Real Property Management Part 1

Question 1

T/F

A real estate license is necessary to be a property manager in NY?

Answer 1

True

Question 2

What is “Risk Management”?

Answer 2

identifying, managing, and minimizing the potential risks on the property

Question 3

T/F

In NY, anyone who works for a property management company and interacts with tenants must have a real estate license.

Answer 3

False

Question 4

A Management Agreement generally will contain some or all of the following:

Answer 4

• Description of property & exact address
• Time period covered by the agreement
• Names, duries, and responsibilities of each party
• Property manager’s degree of authority to hire, supervise employees, contract with maintenance and repair resources, approve tenants, etc.
• Management Fee
• Use and disbursement of property management funds and/or accounts
• Insurance and risk management
• Reports

Question 5

“Class Category” is based on a combination of building characteristics such as (8)…

Answer 5

• Age
• Architectural Design
• Location
• Building Amenities and services
• Lease Rates
• Occupancy
• Tenant Profiles
• Building Management

Question 6

How many different class categories of office buildings are there?

Answer 6

4 - Class A, B, C, D.

Question 7

What are “Class A” buildings like?

Answer 7

-Most desirable, newest buildings in a particular market with best design superior construction, amenities, and features that will attract the highest quality tenants.

Question 8

What are “Class B” buildings like?

Answer 8

Properties that have a good location, appearance, amenities, and are still desirable but not quite the top of the market - primarily dues to time and age

Question 9

What are “Class C” buildings like?

Answer 9

Properties may be older or new buildings constructed to be highly. Tenants looking at class c properties are typically price driven.

Question 10

What are “Class D” buildings like?

Answer 10

Older, functionally obsolete buildings needing extensive renovation. Tenants that want rehab projects or to tear down.

Question 11

Who would be responsible for hiring a new property manager of an established condo community?

Answer 11

In a condo community, the property manager is hired by and represents the board of the homeowners’ association.

Question 12

3 common features in Independent living facilities…

Answer 12

Individual units
Common Areas
Food Services

Question 13

3 common features in semi-independent or assisted living facilities…

Answer 13

Full Meal Program
Aide Service
Housekeeping

Question 14

What are the three expenses that fall into a “net lease”?

Answer 14

Taxes
Insurance
Common Area Maintenance

Question 15

Which of the three expenses does a triple net lease include?

Answer 15

Taxes
Insurance
Common area maintenance

Question 16

What is an anchor tenant (or magnet stores)?

Answer 16

A major department or chain store strategically located within a shopping center to give maximum exposure to satellite stores

Example - Macys

Question 17

An urban pedestrian mall is best described as….

Answer 17

a foot traffic only open mall

Question 17

An urban pedestrian mall is best described as….

Answer 17

a foot traffic only open mall

Question 18

A homeowner association property manger’s duties would probably include…

Answer 18

collecting member assessments

Question 19

What is a “management proposal” and what does it include?

Answer 19

A plan created by the property manager for overseeing the property that includes an analysis of the market and a variety of financial reports, including an operating budget.

Should also include a one year operating budget and a five year plan

Question 20

What is the stabilized budget?

Answer 20

The income and expenses averaged over a five year period

Question 21

What is the a “rent roll”

Answer 21

A spreadsheet or listing of key information about an undivided property, such as the address and the number of units, and the following info on each tenant:

• name
• unit numbers
• lease start and end dates
• rent each tenant pays on a unit.