Last Ch

Question 1

T/F: Property managers often specialize in one type of property.

Answer 1

True

Each type of property has its own characteristics, and the property manager should have special expertise with that type of property.

Question 2

T/F: Landlord-tenant laws impose obligations on owners and managers of residential rental properties that do not apply to other types of property

Answer 2

True

Residential property managers should be very familiar with residential landlord-tenant laws and related local laws.

Question 3

T/F: Maintenance is less of a concern for office buildings than for apartment buildings.

Answer 3

False

The common areas of an office building usually require more attention than the common areas of apartment buildings. Management may also be responsible for cleaning the office spaces every night.

Question 4

T/F: The manager of an office building may need to offer extensive remodeling to suit a new tenant’s needs.

Answer 4

True

Landlords of office buildings typically have to offer substantial concessions to attract office tenants.

Question 5

T/F: A retail tenant frequently pays a rental amount that’s based on the income generated by the tenant’s business.

Answer 5

True

Retail rent is often a fixed dollar amount plus a specified percentage of the tenant’s income.

Question 6

T/F: An industrial lease typically lasts only six months or one year.

Answer 6

False
Industrial properties are large, specialized, and expensive to build, so industrial leases are usually for long terms (20 years or more). Warehouses and storage spaces, which have higher tenant turnover, are an exception to this principle.

Question 7

Property managers may rely on leasing agents to find industrial tenants

Answer 7

True
Leasing agents study the physical aspects of the property, transportation services, and supply and demand for the products of prospective tenants, in order to find an appropriate tenant for industrial property.