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- 1. Open-ended30 seconds1 pt1. A property manager always works in the best interest of which of the following parties? a. the owner or principal b. the lender or mortgagee c. the tenant or lessee d. the appraiser
- 2. Open-ended30 seconds1 pt2. A properly written property management agreement should include all of the following items EXCEPT? a. a description of the property manager's duties b. the method for determining the property manager's fee c. a statement as to the extent of the property manager's authority d. the operating budget for the property
- 3. Open-ended30 seconds1 pt3. A property manager has a subtracted the losses for vacancies and collection losses from the scheduled gross rental income. The resulting figure is: a. net operating income b. gross effective income c. cash flow before tax d. operating expenses
- 4. Open-ended30 seconds1 pt4. If the property manager suspected one of the tenants was carrying out an illegal activity in the managed building they should: a. do nothing as long as they tenant pays the rent on time b. terminate the property management agreement with the owner c. tell the tenant they are being watched closely d. notify the owner of their concerns.
- 5. Open-ended30 seconds1 pt5. A property management agreement would include all of the following except: a. the duties and responsibilities of the agent b. the fee schedule c. the reporting requirements to the owner d. the appraised value of the property
- 6. Open-ended30 seconds1 pt6. A property manager should known that an effective method of avoiding tenant problems with a rental property is to use: a. a current resident handbook b. a standard lease with specific rules and regulations c. a written property management agreement d. a quiet enjoyment clause as part of the general lease.
- 7. Open-ended30 seconds1 pt7. A property manager manages both residential and commercial property. Which of the following considerations are more important on the commercial leases than on the residential leases? a. the lessee's willingness to sign a written lease b. the lessee's ability to pay the rent promptly c. the lessee's future space requirements d. the lessee's willingness to pay the utilities
- 8. Open-ended30 seconds1 pt8. According to the property management agreement, the property manager's responsibilities would include all of the following EXCEPT: a. determining the rent b. collecting rents c. screening tenants d. assuming personal liability
- 9. Open-ended30 seconds1 pt9. All of the following are operating expenses on an investment property EXCEPT: a. Utilities such as gas and electricity b. Capital expenditures such as the replacement of the building's central air conditioning system. c. property taxes d. The property manager's fee which is a percentage of the collected rents.
- 10. Open-ended30 seconds1 pt10. When should a property manager qualify a rental prospect? a. before making an appointment to show the space b. before a rental agreement is signed c. after showing a sample of properties d. before a deposit is made
- 11. Open-ended30 seconds1 pt11. An apartment building has not had a vacancy is several years. If the property manager anticipates a gross scheduled income of $200,000 with a vacancy rate of 5% next year, what is the expected gross effective income? a. $200,000 b. $190.000 c. $210,000 d. The amount based on past revenues and expenses.
- 12. Open-ended30 seconds1 pt12. A property manager: a. screen likely tenants to see if they can afford the rent b. screens tenants by race to achieve a racial balance c. should refuse to rent to families with children less than 4 years of age d. should require a power of attorney from tenants to assure the collection or rent
- 13. Open-ended30 seconds1 pt13. Property managers: a. save money in clean up costs by retaining long term tenants b. are required to place security deposits in the operating account within 3 days c. arrange for refinancing the property d. make repairs in condo units
- 14. Open-ended30 seconds1 pt14. The property management agreement would include : a. the maximum amount to be placed in the trust account b. the appraisal value of the property c. how often the manager will report to the owner d. the amount of the outstanding loans
- 15. Open-ended30 seconds1 pt15. Factors such as the area to be maintained, availability of skilled help, and the skills and knowledge of the property manager would be considered when: a. determining whether to contract for outside maintenance services b. selling an income property c. appraising an income property d. determining the cap rate
- 16. Open-ended30 seconds1 pt16. The owner of an apartment building tells the property manager he doesn't want to have the furnace serviced this year. The property manger knows that it need service and is concerned it will fail causing damage due to freezing pipes. What action should the property manager take? a. ignfor the instructions and have it serviced b. follow instructions c. tell the owner his concerns d. inform the owner of his concerns in writing
- 17. Open-ended30 seconds1 pt17. The owner of an office building has instructed the property manager not to tell any tenants information about other tenants. Which information would he have to tell? a. how many asian tenants are in the building b. the rents of all the other tenants c. which tenants smoke d. the fact that parking lot provided for the tenants has been sold for construction of a building
- 18. Open-ended30 seconds1 pt18. How are property managers paid? a. only a fixed amount per month b. only on an hourly basis c. on any basis other than a percentage fee which would be price fixing d. on a percentage of gross or net rent, or an hourly or fixed fee if agreeable to both parties
- 19. Open-ended30 seconds1 pt19. A property manager should be competent at all of the following EXCEPT: a. dealing with people in a professional manner b. appraisal techniques c. property maintenance d. hazard insurance policies
