Chapter 23 - Property Management

Question 1

An apartment manager may decline to offer a lease to someone because the applicant …

• uses illegal drugs
• is on public assistance
• is a recovering alcoholic
• requires a assistive animal

Answer 1

uses illegal drugs

Question 2

A property manager’s primary obligation is to

Answer 2

-the owner

Question 3

Which of the following should NOT be a consideration in selecting a tenant?

• Tenant ability to pay rent
• race and ethnicity
• compatibility of ones tenants business with other tenants business
• size of the space versus the tenants requirements

Answer 3

-race and ethnicity

Question 4

When a property manager chooses an insurance policy with a $250 deductible, the risk management technique being employed is …

Answer 4

transferring risk

Question 5

Adaptations of property specifications to suit tenant requirements are …

Answer 5

tenant improvements

Question 6

In preparing a budget, the property manager should allow for variable expenses by setting up …

Answer 6

a cash reserve fund

Question 7

Rents should be determined on the basis of …

Answer 7

-prevailing rental rates in the area

Question 8

Which of the following might indicate that rents are too low?

• Many for lease signs in the area
• a poorly maintained building
• high vacancy level
• high building occupancy

Answer 8

-high building occupancy

Question 9

Repairing a boiler is classified as which type of maintenance?

Answer 9

Corrective

Question 10

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

Answer 10

risk management

Question 11

All of the following should be included in a management agreement EXCEPT

• restrictions regarding ages of children
• compensation
• a description of property
• the extent of the managers authoruty

Answer 11

–restrictions regarding ages of children

Question 12

The manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. The manager would normally be considered the agent of …

Answer 12

the buildings owner

Question 13

Which of the following is considered a variable expense when a manager develops an operating budget?

• employee wages
• building repairs
• utilities
• basic operating costs

Answer 13

building repairs

Question 14

In MOST market areas, rents are determined by

Answer 14

supply and demand factors

Question 15

A property manager who enters into management agreement with an owner is usually a …

Answer 15

general agent

Question 16

What insurance policy includes standard commercial property coverage such as fire, hazard, public liability, and casualty?

Answer 16

-Multiperil

Question 17

What law requires removing existing barriers in public buildings, such as adding Braille markings to elevator buttons, when these options are readily achievable?

Answer 17

-Americans with Disabilities Act

Question 18

Title III of the ADA affects which type of property?

Answer 18

-Commercial and public use accomodations

Question 19

In evaluating rental applications, it is important for the property manger to establish consistent criteria for acceptable debt and income ratios to be in compliance with …

Answer 19

the Equal Credit Opportunity Act

Question 20

What monthly statement details the financial status of the property, including sources of income and expenses?

Answer 20

Cash Flow Report