PMQuiz Final Exam (1-15) PDF

12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) Final Exam. (1 - 15)  This is a preview of the published version of the quiz Started: Dec 3 at 4:47pm Quiz Instructions F-E (1 - 15)  Question 1 2 pts A property manager is doing a...

12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) Final Exam. (1 - 15)  This is a preview of the published version of the quiz Started: Dec 3 at 4:47pm Quiz Instructions F-E (1 - 15)  Question 1 2 pts A property manager is doing a preliminary study in order to prepare a management plan. As usual, the preliminary study will involve five main categories of analysis. These categories include all of the following, except: analysis of alternatives analysis of demographics regional analysis neighborhood analysis  Question 2 2 pts The term "qualification package" refers to: a summary of the property manager's credentials and experience, with supporting documents, included in a management proposal the requirements for membership in a professional association such as BOMA or IREM, or for a particular designation conferred by such an association orientation materials provided to new tenants in large residential complexes, typically including information about the property's amenities, a list of neighborhood resources, and an appropriate welcome gift a prospective commercial tenant's rental application and supporting documents, such as profit and loss statements and income tax returns  Question 3 2 pts https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 1/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) As a general rule, and without reference to specific provisions in the lease agreement, notice of termination is required: only when a landlord (or his property manager) wants to end a tenant's periodic tenancy when a tenant wants to end a term tenancy when either the landlord or the tenant wants to end a periodic tenancy when either the landlord or the tenant wants to end a term tenancy  Question 4 2 pts Administrative regulations: are merely guidelines, without the force of law may be federal, state, or local are enacted by a legislative body apply only in a particular city or county  Question 5 2 pts A residential lease should be signed by: everyone who will occupy the unit all competent adults who will occupy the unit only one competent adult, as the fully liable representative of all other occupants only the occupant(s) who have accepted joint and several liability for the rent, at least one of whom must be a competent adult  Question 6 2 pts Pat manages 16 properties owned by ten different clients, all of whom are individual investor-owners. She sets her own schedule, juggling her tasks for all of the properties, and makes management decisions primarily using her own judgment. For tax purposes and various other legal purposes, Pat's status in relation to her clients is almost certainly that of a/an: trustee https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 2/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) employee gratuitous agent independent contractor  Question 7 2 pts Why does the liquidity of an investment matter? Less liquid investments have consistently lower yields than more liquid investments The investor might want the invested funds for a different investment opportunity or for emergency expenses The number of liquid investments that an investor can hold at one time is limited by law Federal deposit insurance does not cover liquid investments  Question 8 2 pts There are many differences between residential property and commercial property that affect their management. All of the following statements about the differences are correct, except: Residential leases generally have longer terms Residential properties are more likely to require round-the-clock management Residential property managers (and/or their staff) typically have to spend a greater proportion of their time on marketing and leasing Residential tenancies are generally subject to many more landlord-tenant law requirements  Question 9 2 pts Eileen is a professional property manager. She currently works as a full-time employee for a corporation, managing the office building that the corporation owns and occupies as its main business location. In this capacity, Eileen would be referred to as a/an: institutional manager comptroller facilities manager https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 3/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) asset manager  Question 10 2 pts An R/U ratio may be used to determine: the maximum number of people that can legally occupy a residential unit the optimum number of smaller stores for a shopping center with a particular type of anchor store how much a commercial tenant will have to pay toward the building's common area expenses how many parking spaces a retail building will need in order to accommodate customers and employees  Question 11 2 pts Saving the client money is one important reason why a property manager should: encourage tenants to report maintenance issues promptly respond only to complaints that have been submitted in writing wait at least three days before responding to non-emergency complaints, which frequently solve themselves handle complaints in a way that will keep tenants' maintenance expectations low  Question 12 2 pts In the market analysis for a management plan, the property manager must: determine the relevant submarket allow the client to specify the relevant submarket use the submarket categories established by IREM for MSAs with populations over 100,000 define the submarket in compliance with IRS accounting rules  Question 13 2 pts A rental application form or packet should include an: inquiry regarding race, ethnic background, familial status, and disability, to enable the manager to demonstrate Fair Housing Act compliance https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 4/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) authorization for a citizenship status check, signed by the applicant, for Patriot Act compliance authorization for a credit check (and a criminal background check, if desired), signed by the applicant, for FCRA compliance authorization for entry without notice in emergencies, signed by the applicant, for URLTA compliance  Question 14 2 pts The implied covenant of quiet enjoyment: applies to residential tenancies but not commercial tenancies applies to commercial tenancies but not residential tenancies must be expressly included in any written lease applies to a tenancy even if it is not expressly stated in the lease  Question 15 2 pts After an apartment building's operating expenses and mortgage payment have been paid, the amount of money left over from the rents collected that month is called the: equity leverage appreciation cash flow  Question 16 2 pts To evaluate the effectiveness of marketing efforts, a property manager is likely to use: traffic reports direct solicitation hit tickets projection rates  https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 5/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) Question 17 2 pts Banks generally won't finance development of a new shopping center: unless there will be at least four anchor tenants until the developer has signed lease agreement(s) with the anchor tenant(s) until the land has been purchased and the site infrastructure prepared if there is already another shopping center of similar size and character within a ten-mile radius  Question 18 2 pts When a property manager or leasing agent discusses office space with a prospective tenant, the first issue that has to be addressed is usually: pass-through charges the size and configuration of the available space the tenant improvement allowance common area maintenance  Question 19 2 pts Buying real estate as an investment has some disadvantages compared to various other types of investments. One disadvantage is that: no tax deductions apply to real estate owned as an investment (as opposed to personal use property) a real estate purchase generally requires a larger cash outlay than other investments real estate can't be expected to depreciate as quickly as other investments real estate provides a return to the investor only when the asset is sold  Question 20 2 pts Unlimited liability means: the liability of the investors who own a property may exceed the value of the property itself any judgments entered against the business or the individual investors are not subject to the federal liability cap https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 6/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) the personal assets of a business owner or investor can be reached by creditors of the business the debts and obligations of the business may exceed the value of the investment property owned  Question 21 2 pts Which one of the following investor-owners is least likely to hire a professional property manager? Mary Ann, a surgeon who owns a residential duplex and rents both units to tenants Paul, a commercial fisherman who owns 20 acres of undeveloped land that he's holding for appreciation The Cartwright Group, a partnership that recently purchased and renovated an 80-unit apartment building constructed in the 1920s Ernesto, a retiree who owns a small office building and lives in another state  Question 22 2 pts Hal is preparing an annual operating budget for a 30-unit apartment complex. In calculating the property's potential gross income, Hal will probably: use market rents, except for current vacancies use contract rents, except for current vacancies subtract contract rents from market rents subtract market rents from contract rents  Question 23 2 pts The Patriot Act effectively requires a property manager to: check a prospective tenant's name against the SDN list check a prospective client's name against the SDN list decline to work for or lease to anyone whose name appears on the SDN list All of the above  Question 24 2 pts https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 7/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) When marketing property for lease, a property manager decides to include the amount of the rent and other cost information in the advertising. This is likely to: help prevent wasted time and effort for the manager trigger Truth in Lending Act requirements put off well-to-do and older prospects, who tend to feel it's in poor taste to discuss money matters publicly discourage many qualified prospects who would have submitted an application if they had come to see the property  Question 25 2 pts As a general rule, employees who work under a property manager need to be bonded only if: the property owner requests it they handle money as part of their job they have a criminal record the property's hazard insurance does not cover them  Question 26 2 pts In most states, a property manager is legally required to keep tenants' security deposits: separate from trust funds separate from non-trust funds in an account that's in the name of the property owner (the landlord) rather than the name of the property manager in a pooled interest-bearing account, with interest paid to the state treasury  Question 27 2 pts Under the FCRA, a property manager must: obtain a rental applicant's credit report from at least three different credit bureaus provide all residential rental applicants with a booklet explaining their rights under the law provide a written notice to a residential or commercial rental applicant rejected based on a credit report https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 8/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) run credit checks on all rental applicants, both residential and commercial  Question 28 2 pts The federal Fair Labor Standards Act sets rules concerning: minimum wage and overtime pay vacation and sick leave notice of termination workplace safety  Question 29 2 pts The consideration of tenant mix in leasing is most important for: residential property office property retail property industrial property  Question 30 2 pts From a client's point of view, setting a property manager's compensation as a percentage of the property's gross income has this advantage: it gives the manager a direct incentive to increase the property's income the client won't have to pay the manager for any months in which the property has an operating deficit the manager's compensation will be reduced in a month when operating expenses exceed the budgeted amount the manager's compensation will be reduced by an appropriate vacancy factor  Question 31 2 pts How high a vacancy rate is acceptable for a managed property depends on: the type of property and the owner's goals https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 9/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) supply and demand in the submarket general economic conditions All of the above  Question 32 2 pts A property manager is deciding on a marketing plan for a vacant retail space. How much advertising will be needed in order to find the next tenant for the space is most likely to be affected by: branding the target market the property's location the cost per prospect  Question 33 2 pts The central aim that guides a property manager's work, no matter what context the manager works in, is managing the property in order to: generate the greatest net income for the owners increase the property's value as much as possible ensure that the property reaches its highest and best use achieve the owners' goals for the property  Question 34 2 pts A developer builds a large office tower in a city where there is a shortage of office space and rents are high. This will increase: demand, which will tend to lower rents demand, which will tend to increase rents supply, which will tend to lower rents supply, which will tend to increase rents https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 10/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15)  Question 35 2 pts A maintenance request form for tenants to fill out should include: an estimate of how long the work is likely to take a hold harmless clause, protecting the manager against liability for work negligently performed work order and purchase order numbers, if applicable an authorization for entry into the tenant's rental space or unit, to be signed by the tenant  Question 36 2 pts Which party is most likely to be held liable for remediation costs under CERCLA, the federal toxic waste cleanup statute? Bona fide prospective purchaser Innocent landowner Property manager at the time the pollution occurred Contiguous property owner  Question 37 2 pts Which of these are not commonly factors in creating the boundaries of a neighborhood? Bodies of water Zoning restrictions Government survey maps Ethnic or racial identity and discrimination  Question 38 2 pts How many days a residential landlord or property manager is allowed for fixing a particular type of maintenance problem is most likely to be determined by: the lease or rental agreement the management agreement https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 11/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) state and/or local landlord-tenant laws the Americans with Disabilities Act  Question 39 2 pts Most industrial leases contain an escalation clause, because: the term of an industrial lease is usually at least ten years, and frequently longer market rents are more volatile for industrial property than for other types the property manager's compensation is tied to the tenant's gross sales industrial properties are more likely to have environmental issues than other types of commercial properties  Question 40 2 pts A client wants to reduce the property's hazard insurance coverage substantially, in order to save money on the premiums. If the property manager tries to arrange this, the insurance company might: terminate coverage based on a charge of fraud keep the policy in force, but lower the client's credit rating agree to reduce the coverage only if the deductible is increased by a corresponding amount refuse to reduce the coverage, because insurers generally require that property be insured to at least 80% of its value  Question 41 2 pts A maintenance employee assaulted one of the tenants in a building that Clive manages. Clive hired and supervised the employee. Regarding Clive's potential liability in connection with this incident, which of the following is correct? Clive can't be held liable because he didn't authorize the employee's action Clive's liability is likely to depend on whether he was negligent in his hiring, supervision, or retention of the employee Clive can be held liable only if he failed to do a criminal background check when the employee was hired Clive can be held liable only if he participated in the incident, benefited from it in some way, or assisted the employee after the fact  https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 12/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) Question 42 2 pts Which of the following would be most likely to enter into a sale-leaseback agreement or a ground lease? The marketing director for a regional shopping center An industrial business that needs to construct a special purpose building A tenant in an office building who needs to expand into additional space A condominium owner who can't rent out his unit without the prior approval of the community association  Question 43 2 pts A conversion ratio measures: how much of the multi-family housing stock in this market has been converted to condominiums how many prospects it takes to get a signed lease for a rental space what percentage of a property's tenants have occupied their spaces for over one year what percentage of a property's tenants renew their leases if offered the opportunity  Question 44 2 pts Which of the following is most likely to be the absorption rate for an area? 8 months 8% 8 to 1 80,000 square feet  Question 45 2 pts Investors are advised to diversify their investments because: it will allow them to draw on cash reserves to offset investment losses only a diverse mix of investments can be considered truly liquid a poor yield from one type of investment may be offset by good yields from other types https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 13/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) diversified investments are generally tax-deductible  Question 46 2 pts In a real estate market, a period of prosperity is likely to lead to: overbuilding diversification price stagnation negative cash flow  Question 47 2 pts A property manager has a legal obligation to protect and promote her client's interests. This is because the manager: is the client's agent and owes the client fiduciary duties is a member of a professional association with a code of ethics that specifically requires this is subject to the Uniform Standards of Professional Property Management has signed a contract (the management agreement) that expressly requires this  Question 48 2 pts Anya is preparing a management plan for an office building. In her regional analysis, Anya is likely to be especially interested in data concerning: average family size HVAC alternatives consumer trends future employment growth  Question 49 2 pts Which of the following are counted as operating expenses for a managed property? Debt service https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 14/15 12/3/24, 4:54 PM Quiz: Final Exam. (1 - 15) Management fees Capital expenditures All of the above  Question 50 2 pts Shell space is: unfinished commercial space, ready for a tenant's build-out partially enclosed retail space in the center of a large mall the per-floor square footage of an office building, minus areas taken up by stairwells, elevator shafts, ductwork, and other equipment necessary to the functioning of the building None of the above Not saved Submit Quiz https://sjeccd.instructure.com/courses/44135/quizzes/305337/take?preview=1 15/15