a. soften the water. b. reduce the use of water. c. prevent the tank from cracking. d. increase the water pressure.
answer
b. reduce the use of water.
question
A property manager may hold a check received as a rental deposit uncashed: a. if the manager does not think the prospective tenant's rent application will be approved. b. until the lease has been signed and the rent is actually due. c. if the prospective tenant requests it be held until lessor agrees to the tenancy. d. at his or her own discretion.
answer
c. if the prospective tenant requests it be held until lessor agrees to the tenancy.
question
Which of the following constitutes commingling of trust funds? a. A property manager who leaves $1 of his/her own money in the trust account b. A trust account containing funds belonging to several different owners c. A trust account that is interest-bearing d. Trust money deposited in a broker's/property manager's personal account
answer
d. Trust money deposited in a broker's/property manager's personal account
question
A broker's/property manager's trust account was not designated as a trust account. Claims of third parties for the trust monies would result from: a. creditor judgments against the broker. b. bankruptcy of the broker. c. death of the broker. d. all of the above.
answer
d. all of the above.
question
Information that an owner would find beneficial with an annual statement includes: a. occupancy rates for the previous year or years. b. a comparison of expenses and income with prior years. c. both a and b. d. neither a nor b.
answer
c. both a and b.
question
A skip tracer would be used to: a. audit trust funds. b. locate former tenants. c. reproduce lost documents. d. copy computer programs.
answer
b. locate former tenants.
question
Payroll records would include: a. income. b. social security deductions. c. income tax deductions. d. all of the above.
answer
d. all of the above.
question
Keeping telephone records allows a property manager to evaluate: a. responses to an ad. b. effectiveness of an ad. c. effectiveness of an agent. d. all of the above.
answer
d. all of the above.
question
An employee file should include: a. employees' applications. b. employees' employment contracts. c. employees' evaluations. d. all of the above.
answer
d. all of the above.
question
A property manager's audit of his or her firm's bookkeeping: a. is required by law. b. indicates a distrust of employees. c. is good business practice. d. is a waste of money.
answer
c. is good business practice.
question
Computer software is capable of: a. producing graphs of income and expenses. b. automatically calculating late fees. c. preparing and tracking work orders. d. all of the above.
answer
d. all of the above.
question
You can personally promote yourself by all of the following, except: a. business cards. b. name tags. c. car signs. d. fee splitting.
answer
d. fee splitting.
question
A logo refers to a(n): a. geographical location. b. identifying design. c. operational plan. d. estimated operating budget.
answer
b. identifying design.
question
Which of the following ads would be an institutional ad? a. An ad that simply gives the firm name and the words "Property Management" b. A letter to an owner requesting property management c. A classified "For Rent" ad for an apartment d. A "For Lease" sign on a commercial building
answer
a. An ad that simply gives the firm name and the words "Property Management"
question
The term "bird dog" refers to a(n): a. illegal practice. b. problem property. c. teaser contract offer. d. person who watches for opportunities for you.
answer
d. person who watches for opportunities for you.
question
Indications of a problem property include: a. code violations. b. frequent evictions. c. poor maintenance. d. all of the above.
answer
d. all of the above.
question
Speculators differ from investors in that speculators: a. buy with cash. b. expect to have a shorter holding period. c. buy more expensive property. d. only buy raw land.
answer
b. expect to have a shorter holding period.
question
When you discover that a prospect you have contacted for management already has a management firm, the professional approach would be to: a. ask when the contract expires. b. agree to cut the price. c. thank the owner and end the discussion. d. sign a contract that does not take effect until the other contract expires.
answer
c. thank the owner and end the discussion.
question
Which of the following contracts include partial management duties? a. An exclusive right to lease b. A management consulting contract c. An offer to purchase d. Both a and b
answer
d. Both a and b
question
Advance fee rental agencies: a. charge a fee to prospective tenants. b. charge owners to advertise their properties. c. provide prospective tenants with lists of vacancies. d. both a and c.
answer
d. both a and c.
question
The most cost effective method of advertising to fill a vacancy would be a: a. television ad. b. radio ad. c. "For Rent" sign. d. classified ad.
answer
c. "For Rent" sign.
question
The Civil Rights Act that applied only to race was the Civil Rights Act of: a. 1866. b. 1964. c. 1968. d. 1988.
answer
a. 1866.
question
Directing a prospective tenant away from a property because you did not feel that he/she would be comfortable there based on the race of the current residents would be: a. blockbusting. b. steering. c. redlining. d. legal.
answer
b. steering.
question
Which of the following is NOT be a member of a protected group under the 1988 Fair Housing Amendment Act? a. A blind person b. A person with AIDS c. A drug addict d. An alcoholic
answer
c. A drug addict
question
A tenant has a seeing eye dog. The lessor can: a. charge an increased rent because of the pet. b. increase the security deposit to cover possible damage by the dog. c. refuse to rent to the person if there is a no-pet policy that is uniformly enforced. d. do none of the above.
answer
d. do none of the above.
question
An exception to the prohibition against discrimination as to familial status would be: a. children under the age of 18. b. a prospective tenant who is pregnant. c. housing for the elderly. d. an unmarried mother.
answer
c. housing for the elderly.
question
Which of the following advertising language would be acceptable? a. "Mother-in-Law suite" b. "Walk-up" c. "Family room" d. All of the above
answer
d. All of the above
question
A property management office installed a wheelchair ramp. They also installed grab bars in their washrooms. They did this to comply with: a. the Unruh Act. b. Americans With Disabilities Act. c. Executive Order 11603. d. Fair Housing Amendment Act of 1988.
answer
b. Americans With Disabilities Act.
question
In qualifying a tenant, a property manager can refuse a tenant for all, except: a. poor credit history. b. problems with prior landlords. c. no verifiable source of income. d. income from public assistance programs.
answer
d. income from public assistance programs.
question
A property management office failed to display an Equal Housing Opportunity poster. The result would be: a. revocation of the broker's license. b. a $1,000 fine only. c. a $10,000 fine only. d. shifting of the burden of proof if discrimination is claimed.
answer
d. shifting of the burden of proof if discrimination is claimed.
question
The best test to determine if an action is ethical would be to consider the: a. cost. b. legality. c. Golden Rule. d. benefits.
answer
c. Golden Rule.
question
Which of the following is true about a lease "surrender" when one year is remaining on the lease? a. The tenant is liable for one month's rent. b. The tenant is not liable for the remaining rent. c. The landlord must mitigate damages. d. The tenant is immediately liable for total rent to the end of the lease.
answer
b. The tenant is not liable for the remaining rent.
question
As a property manager, it is NOT good business practice to lease to: a. close relatives. b. close friends. c. a person with whom you are romantically involved. d. any of the above.
answer
d. any of the above.
question
In handling a tenant waiting list, you should give preference to: a. friends. b. women. c. families with children. d. time and date of application.
answer
d. time and date of application.
question
Fiduciary duty of a property manager to a property owner includes: a. loyalty. b. confidentiality. c. full disclosure. d. all of the above
answer
d. all of the above
question
Tenant "waste" refers to: a. inefficient management. b. a high tenant turnover. c. tenant abuse of the property. d. the failure to conserve energy.
answer
c. tenant abuse of the property.
question
A tenant signed a one-year lease and failed to take possession. The maximum tenant obligation would be: a. one month's rent. b. 30 day's rent. c. rent for one year. d. none of the above.
answer
c. rent for one year.
question
The first notice to evict a tenant who has not paid rent would be a(n): a. Quit or Pay Rent notice. b. Unlawful Detainer Action. c. Writ of Possession. d. Notice of Nonresponsibility.
answer
a. Quit or Pay Rent notice.
question
If correct, which of the following would be a defense against an unlawful detainer action? a. A claim of retaliatory eviction b. Partial rent payment after the three-day notice c. A claim that the residential premises was uninhabitable d. All of the above
answer
d. All of the above
question
Which of the following is an example of constructive eviction? a. Failure of the landlord to provide for contracted utilities b. Failure to take action against a tenant who is interfering with another tenant's use of the premises c. Failure to correct a sanitation problem, which is the landlord's responsibility d. Any of the above
answer
d. Any of the above
question
Which of the following would be an act to mitigate damages after a tenant vacated the premises? a. Changing the use and asking for a higher rent b. Bringing legal action as each month's rent is due c. Waiting until the lease expires before placing the property on the rental market d. None of the above
answer
d. None of the above
question
As used in this chapter, "key money" refers to: a. a form of security deposit. b. a lease deposit. c. a payment to be given occupancy. d. none of the above.
answer
c. a payment to be given occupancy.
question
Management costs per unit managed: a. increase as the number of units increase. b. decrease as the number of units increase. c. decrease as the number of units decrease. d. are not related to the number of units.
answer
b. decrease as the number of units increase.
question
As to management and leasing fees, which of the following is a true statement? a. Larger complexes would probably have a lower percentage of the gross as management fees. b. Below-normal management fees could be compensated for with higher leasing fees. c. When the owner pays for advertising costs, leasing fees will probably be lower. d. All of the above.
answer
d. All of the above.
question
A resident manager lives in the complex she manages but does not pay any rent. Which of the following is true? a. If he/she is not required to live there, the value of the apartment counts as wages. b. If he/she is required to live there, the apartment value does not count as wages. c. Both a and b. d. Neither a nor b.
answer
c. Both a and b.
question
A property manager would probably be worried about hiring an individual if the application showed: a. a history of work going to more and more responsible positions. b. the employee had not worked for one employer more than two months. c. no period of unemployment greater than three weeks. d. any of the above.
answer
b. the employee had not worked for one employer more than two months.
question
A prospective employee looks foreign and speaks with an accent. You should: a. assume that he or she is an illegal alien. b. offer below-minimum wages. c. have the person complete a government form to show citizenship or alien status. d. refuse to interview or hire the person.
answer
c. have the person complete a government form to show citizenship or alien status.
question
The main purpose of an employee evaluation is to: a. justify firing the employee. b. help the person to be a better employee. c. comply with the law. d. both a and c.
answer
b. help the person to be a better employee.
question
Ways to discourage employees from accepting a position with another broker would be to offer: a. health insurance coverage. b. a retirement program. c. profit sharing program. d. all of the above.
answer
d. all of the above.
question
By contributing to an employee's retirement program where your contribution will not vest for five years, you: a. need not part with any money. b. make it difficult for the employee to leave before five years. c. encourage job-hopping. d. avoid minimum wage restrictions.
answer
b. make it difficult for the employee to leave before five years.
question
Before you go into your own property management business, you should consider: a. your financial resources. b. the cost to open an office. c. your contacts who will help you gain management business. d. all of the above.
answer
d. all of the above.
