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Property Management > Unit 9 - 13 > Flashcards

Unit 9 - 13 Flashcards

1
Q

Which of the following is a forbidden activity under antitrust laws?

A. Blockbusting
B. Steering
C. Price-fixing
D. Redlining

A

Correct Answer: C. Price-fixing

Explanation: Antitrust laws prohibit activities such as price-fixing to prevent unfair market manipulation.

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2
Q

Which law was reinforced by the Jones v. Alfred H. Mayer Company Supreme Court decision prohibiting all racial discrimination?

A. Civil Rights Act of 1866
B. Title VIII of the Civil Rights Act of 1968
C. Equal Credit Opportunity Act
D. Fair Credit Reporting Act

A

Correct Answer: A. Civil Rights Act of 1866

Explanation: The Supreme Court reinforced the Civil Rights Act of 1866, prohibiting racial discrimination in property transactions.

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3
Q

Which of the following are protected classes under the Equal Credit Opportunity Act but NOT under the Fair Housing Laws?

A. Race and color
B. Religion and national origin
C. Age and marital status
D. Sex and handicap

A

Correct Answer: C. Age and marital status

Explanation: The Equal Credit Opportunity Act includes age and marital status as protected classes, unlike Fair Housing Laws.

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4
Q

Housing for the elderly is intended for:

A. Those over the age of 55.
B. Those over the age of 62.
C. Handicapped people of any age.
D. Families with no infant children.

A

Correct Answer: B. Those over the age of 62.

Explanation: Elderly housing is typically designated for those over the age of 62.

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4
Q

Civil penalties assessed in fair housing actions are paid to:

A. The aggrieved party.
B. HUD.
C. The United States treasury.
D. The attorneys.

A

Correct Answer: C. The United States treasury.

Explanation: Civil penalties collected in fair housing cases go to the U.S. treasury.

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5
Q

Which of the following is permitted information to consider when making a loan under the Equal Credit Opportunity Act?

A. Birth control practices
B. Widowed or married
C. Single or divorced
D. Proof of income

A

Correct Answer: D. Proof of income

Explanation: Lenders can consider proof of income as part of the loan qualification process.

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6
Q

The purpose of looking at a credit report is to see:

A. How a prospect has treated other lenders.
B. Privileged medical information.
C. Driving records.
D. Comments concerning job performance.

A

Correct Answer: A. How a prospect has treated other lenders.

Explanation: Credit reports show how applicants manage their credit obligations with other lenders.

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7
Q

The Lead-Based Paint Disclosure Act places a burden on owners and managers to:

A. Contain chipping and peeling paint.
B. Remove all lead-based paint.
C. Include blood testing for all children who live in the building.
D. Destroy all buildings built before 1978.

A

Correct Answer: A. Contain chipping and peeling paint.

Explanation: Owners and managers must maintain lead-based paint surfaces to prevent exposure.

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7
Q

The Lead-Based Paint Disclosure Act was passed to protect:

A. Property management companies.
B. Children under the age of six.
C. Elderly tenants.
D. Vacationers.

A

Correct Answer: B. Children under the age of six.

Explanation: The Act aims to protect young children from exposure to lead paint.

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8
Q

The apartment community prohibits pets with four legs. A couple indicates they have a 30-pound dog trained to detect seizures. The apartment manager is:

A. Permitted to refuse the application, because the dog has four legs.
B. Not permitted to refuse the application.
C. Permitted to require proof that the dog has been sufficiently trained.
D. May ask for references for the dog to verify that it will not bark too loudly.

A

Correct Answer: B. Not permitted to refuse the application.

Explanation: Service animals, such as seizure-detecting dogs, cannot be denied regardless of pet policies.

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9
Q

The safest way to get competitive information about another property is to “shop” the property.

True or False?

A

Correct Answer: True

Explanation: Shopping a property allows gathering information without crossing ethical boundaries.

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9
Q

The federal law “Violence Against Women Act (VAWA)” protects:

A. Any woman who has been subjected to violence.
B. Only women who have sufficient income to challenge a landlord.
C. Only women who receive public assistance, such as Section 8.
D. Any woman who is the legal guardian of at least one child under the age of 18.

A

Correct Answer: C. Only women who receive public assistance, such as Section 8.

Explanation: VAWA primarily protects women receiving federal housing assistance from discrimination.

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10
Q

All racial discrimination is prohibited in the Civil Rights Act of 1866.

True or False?

A

Correct Answer: True

Explanation: This Act prohibits racial discrimination in all property transactions.

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11
Q

Fair housing laws protect the actions of a manager who does not intend to discriminate.

True or False?

A

Correct Answer: False

Explanation: Intent is not a factor in fair housing violations; discriminatory actions are prohibited regardless.

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12
Q

The equal housing logo does not have to be included in classified ads if the newspaper runs the proper disclaimer.

True or False?

A

Correct Answer: True

Explanation: Proper disclaimers in newspapers can fulfill equal housing requirements.

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13
Q

There are no consequences if the equal housing poster is not displayed in the property management office.

True or False?

A

Correct Answer: False

Explanation: Not displaying the equal housing poster can lead to violations and consequences.

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14
Q

A landlord is required to make modifications for a handicapped tenant in a building built in 1975.

True or False?

A

Correct Answer: False

Explanation: In most cases, modifications are the tenant’s responsibility unless specified otherwise.

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15
Q

In fair housing cases, a judge or jury can award unlimited punitive damages to the aggrieved party.

True or False?

A

Correct Answer: True

Explanation: There is no cap on punitive damages in fair housing cases, depending on the severity of the violation.

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16
Q

The best way to avoid fair housing violations is to treat all prospects fairly and keep detailed records showing consistency.

True or False?

A

Correct Answer: True

Explanation: Consistent treatment and record-keeping are key practices for avoiding fair housing issues.

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17
Q

Commercial property managers must deal with the ADA requirements more than most.

True or False?

A

Correct Answer: True

Explanation: Commercial property managers often handle ADA compliance to accommodate accessibility needs.

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18
Q

The property manager can refuse to rent to someone whose source of income is from public assistance.

True or False?

A

Correct Answer: False

Explanation: Refusing to rent based on a tenant’s income source, like public assistance, can be discriminatory.

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19
Q

If the tenant complains to the health department, the manager is permitted to cancel the tenant’s lease under the Uniform Landlord Tenant Act.

True or False?

A

Correct Answer: False

Explanation: Retaliatory eviction for tenant complaints is prohibited under the Uniform Landlord Tenant Act.

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20
Q

The manager should retain copies of lead-based notices for three years.

True or False?

A

Correct Answer: True

Explanation: Federal regulations require lead-based paint disclosures to be kept for three years.

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21
Q

Owners have no right to re-enter the property once it has been leased.

True or False?

A

Correct Answer: False

Explanation: Owners may re-enter under specific circumstances, such as for repairs, with proper notice.

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22
Q

Testers must meet certain training requirements before they are permitted to visit properties.

True or False?

A

Correct Answer: False

Explanation: There are no training requirements for testers in fair housing, though they may be trained voluntarily.

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23
Q

A properly designated elderly community may refuse to rent to families with children.

True or False?

A

Correct Answer: True

Explanation: Housing specifically designated for the elderly can lawfully restrict rentals to families without children.

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24
Q

An example of corrective maintenance is inspecting the furnace at the beginning of the heating season.

True or False?

A

Correct Answer: False

Explanation: Corrective maintenance involves repairs after issues arise, whereas inspecting a furnace before use is preventive maintenance.

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25
Q

Cleaning the gutters and vacuuming the elevators are examples of routine maintenance.

True or False?

A

Correct Answer: True

Explanation: Routine maintenance includes regular tasks that help maintain the property’s appearance and functionality, such as cleaning and upkeep.

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26
Q

Local union membership policies can affect the manager’s ability to hire multi-skilled workers.

True or False?

A

Correct Answer: True

Explanation: Union policies may limit hiring flexibility, influencing whether multi-skilled workers can be employed directly or through unionized labor.

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26
Q

Deferred maintenance can cause the value of the building to decline.

True or False?

A

Correct Answer: True

Explanation: Delaying necessary repairs and maintenance can lead to deterioration, lowering the building’s value over time.

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27
Q

Managers of scattered site properties will often use contract services.

True or False?

A

Correct Answer: True

Explanation: Scattered site properties make direct staff maintenance challenging, so managers typically rely on contracted services for maintenance and repairs.

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28
Q

Few serious problems are discovered through routine inspections.

True or False?

A

Correct Answer: False

Explanation: Routine inspections are designed to catch potential issues early, often revealing problems before they become serious.

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29
Q

Tenants should be discouraged from reporting problems and maintenance needs.

True or False?

A

Correct Answer: False

Explanation: Encouraging tenants to report issues promptly helps ensure problems are addressed before they escalate, maintaining property value and tenant satisfaction.

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30
Q

Bulk purchasing can be a source of profit to the property.

True or False?

A

Correct Answer: True

Explanation: Purchasing supplies in bulk often reduces costs per unit, which can improve the property’s profit margins by lowering operational expenses.

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31
Q

Whether to use contract services or hiring on-site staff is determined by comparing the financial advantages of each.

True or False?

A

Correct Answer: True

Explanation: Deciding between contract services and on-site staff depends on cost-effectiveness and the property’s specific maintenance needs.

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32
Q

Which of the following types of maintenance is aimed at preserving the physical integrity of a property?

A. Corrective maintenance
B. Preventive maintenance
C. Deferred maintenance
D. Routine maintenance

A

Correct Answer: B. Preventive maintenance

Explanation: Preventive maintenance involves regularly scheduled tasks to maintain the property’s condition and prevent costly future repairs.

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32
Q

Competitive bids using a flat-fee structure are least common.

True or False?

A

Correct Answer: False

Explanation: Flat-fee competitive bids are common for certain types of services where costs can be reliably estimated, making them viable options for service agreements.

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33
Q

The category of maintenance most closely tied to leasing and tenant relations is:

A. Corrective maintenance
B. Routine maintenance
C. New construction
D. Preventive maintenance

A

Correct Answer: C. New construction

Explanation: New construction relates to enhancements that increase the property’s appeal to tenants, impacting tenant relations and leasing.

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34
Q

What person usually coordinates and executes all maintenance operations of a large apartment building?

A. Property manager
B. Maintenance chief
C. Construction crew
D. Resident manager

A

Correct Answer: D. Resident manager

Explanation: A resident manager typically oversees day-to-day maintenance and operational tasks, ensuring prompt responses to tenant needs in large buildings.

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35
Q

Regarding maintenance, the property manager:

A. Need not be conversant with the economics, staffing, and scheduling of maintenance personnel.
B. Must be aware of the maintenance needs of the building and where to turn for help when needed.
C. Should be able to fix all mechanical and electrical systems.
D. Must be a decorator, painter, roofer, and plumber.

A

Correct Answer: B. Must be aware of the maintenance needs of the building and where to turn for help when needed.

Explanation: A property manager needs a comprehensive understanding of the property’s maintenance needs and should know how to coordinate necessary services rather than perform them personally.

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36
Q

Who should have the responsibility for approving the hiring and firing of employees?

A. Property manager
B. Resident manager
C. Owner of the property
D. Property management executive

A

Correct Answer: A. Property manager

Explanation: The property manager is typically responsible for staffing decisions, as they have a direct understanding of operational needs and team performance.

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37
Q

A manager could hire which of the following individuals to supervise and do the work of various skilled trades?

A. Construction superintendent
B. Subcontractor
C. General contractor
D. Any of these

A

Correct Answer: C. General contractor

Explanation: A general contractor can oversee multiple trades, providing a coordinated approach to handle various specialized maintenance or construction needs.

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38
Q

What is the importance, if any, of regular maintenance checks?

A. None, few serious potential problems can be averted by regular inspections.
B. No need if the manager has a checklist of the building’s main features.
C. Maintenance checks can be done sporadically, when there is time.
D. The manager should now and then inspect the interior and exterior of each property.

A

Correct Answer: D. The manager should now and then inspect the interior and exterior of each property.

Explanation: Regular inspections help to identify issues before they become costly, ensuring the property’s ongoing quality and safety.

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38
Q

The first step in designing a preventive maintenance program is:

A. Find the records.
B. Taking inventory of equipment and buildings.
C. Calculate costs.
D. Schedule tasks.

A

Correct Answer: B. Taking inventory of equipment and buildings.

Explanation: An inventory of equipment and buildings is essential to identify what needs maintenance, helping to plan and prioritize tasks effectively.

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39
Q

Which of the following laws requires that businesses and other facilities open to the public must remove physical barriers?

A. Americans with Disabilities Act (ADA)
B. Equal Credit Opportunity Act (ECOA)
C. Fair Housing Amendments of 1988
D. Truth in Lending Act

A

Correct Answer: A. Americans with Disabilities Act (ADA)

Explanation: The ADA mandates that public facilities must ensure accessibility, requiring adjustments or removals of barriers for individuals with disabilities.

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40
Q

An example of appropriate life-cycle costing is:

A. Computing the cost of an energy product over one year.
B. Ignoring investment tax credits when purchasing energy equipment.
C. Buying a higher-priced item with lower operating costs.
D. Buying a lower-priced item, no matter what.

A

Correct Answer: C. Buying a higher-priced item with lower operating costs.

Explanation: Life-cycle costing considers the long-term financial benefits of items with higher initial costs but reduced operational expenses, promoting cost-effectiveness over time.

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41
Q

The number-one factor influencing the selection of office facilities is the:

A. Bus and highway accessibility
B. Environment of area
C. Cost
D. Labor market

A

Correct Answer: C. Cost

Explanation: Cost is typically the primary consideration when selecting office space, as it affects budgeting and affordability for the company.

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42
Q

Which of the following provides a basis for setting a rental schedule, estimating income and expenses, and anticipates prospect reaction?

A. Market analysis
B. Property analysis
C. Neighborhood analysis
D. Comparable analysis

A

Correct Answer: B. Property analysis

Explanation: A property analysis considers the features and conditions of a property, which help determine rental pricing and projected tenant interest.

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43
Q

The standard method of floor measurement that measures construction, rental, and usable space was developed by:

A. IREM
B. BOMA
C. New York
D. NAR

A

Correct Answer: B. BOMA

Explanation: BOMA (Building Owners and Managers Association) established standardized floor measurement practices to ensure consistency in property leasing and management.

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44
Q

Which of the following reflects the features of the property and the relative current value?

A. Minimum rate
B. New York method
C. Base rent
D. Optimum rents

A

Correct Answer: C. Base rent

Explanation: Base rent represents the minimum rental amount set, based on property features and market conditions, ensuring a fair price for the space.

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45
Q

The BEST prospecting method for leasing office space is:

A. Canvassing
B. Referrals
C. Signs
D. Ads

A

Correct Answer: A. Canvassing

Explanation: Canvassing allows direct interaction with potential tenants, providing immediate responses and fostering relationships that can lead to leases.

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46
Q

An open or closed work area for more than one person is called a(n):

A. Single-office space
B. Open space
C. Multipersonnel space
D. Special facility

A

Correct Answer: C. Multipersonnel space

Explanation: Multipersonnel space accommodates multiple employees, enabling collaborative work environments within a single designated area.

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47
Q

Which clause protects the owner when leases run for more than a year?

A. Recapture clause
B. Assignment clause
C. Sublet clause
D. Escalation clause

A

Correct Answer: D. Escalation clause

Explanation: An escalation clause allows rent increases over time, protecting the owner from inflation and changes in operating costs during extended leases.

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48
Q

Which of the following requires constant maintenance to provide good service, safety, and cleanliness?

A. Lobby
B. Elevators
C. Stairs
D. Restrooms

A

Correct Answer: B. Elevators

Explanation: Elevators require regular maintenance for safety, performance, and compliance, as they are critical components in buildings with multiple floors.

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49
Q

One significant difference between managing a residential property and managing an office building is:

A. Preventive maintenance
B. Housekeeping
C. Showing properties
D. Lease negotiations

A

Correct Answer: B. Housekeeping

Explanation: Office buildings often require higher standards of cleanliness and maintenance in shared spaces, making housekeeping a distinct and vital aspect.

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50
Q

Another source of income in an office building is from:

A. Charging to clean offices at night
B. Routine cleaning fees
C. Charging tenants to comply with the ADA
D. Selling remodeling construction to existing tenants

A

Correct Answer: D. Selling remodeling construction to existing tenants

Explanation: Offering remodeling or customization services to tenants can generate additional revenue, as tenants may need tailored spaces for their business operations.

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51
Q

A center that is about 100,000 square feet and is designed to provide convenient shopping for customers in a 1.5-mile radius is called a:

A. Community center
B. Neighborhood center
C. Strip mall
D. Convenience center

A

Correct Answer: B. Neighborhood center

Explanation: Neighborhood centers typically serve a small radius and contain essential stores, such as grocery or drug stores, for local customers.

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52
Q

National firms that sell discounted merchandise are classified as:

A. Specialty centers
B. Power centers
C. Discount department stores
D. Factory outlets

A

Correct Answer: D. Factory outlets

Explanation: Factory outlets are retail locations where national brands sell products, often at discounted prices, directly to consumers.

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53
Q

Which of the following describes a combination of uses for a single property?

A. Mixed-use development
B. Flea market
C. Specialty center
D. Power center

A

Correct Answer: A. Mixed-use development

Explanation: Mixed-use developments combine residential, commercial, and sometimes industrial uses in a single area to create a multi-functional environment.

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54
Q

The MOST important form of advertising for a retail center is:

A. Classified ads
B. Brochures
C. Signage
D. Referrals

A

Correct Answer: C. Signage

Explanation: Effective signage helps attract foot traffic and informs potential customers about the retail center’s offerings, making it crucial for visibility.

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55
Q

What is the MOST effective method of finding shopping center tenants?

A. Brochures
B. Direct mail
C. Newspaper pullout sections
D. Personal contact solicitation

A

Correct Answer: D. Personal contact solicitation

Explanation: Directly approaching potential tenants allows for personalized communication and can result in immediate interest or follow-up actions.

56
Q

A tenant’s success in a shopping center will depend on:

A. The type of service offered
B. Location and tenant mix
C. A specialized customer market
D. Shaky financial backing

A

Correct Answer: B. Location and tenant mix

Explanation: A well-curated tenant mix and a strategic location enhance foot traffic and create synergies that support tenant success.

57
Q

A lease in which the percentage rental rate changes according to the volume of business done is a(n):

A. Variable scale lease
B. Straight percentage lease
C. Overage lease
D. Maximum percentage lease

A

Correct Answer: A. Variable scale lease

Explanation: In a variable scale lease, rent fluctuates based on the tenant’s business performance, aligning costs with income variations.

58
Q

One reason preventive maintenance programs and routine inspections are important to retail centers is because of the:

A. Design
B. Weather
C. Heavy traffic
D. Structure

A

Correct Answer: A. Design

Explanation: Retail centers are designed to handle high foot traffic, and preventive maintenance ensures safe and reliable operation of amenities and infrastructure.

59
Q

The difference between the operating budget for a retail center and other properties is:

A. Little variation in potential income
B. Flexible budgeting
C. Most of the budget can be affected by economic measures
D. Capital expenditures must be listed separately

A

Correct Answer: D. Capital expenditures must be listed separately

Explanation: Retail centers often have separate budgeting for major improvements or repairs, requiring capital expenditures to be itemized separately from operating costs.

60
Q

When a corporation sells a property and leases it back, it is called a:

A. Sale contract back
B. Conditional sale
C. Sale leaseback
D. Cooperative leasing program

A

Correct Answer: C. Sale leaseback

Explanation: A sale leaseback allows a company to free up capital by selling an asset while retaining its use through a lease agreement with the buyer.

60
Q

Technological changes make specialized industries susceptible to what kind of depreciation?

A. Functional obsolescence
B. Physical deterioration
C. Economic obsolescence
D. Locational obsolescence

A

Correct Answer: A. Functional obsolescence

Explanation: Functional obsolescence occurs when new technology renders older systems less efficient, making them outdated or economically inefficient.

61
Q

When two large industrial or business centers expand with allied businesses or plants on two major arteries, this grouping is called a(n):

A. Industrial park
B. Corridor development
C. Regional cooperation
D. Business park

A

Correct Answer: B. Corridor development

Explanation: Corridor development occurs when two established areas grow along connecting routes, supporting allied businesses and infrastructure.

62
Q

Which of the following allows a company to import finished goods or component parts and warehouse them duty-free until shipped?

A. Industrial revenue bonds
B. Research and development
C. Private industry councils
D. Foreign trade zone

A

Correct Answer: D. Foreign trade zone

Explanation: Foreign trade zones offer businesses the opportunity to defer duty fees, helping companies manage costs while storing and assembling goods.

63
Q

What has been established in economically depressed areas in some states to encourage the establishment of industry and business?

A. Enterprise zones
B. Foreign trade zones
C. Incubator spaces
D. Private industry councils

A

Correct Answer: A. Enterprise zones

Explanation: Enterprise zones provide incentives to businesses that establish operations in economically challenged areas to spur economic development.

64
Q

Industries that need to be near sources of raw material are called:

A. Labor-oriented industries
B. Resource-oriented industries
C. Market-oriented industries
D. Consumer industries

A

Correct Answer: B. Resource-oriented industries

Explanation: Resource-oriented industries prioritize proximity to raw materials to minimize transport costs and improve production efficiency.

65
Q

One important consideration in industrial tenant qualifications NOT found in other groups is:

A. Available amenities
B. Prestige of property
C. Zoning requirements
D. Availability of research facilities

A

Correct Answer: C. Zoning requirements

Explanation: Industrial tenants must meet specific zoning regulations due to the nature of their operations, which may include manufacturing or storage of materials.

66
Q

More than any other type of property, environmental contamination is greatest in industrial properties. When leasing industrial property, the manager can:

A. Avoid inquiries about the possibility of hazardous materials
B. Assume the tenant knows how to properly dispose hazardous waste
C. Require the tenant to hire environmental engineers to monitor the operation of the industrial tenant
D. Expect to periodically monitor the operation of the property

A

Correct Answer: D. Expect to periodically monitor the operation of the property

Explanation: Regular monitoring ensures compliance with environmental regulations and helps prevent contamination-related liabilities.

67
Q

The MOST common lease used by industrial tenants is the:

A. Ground lease
B. Gross lease
C. Percentage lease
D. Net lease

A

Correct Answer: D. Net lease

Explanation: Net leases are common for industrial tenants, as they often cover a proportionate share of operating expenses like property taxes and maintenance.

68
Q

The property manager of industrial property is MOST involved in:

A. Leasing space and enforcing terms of lease
B. Security procedures
C. Maintenance activities
D. Housekeeping activities

A

Correct Answer: A. Leasing space and enforcing terms of lease

Explanation: Industrial property managers focus on maintaining tenant occupancy and ensuring lease compliance, as these tasks are central to managing industrial assets.

69
Q

An older, fully renovated building in a prime location would be classified as a Class A building under BOMA guidelines.

True or False?

A

Correct Answer: False

Explanation: Class A buildings are typically newer properties with high-quality finishes and amenities in prime locations. Older buildings, even if renovated, often fall into Class B or C categories.

69
Q

An office building is one where goods are worked on or sold.

True or False?

A

Correct Answer: False

Explanation: Office buildings are primarily used for administrative, professional, or clerical work, not for manufacturing or retail sales.

70
Q

Usable area excludes hallways, restrooms, and elevator shafts.

True or False?

A

Correct Answer: True

Explanation: Usable area includes only the actual tenant spaces, while common areas such as hallways, restrooms, and elevator shafts are typically excluded from usable area calculations.

71
Q

Another way of looking at minimum rent is to consider it the break-even point.

True or False?

A

Correct Answer: True

Explanation: Minimum rent can be thought of as the amount needed to cover the landlord’s costs, essentially serving as the break-even point.

72
Q

Before using direct mail to market the office building, the manager should get lists from Dun & Bradstreet.

True or False?

A

Correct Answer: True

Explanation: Dun & Bradstreet provides business information and targeted mailing lists that can help managers reach potential tenants more effectively.

73
Q

One of the first considerations when talking with a prospective tenant is to discuss spatial requirements.

True or False?

A

Correct Answer: True

Explanation: Understanding a tenant’s spatial needs is crucial in determining if the property is suitable and to prevent misunderstandings later in the leasing process.

74
Q

The building standard helps define limits on remodeling costs to the owner.

True or False?

A

Correct Answer: True

Explanation: Building standards set guidelines for finishes and construction quality, which helps manage the cost of tenant improvements and remodeling for the owner.

75
Q

Office building managers do not need to be concerned about compliance with the ADA.

True or False?

A

Correct Answer: False

Explanation: ADA compliance is mandatory for office buildings, as it ensures accessibility for all individuals, including those with disabilities.

76
Q

Most office buildings are cleaned at night.

True or False?

A

Correct Answer: True

Explanation: Nighttime cleaning minimizes disruption to business operations and maintains a professional environment during working hours.

77
Q

The off-price center usually has no dominant or key tenant.

True or False?

A

Correct Answer: True

Explanation: Off-price centers typically have a mix of discount retailers and do not rely on a single anchor tenant to draw customers.

78
Q

Where to locate an office is usually determined by the rental rate.

True or False?

A

Correct Answer: True

Explanation: Rental rates are a key factor for tenants when choosing office space, as they impact overall occupancy costs and financial planning.

79
Q

Classifying a shopping center is done by square feet and the number of retail spaces.

True or False?

A

Correct Answer: True

Explanation: Shopping centers are commonly classified based on their size and the number of tenants, which determines the type of center (e.g., neighborhood, community, regional).

80
Q

An anchor tenant is not important because it drags down the rest of the shopping center.

True or False?

A

Correct Answer: False

Explanation: Anchor tenants attract significant customer traffic and are crucial for driving business to smaller tenants within a shopping center.

81
Q

One owner generally owns the land and the buildings of most shopping centers.

True or False?

A

Correct Answer: True

Explanation: Typically, shopping centers are owned by a single entity that leases space to various tenants, maintaining control over the property.

82
Q

Parking availability is a major concern when designing shopping centers.

True or False?

A

Correct Answer: True

Explanation: Ample parking is essential for shopping centers, as it supports customer access and contributes to overall tenant satisfaction.

83
Q

The most cost-effective method of advertising retail space is through classified ads.

True or False?

A

Correct Answer: False

Explanation: Signage, digital marketing, and targeted outreach are often more effective than classified ads for reaching retail tenants and generating interest.

84
Q

Placing two or more competing retail businesses side by side can increase business for all.

True or False?

A

Correct Answer: True

Explanation: Grouping similar businesses can attract more customers, as it offers them a variety of choices in one location, increasing foot traffic for all tenants.

85
Q

The most popular form of charging rents for retail establishments is the gross lease.

True or False?

A

Correct Answer: False

Explanation: Retail leases commonly use percentage or net lease structures, where tenants pay a base rent plus a share of operating expenses or sales-based rent.

86
Q

Trade fixtures become the property of the shopping center when the tenant moves out.

True or False?

A

Correct Answer: False

Explanation: Trade fixtures are typically owned by the tenant and can be removed upon lease termination, provided they do not damage the property.

87
Q

The owner’s legal liabilities should be distinguished from the tenant’s before buying insurance.

True or False?

A

Correct Answer: True

Explanation: Distinguishing liabilities helps the owner and tenant obtain appropriate coverage, reducing the risk of disputes and ensuring adequate protection.

88
Q

Special-purpose industrial buildings have a wide range of alternative uses.

True or False?

A

Correct Answer: False

Explanation: Special-purpose buildings are often designed for specific industrial processes, making them less adaptable to other uses without significant modifications.

89
Q

The company that wishes to pull out its equity can do so with a sale leaseback.

True or False?

A

Correct Answer: True

Explanation: A sale leaseback allows a company to sell its property and retain occupancy through a lease, freeing up capital for other business needs.

90
Q

Warehouses and storage centers are less likely to suffer from functional obsolescence.

True or False?

A

Correct Answer: True

Explanation: Storage facilities are generally simpler in design and construction, making them less vulnerable to functional obsolescence compared to specialized properties.

91
Q

An automobile manufacturing plant needs to be located near raw materials and supplies.

True or False?

A

Correct Answer: False

Explanation: While proximity to supplies can be beneficial, many factors influence site selection, such as logistics, workforce availability, and infrastructure.

92
Q

Private industry councils will band together to attract industry to their areas.

True or False?

A

Correct Answer: False

Explanation: Private industry councils typically focus on workforce training and development rather than on attracting industry.

93
Q

Industrial prospects usually base their decision to locate on economic facts.

True or False?

A

Correct Answer: True

Explanation: Factors such as tax incentives, labor costs, and proximity to markets influence industrial tenants’ location choices based on economic considerations.

94
Q

A foreign trade zone permits products to be imported and assembled without paying customs duty until shipped to the actual U.S. market.

True or False?

A

Correct Answer: True

Explanation: Foreign trade zones allow goods to be stored, assembled, or processed duty-free until they enter U.S. commerce, reducing costs for companies.

95
Q

Labor-intensive industries have a great need for adequate parking.

True or False?

A

Correct Answer: True

Explanation: Labor-intensive operations require ample parking to accommodate the larger workforce typically associated with these industries.

96
Q

Industrial property managers should make provisions in the lease for proper disposal of hazardous wastes.

True or False?

A

Correct Answer: True

Explanation: Industrial leases often address environmental responsibilities to ensure compliance with regulations and prevent liability for hazardous waste disposal.

97
Q

A triple net lease requires the tenant to pay for some or all of the expenses of the building.

True or False?

A

Correct Answer: True

Explanation: In a triple net lease, tenants cover property expenses such as taxes, insurance, and maintenance, reducing the landlord’s cost burden.

98
Q

The industrial property manager will often have to make presentations to a number of decision-makers.

True or False?

A

Correct Answer: True

Explanation: Industrial leasing often involves presentations to multiple decision-makers, such as executives and operations managers, to address operational needs.

99
Q

Most industrial leases are gross leases.

True or False?

A

Correct Answer: False

Explanation: Industrial leases are more commonly net leases, where tenants bear some or all building operating costs.

99
Q

Many liability issues arise when dealing with mini warehouse centers.

True or False?

A

Correct Answer: True

Explanation: Mini warehouse centers can have specific liability concerns, especially regarding the security of stored items and the handling of hazardous materials.

100
Q

It is better to use “mini storage” as a name instead of “mini warehouse” because of liability issues.

True or False?

A

Correct Answer: True

Explanation: “Mini Storage” implies a safer, non-industrial use, which can reduce liability perceptions compared to “warehouse,” which may suggest heavier industrial usage.

101
Q

Managers of ministorage centers can visit the property a couple of times a week.

True or False?

A

Correct Answer: False

Explanation: Regular presence and management oversight are necessary to maintain security, handle customer needs, and monitor operations effectively.

102
Q

The owner of the property is responsible for purchasing insurance to cover the tenant’s property.

True or False?

A

Correct Answer: False

Explanation: Tenants are typically responsible for insuring their own personal property within the rental unit, while property owners insure the building and structure itself.

103
Q

Errors and omissions insurance protects against possible accounting mistakes or other oversights.

True or False?

A

Correct Answer: True

Explanation: Errors and omissions (E&O) insurance covers professionals for claims related to mistakes or negligence in their services, protecting them from legal liabilities.

104
Q

Property managers should advise the owner to buy insurance from several different agencies in order to spread the risk.

True or False?

A

Correct Answer: False

Explanation: Generally, owners use a single comprehensive policy from one insurer to cover the property efficiently, rather than splitting coverage across multiple agencies.

105
Q

The Department of Housing and Urban Development (HUD) is responsible for overseeing the Environmental Protection Agency (EPA).

True or False?

A

Correct Answer: False

Explanation: The Environmental Protection Agency (EPA) is an independent agency responsible for environmental protection, separate from HUD’s housing-focused mission.

106
Q

Molds require a cellulosic food source, moisture, and sunlight in order to grow.

True or False?

A

Correct Answer: False

Explanation: Molds require moisture and a food source, such as wood or drywall, but they do not need sunlight to grow and often thrive in dark, damp conditions.

107
Q

Testing for asbestos exposure involves a blood test.

True or False?

A

Correct Answer: False

Explanation: Asbestos exposure is generally tested through air sampling or lung function tests, as it affects the respiratory system, rather than through a blood test.

108
Q

A petroleum-storing tank that is 90 percent above-ground is exempt from underground tank regulation.

True or False?

A

Correct Answer: False

Explanation: Tanks partially underground are still regulated under underground storage tank rules, regardless of the percentage of tank exposure above ground.

109
Q

Polychlorinated biphenyls (PCBs) are generally found in old electrical transformers and are expensive to destroy.

True or False?

A

Correct Answer: True

Explanation: PCBs were commonly used in electrical equipment until they were banned; removal and disposal of PCBs are costly due to strict environmental regulations.

110
Q

A phase II assessment consists of sampling, testing, and evaluation of substances found on the property.

True or False?

A

Correct Answer: True

Explanation: A Phase II Environmental Site Assessment involves examining the property’s environmental condition through sample collection and testing for contaminants.

111
Q

All businesses that handle or deal with hazardous chemicals must evaluate them and label them for the protection of employees.

True or False?

A

Correct Answer: True

Explanation: Under OSHA’s Hazard Communication Standard, employers must evaluate and properly label hazardous chemicals to ensure worker safety.

112
Q

Safety programs coupled with loss reduction plans and emergency preparedness are examples of

A. avoiding the risk
B. retaining the risk
C. transferring the risk
D. controlling the risk

A

Correct Answer: D. controlling the risk

Explanation: Implementing safety programs and emergency preparedness measures help reduce and manage potential risks, which is part of risk control.

113
Q

Shifting risk in part or wholly to insurers is an example of

A. avoiding the risk
B. retaining the risk
C. transferring the risk
D. controlling the risk

A

Correct Answer: C. transferring the risk

Explanation: Insurance transfers financial responsibility for risk from the insured party to the insurer, effectively mitigating potential losses.

114
Q

The property owner wants to ensure that the insurance policy will pay for a new roof if the ten-year-old roof is totally damaged by a windstorm. What should the owner obtain?

A. Actual cash value policy
B. Replacement cost insurance policy
C. Actual depreciated value policy
D. Multiperil insurance policy

A

Correct Answer: B. Replacement cost insurance policy

Explanation: A replacement cost policy covers the full cost of replacing a damaged roof with a new one, without deductions for depreciation.

115
Q

Which of the following coverage must always be purchased as a separate policy from the standard owners’ multiperil insurance policy?

A. Fire
B. Windstorm
C. Loss of income
D. Flood

A

Correct Answer: D. Flood

Explanation: Flood insurance is generally not included in standard multiperil policies and must be purchased separately, especially in flood-prone areas.

116
Q

Which of the following pollutants is caused by faulty gas water heaters and inadequately vented furnaces?

A. Carbon monoxide
B. Radon
C. Molds
D. Chlorofluorocarbons

A

Correct Answer: A. Carbon monoxide

Explanation: Faulty gas appliances can produce carbon monoxide, a dangerous gas that can accumulate without proper ventilation, posing serious health risks.

117
Q

Which of the following is implicated as a cause of many indoor air quality complaints?

A. Radon
B. Carbon monoxide
C. Chlorofluorocarbons
D. Formaldehyde

A

Correct Answer: D. Formaldehyde

Explanation: Formaldehyde, often found in building materials, can contribute to poor indoor air quality and cause respiratory issues and irritation.

118
Q

Many commercial managers have had to supervise the removal of

A. Radon
B. Formaldehyde
C. PCBs
D. Asbestos

A

Correct Answer: D. Asbestos

Explanation: Asbestos, a once-common building material, has been found to be hazardous, and removal is often necessary to ensure safe occupancy.

119
Q

Any present or past property owner may be required to pay for the cleanup of a hazardous substance as

A. potentially responsible parties
B. innocent landowners
C. strictly nonliable
D. a deep pocket

A

Correct Answer: A. potentially responsible parties

Explanation: Under environmental law, present or past owners can be held liable for contamination cleanup, regardless of fault, as potentially responsible parties (PRPs).

119
Q

Which of the following illnesses persist after the tenant leaves the building?

A. Chronic fatigue syndrome (CFS)
B. Toxic shock syndrome (TSS)
C. Sick building syndrome (SBS)
D. Building-related illness (BRI)

A

Correct Answer: D. Building-related illness (BRI)

Explanation: BRI refers to health conditions caused by building environments that persist even after occupants leave, unlike Sick Building Syndrome.

120
Q

Which act requires the preparation of an environmental impact statement in advance of any proposed federal action?

A. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
B. The Resource Conservation and Recovery Act (RCRA)
C. The National Environmental Policy Act (NEPA)
D. The Clean Air Act

A

Correct Answer: C. The National Environmental Policy Act (NEPA)

Explanation: NEPA mandates that federal projects assess environmental impacts, helping ensure consideration of environmental consequences in decision-making.

121
Q

A good life safety and security program would include

A. skilled use of equipment
B. skilled personnel
C. good procedures
D. all of these

A

Correct Answer: D. all of these

Explanation: An effective life safety and security program requires proper equipment, trained personnel, and established procedures to ensure a comprehensive response to emergencies.

122
Q

The focal point of an up-to-date emergency response system is the

A. resident manager
B. property manager
C. central control panel
D. head of security

A

Correct Answer: C. central control panel

Explanation: The central control panel is essential for monitoring and managing emergency response systems, including alarms and communication with emergency personnel.

123
Q

In an emergency, pedestrian and automobile traffic is the responsibility of the

A. chief security officer
B. property manager
C. resident manager
D. local police

A

Correct Answer: D. local police

Explanation: During emergencies, local law enforcement often takes charge of managing pedestrian and vehicle traffic to ensure safety and access for emergency services.

124
Q

The first priority of a life safety and security program is the protection of the

A. property
B. human life
C. security staff
D. reputation of the owner

A

Correct Answer: B. human life

Explanation: Protecting human life is paramount in any emergency response plan, as ensuring the safety of occupants is the primary goal over material or property concerns.

125
Q

The person who has the responsibility to assist in tenant evacuation, as well as enforce safety measures, is the

A. life safety officer
B. emergency spokesperson
C. life safety control center operator
D. property manager

A

Correct Answer: A. life safety officer

Explanation: The life safety officer’s role includes facilitating evacuations and ensuring compliance with safety protocols during emergencies.

126
Q

One way to work toward controlling illegal drug activities is to

A. ignore maintenance needs
B. not involve other tenants
C. overlook employee crime
D. make improvements to potentially hazardous locations

A

Correct Answer: D. make improvements to potentially hazardous locations

Explanation: Enhancing the security and visibility of vulnerable areas can help reduce the likelihood of criminal activity, including drug-related issues.

127
Q

One post-disaster result of lack of electricity and phone service is that while merchants have customers, but they

A. cannot shop in the dark
B. do not have enough of the products that the customers want
C. do not have enough people to assist the customers
D. cannot process credit cards

A

Correct Answer: D. cannot process credit cards

Explanation: After a disaster, power outages can prevent businesses from using electronic payment systems, limiting sales to cash-only transactions.

128
Q

Which of the following potential disasters offers little or no warning?

A. Earthquakes
B. Hurricanes
C. Tornadoes
D. Bomb threats

A

Correct Answer: A. Earthquakes

Explanation: Earthquakes typically occur with minimal warning, unlike hurricanes and tornadoes, which can often be anticipated with weather monitoring systems.

129
Q

In any building emergency, the property manager should first

A. file an insurance claim
B. alert the newspapers
C. call the police
D. contact each tenant

A

Correct Answer: D. contact each tenant

Explanation: Tenant safety is the first concern in a building emergency, so informing tenants and guiding them to safety is the immediate priority.

130
Q

The effect of putting out a fire or arresting an intruder is considered to be

A. preventing security breaches
B. detecting a breach
C. counteracting the damage by prompt and proper action
D. containing or confining the damage

A

Correct Answer: C. counteracting the damage by prompt and proper action

Explanation: Taking swift action to address incidents like fires or intrusions mitigates harm, effectively managing the situation and limiting further damage.

131
Q

One of the primary goals of a life safety program is to protect human life.

True or False?

A

Correct Answer: True

Explanation: The main objective of any life safety program is to prioritize and protect human lives, ensuring safe evacuation and minimizing risks.

132
Q

An emergency spokesperson for any building should be designated before an emergency.

True or False?

A

Correct Answer: True

Explanation: Having a designated spokesperson prepared before emergencies allows for clear communication and effective guidance for tenants during crises.

133
Q

Building security usually means employing a night watchman.

True or False?

A

Correct Answer: False

Explanation: Building security can involve various measures, such as surveillance systems, access controls, and trained security staff, beyond just a night watchman.

134
Q

Management of office buildings is rarely responsible for criminal activity on the property.

True or False?

A

Correct Answer: False

Explanation: Property management often has a duty to maintain a safe environment, and negligence in security can lead to liability if criminal activity occurs on the premises.

135
Q

During a fire, elevator shafts create a chimney effect allowing gas and smoke to fill the elevator, possibly harming any occupants.

True or False?

A

Correct Answer: True

Explanation: Elevator shafts can act as channels for smoke and gas during a fire, so elevators should be avoided in evacuations to prevent harm from inhaling toxic fumes.

136
Q

Planning for a disaster can include arranging for immediate delivery of plywood after a hurricane.

True or False?

A

Correct Answer: True

Explanation: Proactive disaster planning may involve pre-arranged resources, such as plywood, to secure properties quickly after damage, helping mitigate further issues.

137
Q

Few emergencies can be detected or minimized in advance.

True or False?

A

Correct Answer: False

Explanation: Many emergencies, like electrical faults or structural weaknesses, can be identified and managed before they escalate, especially with regular inspections.

138
Q

Insurance companies require ongoing inspections of insured facilities so the manager should retain copies of inspections and repairs.

True or False?

A

Correct Answer: True

Explanation: Keeping inspection records helps ensure compliance with insurance requirements and demonstrates proactive maintenance, which can aid in claims.

139
Q

After a disaster, owners and managers should wait until the insurance adjuster arrives before making any attempts to secure the property.

True or False?

A

Correct Answer: False

Explanation: Immediate actions to secure the property can prevent further damage, even before an insurance adjuster arrives, as long as actions are documented.

140
Q

Community watch programs have proved to be effective at deterring criminal activities.

True or False?

A

Correct Answer: True

Explanation: Community watch programs enhance security by involving residents in monitoring activities, reducing crime through increased vigilance and cooperation.

Property Management (6 decks)

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