Property Management Study Guide
Champions UPDATED ACTUAL Exam
Questions and CORRECT Answers
Types of Agency Relationships - CORRECT ANSWER - principal- general agent
relationship
general agent has the right to represent a principal in a particular type of transaction or business
Reporting agency
TREC
EPA
WSJ
Dunn and Bradstreet - CORRECT ANSWER - TREC-If you have issues or concerns with
the broker or sales agent assisting you, or if you feel you are not being represented fairly, you
can file a complaint
EPA-environmental event that may lead to an immediate threat to human health or the
environment
WSJ-story??
Dunn and Bradstreet-reporting agency that compiles data on registered businesses?--
Dunn and Bradstreet. D&S assigns a DUNS# to each business and can be checked by lenders,
government agencies, and property management companies
Suburbs
Cities
Sub-markets
Global market - CORRECT ANSWER - Suburbs- period of expansion after WW2
, hundereds of neighborhoods of tract homes were constructed across the US, necessitating the
constrution of new roads and freeways linking outlying areas to towns and cities
Cities-a permanent and densely settled place with administratively defined boundaries whose
members work primarily on non-agricultural tasks. Cities generally have extensive systems for
housing, transportation, sanitation, utilities, land use, production of goods, and communication.
Sub-markets-a market is typically a city or an MSA and a submarket is a smaller defined area
within the market such as a neighborhood or suburb. The term describes a defined area that is
geographically contiguous and does not overlap with other submarkets.
Global market-international real estate describes a relatively new phenomenon, beginning in the
1980s and keeping pace with globalization. The term encompasses real property development,
sales and leasing transactions across national borders.
Type of Occupancy/ Vacancy - CORRECT ANSWER - Physical Occupancy-is a
calculation of the props occupied units.
formula- divide the # of occupied units by # of total units avail for rent
Economic Occupancy- % of potential rental income ( gross potential income) to actual earned
rental income over a specified period
calculated by dividing net rent received by the gross rents possible. Examples: On the same 10
unit apartment, assume each unit rents for $1000/mo. There's a gross potential of $120,000/year
(10 units x $1000 = $10,000/mo x 12 = $120,000/year).
Vacancy rate-Low vacancy rates mean there are more occupied units, while high vacancy rates
indicate people do not want to live in a certain building or area. The rate is calculated by taking
the number of vacant units, multiplying that number by 100, and dividing that result by the total
number of units.
Section 202 programs- features/ rules - CORRECT ANSWER - Supportive housing for the
elderly program
HUD rental assistance for the very low income elderly in need of affordable housing
Champions UPDATED ACTUAL Exam
Questions and CORRECT Answers
Types of Agency Relationships - CORRECT ANSWER - principal- general agent
relationship
general agent has the right to represent a principal in a particular type of transaction or business
Reporting agency
TREC
EPA
WSJ
Dunn and Bradstreet - CORRECT ANSWER - TREC-If you have issues or concerns with
the broker or sales agent assisting you, or if you feel you are not being represented fairly, you
can file a complaint
EPA-environmental event that may lead to an immediate threat to human health or the
environment
WSJ-story??
Dunn and Bradstreet-reporting agency that compiles data on registered businesses?--
Dunn and Bradstreet. D&S assigns a DUNS# to each business and can be checked by lenders,
government agencies, and property management companies
Suburbs
Cities
Sub-markets
Global market - CORRECT ANSWER - Suburbs- period of expansion after WW2
, hundereds of neighborhoods of tract homes were constructed across the US, necessitating the
constrution of new roads and freeways linking outlying areas to towns and cities
Cities-a permanent and densely settled place with administratively defined boundaries whose
members work primarily on non-agricultural tasks. Cities generally have extensive systems for
housing, transportation, sanitation, utilities, land use, production of goods, and communication.
Sub-markets-a market is typically a city or an MSA and a submarket is a smaller defined area
within the market such as a neighborhood or suburb. The term describes a defined area that is
geographically contiguous and does not overlap with other submarkets.
Global market-international real estate describes a relatively new phenomenon, beginning in the
1980s and keeping pace with globalization. The term encompasses real property development,
sales and leasing transactions across national borders.
Type of Occupancy/ Vacancy - CORRECT ANSWER - Physical Occupancy-is a
calculation of the props occupied units.
formula- divide the # of occupied units by # of total units avail for rent
Economic Occupancy- % of potential rental income ( gross potential income) to actual earned
rental income over a specified period
calculated by dividing net rent received by the gross rents possible. Examples: On the same 10
unit apartment, assume each unit rents for $1000/mo. There's a gross potential of $120,000/year
(10 units x $1000 = $10,000/mo x 12 = $120,000/year).
Vacancy rate-Low vacancy rates mean there are more occupied units, while high vacancy rates
indicate people do not want to live in a certain building or area. The rate is calculated by taking
the number of vacant units, multiplying that number by 100, and dividing that result by the total
number of units.
Section 202 programs- features/ rules - CORRECT ANSWER - Supportive housing for the
elderly program
HUD rental assistance for the very low income elderly in need of affordable housing
