SAE - Property Management (Texas) 100% VERIFIED ANSWERS 2024/2025 CORRECT, Exams of Business Administration

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SAE - Property Management

(Texas) 100% VERIFIED

ANSWERS 2024/

CORRECT

Which statement is correct? A. Property mgmt & real estate brokerage are the same thing B. All real estate brokers in Texas must allow sponsored agents to perform property mgmt activities *C. Some real estate brokers do not allow property mgmt activities by their sponsored agents D. Property mgmt is not considered a real estate brokerage activity in Texas In Texas, agents need to be __________ in order to show, lease or accept payment for soliciting space for property owners. Licensed A(n) ________ is a person who, for a fee, manages a property for someone else. Property manager The four phases of a business cycle are prosperity, recession, contraction, and ___________. Recovery Equilibrium is said to be reached if: There is high supply and high demand Which statement is correct? *A. Real estate cycles can take longer than the general economic cycle B. Real estate cycles and general economic cycles always move at exactly the same pace

C. General economic cycles always take longer than real estate cycles D. No one can ever predict real estate or economic cycles __________ is every avenue a business pursues in order to reach out to the public to be seen. Marketing The ____________ is the physical location the product can be found. Place The __________ include: product, promotion, price, and place. The Four P's of Marketing Property management companies that operate under the __________ have dedicated property managers who are involved with every aspect of the properties they manage. Portfolio structure _________ are charged to each client to cover all of the services the property manager provides. Management fees Which of the following is true? A. It is better to be conservative on expenses and liberal on income B. Owners do not usually mind if the actual budget far exceeds the estimated budget C. The actual budget and the estimated budget almost always match exactly *D. When budgeting for owners, property managers need to be conservative on income and liberal on expenses The fiduciary duties a property manager owes to the owner are _________, loyalty, disclosure, confidentiality, accounting, and reasonable care. Obedience Which of the following should be included in a property management agreement? A. Policies and procedures for the repair of the property B. Duties and responsibilities of the property manger

C. The management term *D. All of these Which statement regarding reserves is incorrect? A. Reserve amounts are established based on the age, size, and residential profile of the property B. Older, larger properties will need more money in reserves to pay for repairs, etc. C. Reserves are held by the property manager to pay services providers and other costs associated with managing the property *D. The money for reserves comes from the property manager's own business accounts A solid, written rent collection policy should include: A. Suggestions for fire safety *B. When to pay C. Repair request forms D. Lease renewal policies Typically, most property managers will not accept __________ for rent payments Cash A property manager may not charge a late fee unless: It is clearly stated in the written lease Directions: Read the scenario and answer the questions that follow. Investor Mike owns a 200-unit residential property. For the last two years, rents have stayed the same because Mike subscribes to the philosophy that 100% occupancy is better than losing tenants to his competitors. After attending a real estate investment seminar, Mike realizes that by not raising rents for the last two years he has been missing out on literally thousands of dollars in profit. He believes that the market will support a rental increase, yet he is hesitant of raising the rents so much that his good tenants will get angry and move elsewhere. After doing some research into raising rental rates, Mike is now motivated and wants to raise the value of his asset, so he calls up his property manager, Jay, and informs him that he needs to raise the rent on each unit by 5% per month in the next 12 months as lease terms expire or units are re-leased. Jay knows that most of the residents will not balk at a $45 per month increase because it will cost much more than that to move, but he also knows there will be some objections, and which exactly which tenants will object the loudest.

He drafts the formal rental increase notice and braces himself for the onslaught of resident complaints. Assume that the property is at 100% occupancy. How much will the property's monthly income increase if each unit's rent is raised by $45 per month? A. $ *B. $9, C. $2, D. $ Directions: Read the scenario and answer the questions that follow. Investor Mike owns a 200-unit residential property. For the last two years, rents have stayed the same because Mike subscribes to the philosophy that 100% occupancy is better than losing tenants to his competitors. After attending a real estate investment seminar, Mike realizes that by not raising rents for the last two years he has been missing out on literally thousands of dollars in profit. He believes that the market will support a rental increase, yet he is hesitant of raising the rents so much that his good tenants will get angry and move elsewhere. After doing some research into raising rental rates, Mike is now motivated and wants to raise the value of his asset, so he calls up his property manager, Jay, and informs him that he needs to raise the rent on each unit by 5% per month in the next 12 months as lease terms expire or units are re-leased. Jay knows that most of the residents will not balk at a $45 per month increase because it will cost much more than that to move, but he also knows there will be some objections, and which exactly which tenants will object the loudest. He drafts the formal rental increase notice and braces himself for the onslaught of resident complaints. How much per year? A. $900, B. $9, C. $180, *D. $108, Directions: Read the scenario and answer the questions that follow. Investor Mike owns a 200-unit residential property. For the last two years, rents have stayed the same because Mike subscribes to the philosophy that 100% occupancy is better than losing tenants to his competitors. After

attending a real estate investment seminar, Mike realizes that by not raising rents for the last two years he has been missing out on literally thousands of dollars in profit. He believes that the market will support a rental increase, yet he is hesitant of raising the rents so much that his good tenants will get angry and move elsewhere. After doing some research into raising rental rates, Mike is now motivated and wants to raise the value of his asset, so he calls up his property manager, Jay, and informs him that he needs to raise the rent on each unit by 5% per month in the next 12 months as lease terms expire or units are re-leased. Jay knows that most of the residents will not balk at a $45 per month increase because it will cost much more than that to move, but he also knows there will be some objections, and which exactly which tenants will object the loudest. He drafts the formal rental increase notice and braces himself for the onslaught of resident complaints. If the rent for one unit was $900 per month, and it was increased to $945 per month, how much more per year is that unit alone earning for the owner Mike? A. $9, *B. $ C. $1, D. $5, Directions: Read the scenario and answer the questions that follow. Investor Mike owns a 200-unit residential property. For the last two years, rents have stayed the same because Mike subscribes to the philosophy that 100% occupancy is better than losing tenants to his competitors. After attending a real estate investment seminar, Mike realizes that by not raising rents for the last two years he has been missing out on literally thousands of dollars in profit. He believes that the market will support a rental increase, yet he is hesitant of raising the rents so much that his good tenants will get angry and move elsewhere. After doing some research into raising rental rates, Mike is now motivated and wants to raise the value of his asset, so he calls up his property manager, Jay, and informs him that he needs to raise the rent on each unit by 5% per month in the next 12 months as lease terms expire or units are re-leased. Jay knows that most of the residents will not balk at a $45 per month increase because it will cost much more than that to move, but he also knows there will be some objections, and which exactly which tenants will object the loudest. He drafts the formal rental increase notice and braces himself for the onslaught of resident complaints.

If, after the rental increase, 5 tenants moved out, how would the gross rental income for the year be affected? A. The gross rental income would decrease by $2,700 from the previous year. *B. The gross rental income would increase by $105,300 from the previous year. C. The gross rental income would not be affected at all. D. The gross rental income would decrease by $105,300 from the previous year Which type of lease renews itself for like periods of time? Periodic Tenancy/periodic estate Which of the following is NOT part of the residential applicant qualification process? *A. DUNS number search B. Credit report C. Recent pay stubs D. Criminal background check Which statement concerning residential leasing is FALSE? A. Landlords will want to make as few concessions as possible. *B. Residential tenants usually have more room for negotiation than commercial tenants. C. Property managers may negotiate referral fees with tenants who bring in other tenants. D. All of these statements are false Which of the following types of residential properties would have a higher cap rate? A. Class A Multifamily B. Class B Multifamily C. Class C Multifamily *D. Class D Multifamily What is the best description of garden-style apartments? These low-rise properties are usually found in the suburbs, spread out across a large piece of property with plenty of landscaped green space

The three main types of cooperatives are: equity cooperatives, limited equity cooperatives, and ___________ cooperatives. Leasehold Condominiums are established under laws referred to as ___________ property acts. Horizontal Which of the following types of properties do commercial real estate property managers typically NOT work with? A. Hospitality properties B. Restaurants C. Single-family residential D. Retail What is the best description of a dumbbell-designed shopping center? A. Two anchor stores located at opposite ends of the complex with a strip of forward-facing stores on either side that share a common walkway B. Based on a straight-line with an offshoot at a right angle to accommodate more shops C. Can have up to 3 anchor stores, one at the top, and the others at either end D. A straight-line with two arms connected at right angles on either side Which type of office building typically consists of 7 to 25 stories? A. Low-rise B. Mid-rise *C. High-rise D. Office park Which of the following types of properties do commercial real estate property managers typically NOT work with? A. Hospitality properties B. Restaurants *C. Single-family residential D. Retail

What is the best description of a dumbbell-designed shopping center? Two anchors at opposite ends of the complex, with a strip of forward-facing stores on either side, all sharing a common walkway. Which type of office building typically consists of 7 to 25 stories? Mid-rise Which of the following businesses is not included in hospitality properties? A. Hotels B. Golf resorts C. Casinos *D. Gas Stations Joseph's Comics and Collectibles occupies 3,600 sq.ft. in a 450,000 sq.ft., u-shaped power center. Over 50 retailers occupy space in the 40-year-old center including anchor tenants, a national office supply retailer, a 99¢ store, a national discount clothing retailer, and smaller local and chain businesses including a Chinese restaurant, a used bookstore, and an all-youcan-eat pizza buffet. The suburban center is on the southwest corner of two major roads yielding traffic counts of over 80,000 VPD (vehicles per day). Demographic data indicates that the average household income within 5 miles of the center is just under $80,000. Nearby traffic generators include a big-box retailer, a national pharmacy, and a large local grocery store. The center has ample parking for shoppers and employees at 1,800 spaces. For his leased space, owner Joseph pays a base rent of $17.00 per sq.ft, per year. He is on a triple net lease, paying estimated CAM fees for the year of $3.50 per.sq.ft.

1. What percentage of the shopping center does Joseph's Comics and Collectibles occupy? 0.8% Joseph's Comics and Collectibles occupies 3,600 sq.ft. in a 450,000 sq.ft., u-shaped power center. Over 50 retailers occupy space in the 40-year-old center including anchor tenants, a national office supply retailer, a 99¢ store, a national discount clothing retailer, and smaller local and chain businesses including a Chinese restaurant, a used bookstore, and an all-youcan-eat pizza buffet. The suburban center is on the southwest corner of two major roads yielding traffic counts of over 80,000 VPD (vehicles per day). Demographic data indicates that the average household income within 5 miles of the center is just under $80,000. Nearby traffic generators include a big-box

retailer, a national pharmacy, and a large local grocery store. The center has ample parking for shoppers and employees at 1,800 spaces. For his leased space, owner Joseph pays a base rent of $17.00 per sq.ft, per year. He is on a triple net lease, paying estimated CAM fees for the year of $3.50 per.sq.ft.

2. What is the base rent of Joseph's Comics and Collectibles for the year? $61, Joseph's Comics and Collectibles occupies 3,600 sq.ft. in a 450,000 sq.ft., u-shaped power center. Over 50 retailers occupy space in the 40-year-old center including anchor tenants, a national office supply retailer, a 99¢ store, a national discount clothing retailer, and smaller local and chain businesses including a Chinese restaurant, a used bookstore, and an all-youcan-eat pizza buffet. The suburban center is on the southwest corner of two major roads yielding traffic counts of over 80,000 VPD (vehicles per day). Demographic data indicates that the average household income within 5 miles of the center is just under $80,000. Nearby traffic generators include a big-box retailer, a national pharmacy, and a large local grocery store. The center has ample parking for shoppers and employees at 1,800 spaces. For his leased space, owner Joseph pays a base rent of $17.00 per sq.ft, per year. He is on a triple net lease, paying estimated CAM fees for the year of $3.50 per.sq.ft.
3. What is the parking ratio for the center? 4 spaces per 1,000 sqft of space Joseph's Comics and Collectibles occupies 3,600 sq.ft. in a 450,000 sq.ft., u-shaped power center. Over 50 retailers occupy space in the 40-year-old center including anchor tenants, a national office supply retailer, a 99¢ store, a national discount clothing retailer, and smaller local and chain businesses including a Chinese restaurant, a used bookstore, and an all-youcan-eat pizza buffet. The suburban center is on the southwest corner of two major roads yielding traffic counts of over 80,000 VPD (vehicles per day). Demographic data indicates that the average household income within 5 miles of the center is just under $80,000. Nearby traffic generators include a big-box retailer, a national pharmacy, and a large local grocery store. The center has ample parking for shoppers and employees at 1,800 spaces. For his leased space, owner Joseph pays a base rent of $17.00 per sq.ft, per year. He is on a triple net lease, paying estimated CAM fees for the year of $3.50 per.sq.ft.
4. What are the estimated triple net charges Joseph will pay? (Hint: Multiply the estimated NNN charges per sq.ft. by the sq.ft. of Joseph's comic book shop.)

$12,

The first federal fair housing law in the U.S. was the ___________. Civil Rights Act of 1866 Property managers CANNOT reject applications for housing based on which of the following? Not providing written permission to do a criminal background check In order to eliminate unintentional discrimination, criminal history screening policies should: Consider the nature and severity of an individual's conviction before excluding the individual based on the conviction. What type of maintenance must be performed immediately, due to a complete system failure or breakage that could affect the health and safety of tenants? Emergency maintenance A written facility maintenance policy and procedures manual should include: A list of supplies and equipment to be kept on premises Maintenance requests should include: A. The tenant's name and contact number B. A description of requested maintenance C. The date and time of the request *D. All of these should be included Which type of insurance policy protects firms in the event a claim is made against it for negligence? Errors and omissions insurance The National Environmental Policy Act requires federal agencies to prepare an evaluation of their proposed actions called a(n) ___________. Environmental Impact Statement

The cost of insurance policies are considered _________. Transfer costs The ________ is responsible for reviewing all other government agencies' EIS Environmental Protection Agency Angelo is a real estate investor who has purchased multiple residential rental properties that he has decided to manage himself, for the time being. As an investor-owner performing property management functions, he will have many experiences, both negative and positive, and will learn many valuable lessons along the way.

1. Angelo's personal home was severely damaged by fire the previous year during a lightning storm. The time and expense it took to clean out and repair his property has left him a little nervous about the possibility that a similar situation could arise at one of his rental properties. What type of insurance policy could Angelo take out to help protect him from the financial hardships associated with restoring a damaged income property? Business Interruption Insurance Angelo is a real estate investor who has purchased multiple residential rental properties that he has decided to manage himself, for the time being. As an investor-owner performing property management functions, he will have many experiences, both negative and positive, and will learn many valuable lessons along the way.
2. Angelo's tenant moves out, and while he is visiting the property to make it ready for the next one, a neighbor drops by and tells him that he suspects that the former tenant may have been running a meth lab on the property. What should Angelo's first order of business be? Call a company that specializes in testing properties for contamination to come out and test the home for meth contamination. Angelo is a real estate investor who has purchased multiple residential rental properties that he has decided to manage himself, for the time being. As an investor-owner performing property management functions, he will have many experiences, both negative and positive, and will learn many valuable lessons along the way.
3. Angelo has good reason to believe that one of his tenants might be utilizing his rental property as an illegal marijuana grow house. What are some telltale signs that the tenant is growing illegal marijuana?

Excessive water and electricity bills What acronym can be used for the National Fire Prevention Association safety tips for operating a fire extinguisher? PASS Which of the following innocent activities could present a risk for starting a fire? A. Using a space heater B. Smoking C. Cooking *D. All of these could potentially cause a fire PMs should periodically hold ________ as part of a fire preparedness plan to reinforce emergency procedure for exiting the building. Fire drills