DC PROPERTY MANAGERS STUDY
GUIDE QUESTIONS & ACCURATE
ANSWERS 100%
What does the term "Triple Net" mean when referring to commercial leases - Correct
Answer ✔✔ refers to commercial tenant paying ALL Operating Expenses including real
estate taxes, insurance, roof maintenance, landscaping, etc. This is the most commonly
found in industrial leases.
Percentage Lease - Correct Answer ✔✔ A lease, that requires tenant to pay rent based
on a calculation that relates directly to the tenant's gross sales. Usually stipulates a
base monthly rental plus a percentage of any gross sales above a certain amount.
The rights of a property owner include........ - Correct Answer ✔✔ The right of
possession, the right of control, the right of exclusion, the right of enjoyment, the right to
sell.
What is a Leasehold Interest? - Correct Answer ✔✔ When the owner leases a property,
it temporarily transfers to the tenant a portion of the right of possession.
Escalator Clause - Correct Answer ✔✔ When multi-year leases contain a provision for
the owner to increase the rent on the lease's anniversary date.
Separation of Funds - Correct Answer ✔✔ Funds must be kept separate from property
manager's accounts. Funds that the property generates belong to the owner and should
be deposited into owner's account.
Asset Management focuses on - Correct Answer ✔✔ The property's long term planning,
leasing and asking rates, negotiates commercial leases, evaluates mortgages &
opportunities to refinance the loan,considers strategies to maximize value and when to
market the property for sale.
What common method is used to determine a property's Investment Value? - Correct
Answer ✔✔ Net Operating Income is divided by the Capitalization Rate
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? - Correct Answer ✔✔ Curative,
Deferred, Routine, & Prevenative
Curative Maintenance involves...... - Correct Answer ✔✔ Fixing or repairing something
after it has already broken. An example would be fixing a broken sink
, Deffered Maintenance - Correct Answer ✔✔ Involves delaying needed repairs and
maintenance to save money.Is an ordinary maintenance item that is not performed at
the time when a problem is discovered. An example a manager notices some minor
paint peeling in stairwell.
Routine Maintenance - Correct Answer ✔✔ Relates to the cleaning and upkeep that is
needed every day. An example is vacuuming the carpet in the building hallways.
Depreciated Value - Correct Answer ✔✔ This is used for income tax purposes and
affects a property's tax basis
List Price - Correct Answer ✔✔ The only price that the owner has offered to sell a
property for.
Cash Flow - Correct Answer ✔✔ is the amount of money that remains after Debt
Service is subtracted from Net Operating Income. Is often used by investors to
determine the owner's Return On Investment
Chart of Accounts - Correct Answer ✔✔ is utilized to classify each of the different types
of the income and expenses.
Tenancy at Will - Correct Answer ✔✔ Usually occurs in the absence of a written lease
and can occur after a lease expires. Tenant/resident continues to occupy space and
landlord continues to accept payment.
Tenancy at Sufferance - Correct Answer ✔✔ Occurs after the expiration of lease has
expired. Tenant/resident continues to occupy the apartment or space without the
landlord's consent.
What are the objectives of a Maintenance Plan? - Correct Answer ✔✔ Implement &
accomplish the owner's objectives, increase resident/tenant satisfact rates, reduce
operating costs, optimize the property's physical capabilities, increase the property's
value, providing safety of tenants, residents, visitors, and employees.
Primary objectives to consider prior to any property inspection - Correct Answer ✔✔
What will be inspected, what is the frequency of inspection, who will conduct the
inspection, how will results be reported.
Routine Maintenance - Correct Answer ✔✔ relates to cleaning and upkeep that is
needed everyday.
General Liability - Correct Answer ✔✔ Insurance coverage that can protect the property
owner from a variety of claims including bodily injury, property damage, and personal
injury.
GUIDE QUESTIONS & ACCURATE
ANSWERS 100%
What does the term "Triple Net" mean when referring to commercial leases - Correct
Answer ✔✔ refers to commercial tenant paying ALL Operating Expenses including real
estate taxes, insurance, roof maintenance, landscaping, etc. This is the most commonly
found in industrial leases.
Percentage Lease - Correct Answer ✔✔ A lease, that requires tenant to pay rent based
on a calculation that relates directly to the tenant's gross sales. Usually stipulates a
base monthly rental plus a percentage of any gross sales above a certain amount.
The rights of a property owner include........ - Correct Answer ✔✔ The right of
possession, the right of control, the right of exclusion, the right of enjoyment, the right to
sell.
What is a Leasehold Interest? - Correct Answer ✔✔ When the owner leases a property,
it temporarily transfers to the tenant a portion of the right of possession.
Escalator Clause - Correct Answer ✔✔ When multi-year leases contain a provision for
the owner to increase the rent on the lease's anniversary date.
Separation of Funds - Correct Answer ✔✔ Funds must be kept separate from property
manager's accounts. Funds that the property generates belong to the owner and should
be deposited into owner's account.
Asset Management focuses on - Correct Answer ✔✔ The property's long term planning,
leasing and asking rates, negotiates commercial leases, evaluates mortgages &
opportunities to refinance the loan,considers strategies to maximize value and when to
market the property for sale.
What common method is used to determine a property's Investment Value? - Correct
Answer ✔✔ Net Operating Income is divided by the Capitalization Rate
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? - Correct Answer ✔✔ Curative,
Deferred, Routine, & Prevenative
Curative Maintenance involves...... - Correct Answer ✔✔ Fixing or repairing something
after it has already broken. An example would be fixing a broken sink
, Deffered Maintenance - Correct Answer ✔✔ Involves delaying needed repairs and
maintenance to save money.Is an ordinary maintenance item that is not performed at
the time when a problem is discovered. An example a manager notices some minor
paint peeling in stairwell.
Routine Maintenance - Correct Answer ✔✔ Relates to the cleaning and upkeep that is
needed every day. An example is vacuuming the carpet in the building hallways.
Depreciated Value - Correct Answer ✔✔ This is used for income tax purposes and
affects a property's tax basis
List Price - Correct Answer ✔✔ The only price that the owner has offered to sell a
property for.
Cash Flow - Correct Answer ✔✔ is the amount of money that remains after Debt
Service is subtracted from Net Operating Income. Is often used by investors to
determine the owner's Return On Investment
Chart of Accounts - Correct Answer ✔✔ is utilized to classify each of the different types
of the income and expenses.
Tenancy at Will - Correct Answer ✔✔ Usually occurs in the absence of a written lease
and can occur after a lease expires. Tenant/resident continues to occupy space and
landlord continues to accept payment.
Tenancy at Sufferance - Correct Answer ✔✔ Occurs after the expiration of lease has
expired. Tenant/resident continues to occupy the apartment or space without the
landlord's consent.
What are the objectives of a Maintenance Plan? - Correct Answer ✔✔ Implement &
accomplish the owner's objectives, increase resident/tenant satisfact rates, reduce
operating costs, optimize the property's physical capabilities, increase the property's
value, providing safety of tenants, residents, visitors, and employees.
Primary objectives to consider prior to any property inspection - Correct Answer ✔✔
What will be inspected, what is the frequency of inspection, who will conduct the
inspection, how will results be reported.
Routine Maintenance - Correct Answer ✔✔ relates to cleaning and upkeep that is
needed everyday.
General Liability - Correct Answer ✔✔ Insurance coverage that can protect the property
owner from a variety of claims including bodily injury, property damage, and personal
injury.
