UNIT 12 Flashcards
A management agreement is to a property manager like a
a. listing agreement is to a broker.
b. lease is to a tenant.
c. deed is to a buyer.
d. novation is to an assignee.
a. listing agreement is to a broker.
A real estate broker acting as an owner’s property manager may
a. profit from private contracts at the expense of the owner.
b. manage the client’s property in a manner most advantageous to the broker.
c. be held personally accountable for complete and accurate trust account records.
d. hold a provisional broker license so long as he is the principal broker of the management firm.
c. be held personally accountable for complete and accurate trust account records.
Adaptations of property specifications after lease signing to suit a tenant’s personal taste are generally
a. tax-exempt improvements.
b. tenant improvements.
c. prohibited by most non-residential leases.
d. a good opportunity for the owner to increase the desirability of the property to future renters.
b. tenant improvements.
A high vacancy rate may be caused by any of the following EXCEPT
a. inept management.
b. poor location.
c. excessive rent.
d. desirable amenities.
d. desirable amenities.
In determining rental amounts, a property manager considers the economic principle of
a. marginal contribution.
b. supply and demand.
c. highest and best use.
d. equilibrium.
b. supply and demand.
All of the following are important functions of a property manager EXCEPT
a. supervising the maintenance of the property.
b. protecting the physical integrity of the property.
c. meeting the functional requirements of the tenants.
d. preparing the owner’s income tax returns.
d. preparing the owner’s income tax returns.
The property manager’s chief concern should be that the property
a. is seldom vacant because it is consistently rented at the lowest rents that produce a profit.
b. is managed to achieve the highest rate of return possible for the owner’s investment.
c. manager’s time is maximized in management of the property.
d. exhibits the proper amount of the owner’s pride of ownership.
b. is managed to achieve the highest rate of return possible for the owner’s investment.
All of the following should be considerations in selecting a commercial tenant for the property EXCEPT:
a. size of the available space relative to the tenant’s requirements.
b. the tenant’s ability to make the rental payments.
c. compatibility of the tenant’s business with those of other tenants.
d. the ethnic background of the tenant and his or her employees.
d. the ethnic background of the tenant and his or her employees.
A property management firm can receive its income in any of the following ways EXCEPT
a. as a fixed fee.
b. as a percentage of the net rentals collected.
c. as a fixed fee with a percentage bonus on new rentals.
d. as a percentage of purchases made from suppliers.
d. as a percentage of purchases made from suppliers.
Functions of the property manager include all of the following EXCEPT
a. producing the best possible net operating income for the owner.
b. preservation and maintenance of the property.
c. carrying out a fiduciary relationship to the owner.
d. applying the gross rent multiplier.
d. applying the gross rent multiplier.
A property manager’s primary obligation is to
a. the tenants.
b. the owner.
c. the banker.
d. government authorities.
b. the owner.
