PSI Exam Prep: Leasing and Property
Management Questions And Answers
Basic Concepts/Duties of Property Management -
correct answer ✅A property manager's primary goal is to produce
the greatest net return for the owner.
If a real estate licensee wants to be paid to manage properties for
others, a written property management agreement must be in
place.
The licensee and the property owner are the parties to a property
management agreement that establishes a general agency
relationship.
The agreement serves as the guide for managing the property and
outlines the duties and responsibilities of both the property
manager and the owner. Property management agreements should
include: -
correct answer ✅A description of the property to be managed
The term of the agreement (definite beginning and ending dates,
and provisions for termination)
,PSI Exam Prep: Leasing and Property
Management Questions And Answers
A description of all of the manager's duties (and any restrictions on
the manager's duties, if any)
A statement describing the owner's purpose (what the owner
wants the manager to accomplish)
A description of the owner's responsibilities
An explanation of the manager's authority
Any reporting the manager owes (frequency, types of reports, and
details to be included in reports; state property management rules
and laws often dictate which of these will need to be included)
Compensation to be paid (management fee or compensation
calculation)
-An antitrust provision (as with other real estate-related
compensation, compensation and fees are negotiable)
A statement of management costs the manager will pay (such as
office rent, employees, etc.) vs. what the owner will pay
, PSI Exam Prep: Leasing and Property
Management Questions And Answers
An equal opportunity statement (residential property management
activities must comply with fair housing laws)
Common Property Manager duties can include: -
correct answer ✅* Maintaining and delivering financial reports
(such as the operating budget, cash flow reports, profit statements,
and budget comparisons)
* Renting properties (including researching the market and setting
rental rates)
* Marketing properties (such as performing advertising and
promotional activities)
* Screening and selecting tenants (again, residential property
managers must be sure to comply with local, state, and federal fair
housing laws)
* Handling security deposits and collecting rent (following strict
guidelines for these trust funds, avoiding conversion and
commingling, and maintaining records of these funds)
* Maintaining relations with tenants and handling tenant problems
* Maintaining the property (through preventive, corrective, and
routine maintenance)
* Complying with local, state, and federal regulations
Management Questions And Answers
Basic Concepts/Duties of Property Management -
correct answer ✅A property manager's primary goal is to produce
the greatest net return for the owner.
If a real estate licensee wants to be paid to manage properties for
others, a written property management agreement must be in
place.
The licensee and the property owner are the parties to a property
management agreement that establishes a general agency
relationship.
The agreement serves as the guide for managing the property and
outlines the duties and responsibilities of both the property
manager and the owner. Property management agreements should
include: -
correct answer ✅A description of the property to be managed
The term of the agreement (definite beginning and ending dates,
and provisions for termination)
,PSI Exam Prep: Leasing and Property
Management Questions And Answers
A description of all of the manager's duties (and any restrictions on
the manager's duties, if any)
A statement describing the owner's purpose (what the owner
wants the manager to accomplish)
A description of the owner's responsibilities
An explanation of the manager's authority
Any reporting the manager owes (frequency, types of reports, and
details to be included in reports; state property management rules
and laws often dictate which of these will need to be included)
Compensation to be paid (management fee or compensation
calculation)
-An antitrust provision (as with other real estate-related
compensation, compensation and fees are negotiable)
A statement of management costs the manager will pay (such as
office rent, employees, etc.) vs. what the owner will pay
, PSI Exam Prep: Leasing and Property
Management Questions And Answers
An equal opportunity statement (residential property management
activities must comply with fair housing laws)
Common Property Manager duties can include: -
correct answer ✅* Maintaining and delivering financial reports
(such as the operating budget, cash flow reports, profit statements,
and budget comparisons)
* Renting properties (including researching the market and setting
rental rates)
* Marketing properties (such as performing advertising and
promotional activities)
* Screening and selecting tenants (again, residential property
managers must be sure to comply with local, state, and federal fair
housing laws)
* Handling security deposits and collecting rent (following strict
guidelines for these trust funds, avoiding conversion and
commingling, and maintaining records of these funds)
* Maintaining relations with tenants and handling tenant problems
* Maintaining the property (through preventive, corrective, and
routine maintenance)
* Complying with local, state, and federal regulations
