Unit 19 Flashcards
A property manager hires a full-time maintenance person. While repairing a faucet in one of the apartments, the maintenance person steals some jewelry and the tenant sues the owner. The property manager could protect the owner against this type of loss by purchasing
a surety bond.
A guest slips on an icy apartment building stair and is hospitalized. A claim against the building owner for medical expenses may be paid under which of the following policies held by the owner?
Liability
A property manager repairs a leaking sink. This is classified as which type of maintenance?
Corrective
Successful risk management by a property manager benefits from
an insurance audit.
All of the following would cause a high vacancy rate EXCEPT
desirable amenities.
A property manager’s primary obligation is to
the owner.
Which of these is an example of corrective maintenance?
Repairing a leaking water heater
What is the purpose of an operating budget for a property manager?
It is a guide for the property’s financial performance in the future
A company was moving from one part of the city to another. During the move, a truck carrying computer equipment worth more than $250,000 was trapped in a flooded underpass, and the equipment was destroyed. Fortunately, the company was insured under several policies. The policy that would most likely cover the computer equipment during the move from one facility to another is
a contents and personal property policy.
A property manager is expected to
maintain the value of and generate income from the property.
A statement sent to an owner that reflects the entire debt service as an expense is called
a cash flow report.
All of the following should be a consideration in selecting tenants for the property EXCEPT
ethnic background of the tenants and their employees.
How can tenants insure their personal belongings in apartments they rent?
Obtain HO-4 or renter’s insurance
A property manager who enters into a management agreement with an owner is usually
a general agent.
A successful property manager has demonstrated the ability to
increase property income over previous levels.
An example of complying with the Americans with Disabilities Act (ADA) could be
installing auditory signals in elevators.
A real estate broker acting as an owner’s property manager
must not profit from private contracts at the expense of the owner.
In determining rental amounts, a property manager considers the economic principle of
supply and demand.
Of these, a high vacancy rate MOST likely indicates
an undesirable property.
All of these are principal responsibilities of the property manager EXCEPT
forcibly removing tenants for nonpayment of rent.
According to the Fair Housing Act, what is steering?
Channeling of protected class members to certain buildings or neighborhoods
Asbestos, sick building syndrome (SBS), and lead-based paint are all examples of
environmental concerns that a property manager may have to address.
An apartment complex is severely damaged by a tornado, making it uninhabitable. What type of insurance covers the landlord against the resulting loss of rent?
Consequential loss, use, and occupancy
A property manager renting residential property may
require handicapped tenants to restore the premises at the end of a lease.
Avoid, control, transfer, or retain are the four alternative techniques of
risk management.
A rental rate for residential space is usually states as the monthly rate
per unit.
The manager of a commercial building has many responsibilities in connection with the operation and maintenance of the structure. The manager would normally be considered the agent of
the building’s owner.
The three principal responsibilities of the property manager do NOT include
generating maximum income for the property manager.
The responsibilities of the property manager, in both building amenities and employment issues, have been impacted considerably by
the Americans with Disabilities Act (ADA).
Residential property managers of buildings constructed before what year must provide lead-based paint disclosure forms to all new tenants?
1978
The property manager should ask to be
included as an additional insured on the property liability policy.
All of the following are important functions of a property manager EXCEPT
preparing the owner’s income tax return.
The owner’s objectives, the regional and neighborhood market, and the specific property are all factored into the property manager’s
management plan.
What is the annual rent per square foot for a 30 ft × 40 ft property that rents for $2,950 per month?
$29.50
Adaptations of property specifications to suit tenant requirements are
tenant improvements.
