Property Management Final Exam
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Any cash left over after cash expenses is called:
A. Gross income
B. Change
C. Cash flow
D. Net income - CORRECT ANSWER - C. Cash flow
By using social media, which of the following can improve your property reputation online:
A. Encourage renters to leave a review
B.you can find a large number of highly qualified tenants
C.encourage potential renters to read reviews
D. All the answers are correct - CORRECT ANSWER - D. All the answers are correct
When the value of a real estate property increases over time, this is called:
A. Depreciation on capital gains
B. Appreciation
C. Equity
D. All the answers are incorrect - CORRECT ANSWER - B. Appreciation
A property management plan includes:
A. an analysis of the present state of the property's physical condition
,B. nature of tenants, rents, and lease provisions
C. what you expect to achieve and how you will achieve it
D. all the answers are correct - CORRECT ANSWER - D. all the answers are correct
A property management plan that includes a budget for the first year based on anticipated
expenses and anticipated revenue is called a:
A. real property expectations statement
B. pro-forma statement
C. first year budget
D. reserve requirements statement - CORRECT ANSWER - B. pro-forma statement
National and local economic conditions can affect which of the following factors?
A. costs
B. rents
C. vacancy factors
D. all the answers are correct - CORRECT ANSWER - D. all the answers are correct
Use of signs, websites, online advertising, open houses, press releases, etc., are all part of a(n):
A. construction plan
B. marketing plan
C. financial plan
D. economic plan - CORRECT ANSWER - B. marketing plan
Which of the following are valid reasons for a property manager to refuse management services
to an owner?
,A. negative cash flow
B. poor depreciation
C. inadequate commission compensation
D. negative cash flow and inadequate commission compensation - CORRECT ANSWER -
D. negative cash flow and inadequate commission compensation
An agreement between the owner and the property manager that clearly lists the obligations of
the parties is referred to as:
A. a property management contract
B. a service contract
C. an obligatory contract
D. all the answers are incorrect - CORRECT ANSWER - A. a property management
contract
If an owner agrees to hold a manager harmless for damages or injuries to persons or property
when the manager is carrying out provisions of a contract, this is called:
A. compensation
B. special services
C. indemnification
D. waiver of subrogation - CORRECT ANSWER - C. indemnification
When renting to friends and relatives, as a property manager, you should:
a. give them a good deal on your fees
b. fully disclose any and all relationships to the owner
c. treat them with special circumstances
, d. relax some of the occupancy rules - CORRECT ANSWER - b. fully disclose any and all
relationships to the owner
Keeping a record of every tenant complaint can help you identify:
a. service contract problems
b. maintenance deficiencies
c. personnel problems
d. all answers are correct - CORRECT ANSWER - d. all answers are correct
The abuse of property that impairs the value of the property is called:
a. waste
b. over improvement
c. under improvement
d. all answers are correct - CORRECT ANSWER - a. waste
In a month-to-month tenancy, how many days notice is usually required to change the amount of
rent?
a. 60-120 days
b. 30-60 days
c. 45-90 days
d. 0-15 days - CORRECT ANSWER - b. 30-60 days
If a tenant fails to pay the rent on time, the first step in eviction would be a notice called:
a. a three-day notice
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Any cash left over after cash expenses is called:
A. Gross income
B. Change
C. Cash flow
D. Net income - CORRECT ANSWER - C. Cash flow
By using social media, which of the following can improve your property reputation online:
A. Encourage renters to leave a review
B.you can find a large number of highly qualified tenants
C.encourage potential renters to read reviews
D. All the answers are correct - CORRECT ANSWER - D. All the answers are correct
When the value of a real estate property increases over time, this is called:
A. Depreciation on capital gains
B. Appreciation
C. Equity
D. All the answers are incorrect - CORRECT ANSWER - B. Appreciation
A property management plan includes:
A. an analysis of the present state of the property's physical condition
,B. nature of tenants, rents, and lease provisions
C. what you expect to achieve and how you will achieve it
D. all the answers are correct - CORRECT ANSWER - D. all the answers are correct
A property management plan that includes a budget for the first year based on anticipated
expenses and anticipated revenue is called a:
A. real property expectations statement
B. pro-forma statement
C. first year budget
D. reserve requirements statement - CORRECT ANSWER - B. pro-forma statement
National and local economic conditions can affect which of the following factors?
A. costs
B. rents
C. vacancy factors
D. all the answers are correct - CORRECT ANSWER - D. all the answers are correct
Use of signs, websites, online advertising, open houses, press releases, etc., are all part of a(n):
A. construction plan
B. marketing plan
C. financial plan
D. economic plan - CORRECT ANSWER - B. marketing plan
Which of the following are valid reasons for a property manager to refuse management services
to an owner?
,A. negative cash flow
B. poor depreciation
C. inadequate commission compensation
D. negative cash flow and inadequate commission compensation - CORRECT ANSWER -
D. negative cash flow and inadequate commission compensation
An agreement between the owner and the property manager that clearly lists the obligations of
the parties is referred to as:
A. a property management contract
B. a service contract
C. an obligatory contract
D. all the answers are incorrect - CORRECT ANSWER - A. a property management
contract
If an owner agrees to hold a manager harmless for damages or injuries to persons or property
when the manager is carrying out provisions of a contract, this is called:
A. compensation
B. special services
C. indemnification
D. waiver of subrogation - CORRECT ANSWER - C. indemnification
When renting to friends and relatives, as a property manager, you should:
a. give them a good deal on your fees
b. fully disclose any and all relationships to the owner
c. treat them with special circumstances
, d. relax some of the occupancy rules - CORRECT ANSWER - b. fully disclose any and all
relationships to the owner
Keeping a record of every tenant complaint can help you identify:
a. service contract problems
b. maintenance deficiencies
c. personnel problems
d. all answers are correct - CORRECT ANSWER - d. all answers are correct
The abuse of property that impairs the value of the property is called:
a. waste
b. over improvement
c. under improvement
d. all answers are correct - CORRECT ANSWER - a. waste
In a month-to-month tenancy, how many days notice is usually required to change the amount of
rent?
a. 60-120 days
b. 30-60 days
c. 45-90 days
d. 0-15 days - CORRECT ANSWER - b. 30-60 days
If a tenant fails to pay the rent on time, the first step in eviction would be a notice called:
a. a three-day notice
