DC Property Managers Study Guide Questions and Answers
refers to commercial tenant paying ALL Operating Ex-
What does the term "Triple Net" mean when referring to penses including real estate taxes, insurance, roof mainte-
commercial leases nance, landscaping, etc. This is the most commonly found
in industrial leases.
A lease, that requires tenant to pay rent based on a calcula-
tion that relates directly to the tenant's gross sales. Usually
Percentage Lease
stipulates a base monthly rental plus a percentage of any
gross sales above a certain amount.
The right of possession, the right of control, the right of
The rights of a property owner include........
exclusion, the right of enjoyment, the right to sell.
When the owner leases a property, it temporarily transfers
What is a Leasehold Interest?
to the tenant a portion of the right of possession.
When multi-year leases contain a provision for the owner
Escalator Clause
to increase the rent on the lease's anniversary date.
Funds must be kept separate from property manager's
Separation of Funds accounts. Funds that the property generates belong to the
owner and should be deposited into owner's account.
The property's long term planning, leasing and asking
rates, negotiates commercial leases, evaluates mortgages
Asset Management focuses on & opportunities to refinance the loan,considers strategies
to maximize value and when to market the property for
sale.
Net Operating Income is divided by the Capitalization
What common method is used to determine a property's
Rate
Investment Value?
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? Curative, Deferred, Routine, & Prevenative
Fixing or repairing something after it has already broken.
Curative Maintenance involves......
An example would be fixing a broken sink
Dettered Maintenance
1/9
, DC Property Managers Study Guide Questions and Answers
Involves delaying needed repairs and maintenance to
save money.Is an ordinary maintenance item that is not
performed at the time when a problem is discovered. An
example a manager notices some minor paint peeling in
stairwell.
Relates to the cleaning and upkeep that is needed every
Routine Maintenance day. An example is vacuuming the carpet in the building
hallways.
This is used for income tax purposes and attects a prop-
Depreciated Value
erty's tax basis
The only price that the owner has ottered to sell a property
List Price
for.
is the amount of money that remains after Debt Service is
Cash Flow subtracted from Net Operating Income. Is often used by
investors to determine the owner's Return On Investment
is utilized to classify each of the ditterent types of the
Chart of Accounts
income and expenses.
Usually occurs in the absence of a written lease and can
Tenancy at Will occur after a lease expires. Tenant/resident continues to
occupy space and landlord continues to accept payment.
Occurs after the expiration of lease has expired. Ten-
Tenancy at Sutterance ant/resident continues to occupy the apartment or space
without the landlord's consent.
Implement & accomplish the owner's objectives, increase
resident/tenant satisfact rates, reduce operating costs,
What are the objectives of a Maintenance Plan? optimize the property's physical capabilities, increase the
property's value, providing safety of tenants, residents,
visitors, and employees.
2/9
refers to commercial tenant paying ALL Operating Ex-
What does the term "Triple Net" mean when referring to penses including real estate taxes, insurance, roof mainte-
commercial leases nance, landscaping, etc. This is the most commonly found
in industrial leases.
A lease, that requires tenant to pay rent based on a calcula-
tion that relates directly to the tenant's gross sales. Usually
Percentage Lease
stipulates a base monthly rental plus a percentage of any
gross sales above a certain amount.
The right of possession, the right of control, the right of
The rights of a property owner include........
exclusion, the right of enjoyment, the right to sell.
When the owner leases a property, it temporarily transfers
What is a Leasehold Interest?
to the tenant a portion of the right of possession.
When multi-year leases contain a provision for the owner
Escalator Clause
to increase the rent on the lease's anniversary date.
Funds must be kept separate from property manager's
Separation of Funds accounts. Funds that the property generates belong to the
owner and should be deposited into owner's account.
The property's long term planning, leasing and asking
rates, negotiates commercial leases, evaluates mortgages
Asset Management focuses on & opportunities to refinance the loan,considers strategies
to maximize value and when to market the property for
sale.
Net Operating Income is divided by the Capitalization
What common method is used to determine a property's
Rate
Investment Value?
(NOI/Cap Rate= Value)
What are the four categories related to Maintenance? Curative, Deferred, Routine, & Prevenative
Fixing or repairing something after it has already broken.
Curative Maintenance involves......
An example would be fixing a broken sink
Dettered Maintenance
1/9
, DC Property Managers Study Guide Questions and Answers
Involves delaying needed repairs and maintenance to
save money.Is an ordinary maintenance item that is not
performed at the time when a problem is discovered. An
example a manager notices some minor paint peeling in
stairwell.
Relates to the cleaning and upkeep that is needed every
Routine Maintenance day. An example is vacuuming the carpet in the building
hallways.
This is used for income tax purposes and attects a prop-
Depreciated Value
erty's tax basis
The only price that the owner has ottered to sell a property
List Price
for.
is the amount of money that remains after Debt Service is
Cash Flow subtracted from Net Operating Income. Is often used by
investors to determine the owner's Return On Investment
is utilized to classify each of the ditterent types of the
Chart of Accounts
income and expenses.
Usually occurs in the absence of a written lease and can
Tenancy at Will occur after a lease expires. Tenant/resident continues to
occupy space and landlord continues to accept payment.
Occurs after the expiration of lease has expired. Ten-
Tenancy at Sutterance ant/resident continues to occupy the apartment or space
without the landlord's consent.
Implement & accomplish the owner's objectives, increase
resident/tenant satisfact rates, reduce operating costs,
What are the objectives of a Maintenance Plan? optimize the property's physical capabilities, increase the
property's value, providing safety of tenants, residents,
visitors, and employees.
2/9
