Property Management Chapter Quizzes Self-Check Answer ..., Exercises of Construction

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Property Management Chapter Quizzes

Self-Check Answer Keys

THE CAREER INSTITUTE

PROFESSIONAL PROPERTY MANAGEMENT

Chapter 1: Multiple Choice

1. The primary function of the property manager is to a) rent units for owners. b) generate greatest income for owner. c) show space to prospective tenants. d) decrease the value of the property.
2. One of the contributing factors that has contributed to the development of property management is the a) declining cost of apartment building construction. b) centralization of traditional downtown areas. c) increased use of trolleys and rail lines. d) invention of steel frame buildings and elevators.
3. The oldest residential property management certification program in the United States and which is HUD-approved is a) Certified Apartment Manager (CAM). b) Professional Property Manager (PPM). c) Registered Apartment Manager (RAM). d) Accredited Residential Manager (ARM)
4. Commercial real estate includes a) apartment buildings. b) farms. c) mines. d) office buildings.
5. The largest demand for the services of the professional property manager is found in what type of property? a) Residential b) Commercial c) Industrial d) Government
6. Shopping centers, factory outlets and super regional malls are examples of a) special purpose properties. b) distribution facilities. c) office property. d) retail property.
7. Many business parks offer a combination of office and industrial space that is divided into units of various sizes. These spaces are called a) loft buildings. b) incubator spaces. c) ministorage. d) light industrial.
8. Properties designed to meet specific needs of heavy industry are generally a) developed by real estate speculators. b) managed by large real estate companies. c) occupied and managed by the owner. d) sold to investors and leased back.

Chapter 2: Multiple Choice

1. Which of the following best describes a market? a) Expansion and contraction phases b) Seasonal variations c) Cyclic and random changes d) Exchange of goods between buyers and sellers
2. The four phases of the business cycle are a) inflation, expansion, growth, contraction. b) expansion, growth, contraction, revival. c) expansion, recession, contraction, revival. d) contraction, growth, revival, contraction.
3. Long-term movements in the real estate industry may be _________ those in the general economy. a) opposite b) same as c) longer than d) shorter than
4. Which one of the following would be one of the more indirect government actions to influence the economy? a) Government decreasing taxes b) Downturn in general business economy c) Closure of defense facilities d) Major plant closing
5. The residential rental market corresponds roughly to a) cycles in multifamily housing starts. b) commercial properties. c) industrial property. d) construction of new shopping centers.
6. The financial and operational strategy for the ongoing management of a property is the a) property manager. b) evaluation of all properties in the area. c) management plan. d) five-year forecast.
7. A property manager can measure economic trends through all of the following EXCEPT a) regional market analysis. b) neighborhood market analysis. c) supply and demand. d) operating budget
8. If a property manager wants to find out if occupancy levels for a given type of property are rising or falling, he or she should a) call the local chamber of commerce. b) survey comparable properties. c) check with the census bureau. d) consult the Consumer Price Index (CPI)

9. More available units than tenants indicates a) occupancy trends. b) curb appeal. c) economic oversupply. d) technical oversupply.
10. Which of the following is the first step in the management plan? a) Prepare five-year forecast b) Prepare an operating budget c) Establish optimum rents d) Predict anticipated revenue

9. Security deposit balances and accounting are an essential part of a property takeover. How should the new property manager handle security deposits? a) Follow the owner's instructions b) Handle the deposits in the same manner as the previous manager c) Adhere to state laws d) Create a new system
10. To maintain an on-going satisfactory relationship with the owner, the manager should a) send the owner reports only upon written request from the owner. b) send monthly earnings report and a personal letter. c) contact the owner only in an emergency. d) send quarterly written reports and monthly phone calls.

Chapter 4: Multiple Choice

1. What is the best and least expensive method of renting property? a) Brochures b) Signs c) Referrals d) Direct mail
2. Which of the following exerts the strongest influence over the design of the marketing plan? a) Location of the property b) Kind of property c) Mood of the manager d) Influence of other property managers
3. What kind of marketing campaign is indicated if the building has a high vacancy rate? a) Well-planned promotional effort to enhance prestige b) Evenly-spaced advertising campaign c) Little or no advertising due to lack of income d) Advertise and heavily promote to quickly draw in potential tenants
4. Classified ads are the most prevalent method of advertising in which type of property? a) Residential b) Commercial c) Industrial d) Retail stores
5. Of the following, which is the most expensive form of advertising? a) Television b) Display ads c) Radio d) Classified ads
6. What type of advertising is often favored by industrial and commercial property owners? a) Direct mail. b) Periodicals. c) Radio. d) Television.
7. Which of the following offers 24-hour a day access to tenants who are trying to locate rental properties? a) Telephone answering service b) Taped phone messages c) Mixed media d) Internet site
8. Showing space, determining a prospect's needs, spatial requirements and urgency are considered part of a) closing techniques. b) negotiating. c) qualifying the prospect. d) direct selling.

Chapter 5: Multiple-Choice

1. A leasehold estate used by most residential property managers is a(n) a) estate by the entireties. b) estate from period to period. c) estate for years. d) tenancy at will.
2. An estate that occurs at the end of a lease term without the consent of the owner is a(n) a) estate for years. b) tenancy at will. c) estate by the entireties. d) tenancy at sufferance.
3. A lease under which the tenant pays a flat fee and the landlord pays all the ex? penses of the building is called a a) net lease. b) gross lease. c) percentage lease. d) triple-net lease.
4. All of the following are correct regarding the basic elements of a valid lease EXCEPT a) Description of the property b) Names and signatures of lessors and lessees c) Consideration or amount of rent d) Racial composition of the tenants
5. Which statute requires any leases not fully performable within one year be in writing to be legally enforceable? a) Statute of time and use b) Statute of limitations c) Statute of frauds d) None of the above
6. Options to renew a lease favor the a) tenant. b) landlord. c) landlord and tenant. d) None of the above
7. The clause in a lease that could help a new starting business is the a) index clause. b) step up clause. c) pass-through. d) expense stop.
8. The transfer of a tenant's rights of all the remaining interest to a third party is called a) an assignment. b) subletting. c) subrogation. d) release of liability.

9. The tenant may terminate his lease when the landlord fails to provide essential services by claiming a) will noncompliance. b) notice to quite. c) actual eviction. d) constructive eviction.
10. Which is about the only reason that a manager should use a standard lease form? a) Inexpensive b) May be out of date c) Often require much revision d) Manager is familiar with the legal ramifications and provisions

9. Which of the following is an indirect way to ease moving costs of a tenant? a) Lease assumption b) Paying for the moving vans c) Lease buy-out d) Offer stationary with the new address at no charge
10. When the prospective tenant hesitates, the effective manager will employ several a) styles of discussion. b) qualifying questions. c) closing techniques. d) trial closes.

Chapter 7: Multiple Choice

1. Which of the following creates good tenant relations? a) Inconsistent maintenance of the property b) Little communication with the tenants c) Lax enforcement of the building rules d) Reputation for good maintenance of the property
2. Of the following, the best tool for good landlord tenant relations is a) many rules. b) move-in inspections. c) vague understanding of lease terms. d) varying rental rates from the same units.
3. How should the manager deal with maintenance requests? a) Ignore them unless repeated three times b) Process once a week, preferably on Monday mornings c) Tell the tenant when the repair will be made, or why it won t be done d) Procrastinate and evade the issue
4. What is the benefit of a stable, satisfied tenant population? a) Threatens earning capabilities of the building b) Improves stability of property income c) Increases manager s time showing units d) Increases renovation costs
5. How can the manager encourage prompt rental payments? a) Accept valid excuses for late payments if made before the due date b) Begin with clear-cut understanding as to when and where payments are due c) Avoid charging late fees d) Shun offering incentives for early payments
6. All of the following would be bargaining factors when it comes time to renew the lease EXCEPT a) discussion of the national origin of other tenants. b) length of new lease term. c) extent of redecorating. d) rental amount increase.
7. How can a manager avoid tenant protest over a rent increase? a) Short notice, possibly less than 30 days b) No explanation for the rent increase c) Decrease services d) Long notice, three to six months, in advance
8. Which statement is correct when a tenant terminates a lease? a) Manager does not need to know the reason for the tenant's move. b) Manager does not need inspect the space with the tenant before he or she moves. c) Tenant must give notice of intent to vacate within a certain period d) Manager can dispense with the exit interview.

Chapter 8: Multiple Choice

1. Which of the following types of maintenance is aimed at preserving the physical integrity of a property? a) Corrective maintenance b) Preventive maintenance c) Deferred maintenance d) Routine maintenance
2. Which category of maintenance is closely tied to tenant relations? a) Corrective maintenance b) Routine maintenance c) New construction d) Preventive maintenance
3. What person usually coordinates and executes all maintenance operations of an apartment building? a) Property manager b) Maintenance chief c) Construction crew d) Resident manager
4. Regarding maintenance, the property manager a) need not be conversant with the economics, staffing and scheduling of maintenance personnel. b) must be aware of the maintenance needs of the building and where to turn for help when needed. c) should be able to fix of all mechanical and electrical systems. d) must be a decorator, painter, roofer and plumber.
5. Who should have the responsibility for approving the hiring and firing of employees? a) Property manager b) Resident manager c) Construction superintendent d) Property management executive
6. A manager could hire which of the following individuals to supervise and do the work of various skilled trades? a) Construction superintendent b) Subcontractor c) General contractor d) Any of the above
7. The first step in designing a preventive maintenance program is a) keep records. b) inventory equipment and buildings. c) calculate costs. d) schedule tasks.
8. What is the importance of a maintenance check? a) Few serious potential problems can be averted by regular inspections. b) The manager does not need a checklist of the building's features. c) Maintenance checks can be done sporadically, when there is time. d) The manager should inspect the interior and exterior of each property.

9. Which of the following laws requires that businesses and other facilities open to the public must remove physical barriers? a) Americans with Disabilities Act (ADA) b) Equal Credit Opportunity Act (ECOA) c) Fair Housing Amendments of 1988 d) Truth-in-Lending (T-I-L)
10. An example of appropriate life-cycle costing is a) computing the cost of an energy product over one year. b) ignoring investment tax credits when purchasing energy equipment. c) buying a higher priced item with lower operating costs. d) buying a lower priced item, no matter what.

9. If the manager is required to live on the premises, the manager a) must pay taxes on the fair market value of the rent. b) must pay into social security based on fair market value. c) does not have to pay taxes on the fair market value of the rent. d) must file a 1099 on the fair market value.
10. An example of direct costs include a) general office overhead. b) accounting department expenses. c) corporate advertising. d) resident manager s salary.

Chapter 10: Multiple Choice

1. Which of the following is a forbidden activity under antitrust laws? a) Blockbusting b) Steering c) Price-fixing d) Redlining
2. Which law was reinforced by the Jones v. Alfred H. Mayer Company Supreme Court decision prohibiting all racial discrimination? a) Civil Rights Act of 1866 b) Title VIII of the Civil Rights Act of 1968 c) Equal Credit Opportunity Act d) Fair Credit Reporting Act
3. Which of the following are protected classes under the Equal Credit Opportunity Act but not under the Fair Housing Laws? a) Race and color b) Religion and national origin c) Age and marital status d) Sex and handicap
4. Housing for the elderly is intended for a) those over the age of 55. b) those over the age of 62. c) elderly handicapped people. d) families with no infant children.
5. Residential rental properties must be handicap accessible if built before a) 1989. b) 1991. c) 1995. d) 2000.
6. Civil penalties assessed in fair housing actions are paid to a) the aggrieved party. b) HUD. c) United States treasury. d) the attorneys.
7. Which of the following is permitted information to consider when malting a loan under the Equal Credit Opportunity Act? a) Birth control practices b) Widowed or married c) Single or divorced d) Proof of income
8. The purpose of looking at a credit report is to see a) how a prospect has treated other lenders. b) privileged medical information. c) driving records. d) comments concerning job performance.