DC Property Managers Study Guide Latest recent &
frequently tested exam with questions and verified accurate
solutions (detailed & elaborated) GRADED A+
, What does the term "Triple Net" mean when referring to commercial leases - correct ans: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 ans: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 ans: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 ans:When the owner leases a property, it temporarily transfers
to the tenant a portion of the right of possession.
Escalator Clause - correct ans:When multi-year leases contain a provision for the owner to increase the
rent on the lease's anniversary date.
Separation of Funds - correct ans: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 ans: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 ans:Net Operating
Income is divided by the Capitalization Rate
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? - correct ans:Curative, Deferred, Routine, &
Prevenative
Curative Maintenance involves...... - correct ans:Fixing or repairing something after it has already
broken. An example would be fixing a broken sink
frequently tested exam with questions and verified accurate
solutions (detailed & elaborated) GRADED A+
, What does the term "Triple Net" mean when referring to commercial leases - correct ans: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 ans: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 ans: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 ans:When the owner leases a property, it temporarily transfers
to the tenant a portion of the right of possession.
Escalator Clause - correct ans:When multi-year leases contain a provision for the owner to increase the
rent on the lease's anniversary date.
Separation of Funds - correct ans: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 ans: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 ans:Net Operating
Income is divided by the Capitalization Rate
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? - correct ans:Curative, Deferred, Routine, &
Prevenative
Curative Maintenance involves...... - correct ans:Fixing or repairing something after it has already
broken. An example would be fixing a broken sink
