Property Management UPDATED Exam
Questions and CORRECT Answers
Ch 9 - CORRECT ANSWER -
The managers office should be on the building premises when - CORRECT ANSWER -
most of the management operations are conducted there
Most property managers divide their office records into how many general categories for filing
purposes - CORRECT ANSWER - Five: lease, general correspondence, work estimates,
financial and permanent
The permanent property file should include - CORRECT ANSWER - the management
contract
Which of the following should be considered when purchasing a computer system? - CORRECT
ANSWER - One the spot maintenance and repairs
What is an example of a direct cost - CORRECT ANSWER - Payroll for the management
personnel at the building
If management operations are too limited to justify hiring a comptroller, the comptrollers tasks
should be assumed by the - CORRECT ANSWER - executive property manager
Who performs the general admin and daily ops of the property - CORRECT ANSWER -
field manager
Managment fees may be computed on a percentage basis or - CORRECT ANSWER - by
the per unit cost method
,Total cost 2,500/month
Gross income 50,000/month
30% of direct costs to cover overhead
What percentage fee? - CORRECT ANSWER - 6.5%
Monthly management fee / gross income
2500 + 2500*.,000
Direct costs 35000
Indirect costs 20000
750 units
20% profit
Minimum per unit fee? - CORRECT ANSWER - 35,000+20, *.20
$88
50 units
Gross income $300,000
Vacancy 6%
Per unit fee $300
Percentage management fee? - CORRECT ANSWER - 300 * 50 = 15,000
300,000*.06 = 282,000
15/282 = 5%
The most important operating record kept by the property manager is - CORRECT
ANSWER - monthly report on cash flow
, Which of the following is a nonrecurring variable expense? - CORRECT ANSWER - An
addition to the building
For the final quarter of the year, all of the following tax forms concerning employees must be
filed by the manager except - CORRECT ANSWER - Form 1099
Which statement accurately described income tax withholding forms - CORRECT
ANSWER - Form W-4 is filled out by the employee, but the responsibility for obtaining it
is on the employer
A manager would MOST likely want a percentage of the collected rents in which of the
following situations? - CORRECT ANSWER - Upscale apartment building with high
demand
Unemployment taxes are levied and must be paid when filing - CORRECT ANSWER -
FUTA
A commercial prop containing 35,000 sq. ft. is rented at 6$ per foot. Actual collected only
$168,000. What occupancy rate should be used in budget forecast for next year - CORRECT
ANSWER - 80%
An apartment building has fixed costs of $75,000 per year and a variable cost ratio of 25%. What
is the breakeven point? - CORRECT ANSWER - 100,000
What is the cap rate? - CORRECT ANSWER - A method to convert future income to
present value
A property manager had two vacancies. When a single parent and her child inquired about an
apartment they were told that the building was 100% occupied. This is... - CORRECT
ANSWER - Steering
Questions and CORRECT Answers
Ch 9 - CORRECT ANSWER -
The managers office should be on the building premises when - CORRECT ANSWER -
most of the management operations are conducted there
Most property managers divide their office records into how many general categories for filing
purposes - CORRECT ANSWER - Five: lease, general correspondence, work estimates,
financial and permanent
The permanent property file should include - CORRECT ANSWER - the management
contract
Which of the following should be considered when purchasing a computer system? - CORRECT
ANSWER - One the spot maintenance and repairs
What is an example of a direct cost - CORRECT ANSWER - Payroll for the management
personnel at the building
If management operations are too limited to justify hiring a comptroller, the comptrollers tasks
should be assumed by the - CORRECT ANSWER - executive property manager
Who performs the general admin and daily ops of the property - CORRECT ANSWER -
field manager
Managment fees may be computed on a percentage basis or - CORRECT ANSWER - by
the per unit cost method
,Total cost 2,500/month
Gross income 50,000/month
30% of direct costs to cover overhead
What percentage fee? - CORRECT ANSWER - 6.5%
Monthly management fee / gross income
2500 + 2500*.,000
Direct costs 35000
Indirect costs 20000
750 units
20% profit
Minimum per unit fee? - CORRECT ANSWER - 35,000+20, *.20
$88
50 units
Gross income $300,000
Vacancy 6%
Per unit fee $300
Percentage management fee? - CORRECT ANSWER - 300 * 50 = 15,000
300,000*.06 = 282,000
15/282 = 5%
The most important operating record kept by the property manager is - CORRECT
ANSWER - monthly report on cash flow
, Which of the following is a nonrecurring variable expense? - CORRECT ANSWER - An
addition to the building
For the final quarter of the year, all of the following tax forms concerning employees must be
filed by the manager except - CORRECT ANSWER - Form 1099
Which statement accurately described income tax withholding forms - CORRECT
ANSWER - Form W-4 is filled out by the employee, but the responsibility for obtaining it
is on the employer
A manager would MOST likely want a percentage of the collected rents in which of the
following situations? - CORRECT ANSWER - Upscale apartment building with high
demand
Unemployment taxes are levied and must be paid when filing - CORRECT ANSWER -
FUTA
A commercial prop containing 35,000 sq. ft. is rented at 6$ per foot. Actual collected only
$168,000. What occupancy rate should be used in budget forecast for next year - CORRECT
ANSWER - 80%
An apartment building has fixed costs of $75,000 per year and a variable cost ratio of 25%. What
is the breakeven point? - CORRECT ANSWER - 100,000
What is the cap rate? - CORRECT ANSWER - A method to convert future income to
present value
A property manager had two vacancies. When a single parent and her child inquired about an
apartment they were told that the building was 100% occupied. This is... - CORRECT
ANSWER - Steering
