Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Unit 18: Property Management > Assessment > Flashcards

Assessment Flashcards

1
Q

The ___ creates a general agency relationship between the owner and the property manager

A

Management agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Any ___ should contain a description of the property, definition of the management’s responsibilities, statement of the owner’s purpose, and the extent of the manager’s authority.

A

Management agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Cleaning common areas is what type of maintenance?

A

Routine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fixing a leaking faucet is what type of maintenance?

A

Corrective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Repairing a broken AC unit is what type of maintenance?

A

Corrective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Seasonal servicing of appliances and systems is what type of maintenance?

A

Preventative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Regularly scheduled landscaping is what type of maintenance?

A

Routine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Fair housing laws do not apply to…

A

Commercial properties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who’s responsibility is it to maintain financial reports?

A

Property manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the 4 types of financial reports that property managers are responsible for?

A

1) Operating budget
2) Cash flow report
3) profit and loss statement
4) budget comparison statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The Americans with Disabilities Act recommends ___ to provide access to a buildings facilities and services

A

reasonably achievable accomodations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

___ insurance is used for medical expenses by. a person who is injured in the building as a result of the owner’s negligence

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

___ insurance covers the consequences of a disaster, and can include the loss of rent or revenue to a business that occurs if the property cannot be used

A

Consequential

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When a manager develops an operating budget, which of these is considered a variable expense?
a) basic operating costs
b) utilities
c) employee wages
d) building repairs

A

Building repairs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A property manager who enters into a management agreement with an owner is usually a(n) ___ agent.

A

General

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A high rise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent?

A

Consequential loss, use, and occupancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

High building occupancy might indicate that…

A

rents are too low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A property manager’s total compensation consists of a monthly salary, a 12% commission based on annual rental for each vacant unit the property manager fills, and the free use of one of the apartments as the property manager’s personal primary residence. Based on these facts, is the property manager required by Illinois law to obtain a real estate broker or managing broker license? Why or why not?

A

No because . Persons acting as resident managers, who live in the managed property, are specifically exempt from the general licensing requirements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

In IL, persons acting as resident managers, who live in the managed property, are specifically exempt from…

A

the general licensing requirements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In MOST market areas, rents are determined by…

A

supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

From a management point of view, apartment building occupancy that reaches as high as 98% would tend to indicate that…

A

rent could be raised

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The property manager of a small, 20-unit apartment building requires a security deposit. In this case, the property manager is not required to…

A

pay interest on the security deposit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which law requires removing existing barriers when readily achievable in public buildings and adding Braille markings to elevator buttons?

A

Americans with Disabilities Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Which action by a property manager is a breach of her fiduciary relationship to the owner?
a) scrutinizing property expenses
b) checking credit histories of minority applicants ONLY
c) generating a high net operating income by maintaining the property
d) maintaining good relations with tenants

A

Checking the credit history of minority applicants only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Residential leases are usually expressed as a(n) ___ rate per ___

A

monthly rate per unit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Contaminated groundwater, toxic fumes from paint and carpeting, and lack of proper ventilation are all examples of….

A

environmental concerns that a property manager may have to address

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

When a property manager is establishing a budget for the building, what should be included as an operating expense?

A

utilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Avoid, control, transfer, or retain are the four alternative techniques of,…

A

risk management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Tenant improvements are

A

adaptations of space to suit tenants’ needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

A property manager hires a full-time maintenance person. While repairing a faucet in one of the apartments, the maintenance person steals a television set, and the tenant sues the owner. The property manager could protect the owner against this type of loss by purchasing…

A

a surety bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

A guest slips on an icy stair at an apartment building and is hospitalized. A claim against the building owner for medical expenses may be paid under which policy held by the owner?

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

A property manager is offered a choice of three insurance policies with different deductibles. If the property manager selects the policy with the highest deductible, which risk management technique is being used?

A

Retaining risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which type of insurance coverage insures an employer against MOST claims for job-related injuries?

A

Workers compensation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

A property manager repairs a malfunctioning boiler in the building. This is classified as which type of maintenance?

A

Corrective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

The document that creates the agency relationship between an owner and property manager

A

management contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

A type of property management specialty that helps owners decide which properties to purchase and when to sell

A

asset management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

performance of regularly scheduled activities, such as painting and servicing appliances and systems

A

preventative maintenance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

major alterations to a building’s interior to meet a tenant’s particular needs

A

tenant improvements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

evaluating perils of any risk in terms of options

A

risk management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

an owner’s protection against financial losses due to an employee’s criminal acts

A

surety bond

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

insurance policies that offer a package of standard coverages

A

multiperil

42
Q

insurance policies that provide coverage against theft, burglary, vandalism, specific, not all inclusive

A

casualty

43
Q

insurance that covers the revenue a business loses due to a disaster

A

consequential loss

44
Q

an investigation to determine the need for insurance and types of insurance required

A

audit

45
Q

One of the key responsibilities of a property manager is to ___ or ___ the value of the property

A

preserve or increase

46
Q

The ___ creates a general agency relationship between an owner and the property manager

A

Management agreement

47
Q

The management agreement creates a general agency relationship between ___ and ___.

A

Owner and property manager

48
Q

Like real estate brokers’ commissions, property management fees may not be ___ by local professional organizations, but must be negotiated between the parties.

A

standardized

49
Q

Like real estate brokers’ commissions, property management fees may not be standardized by local ___, but must be ___.

A

professional organizations
negotiated between the parties

50
Q

Rental rates are influenced primarily by…

A

supply and demand

51
Q

An example of a(n) ___ under the ADA is installing a ramp at a building entrance

A

readily achievable modification

52
Q

The manager of a(n) ___ building should carefully consider a prospective tenant’s compatibility with existing tenants, such as traffic counts, noise, etc.

A

commercial

53
Q

A ___ tenant turnover rate results in lower profits for the owner.

A

High

54
Q

A high tenant turnover rate results in ___ profits for the owner.

A

lower

55
Q

What are the 3 types of maintenance necessary to keep a property in good condition?

A

1) Preventative
2) Corrective
3) Routine

56
Q

___ maintenance helps prevent problems and expenses before they arise.

A

Preventative

57
Q

Preventative maintenance helps prevent ___ and ___ before they arise.

A

problems and expenses

58
Q

___ maintenance involves the actual repairs that keep the building’s equipment, utilities, and amenities functioning.

A

Corrective

59
Q

Corrective maintenance involves the ___ that keep the building’s equipment, utilities, and amenities functioning.

A

Repairs

60
Q

___ are major alterations to the interior of commercial or industrial property to accommodate the tenant.

A

Tenant improvements

61
Q

Under Title III of the ADA, ___ must be removed from commercial properties when this can be accomplished in a readily achievable manner.

A

Existing barriers

62
Q

Under Title III of the ADA, existing barriers must be removed from ___ properties when this can be accomplished in a readily achievable manner.

A

Commercial

63
Q

The ADA requirements for ___ are stricter than those for ___.

A

stricter for new construction
not as strict for buildings existing before the law was implemented

64
Q

The ADA requirements for new construction are ___ than those for buildings existing before the law was implemented.

A

stricter

65
Q

What are the 4 alternative risk management techniques?

A

1) Transfer
2) Control
3) Avoid
4) Retain

66
Q

In a(n) ___ property, insurance against the risk of a shopper suffering a slip-and-fall injury would be covered by liability insurance.

A

Commercial

67
Q

In a commercial property, insurance against the risk of a shopper suffering a slip-and-fall injury would be covered by ___ insurance.

A

liability

68
Q

A building insured for what it would cost to rebuild it is a(n) ___ policy.

A

current replacement cost

69
Q

A(n) ___ is the most important financial report.

A

cash flow report

70
Q

Why is a cash flow report the most important financial report?

A

Provides a picture of the current financial status of the property

71
Q

Property managers have a responsibility to properly manage ___, such as asbestos

A

hazardous environmental problems

72
Q

Court decisions have held ___ and ___ responsible for physical harm that was inflected on tenants by intruders

A

Owners and their agents

73
Q

A critical maintenance objective is to protect the ___ of the property over the long term

A

Physical condition

74
Q

Examples of ___ of property management are employee wages and utilities.

A

variable expenses

75
Q

A property manager’s first responsibility to the owner should be to realize the ___ consistent with the ___.

A

Highest return possible consistent with the owner’s instructions

76
Q

The ___ relationship with the ___ is most similar to that of a sales associate with the employing broker

A

Property manager
Owner

77
Q

The property manager’s relationship with the owner is most similar to that of…
a) Tenant and landlord
b) cashier and owner of a store
c) stockholder with board of directors of a corporation
d) sales associate with the employing broker

A

sales associate with the employing broker

78
Q

ALL of these should be included in a written management agreement EXCEPT…
a) list of manager’s duties and responsibilities
b) statement of owner’s purpose
c) statement identifying the manager’s creditors
d) allocation of costs

A

statement identifying the manager’s creditors

79
Q

A list of manager’s duties and responsibilities, a statement of the owner’s purpose, and an allocation of costs must all be included in a(n) ___.

A

Written management agreement

80
Q

If an apartment rents for $750 per month and the manager receives a 12% commission on all new tenants, how much will the manager receive when renting an apartment, assuming that this commission is calculated in the usual way?

A

$1080

750 (monthly rent) x 12 (months per year) x 0.12 (12%) = 1080

81
Q

What is the ANNUAL rent per square foot for a 30 ft x 40 ft property that rents for $2950 per month?

A

$29.50
30 x 40 = 1200
2950 x 12 = 35,400
35,400 divided by 1200 = 29.50

82
Q

Out of the following, a high vacancy rate is MOST likely to indicate…
a) rental rates are too low
b) property is attractive
c) building management is effective and responsive
d) undesirable property

A

undesirable property

83
Q

Repairing a leaking water heater is an example of ___ maintenance.

A

Corrective

84
Q

Which is an example of corrective maintenance?
a) seasonal recharge of refrigerant in an air conditioning unit
b) picking up litter in common areas
c) repairing a leaking water heater
d) moving a partition wall to make a larger office

A

Repairing a leaking water heater

85
Q

How can tenants insure their personal belongings in apartments they rent?

A

Obtain HO-4 or renter’s insurance

86
Q

Under the ADA, existing barriers must be removed…

A

when removal may be accomplished in a readily achievable manner

87
Q

A company was moving from one part of the city to another. During the move, a truck carrying computer equipment worth more than $250,000 was trapped in a flooded underpass, and the equipment was destroyed. Fortunately, the company was insured under several policies. The policy that would most likely cover the computer equipment during the move from one facility to another is…

A

A contents and personal property policy

88
Q

All of the following are principal responsibilities of the property manager EXCEPT…
a) forcibly removing tenants for nonpayment of rent
b) generating income for owners
c) preserving and/or increasing the value of the property
d) achieving objectives of the owners

A

forcibly removing tenants for nonpayment of rent

89
Q

Who carries out eviction proceedings?

A

An officer of the court

90
Q

The ___ is a guide for the property’s financial performance in the future

A

Operating budget

91
Q

What type of plan dies a property manager implement to manage renters who do NOT pay their rent in a timely way?

A

Collection plan

92
Q

One way the property managers meet the goals of __ is by making sure to use the same lease application for every applicant

A

ECOA

93
Q

One way the property managers meet the goals of ECOA is by…

a) making sure to use the same lease application for every applicant
b) Disqualifying tenant applications on the basis of receiving welfare payments
c) not evaluating certain tenant applicants
d) establishing that certain buildings do not allow children as residents

A

making sure to use the same lease application for every applicant

94
Q

According to the Fair Housing Act, ___ is channeling of protected class members to certain buildings or neighborhoods

A

steering

95
Q

Washing a wall mirror in a common area is ___ maintenance.

A

Preventative

96
Q

Fixing an air conditioner is ___ maintenance

A

Corrective

97
Q

Repainting exterior brick is ___ maintenance

A

Preventative

98
Q

Replacing torn carpet is ___ maintenance

A

Corrective

99
Q

Repairing a cracked window is ___ maintenance.

A

Corrective

100
Q

Annual elevator inspections & repairs are ___ maintenance

A

Preventative

101
Q

Cleaning off a cobweb above a doorway is ___ maintenance

A

Routine

Unit 18: Property Management (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions