Property Management Quiz

Quiz Instructions

• This is a preview of a published quiz
• Started on December 3rd at 4:47 PM

Question 1

• A property manager is conducting a preliminary study for a management plan.
• The study involves five categories of analysis:
  • Analysis of alternatives
  • Analysis of demographics
  • Regional analysis
  • Neighborhood analysis

Question 2

• "Qualification package" refers to a summary of a property manager's credentials and experience
• Including supporting documents in a management proposal
• The requirements for professional association membership, such as BOMA or IREM
• Or a specific designation by the association

Question 3

• Notice of termination is required when either the landlord or tenant wants to end a periodic or term tenancy.

Question 4

• Administrative regulations can be federal, state, or local
• They are enacted by a legislative body.

Question 5

• A residential lease should be signed by all competent adults who will occupy the unit.

Question 6

• A property manager managing 16 properties for 10 clients is likely a trustee.

Question 7

• Liquidity of an investment is important for the investor, as less liquid investments have lower yields.
• Investors might need funds for emergency expenses or other investment opportunities
• The number of liquid investments a person can hold isn't limited by law.

Question 8

• Residential leases can have longer terms than other types of leases.
• Residential properties are not more likely to need round-the-clock management than other types.

Question 9

• A professional property manager managing a corporation's building is considered an institutional manager.

Question 10

• An R/U ratio can be used to determine the maximum number of people allowed in a residential unit.

Question 11

• Property managers should encourage prompt maintenance issue reporting to save clients money.
• They should respond to issues promptly but handle non-emergency complaints in a way that maintains tenant satisfaction.

Question 12

• Property managers need to determine the relevant submarket for their clients.
• They should allow clients to specify their relevant submarket.

Question 13

• A rental application should include inquiries regarding race, ethnicity, familial status and disability.

Question 14

• The implied covenant of quiet enjoyment applies to both residential and commercial tenancies.
• The covenant applies even if it's not explicitly included in a lease.

Question 15

• Cash flow is the amount of money left over after covering operating expenses and mortgage payments from collected rents.

Question 16

• Traffic reports are used to evaluate the effectiveness of marketing efforts.

Question 17

• Banks will not finance a new shopping center until there are at least four anchor tenants.
• Developers have to sign lease agreements with anchor tenants before receiving financing.
• If another shopping center of a similar size is within a ten-mile radius of the new center then financing is unlikely.

Question 18

• The first thing to discuss when a tenant is interested in office space is the size and configuration of the available space.

Question 19

• Buying real estate as an investment can require a high cash outflow.
• Real estate purchases typically do not depreciate as quickly as other investments.

Question 20

• Unlimited liability means that the liability of investors can exceed the value of the property.

Question 21

• A surgeon owning a duplex is least likely to hire a property manager.

Question 22

• When calculating potential gross income, property managers typically use the current market rents instead of contract rents (except for current vacancies).

Question 23

• The Patriot Act requires property managers to check prospective tenant names against the SDN list.

Question 24

• This question is about the final question details.

Question 25

• Property manager employees need bonding if they handle money as part of their job.

Question 26

• Property managers must keep tenants' security deposits separate from trust funds.
• This requirement is in most states.

Question 27

• Property managers must obtain rental applicants' credit reports from at least three different credit bureaus
• Under the FCRA, provide all residential applicants with information and a notice about their rights.
• A written notice must be provided to a rejected applicant if the rejection was due to a credit report.

Question 28

• The Federal Fair Labor Standards Act covers minimum wage, overtime pay, vacation, and sick leave, and workplace safety.

Question 29

• Tenant mix is important for retail properties.

Question 30

• Setting a property manager's compensation as a percentage of gross income gives the manager a direct incentive to increase income.

Question 31

• The suitable vacancy rate for a particular property depends on the type of property and the owner's goals.

Question 32

• The amount of required advertising for a vacant retail space is most likely affected by the target market.

Question 33

• A property manager's central aim is to generate the highest net income for the owners, increase property value, and ensure that best use of the property is achieved according to the property owners' goals.

Question 34

• Building a large office tower in a city with high office rents will increase the demand for office space (and office rents themselves).

Question 35

• A maintenance request form should include an estimated time for repair, hold harmless clause, and work order and/or purchase order numbers.

Question 36

• The party most likely to be held liable for remediation costs under CERCLA is the property manager at the time the pollution occurred. (or contiguous property owner.

Question 37

• Ethnic or racial identity and discrimination is not a factor in creating neighborhood boundaries. (Bodies of water, zoning restrictions, govt survey maps ARE)

Question 38

• The amount of time a landlord or property manager has for doing maintenance is dictated by the lease or rental agreement.

Question 39

• Industrial leases typically have an escalation clause because market rents for industrial properties are more volatile than for other types of property, and lease terms for industrial properties are longer.

Question 40

• Insurance companies might terminate coverage based on a charge of fraud or refuse to reduce coverage without increasing deductibles.

Question 41

• Related to a maintenance employee assaulting a tenant, a property manager's potential liability depends on whether they were negligent in their hiring, supervision, or retention of the employee.

Question 42

• A regional shopping center, an industrial business, and a tenant in an office building looking to expand, are the most likely to enter into a sale-leaseback agreement or ground lease.

Question 43

• A conversion ratio measures how many units have been converted to condos. (also measures the number of prospects required for a lease.).

Question 44

• The absorption rate (how quickly a location gets filled) for an area is usually described as an amount of time (like 8 months or 8-12 months).

Question 45

• Investors should diversify their investments to mitigate risk and potentially increase returns..

Question 46

• Overbuilding is a likely outcome of a prosperous real estate market

Question 47

• A property manager has a legal obligation to protect/promote the client's interests as the property manager is the agent and owes fiduciary duties.

Question 48

• In a regional analysis, a property manager would likely consider average family size, HVAC alternatives, consumer trends, and future employment growth.

Question 49

• Operating expenses in a managed property could include debt service, management fees, and capital expenditures.

Question 50

• Shell space is the raw, unfinished space for tenants to finish out. It is different than space that's already finished and ready for tenants.

Test your knowledge on essential property management concepts, including management plans, qualifications, and lease agreements. This quiz covers various facets like analyzing demographics and understanding termination notices. Perfect for aspiring property managers!