Chapter 18: Business Sale, Property Management & Leasing Flashcards
What is goodwill as it relates to a business?
Goodwill is an intangible asset that results from the reputation of the business. It is defined as the expectation that the public will continue to do business at the establishment.
List the three Institute of Real Estate Management property management designations.
Certified Property Manager© (CPM©) for individuals meeting a certain level of education and experience.
Accredited Residential Manager© (ARM©) for resident managers.
Accredited Management Organization© (AMO©) for companies that employ at least one CPM.
What are the three general responsibilities of a property manager?
Renting the units promptly at the highest market rent possible.
Keeping operational and other costs within budget.
Preserving and enhancing the physical value and prestige of the property.
Describe how a property manager can receive his or her fees.
A property manager’s fees can be a flat monthly amount, a percentage of the gross rents collected or a combination of the two. In addition to the fees collected on rentals, a property manager can receive additional compensation for renewing leases and for supervising major repairs or alterations.
What should a good management contract contain?
Terms and period of the contract.
Policies pertaining to the management of the premises.
Management fees.
Authority and powers given by the owner to the manager.
Which type of leasehold estate is commonly referred to as a periodic tenancy?
Estate from period to period.
Define a gross lease.
The tenant pays a fixed rent and the owner pays the taxes, insurance and other normal ownership expenses.
Under what conditions may a landlord enter a tenant’s property?
Only when one of the following conditions exists:
An emergency requires the landlord to enter.
The tenant gives consent to enter.
The landlord enters during normal business hours and only after giving 24 hours’ notice to either make repairs or to show the property to prospective tenants, purchasers or contractors.
The tenant has abandoned or surrendered the property.
The landlord has a court order allowing the entry.
Which document shows the assets and liabilities of a business?
Bill of sale
Balance sheet
Profit and loss statement
Purchase contract
Balance sheet
When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease?
Gross
Percentage
Net
Graduated
Net
What kind of lease contains a recapture clause?
Percentage
Net
Gross
Graduated
Percentage
When setting up a rent schedule, a property manager should analyze all but which of the following?
Neighborhood amenities
Community growth
Area vacancy rates
New home sales
New home sales
Which of the following represents an intangible business asset?
Equipment
Inventory
Goodwill
Fixtures
Goodwill
When can a landlord enter a tenant’s property to make repairs or show it?
Only after receiving the tenant’s consent.
During business hours and only after giving the tenant 24 hours notice.
Anytime he or she chooses.
Only with a court order.
During business hours and only after giving the tenant 24 hours notice.
California allows a property manager to charge a non-refundable screening fee of how much?
$15
$20
$25
$30
$30
