DC Property Manager Test exam with precise
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detailed answers |
Management |Plan |- |VERIFIED |ANSWER✔✔-The |plan |describes |in |detail |the |subject |property's |current |
use |along |with |its |physical |condition, |fiscal |projections, |and |any |operational |issues. |It |also |includes |an
|analysis |of |the |market |(both |regional |and |neighborhood), |the |competing |properties, |as |well |as |
potential |improvements |or |alternative |uses |for |the |subject |property. |These |items |will |be |discussed |
further |in |this |section.
Market |Analysis |- |VERIFIED |ANSWER✔✔-A |______ |focuses |on |both |a |regional |and |neighborhood |
evaluation, |which |includes |the |demographic |conditions, |geographic |features, |governmental |
prospective, |existing |real |estate |supply, |potential |future |developments, |and |tenant/ |resident |demand
By |performing |the |____________ |and |a |______________, |it |is |easier |to |identify |the |subject |
property's |strengths |and |weaknesses. |- |VERIFIED |ANSWER✔✔-Market |Analysis, |Competitive |Property |
Analysis
Analysis |of |Alternatives |- |VERIFIED |ANSWER✔✔-Looks |at |the |theoretical |costs |and |corresponding |
increase |in |rents |by |making |different |improvements, |even |the |subject |property's |redevelopment.
Physical |Obsolescence |- |VERIFIED |ANSWER✔✔-is |characterized |as |a |condition |of |aging |(i.e. |wear |and |
tear) |or |deferred |maintenance. |Examples |are |worn |carpets, |peeling |paint, |a |leaking |roof, |or |dead |
landscaping.
Functional |Obsolescence |- |VERIFIED |ANSWER✔✔-is |characterized |by |old |or |outdated |designs |or |
building |systems. |Examples |include |equipment |that |is |not |repairable |because |parts |or |no |longer |
manufactured; |DC |Property |Management |Study |Guide |- |3 |single |pane |window |systems |because |they |
waste |a |large |amount |of |energy; |outdated |bathroom |fixtures |because |of |changing |designs |and |tastes.
, Economic |Obsolescence |- |VERIFIED |ANSWER✔✔-represents |a |loss |in |value |due |to |outside |forces |(i.e. |
location, |market |conditions). |An |example |would |be |an |office |building, |located |in |a |small |town, |where |
the |major |employer |closes. |This |may |result |in |both |lower |demand |and |rental |rates.
Depreciation |- |VERIFIED |ANSWER✔✔-Properties |begin |to |deteriorate |as |soon |as |they |are |completed. |
This |process |is |called |____________. |and |it |represents |the |loss |in |value |from |the |various |forms |of |
obsolescence. |__________ |can |be |economically |estimated |on |a |broad |level.
If |a |new |400 |unit |apartment |building |is |worth |$12,000,000 |and |depreciates |in |value |at |2.5% |per |year,
|what |is |its |Depreciated |Value |after |five |years? |- |VERIFIED |ANSWER✔✔-$12,000,000 |x |0.025 |= |
$300,000 |per |year |of |Depreciated |Value |$300,000 |x |5 |years |= |$1,500,000 |accumulated |Depreciation |
$12,000,000 |- |$1,500,000 |= |$10,500,000 |Depreciated |Value |after |5 |years
Investment |Value |- |VERIFIED |ANSWER✔✔-This |is |the |value |that |is |generally |used |by |investors. |It |is |
frequently |determined |either |by |calculating |the |Net |Operating |Income |and |applying |a |Capitalization |
Rate |to |it |or |from |Cash |Flow |by |determining |the |Return |on |Investment
Assessed |Value |- |VERIFIED |ANSWER✔✔-This |is |the |value |used |by |government |tax |assessment |offices. |
Since |it |is |frequently |determined |using |sophisticated |mathematical |models |that |are |applied |to |many |
similar |types |of |properties |over |a |geographic |area, |it |can |be |less |accurate |and |produce |results |that |
are |higher |or |lower |than |other |types |of |"values".
Market |Value |- |VERIFIED |ANSWER✔✔-This |is |the |value |that |is |agreed |to |between |a |buyer |and |seller. |
It |represents |the |"meeting |of |the |minds".
Depreciated |Value |- |VERIFIED |ANSWER✔✔-This |is |used |for |income |tax |purposes |and |affects |a |
property's |tax |basis. |In |the |past, |the |Federal |Government |has |implemented |accelerated |depreciation |
programs |to |help |promote |economic |growth
List |Price |- |VERIFIED |ANSWER✔✔-This |is |only |the |price |that |the |owner |has |offered |to |sell |a |property |
for
There |are |certain |responsibilities |and |limitations |that |the |manager |needs |to |be |aware |of |and |follow |
including |.... |- |VERIFIED |ANSWER✔✔-• |Loyalty |to |the |client |
• |Accurate |accounting |and |reporting |
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detailed answers |
Management |Plan |- |VERIFIED |ANSWER✔✔-The |plan |describes |in |detail |the |subject |property's |current |
use |along |with |its |physical |condition, |fiscal |projections, |and |any |operational |issues. |It |also |includes |an
|analysis |of |the |market |(both |regional |and |neighborhood), |the |competing |properties, |as |well |as |
potential |improvements |or |alternative |uses |for |the |subject |property. |These |items |will |be |discussed |
further |in |this |section.
Market |Analysis |- |VERIFIED |ANSWER✔✔-A |______ |focuses |on |both |a |regional |and |neighborhood |
evaluation, |which |includes |the |demographic |conditions, |geographic |features, |governmental |
prospective, |existing |real |estate |supply, |potential |future |developments, |and |tenant/ |resident |demand
By |performing |the |____________ |and |a |______________, |it |is |easier |to |identify |the |subject |
property's |strengths |and |weaknesses. |- |VERIFIED |ANSWER✔✔-Market |Analysis, |Competitive |Property |
Analysis
Analysis |of |Alternatives |- |VERIFIED |ANSWER✔✔-Looks |at |the |theoretical |costs |and |corresponding |
increase |in |rents |by |making |different |improvements, |even |the |subject |property's |redevelopment.
Physical |Obsolescence |- |VERIFIED |ANSWER✔✔-is |characterized |as |a |condition |of |aging |(i.e. |wear |and |
tear) |or |deferred |maintenance. |Examples |are |worn |carpets, |peeling |paint, |a |leaking |roof, |or |dead |
landscaping.
Functional |Obsolescence |- |VERIFIED |ANSWER✔✔-is |characterized |by |old |or |outdated |designs |or |
building |systems. |Examples |include |equipment |that |is |not |repairable |because |parts |or |no |longer |
manufactured; |DC |Property |Management |Study |Guide |- |3 |single |pane |window |systems |because |they |
waste |a |large |amount |of |energy; |outdated |bathroom |fixtures |because |of |changing |designs |and |tastes.
, Economic |Obsolescence |- |VERIFIED |ANSWER✔✔-represents |a |loss |in |value |due |to |outside |forces |(i.e. |
location, |market |conditions). |An |example |would |be |an |office |building, |located |in |a |small |town, |where |
the |major |employer |closes. |This |may |result |in |both |lower |demand |and |rental |rates.
Depreciation |- |VERIFIED |ANSWER✔✔-Properties |begin |to |deteriorate |as |soon |as |they |are |completed. |
This |process |is |called |____________. |and |it |represents |the |loss |in |value |from |the |various |forms |of |
obsolescence. |__________ |can |be |economically |estimated |on |a |broad |level.
If |a |new |400 |unit |apartment |building |is |worth |$12,000,000 |and |depreciates |in |value |at |2.5% |per |year,
|what |is |its |Depreciated |Value |after |five |years? |- |VERIFIED |ANSWER✔✔-$12,000,000 |x |0.025 |= |
$300,000 |per |year |of |Depreciated |Value |$300,000 |x |5 |years |= |$1,500,000 |accumulated |Depreciation |
$12,000,000 |- |$1,500,000 |= |$10,500,000 |Depreciated |Value |after |5 |years
Investment |Value |- |VERIFIED |ANSWER✔✔-This |is |the |value |that |is |generally |used |by |investors. |It |is |
frequently |determined |either |by |calculating |the |Net |Operating |Income |and |applying |a |Capitalization |
Rate |to |it |or |from |Cash |Flow |by |determining |the |Return |on |Investment
Assessed |Value |- |VERIFIED |ANSWER✔✔-This |is |the |value |used |by |government |tax |assessment |offices. |
Since |it |is |frequently |determined |using |sophisticated |mathematical |models |that |are |applied |to |many |
similar |types |of |properties |over |a |geographic |area, |it |can |be |less |accurate |and |produce |results |that |
are |higher |or |lower |than |other |types |of |"values".
Market |Value |- |VERIFIED |ANSWER✔✔-This |is |the |value |that |is |agreed |to |between |a |buyer |and |seller. |
It |represents |the |"meeting |of |the |minds".
Depreciated |Value |- |VERIFIED |ANSWER✔✔-This |is |used |for |income |tax |purposes |and |affects |a |
property's |tax |basis. |In |the |past, |the |Federal |Government |has |implemented |accelerated |depreciation |
programs |to |help |promote |economic |growth
List |Price |- |VERIFIED |ANSWER✔✔-This |is |only |the |price |that |the |owner |has |offered |to |sell |a |property |
for
There |are |certain |responsibilities |and |limitations |that |the |manager |needs |to |be |aware |of |and |follow |
including |.... |- |VERIFIED |ANSWER✔✔-• |Loyalty |to |the |client |
• |Accurate |accounting |and |reporting |
