Unit 19

Question 1

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

Answer 1

a surety bond.

Question 2

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?

Answer 2

Liability

Question 3

A property manager repairs a leaking sink. This is classified as which type of maintenance?

Answer 3

Corrective

Question 4

Successful risk management by a property manager benefits from

Answer 4

an insurance audit.

Question 5

All of the following would cause a high vacancy rate EXCEPT

Answer 5

desirable amenities.

Question 6

A property manager’s primary obligation is to

Answer 6

the owner.

Question 7

Which of these is an example of corrective maintenance?

Answer 7

Repairing a leaking water heater

Question 8

What is the purpose of an operating budget for a property manager?

Answer 8

It is a guide for the property’s financial performance in the future

Question 9

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

Answer 9

a contents and personal property policy.

Question 10

A property manager is expected to

Answer 10

maintain the value of and generate income from the property.

Question 11

A statement sent to an owner that reflects the entire debt service as an expense is called

Answer 11

a cash flow report.

Question 12

All of the following should be a consideration in selecting tenants for the property EXCEPT

Answer 12

ethnic background of the tenants and their employees.

Question 13

How can tenants insure their personal belongings in apartments they rent?

Answer 13

Obtain HO-4 or renter’s insurance

Question 14

A property manager who enters into a management agreement with an owner is usually

Answer 14

a general agent.

Question 15

A successful property manager has demonstrated the ability to

Answer 15

increase property income over previous levels.

Question 16

An example of complying with the Americans with Disabilities Act (ADA) could be

Answer 16

installing auditory signals in elevators.

Question 17

A real estate broker acting as an owner’s property manager

Answer 17

must not profit from private contracts at the expense of the owner.

Question 18

In determining rental amounts, a property manager considers the economic principle of

Answer 18

supply and demand.

Question 18

Of these, a high vacancy rate MOST likely indicates

Answer 18

an undesirable property.

Question 19

All of these are principal responsibilities of the property manager EXCEPT

Answer 19

forcibly removing tenants for nonpayment of rent.

Question 20

According to the Fair Housing Act, what is steering?

Answer 20

Channeling of protected class members to certain buildings or neighborhoods

Question 21

Asbestos, sick building syndrome (SBS), and lead-based paint are all examples of

Answer 21

environmental concerns that a property manager may have to address.

Question 22

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?

Answer 22

Consequential loss, use, and occupancy

Question 23

A property manager renting residential property may

Answer 23

require handicapped tenants to restore the premises at the end of a lease.

Question 24

Avoid, control, transfer, or retain are the four alternative techniques of

Answer 24

risk management.

Question 25

A rental rate for residential space is usually states as the monthly rate

Answer 25

per unit.

Question 26

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

Answer 26

the building’s owner.

Question 27

The three principal responsibilities of the property manager do NOT include

Answer 27

generating maximum income for the property manager.

Question 28

The responsibilities of the property manager, in both building amenities and employment issues, have been impacted considerably by

Answer 28

the Americans with Disabilities Act (ADA).

Question 29

Residential property managers of buildings constructed before what year must provide lead-based paint disclosure forms to all new tenants?

Answer 29

1978

Question 30

The property manager should ask to be

Answer 30

included as an additional insured on the property liability policy.

Question 31

All of the following are important functions of a property manager EXCEPT

Answer 31

preparing the owner’s income tax return.

Question 32

The owner’s objectives, the regional and neighborhood market, and the specific property are all factored into the property manager’s

Answer 32

management plan.

Question 33

What is the annual rent per square foot for a 30 ft × 40 ft property that rents for $2,950 per month?

Answer 33

$29.50

Question 34

Adaptations of property specifications to suit tenant requirements are

Answer 34

tenant improvements.