Chapter 15 Quiz - Property Management

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Questions and Answers

Which type of insurance primarily protects the property manager against negligence claims from the property owner?

Basic liability insurance

Business interruption insurance

Errors and omissions insurance (correct)

Hazard insurance

What is a requirement according to OSHA regulations regarding workplace safety?

At least one person in a workplace must be trained in first aid. (correct)

Employees can choose whether to attend safety training workshops.

Employers must offer annual bonuses for excellent safety compliance.

All employees must undergo safety training only when requested.

Which of the following best describes a key aspect of proving negligent hiring?

The manager had no knowledge of the employee’s history.

The danger posed by the employee was known at the time of hiring. (correct)

The employee was not hired based on their qualifications.

The employee was hired to fulfill minimal tasks only.

What type of losses does a fidelity bond specifically cover?

Financial losses due to embezzlement or fraud by employees. Signup and view all the answers

Which of these conditions is necessary to prove that an injury was caused by an employee's negligence?

The employer should have known about the employee's potential danger. Signup and view all the answers

What should an employee handbook for property management employees cover regarding unacceptable behavior?

Discrimination and sexual harassment Signup and view all the answers

How can keeping track of repair requests protect a landlord from liability?

It provides evidence of timely responses to safety problems Signup and view all the answers

What does an insurable interest in property require?

Ownership interest or some other right in the property Signup and view all the answers

What is covered in an emergency procedures manual?

How to respond to emergencies and contact others Signup and view all the answers

Which of the following can lead to a declaration of a public nuisance?

Neglecting repairs and causing safety hazards Signup and view all the answers

What should safety inspections identify to help avoid liability?

Safety problems that require correction Signup and view all the answers

What type of instruction should be included for suspected shoplifters in property management?

How and when to detain suspected shoplifters Signup and view all the answers

What is not required for a workplace in terms of safety compliance procedures?

Emergency lighting in hallways Signup and view all the answers

Which of the following is a requirement under OSHA regulations?

Training staff members in proper fire fighting techniques Signup and view all the answers

Which scenario illustrates negligent hiring practices?

Hiring an employee without verifying their qualifications Signup and view all the answers

What is generally excluded from being regulated by state or federal labor laws?

Remodeling apartment buildings Signup and view all the answers

Which aspect is least likely to be covered by liability insurance policies in a workplace?

Claims arising from employee fraud Signup and view all the answers

Which violation of OSHA regulations is related to employee treatment?

Ignoring workplace sexual harassment issues Signup and view all the answers

Which of the following is an example of employee fraud prevention?

Implementing a whistleblower policy Signup and view all the answers

Which action is recommended to comply with safety regulations?

Conducting regular training sessions for employees Signup and view all the answers

Study Notes

Chapter 15 Quiz - Property Management

Negligent Hiring: A tenant suing a company for negligent hiring must prove the company knew of a danger posed by the employee before hiring them. The danger must relate to the injury inflicted, and the tenant cannot have provoked the employee.
Independent Contractor Hiring: A manager should verify the contractor has proof of insurance, and a policy for errors and omissions. Criminal history is also relevant.
Employee Handbooks: Handbooks should explicitly avoid discriminatory practices, sexual harassment, and unacceptable tenant behavior. They should not address issues like tax liability on operational profits.
Labor Laws: State and federal labor laws govern issues like maximum working hours, overtime limitations, but not remodeling regulations, which are covered by building codes. Worker's compensation is covered as well.
Risk Reduction: Property managers must avoid keeping permanent records of maintenance problems, regularly inspect the property, promptly notify tenants of unfixable problems, and swiftly repair issues.

Emergency Procedures

Utility Shut-off Procedures: Methods for shutting off utilities are detailed in the emergency procedures manual not the employee handbook, insurance binder, or lease agreement.
Emergency Procedures Manual: An emergency procedure manual details an important process, in which an issue is identified by someone and then relayed to the maintenance supervisor, property manager, and skilled worker. This "phone tree" ensures multiple people are notified, each handling a different part of the process.
OSHA Regulations: Workplace OSHA regulations often require a first aid kit, and at least one staff member must be trained in first-aid. This is not always a requirement that all staff be first-aid trained.
Local Regulations: Local laws might require specific numbers of fire extinguishers, emergency lighting, tenant notification, and training on fire safety.

Risk Management

Insurance Policies: Hazard insurance policies are often restricted by a set price per incident (e.g., $100,000) or year. Replacement values, as opposed to depreciated value, can impact the amount received.
Property Value: Depreciated value and replacement value both impact insurance payouts if a building is damaged. For an older building, the replacement cost can exceed the building's depreciated value.
Homeowner Insurance: Basic homeowner policies cover typical perils (damage from broken plumbing, windstorms, etc.). Other policies cover earthquake, flood and certain other natural disasters. This typically requires additional endorsements.
Business Interruption Insurance: If a property is damaged or unusable, this policy can help cover lost rental income.
Errors and Omissions Insurance: This policy protects managers from claims of negligence by owners.
Fidelity Bonds: These bonds protect against losses due to employee fraud or embezzlement.
Insurable Interests: Owners of a building have insurable interest, not necessarily tenants or guests.

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Description

Test your knowledge on property management with this Chapter 15 quiz. Explore critical aspects such as negligent hiring, independent contractor management, employee handbooks, and labor laws. This quiz will help reinforce important concepts for effective property management.