PRINCIPLES AND PRACTICES CHP 21 Flashcards
A property management agreement creates a(n)
A. agency relationship.
B. implied covenant.
C. leasehold estate.
D. power of attorney.
A. agency relationship.
Under a property management agreement, who is the principal?
A. property manager
B. property owner
C. tenant
D. tenant and owner
B. property owner
A property manager is most likely to be considered a agent.
A. comprehensive
B. general
C. limited
D. special
B. general
Which is MOST LIKELY a task that is outside of the scope of authority given to a property manager?
A. authorize repair to the property
B. initiate eviction proceedings
C. maintain security deposits in an escrow account
D. prepare the owner’s income tax returns
D. prepare the owner’s income tax returns
While being respectful of a property owner’s specific goals, a property manager will generally try to
A. generate the highest gross income possible while maintaining the property.
B. generate the highest net income possible while maintaining the property.
C. set the highest rent allowable and offer as many amenities as possible.
D. set the lowest rent feasible and offer as many amenities as possible.
B. generate the highest net income possible while maintaining the property.
A property manager bases the operating budget on
A. anticipated expenses and revenue.
B. current rental rates.
C. the state’s landlord-tenant law.
D. supply and demand in the rental market
A. anticipated expenses and revenue.
A property manager pays for biannual inspections of the HVAC system in the building they manage. This is an example of what type of maintenance?
A. corrective
B. cosmetic
C. preventive
D. remedial
C. preventive
A property manager working on the operating budget for next year evaluates the property and makes a note that it might be necessary to replace the furnace. This should be included in the budget as
A. cosmetic maintenance.
B. net operating expenses.
C. reserves for replacement.
D. risk management.
C. reserves for replacement.
Of these, which is MOST LIKEY to help a landlord ensure compliance with a lease?
A. market rents
B. occupancy standards
C. rent control
D. security deposits
D. security deposits
When seeking prospective tenants, a property manager can
A. advertise that units are available today, even if they are not.
B. require credit checks for some applicants but not for others.
C. offer inducements for signing a one-year lease.
D. use a different application form for applicants with children.
C. offer inducements for signing a one-year lease.
A property manager is chatting with a prospective client who asks a lot of questions about the property’s amenities and residents. The property manager should inform the prospective tenant about
A. the appraised value of the property.
B. a neighbor who has four children.
C. plans to turn the gym into a party room.
D. the racial composition of the tenants.
C. plans to turn the gym into a party room.
A 20-unit apartment has not had a vacancy in five years. After analyzing the market, what might the property manager recommend?
A. enhance the apartments
B. raise the rent
C. reduce the rent
D. make no changes
B. raise the rent
Of these, which is MOST LIKELY to have the greatest impact on market rent?
A. amenities offered
B. management objectives
C. property appraisal
D. supply and demand
D. supply and demand
When creating an operating budget, a property manager will include property taxes and insurance in what category?
A. capital expenses
B. fixed expenses
C. net expenses
D. variable expenses
B. fixed expenses
The occupancy standard established for a large apartment complex indicates that two residents per bedroom is reasonable for the space. The property manager could refuse to rent a two-bedroom apartment to
A. Dave, his partner Jess, and their adopted son and daughter.
B. Lisa, her daughter Kendall, and Kendall’s two children.
C. Magda, her mother Alice, her sister Ruth, and Ruth’s twin sons.
D. Shawn, a single mother with three teenage children
C. Magda, her mother Alice, her sister Ruth, and Ruth’s twin sons.
A property manager likely CANNOT initiate an eviction proceeding if the tenant
A. brings a cat into a property that prohibits non- service animals.
B. files a complaint against the property owner with the city.
C. refuses to take out the garbage, resulting in a rat infestation.
D. is two months behind in paying rent.
B. files a complaint against the property owner with the city.
A tenant is behind in their rent yet again, and the landlord has had enough. What is the landlord’s BEST option for dealing with this tenant?
A. change the locks to keep them out of the apartment
B. cut off electricity to the apartment so they will leave
C. file a complaint with the county court
D. give the tenant a notice to quit
D. give the tenant a notice to quit
A tenant complains about everything. The landlord has to listen to their rants at least twice a week. When the tenant involves the city building inspectors, the landlord decides not to wait until the lease is up and begins eviction proceedings. This is an example of
A. actual eviction.
B. constructive eviction.
C. retaliatory eviction.
D. self-help eviction.
C. retaliatory eviction.
The implied covenant of quiet enjoyment in a lease
A. allows landlords to set limits on loud noises in the building.
B. is a promise that tenants will call landlords after business hours only in the event of an emergency.
C. requires tenants to get permission from neighboring tenants to play music after a certain time.
D. restricts the landlord’s right of entry to the property.
D. restricts the landlord’s right of entry to the property.
Landlord Paula has had enough with her tenant Dick. His rent check has bounced twice in the past six months. His neighbors have complained that he parks in their designated spots, and he leaves trash in the common hallway. Paula shuts off his electricity and water and posts an eviction notice on his door. This is an example of
A. actual eviction.
B. constructive eviction.
C. retaliatory eviction.
D. self-help eviction.
D. self-help eviction.
