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
