PSI Exam Prep: Leasing and Property Management Flashcards Preview

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Flashcards in PSI Exam Prep: Leasing and Property Management Deck (48)
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1
Q

What is A property manager’s primary goal?

A

to produce the greatest net return for the owner.

2
Q

these are the parties to a property management agreement that establishes a general agency relationship.

A

The licensee and the property owner

3
Q

Property management agreements should include:

A

description of the property, terms, reporting, Compensations, manager’s authority, manager’s duties, management costs, owner’s purpose, owner’s responsibilities and An equal opportunity statement

4
Q

Common property manager duties can include:

A

Maintaining and delivering financial reports
Renting and Marketing properties
Collecting rent
handling tenant problems
Maintaining the property
Complying with local, state, and federal regulations

5
Q

it is a binding contract that allows a tenant to occupy (not own) a property.

A

A lease

6
Q

The tenant stays after the right to possess has terminated. The tenant is known as a holdover tenant.

A

Estate at sufferance

7
Q

The lease’s duration is unknown when it’s created.

A

Estate at will

8
Q

The lease terminates automatically when the specified period (day, week, month, year, etc.) ends.

A

Estate for years

9
Q

The lease automatically renews at the end of each period specified in the lease.

A

Periodic estate

10
Q

it is one in which the tenant pays some or all of the property’s costs in addition to rent.

A

A net lease

11
Q

When the tenant is paying for property taxes, insurance, and maintenance along with the rent, the lease is generally referred to as a

A

triple net lease (NNN)

12
Q

it is a triple net lease in which the tenant is also responsible for all building expenses and repairs, including roofing and structural repairs. This has no legal protection

A

An absolute net lease

13
Q

These leases are often used for large commercial and industrial leases. These leases tend to favor the landlord’s interests because property costs fall on the tenant.

A

A net lease

14
Q

it is one in which the landlord pays all expenses related to the property, such as taxes, repairs, insurance, utilities, maintenance) while the tenant pays a fixed rent. these are often used for office space.

A

A gross lease or full-service leases.

15
Q

the tenant pays a base rent plus an additional charge that’s a percentage of the tenant’s gross sales once a specific ‘breakpoint’ is met. The landlord usually pays all the property’s costs (as seen in a gross lease), but this may not always be the case. these are often used for retail businesses and malls.

A

percentage lease

16
Q

it allows specific rent increases at future dates. It’s a type of variable lease that permits an increase/decrease in rent during the lease period. The increase can be based on a number of factors, such as changes to appraised value, index, or time.

A

A graduated lease

17
Q

these are often used for longer terms than other common lease types. Tenants may be able to get into a lease at a lower cost that gradually increases over time. This can be beneficial for new businesses. The lease also provides protection to property owners, who can increase rent as property values or costs increase over time.

A

A graduated lease

18
Q

One party owns the land and a different party owns the improvements. it is leased on a long-term basis, often 50–99 years. The lessee builds and owns an improvement, such as an office building, on the leased land. At the conclusion, the improvements become the lessor’s property.

A

Ground lease

19
Q

Provides for rental of floor space of wide-open loft spaces. The tenant may divide the space but can’t make structural changes.

A

Loft lease

20
Q

When a tenant wants to buy a property but can’t (either due to financing, title, or tax issues), a lease purchase may be an option. There’s both a purchase and lease component to this arrangement. The tenant makes rental payments, and a portion of that payment is applied to the property’s purchase price. This continues until the tenant can purchase the property outright.

A

Lease purchase

21
Q

The owner of a building sells the building (usually to an investor) and then leases the building back. Owners will usually do this as a way to raise extra capital. The original owner gains access to the equity, and the new owner has a reliable source of rental income.

A

Sale and leaseback

22
Q

Often used for minerals, oil, or gas, a company will enter into a lease agreement with the landowner. The company explores the land, looking for minerals, oil, or gas in exchange for a cash payment to the landowner. If the company finds the item, the landowner usually gets a percentage of the item’s value. If nothing is found, the lease expires.

A

Sub-surface leasing rights

23
Q

is a sample law that states may follow in enacting their own landlord-tenant legislation. The purpose of this act is to base landlord-tenant law on contract law instead of common law, thereby providing more specific guidance to both landlords and tenants.

A

The Uniform Residential Landlord Tenant Act (URLTA)

24
Q

URLTA means

A

The Uniform Residential Landlord Tenant Act

25
Q

This is the legal process used to physically remove the tenant.

A

Actual eviction

26
Q

The tenant is prohibited from quiet enjoyment of the premises and vacates prior to termination of the lease agreement.

A

Constructive eviction

27
Q

The landlord takes matters into his own hands and evicts the tenant without using legal procedures.

A

Self-help eviction

28
Q

means the right to use the property without undue interference from the landlord or others and the right to live in safety and comfort.

A

Quiet enjoyment

29
Q

A property manager is usually considered

A

a general agent

30
Q

A property manager have fiduciary duties to:

A

the owner, not the tenant

31
Q

these are used to pay expenses related to managing the property, such as maintenance, utilities, contractor expenses, or staff salaries. Rent is deposited into these accounts.

A

Operating accounts

32
Q

also called escrow accounts, hold funds belonging to others.

A

Trust accounts

33
Q

How many days to deposit to trust account?

A

between 1 and 3, but it really depends on the state

34
Q

Usually covering a one-year period, this report projects the income and expenses of operating the property.

A

Operating budget

35
Q

Usually created monthly, this report shows the current financial status of a property. It accounts for income received (such as rent, late fees, etc.) and expenses paid (such as utilities, personnel, repairs, etc.).

A

Cash flow report

36
Q

Prepared on a monthly, quarterly, semi-annual, or annual basis, this report shows whether the property profited during the period or suffered a loss.

A

Profit and loss statement

37
Q

This report compares actual results from the profit and loss statement to those projected on the operating budget.

A

Budget comparison statement

38
Q

it manipulates owners into the fear that the entry of a protected class will negatively impact property values to encourage an owner to rent or sell. This fear is used to convince owners to sell or rent at a lower price.

A

Blockbusting

39
Q

it occurs when members of protected classes are guided (or steered) toward certain areas, buildings, or neighborhoods by a property manager or real estate licensee.
For example, only showing families with children units on the first floor is an example of it. Even phrases like “kid friendly” could be perceived as such. Basically, prospective tenants have the right to see all available housing options and to select the option of their choice.

A

Steering

40
Q

it specifically permits some housing facilities to discriminate based on familial status. This exemption permits senior housing facilities and communities to refuse to sell or rent homes to families with minor children. The facilities must meet certain requirements to be eligible for the exemption.

A

The Housing for Older Persons Act of 1995

41
Q

it is the hypothetical elderly widow who has converted a portion of her home into a rental apartment to supplement her limited income. it provides that if a dwelling has four or fewer rental units and the owner lives in one of those units, that home is exempt from the FHA

A

The Mrs. Murphy exemption

42
Q

apply to new construction and remodeling of public accommodations and commercial buildings. Community spaces in apartments built before 1990 must be compliant. All public spaces must be fully accessible in apartments built after 1990.

A

The Americans with Disabilities Act, or ADA

43
Q

they owe fiduciary duties to their clients (the landlord) and the community as a whole, not to individual residents.

A

Property managers

44
Q

this lease typically includes all the nets in the base rent, but not not all operating expenses.

A

A modified gross lease

45
Q

this duty is that licensees can’t take any action that would adversely impact the client’s legal interests.

A

The overarching theme of statutory duties

46
Q

Property managers must recognize the federally protected classes under ADA and the federal Fair Housing Act. Which list most accurately lists these classes?

A

Race, color, religion, national origin, sex, familial status, or disability

47
Q

this lease typically includes all the nets in the base rent, but not not all operating expenses.

A

A modified gross lease

48
Q

Leases for periods of more than one year must be in

A

writing