Chapter 24: Property Management Flashcards
Property managers have a ________ relationship with the property owner
Fiduciary
One of the property manager’s fundamental responsibilities is…
Financial reporting to the principal
Effective gross income is defined as…
Revenue from all sources minus losses from uncollected rents, vacancies, and evictions
The efficiency of marketing activities can be measured in terms of…
Cost per tenant prospect generated per lease
If a property’s vacancy rate is significantly lower than market rates, it may be a sign that the manager needs to…
Raise rental rates
Why does a manager need to keep tenants happy?
High tenant turnover increases expenses and reduces profits
What are the three kinds of maintenance a manager has to carry out for a managed property?
Routine, preventative, and corrective
The Americans with disabilities act requires property managers to…
Ensure the disabled employees have the same level of access to facilities that all employees have
Which of the following statements about the property manager’s responsibility for security and safety is true?
A court may hold the manager responsible for the physical safety of tenants and leased premises
Commercial fire and hazard insurance policies usually require coverage to equal East 80% of the properties…
Replacement value
Trust funds to be handled by a property manager are likely to include all of the following except…
Cash for the management firms operating expenses
What kind of agency is commonly created by a management agreement?
General
The rights, duties, and liabilities of the landlord and manager are…
Apportioned under the terms of the management contract
Which of the following describes a gross lease?
The tenant pays a fixed rent, and the landlord pays all operating expenses
If an apartment contains a refrigerator that is not included in the lease…
The property manager does not have to maintain it
