DC PROPERTY MANAGERS UPDATED
COMPREHENSIVE QUESTIONS AND ANSWERS
SURE A+
✔✔Actions that could put management company and owner at risk include: -
✔✔Improper handling of evictions, unlawful rent collections, failure to return security
deposit, not maintaining proper compliance with Rental Accommodations Division
(RAD).
✔✔The purpose of the Budget process is to - ✔✔Develop a means to track the
property's performance and to organize various types of income. By organizing income
& expenses is easier to see trends, to determine unusual or non-recurring items.
✔✔Gross Potential Rent Income - ✔✔Is the maximum amount of income that a property
can generate from all sources.
✔✔Effective Gross Income - ✔✔Is the Net effective of all items listed above equals
Gross Potential Rent Income includes Expense reimbursement minus Vacancy and
Credit Loss plus Miscellaneous Income.
✔✔Net Operating Income - ✔✔is used one of the components often used in calculating
a property's investment value. It represents the money that remains after Operating
Expenses are subtracted from Effective Gross Income.
✔✔Return On Investment - ✔✔Is one measure used by investors to determine if a
potential investment is worth purchasing.
✔✔What are the advantages of the Return On Investment calculation - ✔✔It enables an
investor to compare different types of investments, in order to decide which one to
choose.
, ✔✔Net Lease - ✔✔The tenant pays for all Operating Expenses in addition to Base
Rent.
✔✔Triple Net Lease - ✔✔Tenant will pay including all Operating Expenses including
real estate taxes, insurance, roof maintenance, etc.
✔✔Leasehold Interest - ✔✔When the owner leases a property, it temporarily transfers
to the tenant a portion of right of possession or when a property is sold the new owner's
rights are transferred.
✔✔Leesee - ✔✔A person who holds the lease of a property; a tenant
✔✔Lessor - ✔✔A person who leases or lets a property to another; a landlord.
✔✔Property Manager's are entrusted to look after other people's money this includes: -
✔✔Opening Bank Accounts, promptly depositing all receipts, and paying vendors when
all services are completed.
✔✔Physical Inspections - ✔✔Is a method used to evaluate the property's condition &
equipment as well as being the first step to develop a plan to address any issues.
✔✔When should an inspection be performed after a resident has moved out? -
✔✔Ideally the same day.
✔✔Some areas to regular inspect include - ✔✔Roofs- look for pondering water, holes,
and debris; Parking Lots- look for pavement alligator, loose graveling, potholes Front
Entrance- look for trip hazards, cracked windows; Exterior Facades- failed caulking,
loose concrete, crack windows.
✔✔In order to generate a list of what to be inspected on a property - ✔✔A walk-through
of the property and all of the areas related to its mechanical, electrical, telephone, and
life safety equipment needs to be conducted. Frequency of inspections are determined
annually, semi-annually, quarterly, and monthly.
✔✔Request For Proposal or RPF - ✔✔To develop a clear and thorough specification for
contracts to bid on is called
✔✔What is included in an RPF? - ✔✔Scope of work, how is to be performed, frequency,
special requirements, work hours, timetable to complete, insurance requirements,
deadline for submission, number of personnel to be provided, warranty, & references.
✔✔Before marketing an available space or unit, - ✔✔Be sure that it is clean and
presentable and that the owner has approved all marketing plans.
COMPREHENSIVE QUESTIONS AND ANSWERS
SURE A+
✔✔Actions that could put management company and owner at risk include: -
✔✔Improper handling of evictions, unlawful rent collections, failure to return security
deposit, not maintaining proper compliance with Rental Accommodations Division
(RAD).
✔✔The purpose of the Budget process is to - ✔✔Develop a means to track the
property's performance and to organize various types of income. By organizing income
& expenses is easier to see trends, to determine unusual or non-recurring items.
✔✔Gross Potential Rent Income - ✔✔Is the maximum amount of income that a property
can generate from all sources.
✔✔Effective Gross Income - ✔✔Is the Net effective of all items listed above equals
Gross Potential Rent Income includes Expense reimbursement minus Vacancy and
Credit Loss plus Miscellaneous Income.
✔✔Net Operating Income - ✔✔is used one of the components often used in calculating
a property's investment value. It represents the money that remains after Operating
Expenses are subtracted from Effective Gross Income.
✔✔Return On Investment - ✔✔Is one measure used by investors to determine if a
potential investment is worth purchasing.
✔✔What are the advantages of the Return On Investment calculation - ✔✔It enables an
investor to compare different types of investments, in order to decide which one to
choose.
, ✔✔Net Lease - ✔✔The tenant pays for all Operating Expenses in addition to Base
Rent.
✔✔Triple Net Lease - ✔✔Tenant will pay including all Operating Expenses including
real estate taxes, insurance, roof maintenance, etc.
✔✔Leasehold Interest - ✔✔When the owner leases a property, it temporarily transfers
to the tenant a portion of right of possession or when a property is sold the new owner's
rights are transferred.
✔✔Leesee - ✔✔A person who holds the lease of a property; a tenant
✔✔Lessor - ✔✔A person who leases or lets a property to another; a landlord.
✔✔Property Manager's are entrusted to look after other people's money this includes: -
✔✔Opening Bank Accounts, promptly depositing all receipts, and paying vendors when
all services are completed.
✔✔Physical Inspections - ✔✔Is a method used to evaluate the property's condition &
equipment as well as being the first step to develop a plan to address any issues.
✔✔When should an inspection be performed after a resident has moved out? -
✔✔Ideally the same day.
✔✔Some areas to regular inspect include - ✔✔Roofs- look for pondering water, holes,
and debris; Parking Lots- look for pavement alligator, loose graveling, potholes Front
Entrance- look for trip hazards, cracked windows; Exterior Facades- failed caulking,
loose concrete, crack windows.
✔✔In order to generate a list of what to be inspected on a property - ✔✔A walk-through
of the property and all of the areas related to its mechanical, electrical, telephone, and
life safety equipment needs to be conducted. Frequency of inspections are determined
annually, semi-annually, quarterly, and monthly.
✔✔Request For Proposal or RPF - ✔✔To develop a clear and thorough specification for
contracts to bid on is called
✔✔What is included in an RPF? - ✔✔Scope of work, how is to be performed, frequency,
special requirements, work hours, timetable to complete, insurance requirements,
deadline for submission, number of personnel to be provided, warranty, & references.
✔✔Before marketing an available space or unit, - ✔✔Be sure that it is clean and
presentable and that the owner has approved all marketing plans.
