Property Management - Exam 1 - Chapters 1-5 Questions with Correct Answers | Latest Update 2024

Property Management - Exam 1 - Chapters 1-5 Questions with Correct Answers | Latest Update 2024 Chapter 1 Goals of the Property Manager - Answer ️️ -1. Achieve the objectives of the property owners; 2. Generate income for the owners; 3. Perserve and/or increase the value of the investment property. Development of the Property Management Profession - Answer ️️ -Steel frame buildings and the electric elevator. Development of the suburban areas. Classification of real property - Answer ️️ -1.Residential 2. Commercial 3. Industrial 4. Special-purpose Chapter 2 - Answer ️️ - Season Variations - Answer ️️ -Weather, School - College housing, Seasonal - retired people head south. These are predictable. Cyclical Fluctuations - Answer ️️ -Expansion; - 7 yr. Cycle, Take proceeds reinvesting. Recession; - Supply begins to surpass demand. Contraction; Revival; Lull. Management Plan - Answer ️️ -The financial and operational strategy for the ongoing management of the property. Three factors when formulating management plan - Answer ️️ -Regional and neighborhood market analysis; Specific property analysis; Analysis of an owner's objectives. Technical Oversupply - Answer ️️ -Occurs when there are more units available than potential tenants. Economic Oversupply - Answer ️️ -Reflects the fact that potential tenants cannot afford to pay the price of the available space. Chapter 3 - Answer ️️ - Three basic relationships between manager and property manager - Answer ️️ -1. Employer- employee relationship 2. Formal fiduciary relationship (trust) 3. Principal-Agent Arrangement Employer-Employee Relationship - Answer ️️ -The employee-manger is directly responsible to the officers of the owner-employer corporation or institution, which may be the principle occupant of the property. Formal Fiduciary Relationship (Trust) - Answer ️️ -A trust is a device by which one person or institution transfers legal ownership of property to someone else to hold or manage for benefit of the third party. Principle Agent Relationship - Answer ️️ -Between Principle (one who hires) and the agent (one who does the work). Written agreement creating this relationship is called the management contract; it empowers the property manager, as agent, to act on behalf of the owner, or principle, in certain institutions. General Agent - Answer ️️ -Long term relationship. Gives agent the authority to execute contracts within a scope of time. Special Agent - Answer ️️ -Limited scope of time. Fiduciary Duties - Answer ️️ -Loyalty; Care; Obedience; Accounting; Disclosure. Elements of the management Agreement - Answer ️️ -Identification of the parties and property; Period over which the contract is to run; Authority and responsibilities of manager; Responsibilities of the owner; Fees and leasing/sales commissions; Signatures of the parties. Take Over Procedure - Answer ️️ -Minimum information (owner's name, address, phone, SS#, Tax ID #, Attorney and accountant contact info.) Lease Information - Manager must have list of all rental units, copies of leases, and schedule of rental rates. Accounts Payable - Manager and owner should discuss when certain bills and obligations are satisfied. To maintain Owner-Manager relations - Answer ️️ -Give monthly