Real Estate Licensing Exam: Level 24 -
Property Management questions and
answers
Property Manager - correct answer ✔✔ someone who is hired by a property owner to market,
maintain, and oversee the day-to-day operation of a property (usually a rental property).
-Their function is to oversee all operations of the property on behalf of the owner and to realize
the highest return possible on the owner's investment.
Property Management - correct answer ✔✔ the vocation of renting or leasing someone else's
real property on their behalf in exchange for compensation and in accordance with a property
management employee contract.
Property managers are charged with a wide variety of duties, but they all tend to fall under four
main areas of responsibility (4): - correct answer ✔✔ 1) Financial & marketing
2) Tenant & occupancy
3) Facility management
4) Administration & risk management
Your sister just got a new job and she doesn't have time to lease out her rental property. You
decide to help her out, even though you won't receive any compensation, because you're a
good sibling. Apply your knowledge to determine which of the following is TRUE. - correct
answer ✔✔ You are NOT a property manager.
-You are NOT acting as an official property manager in this scenario because you are neither
receiving compensation nor entering into a property management employee contract. You ARE
being a nice sibling.
,A property manager is generally responsible for meeting several financial obligations (5): -
correct answer ✔✔ 1) Preserving the value of a property
2) Controlling the operating costs of the property
3) Generating income for the owner (through rent)
4) Finding ways to maximize income for the owner (things other than rent)
5) Other financial concerns as outlined in the management agreement between the property
manager and the owner
What is the property manager's primary responsibility? - correct answer ✔✔ to protect the
property owner's investment and maximize the owner's return on that investment.
A few common operating expenses (or expenses that do not have anything to do with
production) are (3): - correct answer ✔✔ 1) Utility fees
2) Maintenance costs
3) Property taxes
A property manager's budget should include 3 things: - correct answer ✔✔ 1) Specific dates and
the monetary totals for those dates
2) Revenue specifications and totals (from rent and other operating incomes)
3) Expenditure specifications and totals — this will include things like insurance costs, security
fees, maintenance fees, and more
Jeff manages rental duplexes in Poughkeepsie that have just been renovated to include new
amenities. Jeff is in a hurry to get the duplexes on the market, so he prices each duplex without
looking into Poughkeepsie's rental market. Analyze if this was a smart move, and why or why
not. - correct answer ✔✔ This was not a smart move. Jeff should have researched his rental
market so he could market effectively and attract profitable buyers.
-Renovations and amenities do enhance a property's marketability, but Jeff should have
researched his market in order to appropriately price the duplexes. He didn't do his research, so
, he might be losing money on too-cheap rent, or losing out on tenants who want a competitive
rental price.
Property managers are responsible for finding and keeping happy tenants. True or false? -
correct answer ✔✔ TRUE
What is a property manager's facility management responsibility? - correct answer ✔✔
ensuring that repairs and maintenance occur on an ongoing and timely basis.
Administrative and Risk Management Responsibility for property managers - correct answer
✔✔ Record-keeping for accounting purposes and tax reporting is critical, and tenant
communication and interaction need to be documented and held for specific periods of time.
Detailed record-keeping in all of these areas will go a long way towards mitigating risk for the
property owner.
What MUST you have to be a property manager in New York State? - correct answer ✔✔ broker
or real estate salesperson license
Property managers can specialize in these 4 broad categories of property: - correct answer ✔✔
1) Residential (lease agreements, tenant relationships)
2) Commercial (focus on location and anchor tenants)
3) Industrial (online warehouses, oversee manufacturing)
4) Special-purpose (niche business knowledge and specialized skills)
Manufactured Homes - correct answer ✔✔ Built in factories to adhere to the Manufactured
Home Construction and Safety Standards of the U.S. Department of Housing and Urban
Development (HUD). They are a vital source of affordable housing for many Americans.
-Groups of manufactured homes are placed in manufactured home parks. Some people buy or
finance their manufactured homes, but more than one-third of manufactured home residents
rent their units. These manufactured home parks are often professionally managed.
Property Management questions and
answers
Property Manager - correct answer ✔✔ someone who is hired by a property owner to market,
maintain, and oversee the day-to-day operation of a property (usually a rental property).
-Their function is to oversee all operations of the property on behalf of the owner and to realize
the highest return possible on the owner's investment.
Property Management - correct answer ✔✔ the vocation of renting or leasing someone else's
real property on their behalf in exchange for compensation and in accordance with a property
management employee contract.
Property managers are charged with a wide variety of duties, but they all tend to fall under four
main areas of responsibility (4): - correct answer ✔✔ 1) Financial & marketing
2) Tenant & occupancy
3) Facility management
4) Administration & risk management
Your sister just got a new job and she doesn't have time to lease out her rental property. You
decide to help her out, even though you won't receive any compensation, because you're a
good sibling. Apply your knowledge to determine which of the following is TRUE. - correct
answer ✔✔ You are NOT a property manager.
-You are NOT acting as an official property manager in this scenario because you are neither
receiving compensation nor entering into a property management employee contract. You ARE
being a nice sibling.
,A property manager is generally responsible for meeting several financial obligations (5): -
correct answer ✔✔ 1) Preserving the value of a property
2) Controlling the operating costs of the property
3) Generating income for the owner (through rent)
4) Finding ways to maximize income for the owner (things other than rent)
5) Other financial concerns as outlined in the management agreement between the property
manager and the owner
What is the property manager's primary responsibility? - correct answer ✔✔ to protect the
property owner's investment and maximize the owner's return on that investment.
A few common operating expenses (or expenses that do not have anything to do with
production) are (3): - correct answer ✔✔ 1) Utility fees
2) Maintenance costs
3) Property taxes
A property manager's budget should include 3 things: - correct answer ✔✔ 1) Specific dates and
the monetary totals for those dates
2) Revenue specifications and totals (from rent and other operating incomes)
3) Expenditure specifications and totals — this will include things like insurance costs, security
fees, maintenance fees, and more
Jeff manages rental duplexes in Poughkeepsie that have just been renovated to include new
amenities. Jeff is in a hurry to get the duplexes on the market, so he prices each duplex without
looking into Poughkeepsie's rental market. Analyze if this was a smart move, and why or why
not. - correct answer ✔✔ This was not a smart move. Jeff should have researched his rental
market so he could market effectively and attract profitable buyers.
-Renovations and amenities do enhance a property's marketability, but Jeff should have
researched his market in order to appropriately price the duplexes. He didn't do his research, so
, he might be losing money on too-cheap rent, or losing out on tenants who want a competitive
rental price.
Property managers are responsible for finding and keeping happy tenants. True or false? -
correct answer ✔✔ TRUE
What is a property manager's facility management responsibility? - correct answer ✔✔
ensuring that repairs and maintenance occur on an ongoing and timely basis.
Administrative and Risk Management Responsibility for property managers - correct answer
✔✔ Record-keeping for accounting purposes and tax reporting is critical, and tenant
communication and interaction need to be documented and held for specific periods of time.
Detailed record-keeping in all of these areas will go a long way towards mitigating risk for the
property owner.
What MUST you have to be a property manager in New York State? - correct answer ✔✔ broker
or real estate salesperson license
Property managers can specialize in these 4 broad categories of property: - correct answer ✔✔
1) Residential (lease agreements, tenant relationships)
2) Commercial (focus on location and anchor tenants)
3) Industrial (online warehouses, oversee manufacturing)
4) Special-purpose (niche business knowledge and specialized skills)
Manufactured Homes - correct answer ✔✔ Built in factories to adhere to the Manufactured
Home Construction and Safety Standards of the U.S. Department of Housing and Urban
Development (HUD). They are a vital source of affordable housing for many Americans.
-Groups of manufactured homes are placed in manufactured home parks. Some people buy or
finance their manufactured homes, but more than one-third of manufactured home residents
rent their units. These manufactured home parks are often professionally managed.
