Exam For Property Management

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Kym's Test

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The demand for professional property management that occured in the late 1800s resulted primarily from:
reshaping the urban center by buliding tall buildings with elevators.
Incubator spaces are most likely to be found in :
research parks
Examples of special purpose propertied include:
Nursing homes and cemetaries
Which of the following types of real estate properties utilizes more professional property managers?
The professional property manager formulates plans to:
schieve the objectives of the owner
The construction of multifamily unit ownership housing has been stimulated by:
rising land and construction costs
Income producing properties that offer services are known as:
office property and business parks
The ability of the property manager to assess a market and implement sales promotion is most critical when dealing with:
retail property
Mini storage, unlike many other types of industrial property is:
Not designed to meet the needs of any particular industry
Ethics conduct refers to:
socially or culturally imposed rules of conduct that go beyond the letter of the law
In the operating budget what is the name of the expenditure the accounts for money  for replacement expenditures?
resurve funds
In the market analysis, the specific goal of the property manager is to identify major economic trends and thier:
effect of the value of a specific property at the managers particular market level
When evaluating the data in a neighborhood market survey, a residential property manager will be most concerned with:
trends in population demographics
What should the manager do if the building is at 100% occupied?
consider raising the rent
After inspecting and analyzing the comparables, a property manager should be able to estimate the routine operating costs for the subject property and :
provide the owner with an estimate of capital expenditures required to make the property competitive with similar properties
A good management plan is based on:
operating budget for one year
Cash flow from a property is predicted by which of the following formulas?
Anticipated revenue (-)  total adjusted operating expenses (-) debt services
In preparing a management plan for the owner to review, the manager:
should realize the owner's objectives will be the deciding factor in it's adoption.
What is the type of leasehold estate most commonly used by property managers?
An Estate For Years
Leashold estates that continually renew until either party gives notice to quit are called:
Estate from Period to Period
Which lease requires the tenant to pay all expenses?
Triple Net
Gross leases are most used with:
Net leases are most commonly used with:
Industrial properties
Percentage leases are most often used with:
Retail space
A valid lease should:
Clearly identify the property.
When describing the premises to be rented, an apartment lease should includ:
The street address of the building.
When attempting to meet the owner's objectives, the property manager should keep in mind:
Increasing net income by decreasing maintenance may have a negative effect.
The major responsibility of the property manager is to:
Obtain the highest possible return on investment (ROI) for the owner.
The property manager must develop a management plan.  What is the purpose of the plan?
To determine the optimum income potential of the property.
What type of property is a cooperative (stock) classified as?
If the lease states that the landlord will provide heat, the tenant whose apartment is freezing may break the lease claiming:
Constructive eviction (14 days)
The landlord's right to take posession of the property at the end of the lease is called:
Reversionary Right
A lease for 50 years which includes land only, with the landlord gaining the improvements would be considered a:
Ground Lease
In the absence of a prior arrangement, the following arrangement would end at death:
Tenancy at Will
The tenant refuses to pay rent and through court action, the tenant is forefully removed from the premises by the Sheriff.  This is called:
Actual Eviction
T buys a building from N that is leased by S.  Which is true about T?
T must honor S's lease.
Which of the following terms describes a lease by which the total rent (gross) is based on sale volume?
Percentage (McDonald's)
The objective in a market analysis is to:
Determine the optimum rental price for a stanadard space in the area.
If the tenant and landlord do not agree on the term of tenancy, then the tenancy is a:
Periodic tenancy (month/week).
If a fire destroys part of a residential property, the tenant may:
Prorate the rent, deducting the portion he can not use.
The Landlord Tenant Act establishes:
The owner's responsibilities.
If the landlord is not in compliance with repairs, the tenant may:
Terminate the lease 14 days after notice if the repair is still not made.
If the tenant fails to pay rent, the landlord:
May terminate the rental agreement.
When a tenant abandons a property, the landlord must make reasonable efforts, the landlord must make reasonable efforts to rerent it becasue:
Failure to make reasonable attempt to rerent will terminate the agreement.
Concerning the security deposit, the South Carolina Residential Landlord Tenant Act states:
If there is a security deposit, the landlord must account for this security deposit within 30 days of lease termination.  if any deductions are made from the security deposit, such deductions must be itemized.
A law of agency requires the manager to:
Maintain confidentiality and loyalty to the owner's best interests.
A property manager acting as an agent:
Owes the duties of care, loyalty, obedience, accouting and disclosure to the principal.
A property manager should give eviction action to the owner:
On a monthly basis at least.
The opt to renew clause favors:
The tenant
What does the word "Fiduciary" mean?
Trust and confidence to the principal or the client
What is "concessions?"
A negotiating point on a lease requiring the landlord to give up something in the prospective tenant's favor.
What is ECOA?
Equal Credit Opportunity Act - federal law that requires lenders and creditors to make credit equally available with out descrimination.
What is FCRA?
Fair Credit Reporting Act - consumer protection law that regulates the disclosure of consumer credit reports.  Consumer has the right to see his credit report and if denied credit the lender must disclose that report was used i the determination.
If the general economic trend is inflationary, the manager should probably push for an increased rental rate and a short term lease with an esculation clause.
Inflationary trend
During a deflationary trend, the manager should favor a longer lease term to secure the current higher rental rate for as long as possible.
Deflationary trend
What isFair housing:
every person has the same pooprtunities to purchase, lease or occupy residential real property.
Civil Rights Act of 1866
Prohibits all racial discrimination, private or public in the sale or rental of property.
Fair Housing Act of 1968:
EHOA or Title VIII unlawful to descriminat  on the basis of race, color, religion, national origin, sex (1974), family status or handicap (1988) (can not ask if you are pregnant)
Office of Equal Opportunity - - Department of Housing and Urban Developemnt (HUD)
Federal Laws prevail, should be condidered as the minimum law.
Federal Law
ADA - Americans with Disabilities Act
What is Blockbusting:
inducing homeowners to sell by telling them a minority may be moving into the neighborhood.
What is steering?
cannot try to steer people into ir out of a particular area based on color religion or national origin.
What is redlining?
Lender con not refuse to make loans to a slpecific area based on ratial grounds.
What is commingling?
Mixing your money with 3rd party trust account monies or theirs with yours.
What is FICA?
Federal Insurance Contributions Act - law that requires employers to pay tax into a SS retirement fund.