Property Management | EXAM 2025 | ACTUAL REAL EXAM ACCURATE QUESTIONS AND ANSWERS WITH RATIONALES | VERIFIED AND LATEST UPDATED |GUARANTEED PASS

Which of the following is NOT a source of income in managing a manufactured home park? A. Lot rentals B. Laundry facilities C. Providing nursing homes D. Storage rentals Correct Answer: C. Providing nursing homes Rationale: Nursing homes are a different type of facility and not a typical income source for manufactured home parks. Developing a sense of community spirit is especially useful for encouraging referrals in: A. Apartment complexes B. Condominiums C. Manufactured home parks D. Office buildings Correct Answer: C. Manufactured home parks Rationale: Community spirit fosters resident satisfaction and word-of-mouth referrals in these close-knit environments. In most states, the Articles of Incorporation: A. Serve as business licenses B. Allow taxation C. Establish owners associations D. Provide zoning exceptions Correct Answer: C. Establish owners associations Rationale: These articles often form the legal foundation for associations in commoninterest communities. A manager concerned with property design, social events, and medical emergencies is likely managing: A. Retail center B. Office tower C. Housing for the elderly D. Low-income housing Correct Answer: C. Housing for the elderly Rationale: Elderly housing often includes social coordination and emergency support. The initial management agreement for a new condominium is typically between the manager and the: A. HOA B. Unit owners C. Developer of the project D. City zoning department Correct Answer: C. Developer of the project Rationale: Before residents assume control, the developer manages the property. Condominium and cooperative managers typically use financial reporting systems similar to those used by: A. Retail chains B. Government housing C. Managers of apartment buildings D. Hotel managers Correct Answer: C. Managers of apartment buildings Rationale: These property types have similar operating expense and revenue structures. With regard to insurance, a condo owner must: A. Buy commercial liability insurance B. Purchase an HO-6 condo policy C. Only insure the roof D. Rely solely on the association’s insurance Correct Answer: B. Purchase an HO-6 condo policy Rationale: This policy covers personal property and the interior portion of the unit. The condo management fee is typically: A. Flat for all units B. Paid only by renters C. Prorated by ownership interest D. Paid by the city Correct Answer: C. Prorated by ownership interest Rationale: Each unit owner pays based on their share in the common areas. The initial sellout of condos and co-ops is generally accomplished through: A. Word of mouth B. Government programs C. Display and classified ads D. Billboard campaigns Correct Answer: C. Display and classified ads Rationale: Traditional advertising is a primary method in early-stage sales. Fannie Mae regulates condos by: A. Issuing construction permits B. Inspecting buildings C. Prescribing mortgage standards D. Managing HOA reserves Correct Answer: C. Prescribing mortgage standards Rationale: Fannie Mae sets lending standards for purchasing condo loans. Public housing projects for low-income families have traditionally been the responsibility of: A. Private corporations B. The federal government C. Local government D. State legislatures Correct Answer: C. Local government Rationale: Local housing authorities typically administer and manage these projects. Low-cost housing managers may employ tenant relations staff to: A. Handle evictions B. Process maintenance requests C. Provide services and cooperation D. Enforce building codes Correct Answer: C. Provide services and cooperation Rationale: Such personnel help improve tenant satisfaction and reduce conflict. Under HUD Section 8 housing, units are rented: A. On a lease-to-own basis B. Only to elderly tenants C. At market rate D. On a subsidized basis Correct Answer: D. On a subsidized basis Rationale: Section 8 provides rental assistance based on tenant income. Rent collection in subsidized housing should be: A. More lenient than private housing B. The same as private housing C. Handled by HUD D. Weekly Correct Answer: B. The same as private housing Rationale: Consistent rent policies are necessary for financial stability. HUD contracts with subsidized housing property managers are generally: A. Month-to-month B. For a term of years C. Based on tenant demand D. Conditional on elections Correct Answer: B. For a term of years Rationale: These long-term contracts provide stability in operations. Which of the following is NOT useful when marketing office property? A. Personal networking B. Internet listings C. Brochures D. Classified ads Correct Answer: D. Classified ads Rationale: Classified ads are outdated and less effective for office leasing. To protect the owner from inflation during a long lease, the lease should include: A. Cancellation clause B. Maintenance clause C. Escalation clause D. Arbitration clause Correct Answer: C. Escalation clause Rationale: Allows periodic rent increases tied to costs or inflation. The person responsible for arranging the internal layout of an office space is called the: A. Property manager B. Leasing agent C. Facilities manager D. Interior designer Correct Answer: C. Facilities manager Rationale: Facilities managers coordinate interior office planning and furnishings. One of the most effective ways to locate office tenants is: A. Social media B. Radio advertising C. Canvassing qualified prospects D. Mailing flyers Correct Answer: C. Canvassing qualified prospects Rationale: Direct outreach to potential tenants yields better results. Absorption rate in office leasing refers to: A. Vacancies B. Market trends C. Leased square footage per year D. Owner profit Correct Answer: C. Leased square footage per year Rationale: Indicates the rate at which space is being taken up in the market. The most important factor in choosing office facilities, according to surveys, is: A. Design B. Location C. Cost D. Technology Correct Answer: C. Cost Rationale: Rent or purchase price often dominates tenant decisions. Office space is designated Class A, B, C, or D based on: A. Zoning codes B. Owner income C. Age, location, and market position D. Number of floors Correct Answer: C. Age, location, and market position Rationale: These factors determine quality, rent levels, and classification. The base rate for an office building should: A. Be equal for all floors B. Be set by city regulation C. Reflect amenities and competition D. Be fixed regardless of changes Correct Answer: C. Reflect amenities and competition Rationale: Rent should match the building's value and local demand. According to BOMA standards, an older renovated building in a prime area would likely be classified as: A. Class A B. Class C C. Class B D. Class D Correct Answer: C. Class B Rationale: Even with upgrades, age may prevent a Class A rating. According to the BOMA method, construction area is determined by: A. Lease negotiation B. New York method C. Zoning formulas D. Tax assessment Correct Answer: B. New York method Rationale: BOMA uses a standardized version of this traditional method. The New York method has not gained wide acceptance because: A. It's inaccurate B. It's too new C. It counts all construction area, making it hard to sell D. It underestimates rentable space Correct Answer: C. It counts all construction area, making it hard to sell Rationale: Tenants may not want to pay for non-usable areas. The ratio of rentable space to usable space is called: A. Occupancy rate B. Expense load C. Loss factor D. Efficiency ratio Correct Answer: C. Loss factor Rationale: It shows how much space is "lost" to common areas. When preparing a market analysis, a manager should focus on market conditions and: A. Neighborhood age B. Occupant personalities C. Current economic trends D. Ceiling heights Correct Answer: C. Current economic trends Rationale: These influence demand and rental pricing. Open or closed workspaces shared by multiple individuals are referred to as: A. Conference rooms B. Private suites C. Multipersonnel areas D. Flex spaces Correct Answer: C. Multipersonnel areas Rationale: Designed for several employees working in proximity. Usable area is calculated by subtracting space for restrooms, closets, and elevators from: A. Parking space B. Total lease area C. Floor’s total square footage D. Rentable area Correct Answer: C. Floor’s total square footage Rationale: Usable area is the tenant's actual working space. If an office lease does not prohibit assignment or subletting, the tenant may: A. Never assign it B. Assign it only with zoning board approval C. Assign the space to another party D. Sell it back to the landlord Correct Answer: C. Assign the space to another party Rationale: Unless prohibited, lease rights can be transferred.