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Chapter 4: Developing a Management Plan Chapter 4 Quiz 1. A management plan usually starts life as a: 6. Curb appeal refers to: a) management agreement a) rental rates in a particular neighborhood b) management prop...

Chapter 4: Developing a Management Plan Chapter 4 Quiz 1. A management plan usually starts life as a: 6. Curb appeal refers to: a) management agreement a) rental rates in a particular neighborhood b) management proposal b) the overall condition and appearance of buildings in a neighborhood d) rental schedule c) vacancy rates in a neighborhood d) zoning requirements in a neighborhood put to, considering legal, economic, and physi- 7. What does neighborhood data have in common cal limitations, is its: with regional data? a) break-even point a) Both address zoning issues b) highest and best use b) Both are obtained by in-person observation c) optimal use c) Both are obtained primarily from the local d) point of diminishing returns building department clients usually used in identifying the boundaries of a property’s region (for purposes of regional 8. Property analysis will look at all of the follow- analysis) is the: ing, except: a) census tract a) access to transportation b) congressional district b) building’s exterior condition c) metropolitan statistical area c) lot size d) zip code d) number of units 4. Data for a regional analysis can be gathered 9. All of the following are questions that a from all of the following, except: manager will want to ask about a property’s management and leasing practices, except: a) Census Bureau b) local Chamber of Commerce a) current and past occupancy rates c) personal inspection b) deferred maintenance in HVAC and plumb- d) trade and professional organizations ing systems c) marketing strategy 5. Which of the following ways of defining neighborhood boundaries is the subtlest, and 10. The principal and interest due on mortgage manager to recognize? payments are known as: a) Freeway a) capital expenditures b) River or lake b) cash reserves c) Social barriers c) debt service d) Zoning boundary d) operating expenses 13  Property Management Instructor Materials 11. Within the larger market of apartment build- 15. An operating change intended to make a prop- ings, Janet decides to focus her analysis on apartment buildings that contain 50 to 100 a) decreased maintenance expenditures units, that are recently built, that have above- b) increased advertising activity c) increased rental rates that are within walking distance of the city’s d) All of the above downtown core. This would be considered a: a) micropolitan statistical area 16. An example of a loss of value due to physical b) neighborhood deterioration would be: c) submarket d) target demographic b) lack of high-speed internet c) outdated kitchen appliances 12. When performing a competitive market analy- d) peeling paint sis, a manager would want to obtain all of the following information about a comparable, except: she manages from steam heat to natural gas a) advertising strategy would cost $60,000 for labor and materials. On b) age and condition the other hand, it would reduce energy costs by c) rental rates an expected $18,000 per year. Patricia is putting d) vacancy rates together a: a) building analysis vacancy rate. This would likely be an indication that: d) rent schedule a) the property’s rental rates are optimal b) the property’s rental rates are too high 18. The length of time over which the cost of an c) the property’s rental rates are too low improvement will be gradually recouped is d) the subject property should set rental rates known as its: at or below those of the comparable a) break-even period b) highest and best use 14. As part of his management proposal, a prospec- c) payback period d) sunk costs rent could be charged if a building’s units all received major kitchen remodeling; it would take less than ten years to recoup the costs - of the upgrade. What section of the proposal posal, which outlines the information in the would include discussion of the pros and cons plan and summarizes recommendations, is of such a move? known as the: a) Analysis of alternatives a) analysis of alternatives b) Building analysis b) executive summary c) Market analysis c) narrative report d) Neighborhood analysis d) statement of client goals 14  Chapter 4: Developing a Management Plan 20. Eliza prepares several different budgets as part of her management plan. One budget, the _____ budget, is over the course of one year, estimating income and costs on a monthly ba- sis. The other, the _____ budget, is for setting aside adequate reserve funds to make long-term improvements. a) capital; operating b) manager’s; owner’s c) operating; capital d) operating; permanent 15