Real Estate: Project Management (Class 3) - Chapter 1
What is the breakdown of the 92 hours of course instruction required for the GRI designation?
64 hours of consumer protection 8 hours of consumer service 20 hours of agency, ethics, trust fund, fair housing, and risk management
QUIZ: 4 of 24 Which organization has the Accredited Residential Manager designation? A) IREM B) BOMA C) NAIOP D) ULI
A) IREM
QUIZ: 16 of 24 What is the most common professionally managed property in the US? A) Residential B) Retail C) Office D) Special Purpose
A) Residential
QUIZ: 8 of 24 Which of the following is not an office building manager's duty? A) Set return on investment goals. B) Oversee construction. C) Provide administrative support. D) Maintain a bank account.
A) Set return on investment goals.
QUIZ: 21 of 24 The property manager brings together the A) property owner and tenants. B) property owner and his family. C) tenants and the property manager. D) contractors and the owners.
A) property owner and tenants.
QUIZ: 5 of 24 In a shopping center, the manager is NOT responsible for A) the interior tenant spaces. B) the landscaped courtyard. C) the parking lot. D) he trash enclosure.
A) the interior tenant spaces.
What two duties are inherent in the property manager's role?
Administrator for the owner and advocate for the tenant
What are the six categories in which SIOR members earn membership?
Advisory Services SpecialistExecutive SpecialistIndustrial SpecialistIndustrial & Office Dual SpecialistOffice SpecialistSales Management Specialist
Briefly explain what an asset manager does.
An asset manager deals with several large properties and handles the financial performance of the property, studies local markets, and compares individual properties with other similar properties. He/she plans and directs the purchase, development, and disposition of real estate on behalf of the investors.
Briefly explain an individual property manager.
An individual property manager is usually a real estate broker who manages properties for one owner or a number of owners and typically works directly with the property owner(s) to prepare management plans, to consult about major decisions, and to provide operating and financial reports.
QUIZ: 1 of 24 Which of the following statements is true? A) Property owners manage their own property to save time and money. B) Many owners do not have the temperament to handle the problems and people associated with managing property. C) The property owner has an understanding of the leasing and rental market and is likely to know how to find good tenants. D) Owners are always careful to be knowledgeable of tenant-related laws and seek never to violate those laws.
B) Many owners do not have the temperament to handle the problems and people associated with managing property.
QUIZ: 2 of 24 Residential property includes which of the following? A) Hospitals B) Mobile home parks C) Hotels D) Military housing
B) Mobile home parks
QUIZ: 19 of 24 Which of the following is a good financial reason for hiring a property manager? A) Property managers are less willing to raise rents than owners are. B) The life of the property can be extended under a property manager's care. C) Property managers know how to have damages taken care of without the need for security damage bonds. D) Although hiring a property manager does not reduce expenses, it does save the owner time.
B) The life of the property can be extended under a property manager's care.
QUIZ: 20 of 24 A broker's licenses are required in California for any person or company that leases or rents or offers to lease or rent or collects rents from real property under what circumstance? A) When a contract for management services is in place B) When the person or company performing these services does so for compensation C) When the services are being performed for longer than 1 year D) When the property owner and the person performing these services have a verbal agreement
B) When the person or company performing these services does so for compensation
QUIZ: 9 of 24 The classroom education component for the voluntary Certified CID Manager certification does not include A) risk management. B) budget development. C) local regulations. D) hazardous materials.
B) budget development.
QUIZ: 18 of 24 The NAA is an advocate for A) homeless shelters. B) quality multifamily housing. C) education. D) land use reform.
B) quality multifamily housing.
QUIZ: 15 of 24 The manager's role is determined by A) the tenants' needs. B) the type and size of the property. C) the owner's investment in the property. D) the length of the manager's contract.
B) the type and size of the property.
What are some of the topics that are closely followed by the NAA?
Bed bugs, development, environment and energy, fair housing, fees, taxes, finance, housing, licensing, property, Homeland Security, and property operation
How did the 1930s depression era affect property management?
Business failures and real estate foreclosures put much of the nation's real estate in the hands of mortgage lenders who did not have the skills or experience to manage the properties.
QUIZ: 3 of 24 Which of the following is NOT an exemption to the California broker licensing requirement? A) An owner managing his own building B) A manager living on the property C) An individual managing a mobile home park D) A salesperson working under the supervision of a licensed broker
C) An individual managing a mobile home park
QUIZ: 12 of 24 What does the owner of a property want the most? A) Happy tenants B) Good building cosmetics C) Good return on investment D) Reasonable management fees
C) Good return on investment
QUIZ: 17 of 24 Professional property management is important to which type of property due to the size and tenant mix? A) Special purpose B) Mixed-use C) Shopping center D) Industrial
C) Shopping center
QUIZ: 24 of 24 The ______________ plans and directs the purchase, development, and disposition of real estate on behalf of the business and investors. A) leasing agent B) corporate property manager C) asset manager D) regional manager
C) asset manager
QUIZ: 11 of 24 Corporate outsourcing and downsizing results in increased opportunities for A) asset managers. B) concierges. C) property management companies. D) individual building managers.
C) property management companies.
List the five certifications offered by the NAA.
CAM-Certified Apartment ManagerCAMT-Certificate for Apartment Maintenance TechniciansCAPS-Certified Apartment Portfolio SupervisorCAS-Certified Apartment SupplierNALP-National Apartment Leasing Professional
Associations, designations, certifications
California Association of Realtors® - Property Management Certification, Graduate, REALTOR® Institute Building Owners and Managers Association International - Real Property Administrator, Facilities Management Administrator Institute of Real Estate Management - Certified Property Manager, Accredited Residential Manager, Accredited Commercial Manager, Accredited Management Organization International Council of Shopping Centers - Certified Leasing Specialist, Certified Shopping Center Manager, Accredited Shopping Center Manager, Accredited Marketing Director, Senior Level Accreditation National Apartment Association - Certified Apartment Manager, Certificate for Apartment Maintenance Technicians, Certified Apartment Portfolio Supervisor, Certified Apartment Supplier, National Apartment Leasing Professional National Association of Industrial Office Parks - Advanced Certificate of Advanced Study in Commercial Real Estate Development, Executive Graduate certificate Urban Land Institute - Professional Development Certificate Society of Industrial and Office REALTOR® - Advisory Services Specialist, Executive Specialist, Industrial Specialist, Industrial & Office Dual Specialist, Office Specialist, Sales Management Specialist National Property Management Association - Certified Professional Property Specialist, Certified Professional
What is the certification called for community association manager in California, and is it required by the state?
Certified CID Manager, and it is voluntary
List three of the designations offered by ICSC. (Any three of the following.)
Certified Leasing SpecialistCertified Shopping Center ManagerAccredited Shopping Center ManagerAccredited Marketing Director
List three certifications offered by NPMA.
Certified Professional Property Specialist Certified Professional Property Administrator Certified Professional Property Manager
List three certifications for property managers offered by IREM. (Any three of the following.)
Certified Property ManagerAccredited Residential ManagerAccredited Management OrganizationAccredited Commercial Manager
QUIZ: 13 of 24 An Advisory Services Specialist would be a member of _______ A) IREM. B) CAR. C) BOMA. D) SIOR.
D) SIOR.
QUIZ: 6 of 24 Military housing is what type of property? A) Mixed-use B) Residential C) Industrial D) Special Purpose
D) Special Purpose
QUIZ: 22 of 24 Which type of property involves a special business or organizational undertaking that dictates the design and operation of the building itself? A) Industrial B) Mixed-use C) Residential D) Special Purpose
D) Special Purpose
QUIZ: 10 of 24 Who is expected to monitor income and expenses for the property? A) The owner B) The leasing agent C) The accountant D) The property manager
D) The property manager
QUIZ: 14 of 24 Which of the following property types requires the least hands-on management? A) Office B) Retail C) Multifamily D) Warehouse
D) Warehouse
QUIZ: 7 of 24 The property manager whose primary job is to find tenants and collect rent is a A) resident manager. B) asset manager. C) concierge. D) leasing agent.
D) leasing agent.
QUIZ: 23 of 24 Many owners find that hiring a property manager does NOT A) reduce expenses. B) increase the value of the property. C) reduce problems. D) subtract from the financial bottom line.
D) subtract from the financial bottom line.
Manager's duties
Dual role of administrator for the owner and advocate for the tenant Part therapist, part accountant, part entrepreneur and part referee Deliver on owner's wishes while providing a positive experience for the tenant All managerial functions as well as day-to-day operation and physical upkeep of property Duties differ for type of property being managed, e.g., office building vs. shopping center Specific duties include marketing, setting and collecting rents, physical maintenance of property, handling tenant issues, knowing laws, monitoring income and expenses, accounting records, reports, managing risks, etc. Office managers also oversee construction, monitor vendors and contractors, oversee building services, provide security services, negotiate contracts for building services Shopping center managers also provide trash pickup, parking lot maintenance, maintaining building exterior and common areas, monitor sales reports, maintain accounting software program
Why owners choose management
Duties become too burdensome Free up owner's time Lack of owner management skills and experience Owners may be either too lenient or too tough on tenants Life of property is extended Vacancy rate reduced Leases with security bonds to cover damages Discounts for managers buying in bulk
List three of the six ways ICSC works to advance the shopping center industry as a major institution? (Additional answers are found on page #60.)
Establishing codes of fair business ethics and dealings with retailers and consumers and with government and public agenciesEncouraging research into the architecture and design of shopping centersStudying economic, marketing and promotional conditions affecting the shopping center industry
Which property type involves the least intensive property management than almost any other property type?
Industrial
What three types of property are represented by the NAIOP?
Industrial, office parks, and mixed-use developments
How does the IREM website support that role?
It contains a Public Policy section that provides a synopsis of legislative news, policy statements, briefing papers, US Homeland Security updates, and similar information to keep members up to date on events throughout the country.
Why is professional property management critical for retail centers?
It is critical because of the size of the center and it's diverse tenant mix.
List five specializations in property management.
Leasing agents, corporate property managers, asset management services, concierge services, and technology experts.
List the financial benefits to hiring property managers.
Life of the property is extended due to property manager handling maintenance and repairs.Property managers may be more willing to increase rents.The vacancy rate is reduced.Damages are reduced and covered by security damage bonds set up by property managers.Property managers are in a position to obtain discounts for bulk purchases.
List five specific duties of a property manager. (Additional answers are found on page #31.)
Marketing the space by advertising and screening applicants to help secure the ideal tenants. Setting and collecting rents Staying knowledgeable and updated on applicable laws Monitoring income and expenses Managing risks
What are four designations offered by NARPM® for property management?
Master Property ManagerResidential Management ProfessionalCertified Residential Management CompanyCertified Residential Management Bookkeeper
Whose interests are represented by the NAA?
Multifamily housing owners, managers and developers
List five duties specific to an office building manager. (Additional answers are found on page #32.)
Negotiate contracts for all building services. Maintain an office either onsite or remotely where records are kept. Oversee construction. Provide security services. Provide administrative support
Does California require property managers to hold any separate certification specific to property management? If so, what certification?
No
Which type of property is more time intensive for property managers than other commercial properties?
Office buildings
List five exemptions for California's requirement that property managers hold a California real estate broker's license.
Performing real estate broker acts without compensation. Property owners who manage their own property. Acts performed by employees of a broker that are also supervised by the broker. Management of transient occupancy dwellings, such as hotels resident managers.
What are some expectations office building owners have of property managers?
Preparation and monitoring of the budget, collecting rent, overseeing any tenant construction, and general tenant issues.
What benefits are earned by a SIOR membership?
Professional designation, networking opportunities, intranet website, conferences, professional development, continuing education, and many other advantages
Licensing requirements
Property management is highly regulated in California Key components of management are real estate activities Real estate broker's license required for compensated property managers in California No compensation, no license required Salesperson working under licensed broker does not need license Owners who manage their own property do not need license Managers of transient properties do not need license Resident managers of 16 or more units do not need license DRE requires experience and/or educational training to be documented by broker applicants California real estate broker licensing requirements must be completed Continuing education is required License can be suspended or revoked for failure to uphold laws relating to management of property California property managers do not need separate certification specific to property management Community association managers in California do not need broker's license Certified CID Manager certification is available when requirements are met
What are two designations of interest to property managers that are offered by BOMA?
Real Property Administrator (RPA)Facilities Management Administrator (FMA)
What are the three main things that employing a property manager does for an owner?
Reduces expenses, adds to the financial bottom line, and increases value of the property
What is the most commonly professionally managed property type in the U.S.?
Residential
What are the five areas of ULI's focus?
Resort and residential Retail and destination development Office and industrial development Transportation and parking Real estate finance and capital markets
What are the four major areas in which the NAIOP is focusing its attention?
Seeking solutions to the credit and capital crisis. Providing critical education and information. Protection NAIOP member advantage. Offer exceptional membership services
List four examples of retail properties.
Shopping centers, strip malls, stand-alone stores, regional malls
Give three examples of residential properties.
Single family homes, apartment buildings, mobile home parks
List four of the programs ULI sponsors to help officials build better communities.Community Action Grants
Smart Growth Alliances. Urban Plan. Urban Marketplace
What is the common element of all special purpose properties, and who typically manages these properties?
The common element is that the activity in the buildings is a special business or organizational undertaking that dictates the design and operation of the buildings themselves.
Briefly explain the main reason(s) why owners employ property managers.
The management duties become too burdensome and take up too much of the owner's time.
What is the focus of ICSC?
The shopping center industry
List five types of properties that fall under special purpose properties.
Theaters, motels, hospitals, schools, churches
Manager's role
To accomplish owner's goal to make money Must know if owner's goal is short-term or long-term Whether or not to maintain physical integrity of property Institutional manager must meet the owner's needs Type and size of property and owner's goals determine manager's role
What is the property manager's primary role?
To accomplish the owners goal(s)
Why does the manager need to know the owner's primary objective?
To determine how the property will be managed
Briefly explain the purpose of C.A.R.
To develop and promote programs and services that enhance members' ability to conduct their businesses with integrity and competency and to promote the preservation of real property rights.
Why was the NCHM established?
To ensure that managers of assisted housing had the professional skills necessary to meet the unique challenges of assisted housing management.
What is the property manager's primary role in an institutional property?
To ensure the property meets the owner's needs
What is one of the roles of IREM for its membership?
To keep its members apprised of new legislation at both the state and national level that will impact the property management industry.
What are some benefits to property managers offered by professional organizations?
Training, publications, networking, ethics guidelines, designations, and certifications
List five duties specific to a shopping center manager.
Trash pickup, parking lot maintenance, maintaining common areas, maintaining exterior of building, paying property taxes
What are the determining factors of a property manager's role?
Type and size of property and the owner's goals
Give three examples of situations where a single-family home might need a professional manager.
When the home was purchased as rental property, when there is an absentee owner, when the home if for short-term rentals, when the property is in probate or foreclosure
The membership of BOMA includes what types of professionals?
building owners, building managers, developers, asset managers, leasing professionals, and governmental officials
Asset management -
financial management of number of investment properties
Concierge -
hired by manager to offer personal services to residents
Technology -
knowledge and expertise in today's technology is necessary
What types of information does the BOMA Magazine provide?
legislative, regulatory and codes activities, statistical trends and forecasts, and emerging technologies impacting commercial real estate
Industrial -
less intensive than other property types
Resident manager -
lives on site
Leasing agents -
mainly find tenants
Corporate property managers -
manage property for corporate investors
Special purpose -
managed internally by members of business or organization
Retail -
management critical due to size of center and diverse tenant mix
Individual property manager -
manages for one or more owners
Individual building manager -
manages single large property
Residential -
most common professionally managed
Mixed-use -
require diverse and extensive skills
Office -
require specialized management skills and are more time intensive
Regional and executive managers -
supervise on-site managers