Property Management

Under an 80% coinsurance policy, an owner carried $20,000 worth of coverage on a property that had a replacement cost of 100,000. If the property suffered a $10,000 loss by a covered peril, the owner would receive

$2,500

In many states, the failure of the lessor to post a notice of non-responsibility within how many days after he or she has knowledge of tenant authorizing construction work on the premises would make the property subject to mechanic's liens

10

Lead Based Paint Disclosure must be given to anyone moving into a house built before

1978

Lead based paint has NOT been used in residential properties since

1978

The general rule of HUD limits occupancy to

2 persons per bedroom

A landlord must account for deposits within how many days of the termination of tenancy?

21 days

A monthly rental of a furnished unit could ordinarily be ended by either party giving a

30 day notice

A property had a gross annual income of $100,000. It sold for $650,000, the annual gross multiplier of the sale was

6.5

An owner who hires a property manager benefits from, a. increased rents b. reduced vacancy factors c. reduced repair costs d. all

All of the above

Qualities of a good property manager include; a. people skills b. ability to prioritize c. communication skills d. all of the above

All of the above

When a lessee is a corporation, what is required to bind the corporation to the lease?

Approval must have been given by the Board of directors to the officers who signed the lease

_______ is the most prestigious and widely recognized designation for professional property management?

CPM

Parking problems in commercial management include: A. persons parking in someone elses spot b. a single tenant monopolizing the parking c. employees taking customer parking spots d. all of the above

D. all of the above

Which of the following is true with regards to renting control? A. it shifts the social burden of providing reasonably priced housing to the landlords b. it restricts new housing supply c. it creates deteriorating structures D. all of the above

D. all of the above

The first practical elevator powered by electric was the

Otis elevator

An eviction action for nonpayment of rent would ordinarily be started with:

a 3 day notice to pay rent or quit

The competition clause in a commercial lease is known as

a radius clause

The right of a handicapped person to have a seeing-eye dog or support animal cannot be refused under the

americans with disabilities act

A regional shopping center usually contains

anchor tenants

An owner may be willing to accept a negative cash flow because of

appreciation

It is possible to be covered for insurance prior to the actual issuance of insurance policy by obtaining a _________

binder

Zero based budgeting is based on the idea that every

budget must be justified

A property manager of a HOA would probably do all of the following except: a. collect member assessments b. contract for services c. hire the directors d. account for disbursements and funds received

c. hire the directors

the following are true as to ground leases expect: a. they are leases of land only b. the property reverts to the lessor at the end of the lease c. they are generally short term tenancies d. they are usually net leases

c. they are generally short term tenancies

Cash flow is the cash left over after

cash expenses

Cash value insurance differs from "replacement cost coverage" in that

cash value is the depreciated value

Net leases are generally for industrial and _____ properties

commercial

Rents would be best set by considering

comparable rentals for properties having reasonable vacancy factors

In a pedestrian shopping street, _____ demand the highest rent

corner lots

Which of the following is required for a valid lease? A. capacities of the parties to contract B. A legal purpose C. Consideration d. All of the above

d. All of the above

A management contract might provide compensation to a broker for a. arranging refinancing b. supervising improvements c. leasing d. all of of the above

d. all of of the above

A property management contract would provide for: a. the managers right to lease b. the managers right to collect rent c. the managers right to compensation d. all of the above

d. all of the above

A residential lessor is responsible for a. providing heating facilities b. providing garbage receptacles c. providing a weatherproof structure d. all of the above

d. all of the above

Common Interest Developments (CIDs) include which of the following: a. condo's b. stock cooperatives c. community apartment projects d. all of the above

d. all of the above

Hotel and motel operations require specialized knowledge and experience because of: a. housekeeping b. accounting c. rental policies d. all of the above

d. all of the above

In a high rise building, the lower floors are the least desirable because they are: a. noisier b. lack of views c. more pollution if they have their windows open d. all of the above

d. all of the above

National and local economic conditions will effect which aspect(s) of your management plan: a. rents b. vacancy factors c. costs d. all of the above

d. all of the above

Problems confronting a manager of subsidized housing include: a. gang activity b. graffiti c. vandalism d. all of the above

d. all of the above

Problems that could result in lessor liability include: a. unlighted parking lots b. high shrubbery around entryways, providing hiding places c. security doors that are left unlocked d. all of the above

d. all of the above

Residential tenant obligations include: a. protecting the premises b. leaving the premises in a clean condition at the end of the tenancy c. maintaining appliances in a clean condition d. all of the above

d. all of the above

Which of the following would be a quality of a "Class A" building a. Architecturally distinctive b. Commanding higher rents for office space c. usually newer buildings d. all of the above

d. all of the above

Your management plan should show: A. how you will arrive at a desired rent schedule b. your one year goals for the the property c. your 5 year goals for the property d. all the above

d. all of the above

institutional management would include a. management of condominium association b. office management c. management of college dorms d. all of the above

d. all of the above

Mega malls are in direct competition with: a. neighborhood shopping centers b. mini malls c. factory outlets d. none of the above

d. none of the above

Which of the following is most closely related to "DRAM shop liability:

deep pocket laws

In renting an apartment in a 50 year old, 16 unit building the manager must provide lead based paint disclosure and

disclose the name and address where notices may be served

The statute of frauds in place in every state determines what

documents must be in writing

A one month lease of a beach cottage would be an

estate for years

A way to insure against theft by an employee would be to obtain a ________ bond

fidelity bond

The leasing commission for negotiating a multi-year lease would ordinarily be a percentage of the rent

for the term of the lease

An agency coupled with an interest refers to an agency where the agent has advanced

funds for rehabilitation of the property

By agreeing to blind arbitration, the parties

give up the right to sue in the court of law

Office leases are most likely to

gross leases

Someone who agrees to be liable under a lease if the tenant defaults is called the

guarantor

With regards to resort management, the shorter the rental period the

higher the rent and management fee

A property owner generally does not have liability outside the perimeter of

his or her property

When a tenant agrees that he or she will not hold the lessor responsible for any personal injury or damages is called

hold harmless clause

With residential leases you want the lease to expire when the rentals are

in most demand in your area

A "Floater" policy for personal property would likely be ______________________________

inland marine insurance

The tenant who is MOST LIKELY to fail is the one who is

just starting out in business

A lock that can be easily pried off, leaving the latch bolt exposed

key in knob lock

under capitalization and ___________ are the major reasons why a business fails

lack of knowledge about the business

Residential property management agreements should not be for a period of

less than one year

Under a sublease, the sublessee is the tenant of the

lessee

One factor in evaluating real estate that the manager cannot change is the

location

Ground leases are usually

long term leases

What owners want is an integral part of a good

management plan

Industrial property includes ________ facilities

manufacturing

A manufacturer of automobile horns for new cars moved to a city with several large auto assembly plants. The manufacture could be best described as

market oriented

The farming invention that freed labor from agriculture and allowed the growth of cities was the ____________

moldboard plow

An owner who does nothing after having knowledge of criminal activity on his or her property could be subject to forfeiture of the property and __________________

monetary damages

What is the most common type of periodic tenancy?

month to month

Any amendment to the original management agreement

must be in writing

Commercial leases generally include a requirement that any contractors used by the tenant

must be licensed

SECURITY DEPOSITS CANNOT BE APPLIED TO

normal wear and tear

An appraisal can be best described as

one person's educated opinion of value

The length of a property management contract should be related to the services provided and the

owner reimbursement

Life insurance would be involved in _____ and _______ insurance

partnership and key man insurance

Within a property management contracts owners are not required to

pay for advertising costs

It is best to qualify a tenant before the lease is signed and

provision is given

Generally, renting or leasing real property in an agency capacity required an:

real estate broker's license

__________ have the highest management fee per unit

resort area STR and management

The english doctrine of respondent superior states that owners of property can be held

responsible for the actions of their employees

A leasee has the right to buy, but only if the lessor decides to sell is

right to first refusal

The covenant of quiet enjoyment means that the lessor will not interfere with the tenant's

rightful use of the premises

Single room occupancy (SRO's) differ from hotels in they do not offer

room service, daily housekeeping and 24 hour desk service

Landlords must allow support animals and

seeing eye dogs

In property management SRO stands for

single room occupancy

For a pedestrian shopping area in a sunbelt, other factors being equal, which sides of the street would be best for retail trade?

south and west

When it comes right down to it, ____ determines rents

supply and demand

Emergency lighting in halls and enteryways of an apartment building should be batter operated, but kept charged by

the buildings electrical service

There is NO lease until

the lease has been agreed to

________ are not accepted by property managers as payment of rent

third party checks

Occupancy rights for a specified period coupled with an interest in a specific unit describes a __________

time share

A recreation director would most likely be employed by a manager of a

time share association

For commercial and industrial tenants, "fixtures" are usually regarded as

trade fixtures

Trump tower would be best described as a

trophy building

A rent acceleration clause in a residential lease is

unenforceable in most states

warehouses are large office areas and are ideal for ________

wholesalers

Which of the following is true regarding liability?

without an injury, there can be no recovery