100 question test in cal real estate property management need help asap 4

  1. A client wants to reduce the property’s hazard insurance coverage substantially, in order to save money on the premiums. If the property manager tries to arrange this, the insurance company might:
    a. terminate coverage based on a charge of fraud
    b. keep the policy in force, but lower the client’s credit rating
    c. agree to reduce the coverage only if the deductible is increased by a corresponding amount
    d. refuse to reduce the coverage, because insurers generally require that property be insured to at least 80% of its value

1 points

QUESTION 2

  1. A continuous operation provision in a lease is most likely to apply to:
    a. an anchor tenant in a shopping center
    b. the landlord of a stand-alone retail property
    c. a tenant leasing Class C office space
    d. the owners association in a condominium or other CID

1 points

QUESTION 3

  1. A conversion ratio measures:
    a. how much of the multi-family housing stock in this market has been converted to condominiums
    b. how many prospects it takes to get a signed lease for a rental space
    c. what percentage of a property’s tenants have occupied their spaces for over one year
    d. what percentage of a property’s tenants renew their leases if offered the opportunity

1 points

QUESTION 4

  1. A developer builds a large office tower in a city where there is a shortage of office space and rents are high. This will:
    a. increase demand, which will tend to lower rents
    b. increase demand, which will tend to increase rents
    c. increase supply, which will tend to lower rents
    d. increase supply, which will tend to increase rents

1 points

QUESTION 5

  1. A difficult and tight-fisted client is making it just about impossible for Serena to maintain and operate the property in compliance with landlord-tenant laws and other legal requirements. Assuming that their management agreement is typical, which of the following is correct?
    a. The client’s failure to keep the property in compliance with legal requirements is a breach of the management agreement
    b. The contract requires Serena to use her own funds to prevent legal violations if the client fails to do so
    c. Serena is contractually liable for any fines, damages, or other penalties that result from legal noncompliance
    d. Serena is contractually obligated to report the legal violations to the appropriate authorities

1 points

QUESTION 6

  1. A lease in which all of the operating expenses are passed through to the tenant is called a:
    a. triple net lease
    b. CAM lease
    c. gross lease
    d. shadow lease

1 points

QUESTION 7

  1. A maintenance employee assaulted one of the tenants in a building that Clive manages. Clive hired and supervised the employee. Regarding Clive’s potential liability in connection with this incident, which of the following is correct?
    a. Clive can’t be held liable because he didn’t authorize the employee’s action
    b. Clive’s liability is likely to depend on whether he was negligent in his hiring, supervision, or retention of the employee
    c. Clive can be held liable only if he failed to do a criminal background check when the employee was hired
    d. Clive can be held liable only if he participated in the incident, benefited from it in some way, or assisted the employee after the fact

1 points

QUESTION 8

  1. A maintenance request form for tenants to fill out should include:
    a. an estimate of how long the work is likely to take
    b. a hold harmless clause, protecting the manager against liability for work negligently performed
    c. work order and purchase order numbers, if applicable
    d. an authorization for entry into the tenant’s rental space or unit, to be signed by the tenant

1 points

QUESTION 9

  1. A new client who just inherited a commercial building has told her property manager that she doesn’t plan to sell the property, but her primary financial goal is a quick, high return. In this situation, the manager should:
    a. persuade the client to sell the property, even if that isn’t in the manager’s self-interest
    b. realize that the client will probably be reluctant to authorize any expenditures unless they’re necessary to maintain or increase the property’s net income in the short term
    c. explain the income tax consequences of that choice to the client
    d. tell the client that his fiduciary duties do not allow him to represent her on those terms

1 points

QUESTION 10

  1. A new commercial tenant is requesting build-out work that will cost more than the agreed improvement allowance. The property manager should:
    a. notify the tenant that the requested improvements will have to be scaled back
    b. remind the tenant that any construction costs in excess of the allowance will be the tenant’s responsibility
    c. increase the allowance to cover the additional work, as long as the changes will increase the value of the property as a whole
    d. consult with the client before agreeing to increase the tenant’s improvement allowance

1 points

QUESTION 11

  1. A property manager has a legal obligation to protect and promote her client’s interests. This is because the manager:
    a. is the client’s agent and owes the client fiduciary duties
    b. is a member of a professional association with a code of ethics that specifically requires this
    c. is subject to the Uniform Standards of Professional Property Management
    d. has signed a contract (the management agreement) that expressly requires this

1 points

QUESTION 12

  1. A property manager is preparing a management plan for a new client’s property. The manager’s property analysis:
    a. should focus primarily on the property’s physical condition at this stage
    b. should include an evaluation of the property’s current operations, leasing, management, and financial condition, as well as its physical condition
    c. should be performed after the market analysis, for most types of property
    d. must be based on an appraisal performed by a state-licensed or -certified appraiser within the previous six months

1 points

QUESTION 13

  1. A property manager is deciding on a marketing plan for a vacant retail space. How much advertising will be needed in order to find the next tenant for the space is most likely to be affected by:
    a. branding
    b. the target market
    c. the property’s location
    d. the cost per prospect

1 points

QUESTION 14

  1. A property manager is doing a preliminary study in order to prepare a management plan. As usual, the preliminary study will involve five main categories of analysis. These categories include all of the following, except:
    a. analysis of alternatives
    b. analysis of demographics
    c. regional analysis
    d. neighborhood analysis

1 points

QUESTION 15

  1. A property manager may suggest physical changes to a client’s property in order to correct or address different forms of depreciation. Which of the following is true?
    a. Correcting curable external obsolescence is called remodeling
    b. Correcting curable physical deterioration is called remodeling
    c. Correcting curable functional obsolescence is called rehabilitation
    d. Correcting deferred maintenance is called rehabilitation

1 points

QUESTION 16

  1. A property manager needs a bad debt and vacancy factor for a residential property’s annual operating budget. She is most likely to:
    a. check the MSA website to see projected average vacancy rates for her area
    b. evaluate the property’s actual rent collection record in previous years
    c. base it on changes in the Consumer Price Index
    d. use the figure agreed to in the management agreement

1 points

QUESTION 17

  1. A property manager rejected a rental application for a retail space because of the applicant’s race. Was this legal or illegal?
    a. Legal, because this is commercial property and the Fair Housing Act applies only to residential property
    b. Legal, because antidiscrimination laws apply to real estate sales transactions, not lease transactions
    c. Illegal, because any discrimination by a property manager is a violation of the manager’s fiduciary duties
    d. Illegal, because the Civil Rights Act of 1866 prohibits discrimination based on race or color in all real estate transactions

1 points

QUESTION 18

  1. A property manager records rents collected from tenants when they are actually paid (not merely owed), but he records certain operating expenses as they accrue (as opposed to when they’re paid). This manager is using the:
    a. payment point accounting method
    b. certified accounting method
    c. modified cash-basis accounting method
    d. triple-entry accounting method

1 points

QUESTION 19

  1. A property manager should not give “welcome to the building” gifts to new tenants:
    a. that cost more than $25, the legal limit
    b. because such gifts are a form of illegal kickback
    c. unless all tenants receive exactly the same gift
    d. without the property owner’s prior authorization

1 points

QUESTION 20

  1. A property manager’s rent collection records should include:
    a. both a rental ledger and a rent roll
    b. either a rental ledger or a rent roll
    c. a rental ledger rather than a rent roll
    d. a rent roll rather than a rental ledger

1 points

QUESTION 21

  1. A rental application form or packet should include:
    a. an inquiry regarding race, ethnic background, familial status, and disability, to enable the manager to demonstrate Fair Housing Act compliance
    b. an authorization for a citizenship status check, signed by the applicant, for Patriot Act compliance
    c. an authorization for a credit check (and a criminal background check, if desired), signed by the applicant, for FCRA compliance
    d. an authorization for entry without notice in emergencies, signed by the applicant, for URLTA compliance

1 points

QUESTION 22

  1. A residential lease should be signed by:
    a. everyone who will occupy the unit
    b. all competent adults who will occupy the unit
    c. only one competent adult, as the fully liable representative of all other occupants
    d. only the occupant(s) who have accepted joint and several liability for the rent, at least one of whom must be a competent adult

1 points

QUESTION 23

  1. A residential property manager looking for new tenants for a single-family rental house rejects an application from two men because she thinks they are gay. Which of the following is true?
    a. Sexual orientation is not one of the protected classes in the federal Fair Housing Act
    b. The federal Fair Housing Act does not apply to the rental of single-family homes
    c. The property manager did not personally violate the law if the property owner gave her written instructions not to rent to homosexuals
    d. The property manager has violated the federal Fair Housing Act

1 points

QUESTION 24

  1. A retail space that is separate from a mall’s main shopping area but still within the boundaries of the parking lot is called:
    a. an island
    b. a satellite space
    c. an outparcel
    d. a magnet store

1 points

QUESTION 25

  1. A tenant who pays rent on a monthly basis has abandoned the leased space when there are still six months remaining in the lease term. In this situation:
    a. the space cannot be leased to a new tenant until the former tenant’s lease term expires
    b. the former tenant can be held responsible for no more than three months of additional rental payments
    c. the former tenant is still liable for the rent for six more months, even if a new tenant is found right away
    d. the former tenant could still be liable for the rent for six more months, but the landlord or manager must make an effort to find a new tenant promptly

1 points

QUESTION 26

  1. Administrative regulations:
    a. are merely guidelines, without the force of law
    b. may be federal, state, or local
    c. are enacted by a legislative body
    d. apply only in a particular city or county

1 points

QUESTION 27

  1. After an apartment building’s operating expenses and mortgage payment have been paid, the amount of money left over from the rents collected that month is called the:
    a. equity
    b. leverage
    c. appreciation
    d. cash flow

1 points

QUESTION 28

  1. All of the following statements about industrial parks are correct, except:
    a. Industrial parks are also called business parks
    b. They typically have single-story shell buildings with high ceilings
    c. They may be developed as condominiums
    d. They usually allow only manufacturing uses, so that business offices and warehouses must be located elsewhere

1 points

QUESTION 29

  1. All of the following investor-owners would be likely to hire a professional property manager, except:
    a. Mary Ann, a surgeon who owns a residential duplex and rents both units to tenants
    b. Paul, a commercial fisherman who owns 20 acres of undeveloped land that he’s holding for appreciation
    c. the Cartwright Group, a partnership that recently purchased and renovated an 80-unit apartment building constructed in the 1920s
    d. Ernesto, a retiree who owns a small office building and lives in another state

1 points

QUESTION 30

  1. An R/U ratio is often used to determine:
    a. the maximum number of people that can legally occupy a residential unit
    b. the optimum number of smaller stores for a shopping center with a particular type of anchor store
    c. how much a commercial tenant will have to pay toward the building’s common area expenses
    d. how many parking spaces a retail building will need in order to accommodate customers and employees

1 points

QUESTION 31

  1. An asset manager’s services would include:
    a. paying the property taxes and insurance premiums for a client’s property when due
    b. evaluation of whether a client’s property is serving its highest and best use
    c. hiring and supervising the staff for a client’s property
    d. heading the leasing team for a client’s property

1 points

QUESTION 32

  1. “Any allocation of funds that is expected to generate a profit for the owner” is a definition of:
    a. appreciation
    b. dividend
    c. investment
    d. security

1 points

QUESTION 33

  1. Anya is preparing a management plan for an office building. In her regional analysis, Anya is likely to be especially interested in data concerning:
    a. average family size
    b. HVAC alternatives
    c. consumer trends
    d. future employment growth

1 points

QUESTION 34

  1. As a general rule, and without reference to specific provisions in the lease agreement, notice of termination is required:
    a. only when a landlord (or his property manager) wants to end a tenant’s periodic tenancy
    b. when a tenant wants to end a term tenancy
    c. when either the landlord or the tenant wants to end a periodic tenancy
    d. when either the landlord or the tenant wants to end a term tenancy

1 points

QUESTION 35

  1. As a general rule, empl