Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Unit 18: Property Management > Assessment > Flashcards

Assessment Flashcards

(101 cards)

Start Studying
1
Q

The ___ creates a general agency relationship between the owner and the property manager

A

Management agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Any ___ should contain a description of the property, definition of the management’s responsibilities, statement of the owner’s purpose, and the extent of the manager’s authority.

A

Management agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Cleaning common areas is what type of maintenance?

A

Routine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Fixing a leaking faucet is what type of maintenance?

A

Corrective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Repairing a broken AC unit is what type of maintenance?

A

Corrective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Seasonal servicing of appliances and systems is what type of maintenance?

A

Preventative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Regularly scheduled landscaping is what type of maintenance?

A

Routine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Fair housing laws do not apply to…

A

Commercial properties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Who’s responsibility is it to maintain financial reports?

A

Property manager

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the 4 types of financial reports that property managers are responsible for?

A

1) Operating budget
2) Cash flow report
3) profit and loss statement
4) budget comparison statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The Americans with Disabilities Act recommends ___ to provide access to a buildings facilities and services

A

reasonably achievable accomodations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

___ insurance is used for medical expenses by. a person who is injured in the building as a result of the owner’s negligence

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

___ insurance covers the consequences of a disaster, and can include the loss of rent or revenue to a business that occurs if the property cannot be used

A

Consequential

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When a manager develops an operating budget, which of these is considered a variable expense?
a) basic operating costs
b) utilities
c) employee wages
d) building repairs

A

Building repairs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A property manager who enters into a management agreement with an owner is usually a(n) ___ agent.

A

General

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A high rise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent?

A

Consequential loss, use, and occupancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

High building occupancy might indicate that…

A

rents are too low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A property manager’s total compensation consists of a monthly salary, a 12% commission based on annual rental for each vacant unit the property manager fills, and the free use of one of the apartments as the property manager’s personal primary residence. Based on these facts, is the property manager required by Illinois law to obtain a real estate broker or managing broker license? Why or why not?

A

No because . Persons acting as resident managers, who live in the managed property, are specifically exempt from the general licensing requirements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

In IL, persons acting as resident managers, who live in the managed property, are specifically exempt from…

A

the general licensing requirements.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In MOST market areas, rents are determined by…

A

supply and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

From a management point of view, apartment building occupancy that reaches as high as 98% would tend to indicate that…

A

rent could be raised

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The property manager of a small, 20-unit apartment building requires a security deposit. In this case, the property manager is not required to…

A

pay interest on the security deposit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which law requires removing existing barriers when readily achievable in public buildings and adding Braille markings to elevator buttons?

A

Americans with Disabilities Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Which action by a property manager is a breach of her fiduciary relationship to the owner?
a) scrutinizing property expenses
b) checking credit histories of minority applicants ONLY
c) generating a high net operating income by maintaining the property
d) maintaining good relations with tenants

A

Checking the credit history of minority applicants only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Residential leases are usually expressed as a(n) ___ rate per ___
monthly rate per unit
26
Contaminated groundwater, toxic fumes from paint and carpeting, and lack of proper ventilation are all examples of....
environmental concerns that a property manager may have to address
27
When a property manager is establishing a budget for the building, what should be included as an operating expense?
utilities
28
Avoid, control, transfer, or retain are the four alternative techniques of,...
risk management
29
Tenant improvements are
adaptations of space to suit tenants' needs
30
A property manager hires a full-time maintenance person. While repairing a faucet in one of the apartments, the maintenance person steals a television set, and the tenant sues the owner. The property manager could protect the owner against this type of loss by purchasing...
a surety bond
31
A guest slips on an icy stair at an apartment building and is hospitalized. A claim against the building owner for medical expenses may be paid under which policy held by the owner?
Liability
32
A property manager is offered a choice of three insurance policies with different deductibles. If the property manager selects the policy with the highest deductible, which risk management technique is being used?
Retaining risk
33
Which type of insurance coverage insures an employer against MOST claims for job-related injuries?
Workers compensation
34
A property manager repairs a malfunctioning boiler in the building. This is classified as which type of maintenance?
Corrective
35
The document that creates the agency relationship between an owner and property manager
management contract
36
A type of property management specialty that helps owners decide which properties to purchase and when to sell
asset management
37
performance of regularly scheduled activities, such as painting and servicing appliances and systems
preventative maintenance
38
major alterations to a building's interior to meet a tenant's particular needs
tenant improvements
39
evaluating perils of any risk in terms of options
risk management
40
an owner's protection against financial losses due to an employee's criminal acts
surety bond
41
insurance policies that offer a package of standard coverages
multiperil
42
insurance policies that provide coverage against theft, burglary, vandalism, specific, not all inclusive
casualty
43
insurance that covers the revenue a business loses due to a disaster
consequential loss
44
an investigation to determine the need for insurance and types of insurance required
audit
45
One of the key responsibilities of a property manager is to ___ or ___ the value of the property
preserve or increase
46
The ___ creates a general agency relationship between an owner and the property manager
Management agreement
47
The management agreement creates a general agency relationship between ___ and ___.
Owner and property manager
48
Like real estate brokers' commissions, property management fees may not be ___ by local professional organizations, but must be negotiated between the parties.
standardized
49
Like real estate brokers' commissions, property management fees may not be standardized by local ___, but must be ___.
professional organizations negotiated between the parties
50
Rental rates are influenced primarily by...
supply and demand
51
An example of a(n) ___ under the ADA is installing a ramp at a building entrance
readily achievable modification
52
The manager of a(n) ___ building should carefully consider a prospective tenant's compatibility with existing tenants, such as traffic counts, noise, etc.
commercial
53
A ___ tenant turnover rate results in lower profits for the owner.
High
54
A high tenant turnover rate results in ___ profits for the owner.
lower
55
What are the 3 types of maintenance necessary to keep a property in good condition?
1) Preventative 2) Corrective 3) Routine
56
___ maintenance helps prevent problems and expenses before they arise.
Preventative
57
Preventative maintenance helps prevent ___ and ___ before they arise.
problems and expenses
58
___ maintenance involves the actual repairs that keep the building's equipment, utilities, and amenities functioning.
Corrective
59
Corrective maintenance involves the ___ that keep the building's equipment, utilities, and amenities functioning.
Repairs
60
___ are major alterations to the interior of commercial or industrial property to accommodate the tenant.
Tenant improvements
61
Under Title III of the ADA, ___ must be removed from commercial properties when this can be accomplished in a readily achievable manner.
Existing barriers
62
Under Title III of the ADA, existing barriers must be removed from ___ properties when this can be accomplished in a readily achievable manner.
Commercial
63
The ADA requirements for ___ are stricter than those for ___.
stricter for new construction not as strict for buildings existing before the law was implemented
64
The ADA requirements for new construction are ___ than those for buildings existing before the law was implemented.
stricter
65
What are the 4 alternative risk management techniques?
1) Transfer 2) Control 3) Avoid 4) Retain
66
In a(n) ___ property, insurance against the risk of a shopper suffering a slip-and-fall injury would be covered by liability insurance.
Commercial
67
In a commercial property, insurance against the risk of a shopper suffering a slip-and-fall injury would be covered by ___ insurance.
liability
68
A building insured for what it would cost to rebuild it is a(n) ___ policy.
current replacement cost
69
A(n) ___ is the most important financial report.
cash flow report
70
Why is a cash flow report the most important financial report?
Provides a picture of the current financial status of the property
71
Property managers have a responsibility to properly manage ___, such as asbestos
hazardous environmental problems
72
Court decisions have held ___ and ___ responsible for physical harm that was inflected on tenants by intruders
Owners and their agents
73
A critical maintenance objective is to protect the ___ of the property over the long term
Physical condition
74
Examples of ___ of property management are employee wages and utilities.
variable expenses
75
A property manager's first responsibility to the owner should be to realize the ___ consistent with the ___.
Highest return possible consistent with the owner's instructions
76
The ___ relationship with the ___ is most similar to that of a sales associate with the employing broker
Property manager Owner
77
The property manager's relationship with the owner is most similar to that of... a) Tenant and landlord b) cashier and owner of a store c) stockholder with board of directors of a corporation d) sales associate with the employing broker
sales associate with the employing broker
78
ALL of these should be included in a written management agreement EXCEPT... a) list of manager's duties and responsibilities b) statement of owner's purpose c) statement identifying the manager's creditors d) allocation of costs
statement identifying the manager's creditors
79
A list of manager's duties and responsibilities, a statement of the owner's purpose, and an allocation of costs must all be included in a(n) ___.
Written management agreement
80
If an apartment rents for $750 per month and the manager receives a 12% commission on all new tenants, how much will the manager receive when renting an apartment, assuming that this commission is calculated in the usual way?
$1080 750 (monthly rent) x 12 (months per year) x 0.12 (12%) = 1080
81
What is the ANNUAL rent per square foot for a 30 ft x 40 ft property that rents for $2950 per month?
$29.50 30 x 40 = 1200 2950 x 12 = 35,400 35,400 divided by 1200 = 29.50
82
Out of the following, a high vacancy rate is MOST likely to indicate... a) rental rates are too low b) property is attractive c) building management is effective and responsive d) undesirable property
undesirable property
83
Repairing a leaking water heater is an example of ___ maintenance.
Corrective
84
Which is an example of corrective maintenance? a) seasonal recharge of refrigerant in an air conditioning unit b) picking up litter in common areas c) repairing a leaking water heater d) moving a partition wall to make a larger office
Repairing a leaking water heater
85
How can tenants insure their personal belongings in apartments they rent?
Obtain HO-4 or renter's insurance
86
Under the ADA, existing barriers must be removed...
when removal may be accomplished in a readily achievable manner
87
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
88
All of the following are principal responsibilities of the property manager EXCEPT... a) forcibly removing tenants for nonpayment of rent b) generating income for owners c) preserving and/or increasing the value of the property d) achieving objectives of the owners
forcibly removing tenants for nonpayment of rent
89
Who carries out eviction proceedings?
An officer of the court
90
The ___ is a guide for the property's financial performance in the future
Operating budget
91
What type of plan dies a property manager implement to manage renters who do NOT pay their rent in a timely way?
Collection plan
92
One way the property managers meet the goals of __ is by making sure to use the same lease application for every applicant
ECOA
93
One way the property managers meet the goals of ECOA is by... a) making sure to use the same lease application for every applicant b) Disqualifying tenant applications on the basis of receiving welfare payments c) not evaluating certain tenant applicants d) establishing that certain buildings do not allow children as residents
making sure to use the same lease application for every applicant
94
According to the Fair Housing Act, ___ is channeling of protected class members to certain buildings or neighborhoods
steering
95
Washing a wall mirror in a common area is ___ maintenance.
Preventative
96
Fixing an air conditioner is ___ maintenance
Corrective
97
Repainting exterior brick is ___ maintenance
Preventative
98
Replacing torn carpet is ___ maintenance
Corrective
99
Repairing a cracked window is ___ maintenance.
Corrective
100
Annual elevator inspections & repairs are ___ maintenance
Preventative
101
Cleaning off a cobweb above a doorway is ___ maintenance
Routine

Unit 18: Property Management (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions