Property Management

Question 1

whether an individual or a company, acts as the general agent of the investment property owner in administering the property to achieve the objectives of the owner, generate income, and preserve and/or increase the property’s value.

Answer 1

Property manager

Question 2

usually a state-licensed real estate professional working as an independent contractor or property manager on a commission basis.

Answer 2

Leasing agent

Question 3

will summarize income and expenses.

Answer 3

cashflow report

Question 4

determined by computing gross receipts, then subtracting operating expenses and interest paid on a mortgage loan.

Answer 4

Net Profit

Question 5

provides general financial information

Answer 5

profit and loss statement

Question 6

compares actual results with the original budget.

Answer 6

Budget comparison sheet

Question 7

Rents typically are determined for residential property

Answer 7

monthly rate per unit

Question 8

Rents typically are determined for commercial property

Answer 8

monthly rate per square foot

Question 9

applies to employers with 15 or more employees and provides for employment of qualified job applicants, regardless of disability, with reasonable accommodations

Answer 9

Title I ADA

Question 10

prohibits discrimination in commercial properties and public accommodations and requires that access to facilities and services be provided when reasonably achievable in existing buildings, with a higher standard for new construction or remodeling

Answer 10

Title III ADA

Question 11

prohibits lenders from denying a loan based on a person’s race, color, religion, national origin, sex, marital status, age, or receipt of public assistance; additional protections may be added by state or local laws

Answer 11

Equal Credit Opportunity Act

Question 12

prohibits discrimination in the sale, rental, or financing of housing based on race, color, religion, national origin, sex, familial status, or disability; additional protected individuals may be added by state or local laws

Answer 12

Fair housing act

Question 13

Risk management acronym

Answer 13

avoid it, control it, transfer it, or retain it (ACTOR)

Question 14

Successful risk management by a property manager benefits from

Answer 14

an insurance audit

Question 15

What agreement authorizes the property manager to act for the owner?

Answer 15

Property Management agreement

Question 16

Managers who monitor a portfolio of properties similar to a securities portfolio by analyzing the performance of the properties and making recommendations to the owners of the properties are called

Answer 16

Asset managers

Question 17

A property manager is expected to

Answer 17

maintain the value of and generate income from the property.

Question 18

A real estate broker acting as an owner’s property manager

Answer 18

must not profit from private contracts at the expense of the owner.

Question 19

The owner’s objectives, the regional and neighborhood market, and the specific property are all factored into the property manager’s

Answer 19

management plan

Question 20

Title III of the Americans with Disabilities Act (ADA) impacts which type of property?

Answer 20

Commercial and public accommodations

Question 21

How can tenants insure their personal belongings in apartments they rent?

Answer 21

Obtain HO-4 or renter’s insurance

Question 22

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

Answer 22

general agent

Question 23

A statement sent to an owner that does not reflect the entire debt service as an expense is called

Answer 23

profit and loss statement

Question 24

Residential property managers of buildings constructed before what year must provide lead-based paint disclosure forms to all new tenants?

Answer 24

1978

Question 25

According to the Fair Housing Act, what is steering?

Answer 25

Channeling of protected class members to certain buildings or neighborhoods

Question 26

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

Answer 26

risk management

Question 27

Personal, as well as business-related, services may be provided to building tenants under the umbrella of

Answer 27

concierges services

Question 28

One way that property managers meet the goals of ECOA is by

Answer 28

making sure to use the same lease application for every applicant.

Question 29

Leasing agents are usually

Answer 29

independent contractors working on a commission basis.

Question 30

Homes built in factories meeting Department of Housing and Urban Development (HUD) specifications are called

Answer 30

manufactured homes.

Question 31

What is the purpose of an operating budget for a property manager?

Answer 31

It is a guide for the property’s financial performance in the future.