Chapter 17 Quiz

Question 1 of 15

1. Question

A property manager would likely be concerned with all of the following except:

trends in family size and life styles
local employment levels
market rental rates
local commission rates on real estate sales

Question 2 of 15

2. Question

Which of the following statements best describes the relationship between a management proposal and a management plan?

The management plan is part of the management proposal
The management proposal becomes the management plan when accepted by the property owner
The management plan is always developed first, before the management proposal
There is no relationship between the management plan and the management proposal

Question 3 of 15

3. Question

The type of property that would normally have the highest tenant turnover rate is a/an:

apartment building
shopping mall
office tower
industrial park

Question 4 of 15

4. Question

The types of businesses operated by tenants is usually of greatest concern to a manager of:

retail property
office property
residential property
industrial property

Question 5 of 15

5. Question

A property manager’s preliminary study normally covers four basic areas of analysis:

the region, the neighborhood, the property, and the market
the economy, the site, the market, and occupancy rates
occupancy rates, absorption rates, interest rates, and property values
the building, the site, the neighborhood, and the city

Question 6 of 15

6. Question

A list of the rental rates assigned to the various types of units in a property is called a:

rent roll
rental schedule
rental list
rental budget

Question 7 of 15

7. Question

Repairing a broken window in a building is an example of:

preventive maintenance
corrective maintenance
housekeeping
elective maintenance

Question 8 of 15

8. Question

A property’s variable expenses include:

property taxes and utilities
utilities and maintenance expenses
maintenance expenses and insurance premiums
utilities and debt service

Question 9 of 15

9. Question

The difference between the value of a property and the total amount of the liens against the property is called:

cash flow
equity
appreciation
cash on cash

Question 10 of 15

10. Question

When occupancy rates are rising, property managers tend to:

lower rents
raise rents
evict tenants
increase advertising for rental properties

Question 11 of 15

11. Question

Security deposits can protect a property owner from:

a tenant who defaults on the rent payment
damage to the rental property caused by a tenant
both
none

Question 12 of 15

12. Question

Taking full advantage of a property’s appreciation without having to invest the full cost of the property is called:

leverage
cash flow
yield
equity

Question 13 of 15

13. Question

The owner of a freehold estate can be reduced to holding a leasehold estate as a result of:

a sale-leaseback arrangement
the sale of mineral or oil rights
leasing the property to an agricultural tenant
the grant of an easement appurtenant

Question 14 of 15

14. Question

Which of the following must take the form of a written document?

Management agreement
Property maintenance contract
Property management designation
Management plan

Question 15 of 15

15. Question

A landlord can use all or a portion of a tenant’s security deposit for any of the following, EXCEPT:

replacing worn carpeting
unpaid rent
cleaning the property
replacing a broken window

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