DC PROPERTY MANAGERS STUDY
GUIDE QUESTIONS & ANSWERS
( GRADED A+)
Management Plan - ANSWERAssists the owner in meeting their goals while
maximizing the property's value and return. The plan describes in detail the subject
property's current use along with it's physical condition, fiscal projections, and
operational issues (includes an analysis of the market regional & neighborhood).
Organizational and educational programs available to assist in enhancing the
property manager's knowledge, identifying resources to resolve issues, and
expanding their business network. - ANSWERInstitute of Real Estate Management
(IREM), National Association of Realtors (NAR), Greater Capital Area Association of
Realtors (GCARR), building Owners & Managers Association (BOMA), National
Association of Real Estate Brokers, International Council of Shopping Centers
(ICSC), and National Property Management Association.
Market Analysis - ANSWERFocuses on regional and neighborhood evaluations.
Includes demographic conditions, geographic features, governmental prospective,
existing real estate supply, future developments, and tenant/resident demand
Market Analysis & Competitive Property Analysis helps to..... - ANSWERIdentify the
subject property's strengths and weaknesses
Gross Lease - ANSWERThe property owner pays all Operating Expenses up to a
certain amount. Commonly found in office spaces.
What does the term "Net Lease" mean when referring to commercial leases? -
ANSWERThe tenant pays for some or all Operating Expenses in addition to base
rent. Derivatives of this structure are Net-Net & Triple Net Leases.
- ANSWER
What does the term "Triple Net" mean when referring to commercial leases -
ANSWERrefers to commercial tenant paying ALL Operating Expenses including real
estate taxes, insurance, roof maintenance, landscaping, etc. This is the most
commonly found in industrial leases.
Percentage Lease - ANSWERA lease, that requires tenant to pay rent based on a
calculation that relates directly to the tenant's gross sales. Usually stipulates a base
monthly rental plus a percentage of any gross sales above a certain amount.
The Highest & Best Use - ANSWERWhen the property manager considers
alternatives to improve the property's weaknesses or further enhance its strengths to
improve overall economic performance.
, Analysis of Alternative - ANSWERLooks at the theoretical costs and corresponding
increase in rents by making different improvements, even property's redevelopment.
When determining the best use of property, alternatives to consider are......... -
ANSWERRehabilitate without altering its existing use, Modernize by updating
finishes (more efficient equipment), Change the Use of building (including
conversion), or Conversion to a condominium m ownership structure.
Capital Expenditures - ANSWERProjects that help extend the property's life.
Physical Obsolescene - ANSWERis characterized as a condition of aging (i.e. wear
& tear) or deferred maintenance. Examples are worn carpet, peeling paint, a leaking
roof, or dead landscaping
Functional Obsolescene - ANSWERis characterized by old or outdated designs or
building systems.
Economic Obsolesence - ANSWERRepresents a loss in value due to outside forces
(i.e. location, market conditions). Examples would be an office building, locates in a
small town, where the major employer closes.
Investment Value - ANSWERA value generally used by investors
Assessed Value - ANSWERThe value used by government tax assessment offices
Market Value - ANSWERThe value that is agreed to between a buyer & seller
Rules of Ethics for Property Manager - ANSWERLoyalty to client, confidentiality,
accurate accounting & reporting, protection of owner's funds, conflicts of interest,
and compliance with law regulations.
An owner can be directly affected by manager's..... - ANSWERImproper handling of
evictions, unlawful rent collections, failure to return security deposits, not maintaining
proper compliance with the Rental Accommodations Division (RAD)
The Management Agreement - ANSWERis a formal and binding contract that
establishes the authority and responsibilities that a manager has on behalf of the
owner.
Name of the owner & manager, term of agreement, describes the property,
describes services provided by manager, identifies who collects rental payments,
identifies whose name all service contracts are to be made, when funds are
disbursed, whose employees work at the property, bank accounts, fidelity bonds,
identifies building licenses, insurance requirements/ who secures policies, and
management fees compensation - ANSWERSome provisions outlined in the
Management Agreement include:
Reasons for termination of Management Agreement - ANSWERSale or transfer of
the property, improper financial reporting, stealing funds, negligence, taking
kickbacks or benefiting directly from discounts from vendors, commingling funds.
GUIDE QUESTIONS & ANSWERS
( GRADED A+)
Management Plan - ANSWERAssists the owner in meeting their goals while
maximizing the property's value and return. The plan describes in detail the subject
property's current use along with it's physical condition, fiscal projections, and
operational issues (includes an analysis of the market regional & neighborhood).
Organizational and educational programs available to assist in enhancing the
property manager's knowledge, identifying resources to resolve issues, and
expanding their business network. - ANSWERInstitute of Real Estate Management
(IREM), National Association of Realtors (NAR), Greater Capital Area Association of
Realtors (GCARR), building Owners & Managers Association (BOMA), National
Association of Real Estate Brokers, International Council of Shopping Centers
(ICSC), and National Property Management Association.
Market Analysis - ANSWERFocuses on regional and neighborhood evaluations.
Includes demographic conditions, geographic features, governmental prospective,
existing real estate supply, future developments, and tenant/resident demand
Market Analysis & Competitive Property Analysis helps to..... - ANSWERIdentify the
subject property's strengths and weaknesses
Gross Lease - ANSWERThe property owner pays all Operating Expenses up to a
certain amount. Commonly found in office spaces.
What does the term "Net Lease" mean when referring to commercial leases? -
ANSWERThe tenant pays for some or all Operating Expenses in addition to base
rent. Derivatives of this structure are Net-Net & Triple Net Leases.
- ANSWER
What does the term "Triple Net" mean when referring to commercial leases -
ANSWERrefers to commercial tenant paying ALL Operating Expenses including real
estate taxes, insurance, roof maintenance, landscaping, etc. This is the most
commonly found in industrial leases.
Percentage Lease - ANSWERA lease, that requires tenant to pay rent based on a
calculation that relates directly to the tenant's gross sales. Usually stipulates a base
monthly rental plus a percentage of any gross sales above a certain amount.
The Highest & Best Use - ANSWERWhen the property manager considers
alternatives to improve the property's weaknesses or further enhance its strengths to
improve overall economic performance.
, Analysis of Alternative - ANSWERLooks at the theoretical costs and corresponding
increase in rents by making different improvements, even property's redevelopment.
When determining the best use of property, alternatives to consider are......... -
ANSWERRehabilitate without altering its existing use, Modernize by updating
finishes (more efficient equipment), Change the Use of building (including
conversion), or Conversion to a condominium m ownership structure.
Capital Expenditures - ANSWERProjects that help extend the property's life.
Physical Obsolescene - ANSWERis characterized as a condition of aging (i.e. wear
& tear) or deferred maintenance. Examples are worn carpet, peeling paint, a leaking
roof, or dead landscaping
Functional Obsolescene - ANSWERis characterized by old or outdated designs or
building systems.
Economic Obsolesence - ANSWERRepresents a loss in value due to outside forces
(i.e. location, market conditions). Examples would be an office building, locates in a
small town, where the major employer closes.
Investment Value - ANSWERA value generally used by investors
Assessed Value - ANSWERThe value used by government tax assessment offices
Market Value - ANSWERThe value that is agreed to between a buyer & seller
Rules of Ethics for Property Manager - ANSWERLoyalty to client, confidentiality,
accurate accounting & reporting, protection of owner's funds, conflicts of interest,
and compliance with law regulations.
An owner can be directly affected by manager's..... - ANSWERImproper handling of
evictions, unlawful rent collections, failure to return security deposits, not maintaining
proper compliance with the Rental Accommodations Division (RAD)
The Management Agreement - ANSWERis a formal and binding contract that
establishes the authority and responsibilities that a manager has on behalf of the
owner.
Name of the owner & manager, term of agreement, describes the property,
describes services provided by manager, identifies who collects rental payments,
identifies whose name all service contracts are to be made, when funds are
disbursed, whose employees work at the property, bank accounts, fidelity bonds,
identifies building licenses, insurance requirements/ who secures policies, and
management fees compensation - ANSWERSome provisions outlined in the
Management Agreement include:
Reasons for termination of Management Agreement - ANSWERSale or transfer of
the property, improper financial reporting, stealing funds, negligence, taking
kickbacks or benefiting directly from discounts from vendors, commingling funds.
