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Ch 17 Final Exam Prep Property Management Questions & Answers
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Ch 17 Final Exam Prep Property Management Questions & Answers
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Ch 17 Final Exam Prep Property Management Questions & AnswersWhich of the following laws does not prohibit property managers from rejecting rental applications because the prospect is on public assistance? - Answer- Unruh
The Unruh Civil Rights Act (California Civil Code Section 51) provides protection from discrimination by all business establishments in California, including housing and public accommodations, because of age, ancestry, color, disability, national origin, race, religion, sex and sexual orientation.
An organization that gathers and provides data on vacancy rates, new home construction, housing patterns based on state, county, city, zip code, and other demographic and economic factors is the
California Regional Economic Analysis Project
US Department of Commerce
US Census Bureau
Institute of Real Estate Management - Answer- US Census Bureau
provides data about the nation's people and economy
Incorrect
Which of the following would not be considered an architectural barrier?
Architectural barriers are physical elements of a facility that impede access by people with disabilities - Answer- Incorrect: "Non-working elevator" - This impedes access to those with disabilities
For a statement to be considered libel, it must be
uttered.
written.
uttered and written.
untrue and published. - Answer- "untrue and published" - would be part of Defamation Libel is a written defamatory statement, and slander is an oral defamatory statement
Libel - written untruth that is published/disseminated by some means. A photography studio is considered what type of retail tenant? - Answer- Specialty
Capital expenditures differ from operating expenses in that capital expenses - Answer- cost more.
Capital expenditures are major purchases that will be used beyond the current accounting period in which they're purchased. Operating expenses represent the day-to-day expenses designed to keep a company running.
Unsure
The official unit of housing demand is
the household
employment
supply.
economic condition. - Answer- supply
Unsure
If the landlord mails a 30-day notice to the tenant informing the tenant of a rent increase, when can the increase legally take effect? - Answer- In 30 days for first rate increase
60 days if its a second/ reoccurring increase
Which of the following statements is true? - Answer- The owner's goals are the determining factor in the manager's analyses and types of information included in the plan.
The most important record the manager must keep for reporting to the owner is - Answer- income and expense records
Which type of leasehold has a definite beginning and ending date, does not require notice to terminate at the end of the terms, and does not have an automatic renewal?
Estate for Years
Estate from Period-to-Period
Estate at Will
Estate at Sufferance - Answer- Estate for Years
An estate for years is a lease with a specific beginning and ending date. The lease is for
a definite, often extended, period of time, and notice isn't required to vacate, as it's known that the tenant will vacate at the end of the lease A property manager who can be an individual property manager, an individual building manager, or a resident manager and whose job is to find tenants and get leases signed is called
a corporate manager. an asset manager. a concierge.
will assist guests, patrons, tenants, or employees with personal services such as making dinner and tour reservations, offering suggestions for events, and arranging transportation.
a leasing agent. - Answer- Incorrect: a corporate manager. a leasing agent. - mainly finds tenants
People should not leave a spare key hidden outside the rental unit because - Answer- criminals know the common hiding places.
How would the variable expense ratio be determined for a rental property with $400,000
in variable expenses, $950,000 in potential rental income, $250,000 in debt service, and
$225,000 in fixed operating expenses? - Answer- $400,000 / $950,000
The three types of business interruption endorsements do not include
Limited business interruption
Extended business interruption
Contingent business interruption
Business interruption - Answer- Business interruption
Unsure
Which of the following is not included in a property analysis?
Tenants
Staff
Health and safety
Relevant market - Answer- Incorrect: Relevant market
Tenants or Health and Safety
A property analysis report:
1) A market analysis of demographic, socio-graphic and geographic data. 2) Physical and economic characteristics of the property such as the physical design, square footage, etc. 3) Purchase pricing including basic cost information, renovation costs and more.
4) Operating expenses to maintain the property such as utilities, property taxes, insurance, repairs and maintenance, licenses, fees and advertising expenses
5) Income information about the revenue the property produces, such as rent receipts
6) Competitive information on how the property compares to other relevant properties in
the local market such as age, condition and amenities
7) Financing specifics including any loans, the total loan amount to finance the property,
down payment sums, interest rates and closing costs
Which law is intended to regulate leasing and management practices of landlords with residential properties? - Answer- URLTA
Uniform Residential landlord and tenant Act
Keep all common areas in a clean and safe condition. Make all repairs and do whatever
necessary to keep the premises in a habitable condition. Comply with all applicable and building codes affecting health and safety
If a commercial rental property is valued at $5,850,000, how much can the owner deduct for depreciation on his annual income taxes? - Answer- $150,000
=5,850,000 (1/39)
=150,000
Unsure
Linda is married to Sgt. John Walters of the US Marine Corp. While John has been deployed overseas, Linda has been unable to pay her $1500 monthly rent. What could potentially happen as a result of her non payment of rent? - Answer- She would be protected under the Soldiers' and Sailors' Civil Relief Act.
rental agreements, security deposits, prepaid rent, evictions, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, civil judicial proceedings, automobile leases, life insurance, health insurance and income tax payments
Servicemembers Civil Relief Act (SCRA) & VA Loans:
both regular active-duty military members and Guard and Reserve members who've been activated under federal orders, and their spouses.
What is the per-unit management fee when the total management costs for 1 year are $500,000, the number of units the manager is capable of managing is 75, and the profit margin is 20%? - Answer- $8,000
=(500,000/75)* 1.20
=8,000
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