Real Estate Property Asset
Management
D. Residential - answer Which of the following types of real estate properties utilizes
more professional property managers?
a. Industrial
b. Commercial
c. Special-purpose
d. Residential
a. Population shifts to the suburbs - answerThe growth of shopping centers has been
stimulated by
a. Population shifts to the suburbs
b. Declining construction costs
c. Urban renewal programs
d. The International Council of Shopping Centers
d. Achieve the objectives of the owner - answerThe professional property manager
formulates plans to
a. Generate the most amount of money
b. Maintain 100% building occupancy
c. Enhance the prestige of the property
d. Achieve the objectives of the owner
a. Maintain 100% occupancy - answerAll of the following should be goals of the
professional property manager EXCEPT
a. Maintain 100% occupancy
b. Generate income to the owner
c. Increase value of the property
d. Accomplish the objectives of the owner
a. Retail property - answerThe ability of a property manager to assess a market and
implement sales promotion is MOST critical when dealing with
a. Retail property
b. Industrial property
c. Office property
d. Special-purpose property
d. Monitoring the financial performance of a portfolio of properties - answerAsset
managers often have the task of
a. Repairing properties
b. Selecting tenants
,c. Acquiring taxi services for tenants
d. Monitoring the financial performance of a portfolio of properties
b. Terminate the management agreement - answerIf a property owner asks a property
manager to manage the property in violation of current civil rights laws, the property
manager should
a. Comply with the owner's wishes under protest
b. Terminate the management agreement
c. Comply immediately without complaint
d. Comply but inform the building's tenants about what the owner is requesting
b. Socially or culturally imposed rules of conduct that go beyond the letter of the law -
answerEthics conduct refers to
a. Legally required conduct
b. Socially or culturally imposed rules of conduct that go beyond the letter of the law
c. Opportunities to obey civil rights legislation
d. The property manager's obligation to supervise his or her employees
b. Reserve funds - answerIn the operating budget, what is the name of the expenditure
that accounts for money for replacement expenditures?
a. Cash flow
b. Reserve funds
c. Variable expenses
d. Direct costs
b. Trends in real estate lag significantly behind trends in the general economy -
answer10. Cycles of the general business economy differ from those of the real estate
market in that the
a. General business economy is usually subject to more extreme oversupply and
undersupply
b. Trends in real estate lag significantly behind trends in the general economy
c. General business economy is cyclic on a predictable basis
d. Real estate market is not subject to seasonal variation
d. Operating budget for one year - answer11. A good management plan is based on
a(n)
a. Income, expense, and loss analysis for all similar properties in the city
b. Feasibility study
c. 15-year forecast
d. Operating budget for one year
a. Consider raising the rents - answer12. What should the manager do if the building is
100 percent occupied?
a. Consider raising the rents
b. Consider lowering the rents
c. Cut back on amenities
, d. Ask for a raise
b. Curb appeal of the property - answer13. Prospective tenants form their initial
impression of a rental property based on the
a. Personality of the manager or leasing agent
b. Curb appeal of the property
c. Appearance of the manager's office or quarters
d. Inspection of the interior of the building
c. Anticipated revenue minus total adjusted operating expenses and minus debt service
- answer14. Cash flow from a property is predicted by which of the following formulas?
a. Gross rental income minus vacancies plus other income
b. Gross rental income, adjusted by market trends, minus reserve funds
c. Anticipated revenue minus total adjusted operating expenses and minus debt service
d. Anticipated revenue minus total adjusted operating expenses and minus reserve
funds
a. Provide the owner with an estimate of the capital expenditures required to make the
property competitive with similar properties - answer15. After inspecting and analyzing
the comparables, a property manager should be able to estimate the routine operating
costs for the subject property and
a. Provide the owner with an estimate of the capital expenditures required to make the
property competitive with similar properties
b. Offer enough information to convince the owner that if he or she wants to use the
property for a tax deduction, the owner will have to reduce annual operating costs
c. Notify the local property manager's association of the new management plan for the
building
d. Immediately prepare a five-year budget
b. Owner's objectives - answer16. The determining factor in the acceptance or rejection
of the management plan will be the
a. Property analysis
b. Owner's objectives
c. Neighborhood analysis
d. Five-year forecast
c. Should realize the owner's objectives will be the deciding factor in its adoption -
answer17. In preparing a management plan for the owner to review, the manager
a. Need to concerned only with the contents and not appearance
b. Will not benefit from having a colleague review it before presentation
c. Should realize the owner's objectives will be the deciding factor in its adoption
d. Need not consider the possibility of renegotiating the plan if it is not accepted as
submitted
b. maintain confidentiality and loyalty to the owner's best interests - answer18. The law
of agency requires the manager to
Management
D. Residential - answer Which of the following types of real estate properties utilizes
more professional property managers?
a. Industrial
b. Commercial
c. Special-purpose
d. Residential
a. Population shifts to the suburbs - answerThe growth of shopping centers has been
stimulated by
a. Population shifts to the suburbs
b. Declining construction costs
c. Urban renewal programs
d. The International Council of Shopping Centers
d. Achieve the objectives of the owner - answerThe professional property manager
formulates plans to
a. Generate the most amount of money
b. Maintain 100% building occupancy
c. Enhance the prestige of the property
d. Achieve the objectives of the owner
a. Maintain 100% occupancy - answerAll of the following should be goals of the
professional property manager EXCEPT
a. Maintain 100% occupancy
b. Generate income to the owner
c. Increase value of the property
d. Accomplish the objectives of the owner
a. Retail property - answerThe ability of a property manager to assess a market and
implement sales promotion is MOST critical when dealing with
a. Retail property
b. Industrial property
c. Office property
d. Special-purpose property
d. Monitoring the financial performance of a portfolio of properties - answerAsset
managers often have the task of
a. Repairing properties
b. Selecting tenants
,c. Acquiring taxi services for tenants
d. Monitoring the financial performance of a portfolio of properties
b. Terminate the management agreement - answerIf a property owner asks a property
manager to manage the property in violation of current civil rights laws, the property
manager should
a. Comply with the owner's wishes under protest
b. Terminate the management agreement
c. Comply immediately without complaint
d. Comply but inform the building's tenants about what the owner is requesting
b. Socially or culturally imposed rules of conduct that go beyond the letter of the law -
answerEthics conduct refers to
a. Legally required conduct
b. Socially or culturally imposed rules of conduct that go beyond the letter of the law
c. Opportunities to obey civil rights legislation
d. The property manager's obligation to supervise his or her employees
b. Reserve funds - answerIn the operating budget, what is the name of the expenditure
that accounts for money for replacement expenditures?
a. Cash flow
b. Reserve funds
c. Variable expenses
d. Direct costs
b. Trends in real estate lag significantly behind trends in the general economy -
answer10. Cycles of the general business economy differ from those of the real estate
market in that the
a. General business economy is usually subject to more extreme oversupply and
undersupply
b. Trends in real estate lag significantly behind trends in the general economy
c. General business economy is cyclic on a predictable basis
d. Real estate market is not subject to seasonal variation
d. Operating budget for one year - answer11. A good management plan is based on
a(n)
a. Income, expense, and loss analysis for all similar properties in the city
b. Feasibility study
c. 15-year forecast
d. Operating budget for one year
a. Consider raising the rents - answer12. What should the manager do if the building is
100 percent occupied?
a. Consider raising the rents
b. Consider lowering the rents
c. Cut back on amenities
, d. Ask for a raise
b. Curb appeal of the property - answer13. Prospective tenants form their initial
impression of a rental property based on the
a. Personality of the manager or leasing agent
b. Curb appeal of the property
c. Appearance of the manager's office or quarters
d. Inspection of the interior of the building
c. Anticipated revenue minus total adjusted operating expenses and minus debt service
- answer14. Cash flow from a property is predicted by which of the following formulas?
a. Gross rental income minus vacancies plus other income
b. Gross rental income, adjusted by market trends, minus reserve funds
c. Anticipated revenue minus total adjusted operating expenses and minus debt service
d. Anticipated revenue minus total adjusted operating expenses and minus reserve
funds
a. Provide the owner with an estimate of the capital expenditures required to make the
property competitive with similar properties - answer15. After inspecting and analyzing
the comparables, a property manager should be able to estimate the routine operating
costs for the subject property and
a. Provide the owner with an estimate of the capital expenditures required to make the
property competitive with similar properties
b. Offer enough information to convince the owner that if he or she wants to use the
property for a tax deduction, the owner will have to reduce annual operating costs
c. Notify the local property manager's association of the new management plan for the
building
d. Immediately prepare a five-year budget
b. Owner's objectives - answer16. The determining factor in the acceptance or rejection
of the management plan will be the
a. Property analysis
b. Owner's objectives
c. Neighborhood analysis
d. Five-year forecast
c. Should realize the owner's objectives will be the deciding factor in its adoption -
answer17. In preparing a management plan for the owner to review, the manager
a. Need to concerned only with the contents and not appearance
b. Will not benefit from having a colleague review it before presentation
c. Should realize the owner's objectives will be the deciding factor in its adoption
d. Need not consider the possibility of renegotiating the plan if it is not accepted as
submitted
b. maintain confidentiality and loyalty to the owner's best interests - answer18. The law
of agency requires the manager to
