Chapter 01

Question 1

Two form of obsolescence

Answer 1

1. Functional Obsolescence

2. Economic Obsolescence

Question 2

There are 2 kind of Functional Obsolescence, describe it.

Answer 2

1. Curable obsolescence : outdated design of exterior (as compared to adjacent properties)
   or insufficient number of bathroom in unit (1 bathroom for 5 bedroom)
2. Incurable obsolescence : many home entertainment centers became incurable obsolete as flat-panel televisions replaced bulky analog television. The old entertainment centers were to deep to accomodate the new, thin televisions

Question 3

Give an example of Economic Obsolescence

Answer 3

airport noise, toxic waste, nuclear power plants, freeway noise, dust and air pollen’s, etc

Question 4

What’s the duty of Property Managers

Answer 4

For all property (commercial or residential), a Property Manager has the duty to :

• Prepare annual budget
• Submit monthly operating statements
• Look after maintenance and repairs
• Arrange service contracts
• Pay the operating expenses
• Pay the Property taxes

In the rental building, the Property Manager:

• collect rent from tenants
• follow up on arrears
• look after the maintenance of the entire building and outside areas.
• if repairs are needed to the tenant’s space, and it relates to a base building items (fridge, stove, plumbing, etc) The Property Manager arranges for the repairs to be made.
• if the unit becomes empty, the Property Managers handles the re-leasing of it, and negotiates the terms of the tenancy agreement.

The Property Manager is accountable to the owner of the property, and normally handles all issues on behalf of the owner.

Question 5

Who is hire the Property Manager in Strata Title (Condominium) ? and whats the role?

Answer 5

The Property Manager of a condominium (usually strata-titled,

• hire by the strata council and
• take instructions and directions from the strata council.

The role of the Property Manager is:

• to implement the decisions made by the strata council
• usually authorized by the strata council to approve expenses and pay accounts within the framework of the budget.

Question 6

What is the duty of Property Manager in managing a condominium property ?

Answer 6

The Property Manager of condominium property is responsible for :

• the maintenance of the common areas and facilities and the exterior of the buildings.
• to ensure that all monthly maintenance fees are paid promptly by the individual condominium owners
• attendance all strata council meetings to take the minutes, present reports, and advise the strata title council.

Question 7

Whats the main differences between the property manager of tenant-occupied rental units and strata-titled family units ?

Answer 7

The difference is when managing a strata-titled building, the Property Manager is not responsible for collecting rents or for arranging for general repairs and maintenance to the individual units.

Question 8

It is said that “a Property Manager has a dual Responsibility”

What is meant by the term of dual responsibility?

Answer 8

The meaning of dual responsibility of a Property Manager is A Property Manager has a primary responsibility to the owner, and a secondary responsibility to the tenant.

Therefore a Property Manager should be respect to tenant requests, even if they are clearly outside the scope of a landlord’s responsibilities.

Question 9

What are the form of The disciplinary committee of a property management professional association.

Answer 9

• A reprimand
• Suspension of membership privileges
• The costs of the hearing

Question 10

The duties of a property manager of a condominium complex can generally be divided into two categories

Answer 10

The duties of a property manager of a condominium complex can generally be divided into two categories:

1. Duties arising from the management of the building itself. (Building management)
2. Duties arising from issues relating to the occupants. (People management)

Question 11

Who can entitled to revoke or suspend the license of a member ?

Answer 11

Only the Licencing Body would have that power

Question 12

Give an example of “incurably obsolescent” ? (Old fashion)

Answer 12

Give an example of “incurably obsolescent” ? (Old fashion)

- an apartment with ceilings which are too low according to new building codes.