REAL PROPERTY MANAGEMENT
UPDATED ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE
●● The Management Agreement
Answer: - creates a general agency relationship in which the owner =
principle and the manager = agent. A property manager become a
general agent and as such owes loyalty to the owner.
- is a contract and should be in writing as well as signed
* consists of:
- A description of the property
- Length of the agreement
- The management authority - what the manager is responsible for and
what the manager can make decisions on himself
- Reporting - what type of reporting the owner expects and what kind of
reports need to be sent to the owner
- Management fees - usually between 3%-20% of the rent roll depending
on the size and rents collected from the property. For condominium and
Co-ops the fees are typically flat fees that are agreed to by the board and
the agent.
-Accounting responsibilities - which include the handling of security
deposits, rents and expenses. The manager will typically collect all rents
and hold them in a trust account for the owner. In handling the security
, deposits, the manager must comply with all government regulations.
Security deposits are kept in separate accounts and cannot be
commingled with operating funds.
*Additionally, it includes:
- Requirements for risk management
- The owner's responsibilities and objectives and
- How and why the management agreement can be terminated.
●● Skills Required for a Property Manager
Answer: - Supervise others
- Understand general accounting principles (GAP), monthly & yearly
reports
- Understand building systems i.e. HVAC, engineering, plumbing, etc.
- Handle landlord-tenant relations (knowledge of local laws), negotiate
leases, handle tenant issues
- Lease space including space planning, area design, & building layout
- Advertising & marketing
- codes & regulations- local, state, & national
- union negotiations
- purchasing
- appraisal, finance, money markets, depreciation techniques, financial
trends, local market conditions
- general construction knowledge
UPDATED ACTUAL EXAM QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE
●● The Management Agreement
Answer: - creates a general agency relationship in which the owner =
principle and the manager = agent. A property manager become a
general agent and as such owes loyalty to the owner.
- is a contract and should be in writing as well as signed
* consists of:
- A description of the property
- Length of the agreement
- The management authority - what the manager is responsible for and
what the manager can make decisions on himself
- Reporting - what type of reporting the owner expects and what kind of
reports need to be sent to the owner
- Management fees - usually between 3%-20% of the rent roll depending
on the size and rents collected from the property. For condominium and
Co-ops the fees are typically flat fees that are agreed to by the board and
the agent.
-Accounting responsibilities - which include the handling of security
deposits, rents and expenses. The manager will typically collect all rents
and hold them in a trust account for the owner. In handling the security
, deposits, the manager must comply with all government regulations.
Security deposits are kept in separate accounts and cannot be
commingled with operating funds.
*Additionally, it includes:
- Requirements for risk management
- The owner's responsibilities and objectives and
- How and why the management agreement can be terminated.
●● Skills Required for a Property Manager
Answer: - Supervise others
- Understand general accounting principles (GAP), monthly & yearly
reports
- Understand building systems i.e. HVAC, engineering, plumbing, etc.
- Handle landlord-tenant relations (knowledge of local laws), negotiate
leases, handle tenant issues
- Lease space including space planning, area design, & building layout
- Advertising & marketing
- codes & regulations- local, state, & national
- union negotiations
- purchasing
- appraisal, finance, money markets, depreciation techniques, financial
trends, local market conditions
- general construction knowledge
