Ch 25: Property Management & Arizona Landlord Tenant Acts Flashcards
Which of the following is NOT true regarding a property management trust account?
a. A salesperson signatory may sign checks paying maintenance fees
b. A salesperson can be a signatory on the trust account
c. Multiple properties can be in one trust account
d. An unlicensed employee of a property management firm may not sign checks on the property management trust account.
d. An unlicensed employee of a property management firm may not sign checks on the property management trust account.
An unlicensed employee of a property management firm may sign checks on the property management trust account.
A property manager’s fee often consists of a base fee plus which of the following?
a. A percentage of the rental income received
b. A percentage of the net income
c. A percentage of the gross potential income
d. A percentage of the annual budget
a. A percentage of the rental income received
A property manager’s fee is the result of negotiations of the property management agreement between the owner and the broker. There are no standard fees, but there is most often a fee over the minimum fee that is a percentage of the rental income received.
A broker with an ongoing property management contract is required to keep residential rental agreements and related documents for:
a. Six months
b. One year from signing
c. One year from expiration
d. Five years.
c. One year from expiration
One year from expiration.
Which of the following MOST accurately describes a property manager?
a. Escrow agent
b. Resident manager
c. Trustee
d. Fiduciary
d. Fiduciary
The property manager is the Agent of the property owner and therefore is considered a Fiduciary with all of the resulting responsibilities and obligations.
A property manager would LESS likely:
a. Arrange for repairs and improvements of the property
b. Handle new leases
c. Prepare depreciation schedules for tax purposes
d. Resolve tenant disputes as to property usage
c. Prepare depreciation schedules for tax purposes
Preparation of depreciation schedules for the income tax reporting is most likely completed by the owner or the owner’s tax consultant.
A person living on the managed premises as a salaried employee engaged to lease apartments is called a/an:
a. Rental agent
b. Employee manager
c. Resident manager
d. Property manager
c. Resident manager
Resident managers are often referred to as residential leasing agents, who are exempt from licensing.
All of the following are required of property managers EXCEPT:
a. Determining the owner’s objectives
b. Collecting rents
c. Showing and leasing property
d. Providing security for the tenants
a. Determining the owner’s objectives
The owner determines the objectives; however, the property manager should express his or her opinion to the owner because the owner decides on the objectives for the property.
A property manager’s responsibilities include all of the following EXCEPT:
a. Commingling
b. Collecting rents
c. Maintenance
d. Negotiating leases
a. Commingling
Commingling is defined as to mingle or mix such as rent funds received from tenants with the broker’s personal account or funds. Commingling would be a violation of the broker’s fiduciary duty and of the Arizona Real Estate Code.
What is NOT part of the property manager’s responsibilities?
a. Ethics
b. Keeping current with vacancies
c. Keeping up with rental rates in the area
d. Determining the appraised value of the building
d. Determining the appraised value of the building
A property manager agrees to manage rental properties for the owner and for compensation. To accomplish the management responsibilities the manager must act in an ethical manner and the manager’s fiduciary responsibility would require the manager to have current knowledge of the rental rates and vacancies in the area. The manager is not expected to nor is a manager generally licensed to complete appraisal to determine the value of the building.
The monthly accounting by the property manager is called:
a. Property management report
b. Management budget
c. Financial report
d. Stabilized budget
a. Property management report
The monthly accounting is not a budget so the answer choice is between the Property Management Report and the Financial Report. The monthly report generally includes more than basic financial information and is customarily referred to as a Property Management Report.
What is NOT part of a typical property management agreement?
a. Annual budget
b. Thirty day cancellation clause
c. Beginning and ending date
d. Frequency of management reports
a. Annual budget
The property management agreement is the employment contract between the licensed property manager and the owner of the property. The Arizona Real Estate Code has specific requirements to be included in the property management agreement including a Beginning and ending date, the establishment of the frequency of management reports and a thirty day cancellation clause. An annual budget could be required, but the budget itself is not a typical part of the management agreement.The property management agreement is the employment contract between the licensed property manager and the owner of the property. The Arizona Real Estate Code has specific requirements to be included in the property management agreement including a Beginning and ending date, the establishment of the frequency of management reports and a thirty day cancellation clause. An annual budget could be required, but the budget itself is not a typical part of the management agreement.
What is the purpose of the management agreement?
a. To create an opportunity for the manager to earn additional income through solicitation and acceptance of gratuities from supply and goods and services
b. To define the scope of responsibilities and authorities of the manager.
c. To delegate to the manager the authority to purchase adjacent properties
d. To hire the manager to find a buyer for the property
b. To define the scope of responsibilities and authorities of the manager.
The purpose of the property management agreement is to define the scope of responsibilities and authorities of the manager. The property management must comply with the Real Estate Administrative Code.
A finder’s fee paid to an unlicensed person by a broker is permissible:
a. When paid to a tenant in a complex managed by the broker
b. When paid to a tenant in the managed complex for eight consecutive months
c. When the payment is $250 for the referral
d. When paid to a tenant who advertises his or her services in procuring tenants.
a. When paid to a tenant in a complex managed by the broker
A finder’s fee cannot exceed $200 and cannot be paid more than five times in any 12-month period. The tenant cannot advertise his or her services.
A property manager could do all of the following EXCEPT:
a. Provide financial management
b. Provide legal counsel
c. Supervise maintenance workers
d. Market the property
b. Provide legal counsel
Providing legal counsel would be the unauthorized practice of law. Giving legal advice is not authorized by Article XXVI of the Arizona Constitution.
A property manager may NOT receive:
a. Reimbursement for out of pocket expenses
b. A monthly management fee
c. Rebates from suppliers
d. Free rent on an apartment unit
c. Rebates from suppliers
The property manager cannot receive rebates from suppliers.
