Chapter 13: Property Management | Managing and Leasing Properties

Question 1

A tenant’s right to occupy real estate for a definite, fixed period of time.

Answer 1

Estate for years

Question 2

The first civil rights act in California that prohibited “steering” and “blockbusting” as a real estate practice.

Answer 2

Unruh Civil Rights Act

Question 3

The refusal of a loan or insurance based upon a property’s location (zip code).

Answer 3

Redlining

Question 4

Showing a client property in only one type of neighborhood and refusal to communicate the availability of housing in other neighborhoods.

Answer 4

Steering

Question 5

The refusal to sell, rent, or lease housing accommodations on the basis of race, color, national origin, religion, sex, familial status, and handicap.

Answer 5

Discrimination

Question 6

These type of property managers live on the premises and are directly employed by the property owner or his agent.

Answer 6

Resident manager

Question 7

To terminate a periodic tenancy, how many days notice must be given to a tenant who has been in possession of a rental unit for one year or more?

Answer 7

60 days

Question 8

This notice states that the tenant has three “court” business days to pay all past due rent or vacate the property or face an unlawful detainer.

Answer 8

3 Day Notice to Pay or Quit

Question 9

The most common periodic tenancy is a month-to-month lease.

Answer 9

Estate from period-to-period

Question 10

This estate is created when a tenant obtains possession legally, but then remains on the property, without owners consent.

Answer 10

Estate at sufferance

Question 11

With this type of lease, the rents are increased as specified intervals, either for a fixed amount, or a fixed rate.

Answer 11

Graduated lease

Question 12

This type of lease commonly provides for a minimum fixed rental plus a percentage of the lessee’s gross business income

Answer 12

Percentage lease

Question 13

With this type of lease, the lessee pays for all maintenance, insurance and property taxes.

Answer 13

Net lease

Question 14

This is the most sought after designation for residential property managers.

Answer 14

Certified Property Manager (CPM)

Question 15

A term or category for a form of home ownership whereby individual owners are allowed the use of common property and facilities and the governing of which is controlled by a homeowner’s association.

Answer 15

Common interest development

Question 16

The limitations on land use made compulsory by a deed, usually at the time the land was subdivided.

Answer 16

Covenants, Conditions and Restrictions (CC&R’s)

This differs from zoning ordinances because:

• covenants are agreements between private parties (HOA or homeowner enforcing against another homeowner), rather than a government entity and a homeowner.
• covenants are voluntary, possibly making them more restrictive.

Question 17

The low-income housing subsidy allows qualified tenants in the county, who meet the required criteria, to pay a very low portion of the rent.

Answer 17

Section 8

Question 18

A dog who has been specifically trained to assist a person with a disability.

Answer 18

Service dog

Question 19

One of the prime objectives of professional property management is:

a. to minimize expenses and to maximize profits.
b. to make sure the tenants are not taking advantage of the owner.
c. to maximize the return to the professional property management firm.
d. to help society through private rental subsidies.

Answer 19

a. to minimize expenses and to maximize profits.

Question 20

A person or firm hired to manage property by banks, insurance companies, government agencies, trusts, etc., is referred to as a(n):

a. resident manager.
b. freelance manager.
c. institutional manager.
d. none of the above.

Answer 20

c. institutional manager.

Question 21

What form of lease is increased at specified intervals?

a. net lease
b. gross lease
c. percentage lease
d. graduated lease

Answer 21

d. graduated lease

Question 22

Which of the following is a reason for managers to keep accurate records?

a. compliance with statutory requirements
b. meeting the agent’s fiduciary obligation to the client
c. substantiating records for filing income tax returns
d. all of the above.

Answer 22

d. all of the above.

Question 23

With respect to balanced management, which of the following statements is correct?

a. an effective manager tries to correct and relieve deterioration due to wear and tear, while trying to increase net income.
b. if periodic outlays for materials and labor are not made, the annual income for the rental operation will be increased over the long run.
c. it makes little difference whether a property is under-maintained or over-maintained, since the either condition will maximize the profitability of the property.
d. all of the above

Answer 23

a. an effective manager tries to correct and relieve deterioration due to wear and tear, while trying to increase net income.

Question 24

An on-site manager of an 18-unit apartment building:

a. needs to have a real estate license.
b. is directly employed by the property owner/property management company.
c. usually manages several properties at once.
d. all of the above.

Answer 24

b. is directly employed by the property owner/property management company.

Question 25

Which of the following is an example of blockbusting?

a. installing new streets within a city block.
b. persuading property owners to sell by telling them minorities are moving into the neighborhood.
c. offering incentives to renters, like free utilities.
d. denying a loan to a qualified borrower based on location of a property.

Answer 25

b. persuading property owners to sell by telling them minorities are moving into the neighborhood.

Question 26

It is important to analyze prospective tenants’ backgrounds before renting them space in an apartment project. Which of these is NOT a consideration in the tenant selection process?

a. number of jobs held by the applicant within the past ten years.
b. number of times an applicant has been married.
c number of times an amount of installment debts owed by the prospect.
d. number of times the applicant has moved within the last three years.

Answer 26

b. number of times an applicant has been married.

Question 27

A property manager was instructed by his/her client to rent only to a married couple. Which is correct?

a. the manager should screen the potential tenants to determine if they are married.
b. the manager should rent to a couple and not tell the owner.
c. the manager should inform the owner that he/she cannot violate Fair Housing Laws.
d. none of the above.

Answer 27

c. the manager should inform the owner that he/she cannot violate Fair Housing Laws.

Question 28

After two years, a landlord wants to get a month-to-month tenant out of his rental. He or she has to:

a. give the tenant a 3-day notice to pay or quit.
b. give the tenant a 30-day notice.
c. change the locks when the tenant is at work.
d. give the tenant a 60-day notice.

Answer 28

d. give the tenant a 60-day notice.