Champions SAE Property Management Latest
Update 2024-2025 270 Questions and 100%
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4 P's of marketing - CORRECT ANSWER: Product, place, promotion, and price
Access By Landlord - CORRECT ANSWER: The landlord, PM, or other rep of the
landlord are authorized to access the property.
ADA Penalties - CORRECT ANSWER: First violation $75,000 and Second $150,000
Advertising - CORRECT ANSWER: Typically involves the hard costs associated with
marketing. Companies spend exorbitant amounts of money on billboards, magazine and
newspaper ads, banner ads, flyers, brochures, television and radio com- mercials, and
mailers to advertise the products that they offer.
As a fiduciary, the property manager (agent) owes the owner (principal) - CORRECT
ANSWER: • Obedience • Loyalty • Disclosure • Confidentiality Accounting Reasonable
care
Break Even Ratio - CORRECT ANSWER: BREAK-EVEN The break-even ratio (BE) is a
fundamental calculation for all real estate investors when determining a property's value
because it lets them know how much income the property must earn in order to break
even. The answer will be in the question.
Budget - CORRECT ANSWER: Maintenance (routine/non routine), Payroll ,
Management fees, Marketing/Advertising , Utilities ,Taxes, Debt Service, Repairs, and
Reserves
,Capital Advances - CORRECT ANSWER: Advances made to nonprofit entities under
the section 202 program do not have to ve repaid as long as the project continues to
serve the very low income elderly for 40 years
CCIM (gold standard of commercial) - CORRECT ANSWER: Expects its members to
believe in and promote:ethical leadership, cultural awareness, investment in the future,
staying connected,fiscal responsibilty, and acting globally. Must complete educational
requirements, and pass a comp exam. Applicants must also submit a Portfolio of
Qualifying Experience.
Commercial Lease - CORRECT ANSWER: here are TREC-promul- gated leases to
protect tenants, and commercial leases are created with a bias toward the landlord; the
landlord always wins. Lawyer writes.
Commingling - CORRECT ANSWER: Property managers must not commingle.
Commingling is the act of mixing a clients funds with a brokers business or personal
funds.
Communication between managers and tenants - CORRECT ANSWER: While the
property manager's first duty is to the landlord, maintaining good tenant relations is
critical. The manager must be firm and professional in enforcing the rules of the
property and always keep communications with tenants open. While the tenant
relationship is vital, it is essential to remember that it is a professional relationship. It
should never become so personal that it compromises the manager's ability to enforce
lease terms or building rules.
Condominiums - CORRECT ANSWER: Established under laws referred to as horizontal
property acts.
Constructive Eviction - CORRECT ANSWER: A lease may be discharged under the
concept of constructive eviction. Constructive eviction occurs when the landlord does
something or fails to perform some obligation under the lease that renders the leased
premises uninhabitable. Constructive eviction may occur because the landlord failed to
maintain the roof, or failed to provide water and/or sewer services to unit.
,Controlled Access - CORRECT ANSWER: Whether it is as sophisticated as a biometric
scanning identification system, or as simple as a member of the security team who
checks visitors in and out of the building, controlling who can access the property and
when is an effective way to prevent crime. Controlled access a critical measure to take
ensure the safety of tenants.
Costs of financing - CORRECT ANSWER: Many investors do not pay all cash on a real
estate deal. Instead, they prefer to spread out their risk by financing real estate
purchases so that they do not tie up all of their available cash in any one property. Debt
can be the best friend of a real estate investor, at the right interest rate, of course.
Investors leverage debt when interest rates are low in order to increase their returns.
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Debt Service - CORRECT ANSWER: The amount of cash needed to repay the loan
Decreasing Rent - CORRECT ANSWER: PMs may also reduce rents if property's
condition is distressed, an area is overbuilt or falls out of favor with renters, or area
demographics change.
EAP - CORRECT ANSWER: Management companies should have an Emergency
Action Plan (EAP) that addresses response procedures for all types of situations,
including fires, natural disasters, and terrorist/active shooter attacks.
Economic Occupancy - CORRECT ANSWER: Is the percentage of potential rental
income to actual earned income over a specified period.
Enticing Tenants To Renew Lease - CORRECT ANSWER: Offer incentives, stagger the
rental increase over term of the lease, lock in their current rate, respond to maintenance
requests promptly, and offer improvements or upgrades.
External obsolescence - CORRECT ANSWER: Refers to the loss in value of a property
caused by factors outside of the property itself.
, First step in creating a management plan - CORRECT ANSWER: Assess the subject
property.
Functional obsolescence - CORRECT ANSWER: Is the loss in tge desirabilty of the
style, layout, or function of a property due to age.
General Agent - CORRECT ANSWER: An individual has the right to represent a
principal in a particular type of transaction or business. Property managers are a
common example of the general agency relationship in real estate.
General Contractor - CORRECT ANSWER: Sometimes called the prime contractor will
manage the entire project from start to finish including scheduling, placing orders for
materials and making sure they show up, managing the subcontractors like electricians,
and plumbers, ensuring that work is taking place within the projected timelines.
How many days is a reasonable period of time for the landlord to make a dilligent effort
to repair - CORRECT ANSWER: 7 days
If the rent in an office building is $24.00 per square foot, what is the monthly rent on a
space having 4000 square feet? - CORRECT ANSWER: 4000x24=$96,000 then 96,000
divided by 12=$8000 per month
International Residential Code (IRC) - CORRECT ANSWER: Is the minimum standard
code for the State of Texas for one and two family dwellings compromised of three
stories or less. (Townhomes less than 3 stories)
JP Court Eviction - CORRECT ANSWER: In addition to the eviction suit, a suit for rent
may be filed if it is under 10,000
Lead Based Paint - CORRECT ANSWER: Houses built prior to 1978 are required under
the Residential Lead Bases Paint Hazard Reduction Act of 1992 to provide certain info
before renting, buying, or renovating.
