National Leasing and Property Management Flashcards
A property manager showed a prospective tenant with three children under five a two-bedroom apartment. All of these could be a consideration in qualifying the potential tenant EXCEPT
A)
the number of children.
B)
personal references.
C)
past lease performance as reported by previous landlords.
D)
credit history and criminal background.
A property manager showed a prospective tenant with three children under five a two-bedroom apartment. All of these could be a consideration in qualifying the potential tenant EXCEPT
A)
the number of children.
Correct Answer
B)
personal references.
Incorrect Answer
C)
past lease performance as reported by previous landlords.
Incorrect Answer
D)
credit history and criminal background.
Incorrect Answer
Explanation
Three children under five in a two-bedroom apartment would be not be considered unless local zoning ordinances state differently. Typically under fair housing law, children less than two years of age are not counted as occupants. Standard leasing practice is to fully check the tenant’s background, past lease history, and work and personal references.
Reference: Leasing and Property Management > Americans with Disabilities (ADA) and Fair Housing Compliance in Property Management
What is the major difference between an assignment and a novation?
A)
Novations are not used in rentals.
B)
A novation is similar to a sublease.
C)
An assignment is better for the landlord then a novation.
D)
Assignments transfer duties but not liability, and novation transfers both.
What is the major difference between an assignment and a novation?
A)
Novations are not used in rentals.
Incorrect Answer
B)
A novation is similar to a sublease.
Incorrect Answer
C)
An assignment is better for the landlord then a novation.
Incorrect Answer
D)
Assignments transfer duties but not liability, and novation transfers both.
Correct Answer
Explanation
Novations may be used anytime a new contract is needed and puts the owner and tenant in a clear position because the tenant has full responsibility and liability for the lease. An assignment is similar to a sublease.
Reference: Leasing and Property Management > Lease Agreements
A property manager normally is charged with all of these duties EXCEPT
A)
repairing a tenant’s fixture.
B)
developing a management plan.
C)
renting space to tenants.
D)
preparing a budget.
A property manager normally is charged with all of these duties EXCEPT
A)
repairing a tenant’s fixture.
Correct Answer
B)
developing a management plan.
Incorrect Answer
C)
renting space to tenants.
Incorrect Answer
D)
preparing a budget.
Incorrect Answer
Explanation
Commercial tenants are allowed to have fixtures (attach personal property) but would be responsible for maintaining them. Property managers prepare budgets, management plans, and rent space as part of their duties.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A property manager must take which of these into consideration to determine the net operating income (NOI) that a property produces?
A)
IRS taxes
B)
After-tax cash flow
C)
Debt service
D)
Vacancy/rent loss
A property manager must take which of these into consideration to determine the net operating income (NOI) that a property produces?
A)
IRS taxes
Incorrect Answer
B)
After-tax cash flow
Incorrect Answer
C)
Debt service
Incorrect Answer
D)
Vacancy/rent loss
Correct Answer
Explanation
The formula used to determine NOI is total gross income minus vacancy and rent losses and bad debt, which equals effective gross income (EGI) from which all property expenses are deducted, gives the NOI before debt service. IRS taxes are not part of the property expenses and are not included in the equation because they vary with each owner. After-tax cash flow is used for computing the return on investment (ROI).
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A person entered into a property management agreement with Barron Properties, Inc. The property management agreement MOST likely stipulates that he will be paid a percentage of
A)
this year’s potential income.
B)
last year’s net income.
C)
last year’s gross income.
D)
this year’s gross income.
A person entered into a property management agreement with Barron Properties, Inc. The property management agreement MOST likely stipulates that he will be paid a percentage of
A)
this year’s potential income.
Incorrect Answer
B)
last year’s net income.
Incorrect Answer
C)
last year’s gross income.
Incorrect Answer
D)
this year’s gross income.
Correct Answer
Explanation
Property managers are usually paid a percentage of the gross income.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A potential tenant is inspecting a property built in 1970. The potential tenant must be given
A)
the owner’s home address.
B)
an Environmental Protection Agency (EPA) booklet and lead-based paint disclosure.
C)
10 days to inspect for lead-based paint.
D)
the previous tenant’s lease agreement.
A potential tenant is inspecting a property built in 1970. The potential tenant must be given
A)
the owner’s home address.
Incorrect Answer
B)
an Environmental Protection Agency (EPA) booklet and lead-based paint disclosure.
Correct Answer
C)
10 days to inspect for lead-based paint.
Incorrect Answer
D)
the previous tenant’s lease agreement.
Incorrect Answer
Explanation
The lead-based paint disclosure would include all reports regarding lead-based paint. However, the potential may not have the same right as buyers do to inspect the property for lead-based paint. Tenants are not given a previous lease or the owner’s home address unless it is state law to do so or allowed by the owner.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
Asbestos, sick building syndrome (SBS), and lead-based paint are all examples of issues beyond the scope of
A)
issues that arise under the Americans with Disabilities Act (ADA).
B)
a property manager’s job description.
C)
environmental concerns that a property manager may have to address.
D)
problems found only in newly constructed properties.
Asbestos, sick building syndrome (SBS), and lead-based paint are all examples of issues beyond the scope of
A)
issues that arise under the Americans with Disabilities Act (ADA).
Incorrect Answer
B)
a property manager’s job description.
Incorrect Answer
C)
environmental concerns that a property manager may have to address.
Correct Answer
D)
problems found only in newly constructed properties.
Incorrect Answer
Explanation
Property managers have to be aware of environmental issues and laws in regard to disclosures, such as lead-based paint. It is beyond the manager’s scope of work to correct the issues. They should, however, be able to hire competent professionals to do the work, if needed. ADA deals with accessibility. Environmental issues can be found in both new and old properties.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
To compute the return on investment on a purchased property, a property manager advising an investor would need all of these figures EXCEPT
A)
cap rate.
B)
expenses.
C)
potential gross income.
D)
debt service.
To compute the return on investment on a purchased property, a property manager advising an investor would need all of these figures EXCEPT
A)
cap rate.
Correct Answer
B)
expenses.
Incorrect Answer
C)
potential gross income.
Incorrect Answer
D)
debt service.
Incorrect Answer
Explanation
The cap rate would not be useful for the property manager to determine the return on investment of a property already in the investor’s portfolio. Note: If an investor is considering the purchase of real estate, the property manager would use the cap rate to calculate the investment potential of income-generating property.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
Unless the lease agreement stipulates otherwise, the upkeep of the electrical, heating, and plumbing systems would be the responsibility of
A)
the tenant/lessee.
B)
the owner/lessee.
C)
the tenant/lessor.
D)
the owner/lessor.
Unless the lease agreement stipulates otherwise, the upkeep of the electrical, heating, and plumbing systems would be the responsibility of
A)
the tenant/lessee.
Incorrect Answer
B)
the owner/lessee.
Incorrect Answer
C)
the tenant/lessor.
Incorrect Answer
D)
the owner/lessor.
Correct Answer
Explanation
The owner is the lessor and responsible for the upkeep of the property unless the lease states differently. The tenant is the lessee.
Reference: Leasing and Property Management > Lease Agreements
A property manager signed a two-year property management contract with the owner establishing a fiduciary relationship. Has an agency relationship been created, and if so, what type of agent is the property manager?
A)
Yes, authority has been given for the property manager to act on the owner’s behalf, and the property manager is a special agent.
B)
Yes, authority has been given for the property manager to act on the owner’s behalf, and the property manager is a general agent.
C)
No, because to create agency, the term of the contract must be at least three years.
D)
No, because property management contracts do not create agency relationships.
A property manager signed a two-year property management contract with the owner establishing a fiduciary relationship. Has an agency relationship been created, and if so, what type of agent is the property manager?
A)
Yes, authority has been given for the property manager to act on the owner’s behalf, and the property manager is a special agent.
Incorrect Answer
B)
Yes, authority has been given for the property manager to act on the owner’s behalf, and the property manager is a general agent.
Correct Answer
C)
No, because to create agency, the term of the contract must be at least three years.
Incorrect Answer
D)
No, because property management contracts do not create agency relationships.
Incorrect Answer
Explanation
Typically, a property management contract creates a general agency relationship with the management company and gives limited power to bind the owner financially and a broad range of powers on behalf of the owner. The property management agreement can be for any length of time determined by the parties.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A school leased a small, commercial shopping strip. When classes started, the other tenants started complaining to the landlord that the students of the school were taking up most of the parking spaces, and their customers had no place to park. The lease required that the students park in spaces away from the other businesses. The school asked the students to park in the assigned spaces, but most continued to park where it was convenient. The landlord evicted the school. Is this action legal?
A)
Yes, the landlord can evict the school, and it is called constructive eviction.
B)
No, the landlord cannot evict the school because parking is available to the public.
C)
Yes, the landlord can evict the school for breach of the lease terms.
D)
No, because the school asked the students to park in the assigned spaces, they cannot be evicted.
A school leased a small, commercial shopping strip. When classes started, the other tenants started complaining to the landlord that the students of the school were taking up most of the parking spaces, and their customers had no place to park. The lease required that the students park in spaces away from the other businesses. The school asked the students to park in the assigned spaces, but most continued to park where it was convenient. The landlord evicted the school. Is this action legal?
A)
Yes, the landlord can evict the school, and it is called constructive eviction.
Incorrect Answer
B)
No, the landlord cannot evict the school because parking is available to the public.
Incorrect Answer
C)
Yes, the landlord can evict the school for breach of the lease terms.
Correct Answer
D)
No, because the school asked the students to park in the assigned spaces, they cannot be evicted.
Incorrect Answer
Explanation
If a tenant fails to fulfill any of the terms of the lease, they are in breach and may be evicted. A constructive eviction would take place if the landlord was at fault and the tenant could not use the property for the purposes defined in the lease.
Reference: Leasing and Property Management > Lease Agreements
An owner sold his 20-unit apartment building. Which of these statements would be TRUE regarding the sale?
A)
The tenants will get a month of free rent.
B)
The new owner can immediately raise the rent.
C)
The existing lease agreements must be honored by the new owner.
D)
The seller would keep all of the security deposits.
An owner sold his 20-unit apartment building. Which of these statements would be TRUE regarding the sale?
A)
The tenants will get a month of free rent.
Incorrect Answer
B)
The new owner can immediately raise the rent.
Incorrect Answer
C)
The existing lease agreements must be honored by the new owner.
Correct Answer
D)
The seller would keep all of the security deposits.
Incorrect Answer
Explanation
The security deposits would transfer to the new owner because the funds belong to the tenants. The terms of the leases would have to be followed, and there is no free rent when ownership changes.
Reference: Leasing and Property Management > Lease Agreements
A lease must give the tenant
A)
30 days to make the first rent payment.
B)
the location of the owner’s business account.
C)
exclusive possession of the property.
D)
the personal address of the owner.
A lease must give the tenant
A)
30 days to make the first rent payment.
Incorrect Answer
B)
the location of the owner’s business account.
Incorrect Answer
C)
exclusive possession of the property.
Correct Answer
D)
the personal address of the owner.
Incorrect Answer
Explanation
A lease gives the tenant possession of the property. Other items may be included in the lease but are not a requirement.
Reference: Leasing and Property Management > Lease Agreements
A tenant who remains in possession of the property after the lease has expired is called
A)
at will.
B)
a trespasser.
C)
a holdover.
D)
a holdout.
A tenant who remains in possession of the property after the lease has expired is called
A)
at will.
Incorrect Answer
B)
a trespasser.
Incorrect Answer
C)
a holdover.
Correct Answer
D)
a holdout.
Incorrect Answer
Explanation
When a tenant remains in possession after the expiration of the lease, the tenant is called a holdover or at sufferance. The tenant is not a trespasser because she has holdover rights of possession, which require eviction procedures. An at-will tenant is legally in possession and has not remained after expiration of the lease.
Reference: Leasing and Property Management > Lease Agreements
A property manager who manages a commercial property would be MOST concerned about
A)
tenants making noise and disturbing other tenants.
B)
filling vacant spots as quickly as possible.
C)
environmental damage caused by the tenant’s business.
D)
if the tenant’s business will be profitable enough to continue making rent payments.
A property manager who manages a commercial property would be MOST concerned about
A)
tenants making noise and disturbing other tenants.
Incorrect Answer
B)
filling vacant spots as quickly as possible.
Incorrect Answer
C)
environmental damage caused by the tenant’s business.
Correct Answer
D)
if the tenant’s business will be profitable enough to continue making rent payments.
Incorrect Answer
Explanation
Environmental damages can have huge costs to mitigate. A landlord would be responsible for the cleanup if the tenants lease did not specify the issues. Property managers are always concerned about noisy tenants, tenants making rent payments, and filling vacancies. Environmental damages due to the cost are the paramount concern.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant’s gross receipts exceeding $5,000. This type of lease is called
A)
a net lease.
B)
a percentage lease.
C)
an index lease.
D)
a fixed lease.
A tenant enters into a commercial lease that requires a monthly rent of a minimum fixed amount, plus an additional amount determined by the tenant’s gross receipts exceeding $5,000. This type of lease is called
A)
a net lease.
Incorrect Answer
B)
a percentage lease.
Correct Answer
C)
an index lease.
Incorrect Answer
D)
a fixed lease.
Incorrect Answer
Explanation
When a business tenant pays rent that varies with the tenant’s gross business receipts, the arrangement is called a percentage lease. In such a situation, the landlord shares in the tenant’s business risk because of the possibility of receiving no more than the minimum fixed amount. In a fixed lease, the tenant pays a fixed monthly amount, and the landlord pays the expenses of ownership. Index leases increase or decrease the rent amount paid based on a pre-agreed-to index—typically, the lease is tied to the Consumer Price Index. With a net lease, the tenant pays a base rent plus certain costs in the operation of the property, such as utilities, property taxes, and assessments. The landlord may pay some property expenses
Reference: Leasing and Property Management > Lease Agreements
A company agreed to lease a space for 10 years. Five years later, the company’s owners sold the company to another organization. In this instance, what will occur with the lease?
A)
The current tenant will not be allowed to assign the leasehold interest to another company under any circumstances.
B)
The current tenant may not assign the leasehold interest but may sublease the space to the other organization.
C)
If allowed, the current tenant may assign the leasehold interest to the new organization.
D)
The new tenant will be forced to negotiate a new lease with the landlord.
A company agreed to lease a space for 10 years. Five years later, the company’s owners sold the company to another organization. In this instance, what will occur with the lease?
A)
The current tenant will not be allowed to assign the leasehold interest to another company under any circumstances.
Incorrect Answer
B)
The current tenant may not assign the leasehold interest but may sublease the space to the other organization.
Incorrect Answer
C)
If allowed, the current tenant may assign the leasehold interest to the new organization.
Correct Answer
D)
The new tenant will be forced to negotiate a new lease with the landlord.
Incorrect Answer
Explanation
Unless the original tenant’s lease contract forbids an assignment, the tenant may assign the lease to the new organization. An assignment is the total transfer of the lessee’s rights to the other party; however, the original tenant is still liable for the rent. The landlord may agree to do a novation or a new lease with the new tenant, but this is not a requirement. Subleasing and assignment are the same thing.
Reference: Leasing and Property Management > Lease Agreements
A couple’s apartment lease has expired, but their landlord has accepted rent and indicated to them that they may remain on the premises until a sale of the building is closed. They will be charged their normal monthly rental during this period, but there will be no automatic renewal of the lease. The right held by the couple is called
A)
a periodic tenancy.
B)
a tenancy at will.
C)
a holdover tenancy.
D)
an estate at sufferance.
A couple’s apartment lease has expired, but their landlord has accepted rent and indicated to them that they may remain on the premises until a sale of the building is closed. They will be charged their normal monthly rental during this period, but there will be no automatic renewal of the lease. The right held by the couple is called
A)
a periodic tenancy.
Incorrect Answer
B)
a tenancy at will.
Correct Answer
C)
a holdover tenancy.
Incorrect Answer
D)
an estate at sufferance.
Incorrect Answer
Explanation
A tenancy (estate) at will gives the tenant the right to possess property with the landlord’s consent for an unspecified or indefinite term and does not automatically renew. A periodic tenancy runs for an indefinite period, has no expiration date, and automatically renews. An estate at sufferance arises after a tenant’s rights to possession expire, and the tenant continues to possess the property without the landlord’s consent. A holdover tenancy is created when a tenant with an estate for years holds on to a property after the lease has expired and no new lease agreement has been made.
Reference: Leasing and Property Management > Lease Agreements
All of these are likely to terminate a lease EXCEPT
A)
condemnation of the property.
B)
nonpayment of rent.
C)
death of the lessor.
D)
constructive or actual eviction.
All of these are likely to terminate a lease EXCEPT
A)
condemnation of the property.
Incorrect Answer
B)
nonpayment of rent.
Incorrect Answer
C)
death of the lessor.
Correct Answer
D)
constructive or actual eviction.
Incorrect Answer
Explanation
The death of either party, landlord or tenant, does not terminate a lease. Nonpayment of rent, eviction, and condemnation of the property would all create situations where the lease would be terminated.
Reference: Leasing and Property Management > Lease Agreements
When the tenant breaches the lease, it gives the landlord the right to proceed with
A)
constructive eviction by filing a suit for possession.
B)
constructive eviction by filing a suit for specific performance.
C)
actual eviction by filing a suit for specific performance.
D)
actual eviction by filing a suit for possession.
When the tenant breaches the lease, it gives the landlord the right to proceed with
A)
constructive eviction by filing a suit for possession.
Incorrect Answer
B)
constructive eviction by filing a suit for specific performance.
Incorrect Answer
C)
actual eviction by filing a suit for specific performance.
Incorrect Answer
D)
actual eviction by filing a suit for possession.
Correct Answer
Explanation
If the tenant breaches the lease, the landlord would start eviction procedures known as actual or judicial eviction. Specific performance would be part of a purchase contract as a remedy for default of the seller or buyer. Constructive eviction occurs when the landlord is in default and allows the tenant to break the lease and move.
Reference: Leasing and Property Management > Lease Agreements
An operating budget allowed $2,500 for the property manager to buy new carpet. The property manager can negotiate a contract with a carpet company to purchase carpet for the property, as well as the manager’s personal residence, if
A)
directly billed to the owner.
B)
bids have been secured from at least three companies
C)
given that authorization in the management contract.
D)
purchased without the owner’s knowledge.
An operating budget allowed $2,500 for the property manager to buy new carpet. The property manager can negotiate a contract with a carpet company to purchase carpet for the property, as well as the manager’s personal residence, if
A)
directly billed to the owner.
Incorrect Answer
B)
bids have been secured from at least three companies
Incorrect Answer
C)
given that authorization in the management contract.
Correct Answer
D)
purchased without the owner’s knowledge.
Incorrect Answer
Explanation
The property manager can act only within the scope and authority of the management contract negotiated with the owner. A property manager may never purchase anything with the owner’s money without the owner’s knowledge.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A leasing agent’s primary responsibility is to
A)
hire the owner’s employees.
B)
spend the profits.
C)
find a qualified tenant.
D)
make property repairs.
A leasing agent’s primary responsibility is to
A)
hire the owner’s employees.
Incorrect Answer
B)
spend the profits.
Incorrect Answer
C)
find a qualified tenant.
Correct Answer
D)
make property repairs.
Incorrect Answer
Explanation
A property manager’s first duty is to find qualified tenants, collect rents, and be sure the principal makes money. Property repairs may or may not be done by the property manager. A property manager would not be responsible for hiring the owner’s employees or spending the owner’s profits.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
The principal difference between an estate for years and an estate from period to period is that
A)
an estate for years cannot be terminated.
B)
an estate from period to period has no expiration date.
C)
an estate for years is a life estate.
D)
an estate from period to period must be in writing.
The principal difference between an estate for years and an estate from period to period is that
A)
an estate for years cannot be terminated.
Incorrect Answer
B)
an estate from period to period has no expiration date.
Correct Answer
C)
an estate for years is a life estate.
Incorrect Answer
D)
an estate from period to period must be in writing.
Incorrect Answer
Explanation
An estate from period to period, or periodic tenancy, does not have a specific expiration date, because it automatically renews until notice is given by the tenant or the landlord. An estate (tenancy) for years has specific beginning and ending dates. Neither estate is a life estate. Each can be terminated. Both an estate for years and an estate from period to period must be in writing to be enforceable.
Reference: Leasing and Property Management > Lease Agreements
On a profit and loss statement, all of these are entered EXCEPT
A)
mortgage loan principal.
B)
receipts.
C)
operating expenses.
D)
property manager’s compensation.
On a profit and loss statement, all of these are entered EXCEPT
A)
mortgage loan principal.
Incorrect Answer
B)
receipts.
Incorrect Answer
C)
operating expenses.
Incorrect Answer
D)
property manager’s compensation.
Correct Answer
Explanation
A profit and loss statement reflects the total income and debt of the property to determine if it is making a profit or having a loss. Only total final numbers are used in this process. Property manager’s compensation is part of the property’s operating expense and is not a separate entry in the statement.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A broker has become a manager of a property that is difficult to lease. Which of these leases would the broker MOST likely use to secure a contract with a prospective tenant?
A)
Gross lease
B)
Graduated lease
C)
Net lease
D)
Percentage lease
A broker has become a manager of a property that is difficult to lease. Which of these leases would the broker MOST likely use to secure a contract with a prospective tenant?
A)
Gross lease
Incorrect Answer
B)
Graduated lease
Correct Answer
C)
Net lease
Incorrect Answer
D)
Percentage lease
Incorrect Answer
Explanation
A graduated lease is used to attract tenants to properties that are difficult to lease because it allows them in for a lower then market rate that increases as the business grows. A gross lease typically has higher rent because the landlord must charge enough to cover the property cost. A net lease also includes property expenses, and the percentage lease includes a portion of the sales.
Reference: Leasing and Property Management > Lease Agreements
All of these are examples of a property manager’s duties EXCEPT
A)
screen and qualify tenants.
B)
accept a rebate from a service provider.
C)
negotiate a lease and present it to the owner for approval.
D)
place security deposits in the proper escrow account.
All of these are examples of a property manager’s duties EXCEPT
A)
screen and qualify tenants.
Incorrect Answer
B)
accept a rebate from a service provider.
Correct Answer
C)
negotiate a lease and present it to the owner for approval.
Incorrect Answer
D)
place security deposits in the proper escrow account.
Incorrect Answer
Explanation
Property management duties do not include accepting rebates from a service provider. They do include screening tenants, handling rents and deposits, and negotiating leases.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A property manager is developing an operating budget. The manager would consider all of these as operating expenses EXCEPT
A)
maintenance expenses.
B)
utility bills.
C)
management fees.
D)
debt service.
A property manager is developing an operating budget. The manager would consider all of these as operating expenses EXCEPT
A)
maintenance expenses.
Incorrect Answer
B)
utility bills.
Incorrect Answer
C)
management fees.
Incorrect Answer
D)
debt service.
Correct Answer
Explanation
The debt service, which is payment of the principal and interest on the property loan, is not an operating expense. Operating expenses are fees incurred in the running of the property and include taxes and insurance, utilities, maintenance, and management or other fees.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A blind person with a Seeing Eye dog wants to rent an apartment from the landlord who has a no-pets policy. The landlord may
A)
charge the blind person a service animal security deposit.
B)
charge more rent and deposit because of the Seeing Eye dog.
C)
charge the blind person for any damages after the tenant vacates the property.
D)
refuse to rent to the blind person due to the no-pets policy.
A blind person with a Seeing Eye dog wants to rent an apartment from the landlord who has a no-pets policy. The landlord may
A)
charge the blind person a service animal security deposit.
Incorrect Answer
B)
charge more rent and deposit because of the Seeing Eye dog.
Incorrect Answer
C)
charge the blind person for any damages after the tenant vacates the property.
Correct Answer
D)
refuse to rent to the blind person due to the no-pets policy.
Incorrect Answer
Explanation
The landlord cannot refuse to rent to the blind tenant and may not charge a pet deposit fee. Service animals are not pets and under the law are treated as an extension of the person they assist. The landlord may charge for damages when the tenant leaves, just as the landlord would any tenant. The landlord may not charge more rent or additional deposit fees.
Reference: Leasing and Property Management > Americans with Disabilities (ADA) and Fair Housing Compliance in Property Management
All of these are typical duties and responsibilities of a property manager EXCEPT
A)
supervising the remodeling of the property.
B)
investing profits generated by the property for the owner.
C)
showing the property to prospective tenants.
D)
collecting the rent from current tenants.
All of these are typical duties and responsibilities of a property manager EXCEPT
A)
supervising the remodeling of the property.
Incorrect Answer
B)
investing profits generated by the property for the owner.
Correct Answer
C)
showing the property to prospective tenants.
Incorrect Answer
D)
collecting the rent from current tenants.
Incorrect Answer
Explanation
The property manager does not invest the owner’s profit. Supervising maintenance and remodels, showing and selecting tenants, and collecting rent are all property manager duties.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
Which of these is the MOST important record kept by the property manager?
A)
Accounting report of income and expenses
B)
Utilities paid by the property manager
C)
Property manager’s personal expense account
D)
Tenants’ complaints
Which of these is the MOST important record kept by the property manager?
A)
Accounting report of income and expenses
Correct Answer
B)
Utilities paid by the property manager
Incorrect Answer
C)
Property manager’s personal expense account
Incorrect Answer
D)
Tenants’ complaints
Incorrect Answer
Explanation
The income and expenses are used to develop all other reports the manager must provide to the owner, including the profit and loss statement, which would include the utility payment. Tenant’s complaints would be a secondary report given the owner. A personal account would not be shared with the owner.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
One of the property manager’s responsibilities is to keep the building’s equipment in working order. This action would fall under
A)
corrective maintenance.
B)
preventive maintenance.
C)
new construction maintenance.
D)
routine maintenance.
One of the property manager’s responsibilities is to keep the building’s equipment in working order. This action would fall under
A)
corrective maintenance.
Incorrect Answer
B)
preventive maintenance.
Correct Answer
C)
new construction maintenance.
Incorrect Answer
D)
routine maintenance.
Incorrect Answer
Explanation
Making sure the building’s equipment is in working order and does not fail is preventive maintenance. Corrective maintenance is used after the equipment fails, to determine whether to repair or replace. Routine maintenance is associated with the general overall upkeep of the property, such as daily, weekly, or monthly cleanup.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
When a lease is assigned, the assignee is
A)
the original tenant.
B)
the owner.
C)
the agent.
D)
the new tenant.
When a lease is assigned, the assignee is
A)
the original tenant.
Incorrect Answer
B)
the owner.
Incorrect Answer
C)
the agent.
Incorrect Answer
D)
the new tenant.
Correct Answer
Explanation
An assignee is someone who takes over a lease from a previous or original tenant. An owner or an agent would not be an assignee unless actually moving into the rental property.
Reference: Leasing and Property Management > Lease Agreements
The terms of a residential lease require the landlord to maintain the water heater. A tenant is unable to get hot water to her apartment because of a faulty water heater that the landlord has failed to repair after repeated notifications. In this situation, the tenant could do all of these EXCEPT
A)
sue the landlord for damages.
B)
sue the landlord for breach of quiet enjoyment.
C)
abandon the premises claiming constructive eviction.
D)
terminate the lease agreement.
The terms of a residential lease require the landlord to maintain the water heater. A tenant is unable to get hot water to her apartment because of a faulty water heater that the landlord has failed to repair after repeated notifications. In this situation, the tenant could do all of these EXCEPT
A)
sue the landlord for damages.
Incorrect Answer
B)
sue the landlord for breach of quiet enjoyment.
Correct Answer
C)
abandon the premises claiming constructive eviction.
Incorrect Answer
D)
terminate the lease agreement.
Incorrect Answer
Explanation
The landlord’s behavior provides a basis for any of the actions except a suit for breach of quiet enjoyment. Quiet enjoyment is tied to the tenant not being disturbed by others claiming possession. The water heater falls under the issue of habitability.
Reference: Leasing and Property Management > Lease Agreements
Which of these types of insurance would protect the owner from liability when an employee has been injured?
A)
Automobile insurance
B)
Loss of income insurance
C)
Workers’ compensation
D)
General liability insurance
Which of these types of insurance would protect the owner from liability when an employee has been injured?
A)
Automobile insurance
Incorrect Answer
B)
Loss of income insurance
Incorrect Answer
C)
Workers’ compensation
Correct Answer
D)
General liability insurance
Incorrect Answer
Explanation
Workers’ compensation would protect the owner from liability should an employee be injured. The other types of insurance may or may not cover an injured employee, depending on the situation. Workers’ compensation is insurance specifically for that purpose and covers employees working in all situations.
Reference: Leasing and Property Management > Basic Concepts/Duties of Property Management
A property owner of a 10-building apartment complex has told the property management company that he wants the building by the playground to be rented only to families. He also wants the buildings by the parking lots to be rented to singles or couples without children and that anyone over 50 should only be offered first floor units. May the property manager follow the orders of the owner?
A)
Yes, because the complex will rent to all types of tenants, the request to separate them is legal.
B)
No, because only allowing those over 50 in first floor units is a violation of Equal Credit Opportunity Act (ECOA).
C)
No, the request is in violation of fair housing laws.
D)
Yes, this system would help to alleviate conflicts and allow all tenants a better living experience.
A property owner of a 10-building apartment complex has told the property management company that he wants the building by the playground to be rented only to families. He also wants the buildings by the parking lots to be rented to singles or couples without children and that anyone over 50 should only be offered first floor units. May the property manager follow the orders of the owner?
A)
Yes, because the complex will rent to all types of tenants, the request to separate them is legal.
Incorrect Answer
B)
No, because only allowing those over 50 in first floor units is a violation of Equal Credit Opportunity Act (ECOA).
Incorrect Answer
C)
No, the request is in violation of fair housing laws.
Correct Answer
D)
Yes, this system would help to alleviate conflicts and allow all tenants a better living experience.
Incorrect Answer
Explanation
Under fair housing law, the owner’s request would be considered steering. Just as a real estate professional may not decide where someone should live and show them property only there, an owner may not segregate tenants within the complex. The ECOA regulates lending not housing.
Reference: Leasing and Property Management > Americans with Disabilities (ADA) and Fair Housing Compliance in Property Management
