Property Management & Leasing

Question 1

The Institute of Real Estate Management (IREM) certifies individual managers as

(a) Licensed Property Mangers (LPM).
(b) Professional Property Managers (PPM).
(c) Certified Property Managers (CPM).
(d) Certified Apartment Managers (CAM).

Answer 1

(c) Certified Property Managers (CPM).

Question 2

State law requires a resident manager for property containing

(a) 16 or more units.
(b) 10 or more units.
(c) 5 or more units.
(d) 2 or more units.

Answer 2

(a) 16 or more units.

Question 3

In addition to the property manager’s dual role of an administrator for the owner and an advocate for the resident, the California Department of Real Estate requires a property manager to

(a) maintain proper records and make regular reports to the owner.
(b) supervise employees.
(c) create and supervise maintenance schedules and repairs.
(d) all of the above.

Answer 3

(d) all of the above.

Question 4

The amount of rent paid after deducting negotiated concessions such as one month’s free rent is called

(a) scheduled rent.
(b) effective rent.
(c) nominal rent.
(d) net rent.

Answer 4

(b) effective rent.

Question 5

To make certain that rent increases are not in violation of the law, residential property managers should be familiar with

(a) CC&Rs
(b) neighborhood rental rates.
(c) rent control ordinances.
(d) national rental standards.

Answer 5

(c) rent control ordinances.

Question 6

How would the duties of a condominium property manager differ from those of a residential property manager?

(a) Condominium property managers don’t make policy.
(b) Condominium managers carry out policies as directed by the board of directors.
(c) Condominium managers must face the politics of the homeowner’s association.
(d) All of the above.

Answer 6

(d) All of the above.

Question 7

Among the responsibilities of the manager of an office building is,

(a) merchandising office space.
(b) maintenance.
(c) protection of the premises.
(d) all of the above.

Answer 7

(d) all of the above.

Question 8

An effective security plan applies to

(a) tenants.
(b) employees.
(c) guests.
(d) all of the above.

Answer 8

(d) all of the above.

Question 9

The fees charged for property management are usually

(a) A flat fee and a percentage of gross rents
(b) A percentage of net rent
(c) Flat fee plus expenses
(d) Flat rate

Answer 9

(a) A flat fee and a percentage of gross rents

Question 10

The selection and maintenance of an adequate trust fund accounting system is essential in property management to

(a) guarantee the payment of management fees.
(b) keep track of income received and disbursements.
(c) relieve the manager of this responsibility.
(d) all of the above.

Answer 10

(b) keep track of income received and disbursements.

Question 11

A month-to-month lease is considered a(n)

(a) periodic tenancy.
(b) estate for years.
(c) life estate.
(d) estate at sufferance.

Answer 11

(a) periodic tenancy.

Question 12

A tenant signs a lease that stipulates that the lessee pays the property tax. This lease is probably a

(a) standard lease.
(b) sandwich lease.
(c) net lease.
(d) reverse lease.

Answer 12

(c) net lease.

Question 13

The screening fee to cover costs of obtaining and gathering information to make an acceptance or rejection of a tenant is

(a) refundable.
(b) nonrefundable.
(c) illegal.
(d) allowed to be any amount.

Answer 13

(b) nonrefundable.

Question 14

To make sure it is clear that each signer is liable for the entire rent, the parties should sign

(a) as emancipated minors.
(b) in front of a witness.
(c) jointly and severally.
(d) in front of a notary.

Answer 14

(c) jointly and severally.

Question 15

The amount of the security deposit that may be demanded or received varies based on

(a) commercial or residential.
(b) refundable or nonrefundable.
(c) new or used.
(d) furnished or unfurnished.

Answer 15

(d) furnished or unfurnished.

Question 16

Although the landlord has an implied duty to keep the property habitable, the tenant is obligated to

(a) keep the unit clean and sanitary.
(b) avoid defacing or damaging the property.
(c) leave the unit in a clean condition when vacating.
(d) all of the above.

Answer 16

(d) all of the above.

Question 17

If a tenant fails to heed a three-day notice to quit, the landlord may file a(n)

(a) unlawful detainer action.
(b) forced eviction action.
(c) sheriff’s eviction action.
(d) termination action.

Answer 17

(a) unlawful detainer action.

Question 18

A property manager who lives on the property and is employed by the owner, would be a(n):

(a) accredited property manager.
(b) resident manager.
(c) licensed property manager.
(d) certified property manager.

Answer 18

(b) resident manager.

Question 19

A property manager would know that Section 8 housing refers to:

(a) military-based housing.
(b) an FHA home-purchase plan for renters.
(c) a subsidized rent program for low-income tenants.
(d) county-owned housing projects.

Answer 19

(c) a subsidized rent program for low-income tenants.

Question 20

Types of property requiring property management include:

(a) industrial parks.
(b) office buildings.
(c) apartments.
(d) all of these

Answer 20

(d) all of these

Question 21

A lease for a definite period of time would be an:

(a) estate for years.
(b) estate from period to period.
(c) estate at will.
(d) any of these.

Answer 21

(a) estate for years.

Question 22

A lease stipulating that the tenant pays a fixed monthly rental and the landlord pays all other property expenses would be a:

(a) net lease.
(b) gross lease.
(c) percentage lease.
(d) ground lease.

Answer 22

(b) gross lease.

Question 23

A clause in a percentage lease whereby the landlord has a right to regain the premises if the tenant fails to achieve a stated gross would be a:

(a) recapture clause.
(b) exculpatory clause.
(c) subordination clause.
(d) defeasance clause.

Answer 23

(a) recapture clause.

Question 24

Security deposits for unfurnished residential rentals CANNOT exceed:

(a) 1 month’s rent.
(b) 2 months’ rent.
(c) 3 months’ rent.
(d) none of these.

Answer 24

(b) 2 months’ rent.

Question 25

A lease that needs no notice for termination, would be a(n):

(a) percentage lease.
(b) estate for years.
(c) periodic tenancy.
(d) gross lease.

Answer 25

(b) estate for years.

Question 26

Which of the following statements describes a sublease?

(a) The entire leasehold must be transferred.
(b) The original lessee is secondarily liable and the person in possession is primarily liable under the original lease.
(c) The sublessor is a tenant of the original lessee.
(d) None of these.

Answer 26

(d) None of these.

Question 27

A common fee arrangement for commercial property managers would be a:

(a) percentage of the net.
(b) percentage of the gross.
(c) minimum fee.
(d) combination of B and C.

Answer 27

(d) combination of B and C.