Property Management Exam 2025
Questions and Answers 100% pass
Effective gross income - ✔✔is the potential gross income minus vacancy and
collection losses.
When a lease is assigned, the assignee is - ✔✔the new tenant
An escalation clause would be found in - ✔✔and index lease
making sure the equipment is in working order is - ✔✔Corrective maintenance
Net lease is - ✔✔when the tenant agrees to pay rent, taxes, maintenanance etc
the purpose of calculating the rate of return is - ✔✔to measure the profitability of the
property
a property manager is responsible for the development of many docs for the owner,
but which doc is not his responsibility: - ✔✔The lease agreement
what does asbestos, radon and urea formaldehyde have in common? - ✔✔they are
classified as environmental hazards, and property mgr must be aware of it
which of the following terms could be found in a lease or mortgage? - ✔✔an
escalation clause
a tenant pays a fixed rent and the owner pays all other ownership expenses what
type of lease is this - ✔✔gross lease
An automatic renewal clause would be found in what type of lease? - ✔✔Periodic
tenancy
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, On a profit and loss statement, what doesnt need to be entered - ✔✔the property
manager's compensation
A person entered into a property management agreement with a co. the agreement
most likely stipulates that he will be paid a % of - ✔✔this year's gross income
To compute the return on investment, a prop. mgr must - ✔✔divide the after-tax
cash flow by the equity and multiply by 100%
The primary purpose of a profit and loss statement is to - ✔✔analyze how the
property was managed, what changes should be made, and projections for the new
year
A property manager must take into consideration what to determine the net
operating income that a property produces - ✔✔Vacancy /rent loss
Unless the lease agreement says otherwise, the upkeep of the electrical, heating and
plumbing is the responsibility of: - ✔✔The owner/lessor
When a property manager binds a principal/owner to a contract, the manager is
directly operating under the fiduciary duty of : - ✔✔Care and skill
Net Operating income - ✔✔is the effective gross income minus operating expenses.
property management agreement is a: - ✔✔personal service contract and it creates
and agency relationship
An operation budget is based on: - ✔✔the anticipated revenues and expenses
Under a lease, the leasehold estate is a right belonging to the: - ✔✔tenant
Effective gross income is: - ✔✔the potential gross income minus vacancy and
collection losses.
Net Operating income is: - ✔✔the effective gross income minus operating expenses
Potential gross income is: - ✔✔how much the property is producing in rental plus
other source of income
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
Questions and Answers 100% pass
Effective gross income - ✔✔is the potential gross income minus vacancy and
collection losses.
When a lease is assigned, the assignee is - ✔✔the new tenant
An escalation clause would be found in - ✔✔and index lease
making sure the equipment is in working order is - ✔✔Corrective maintenance
Net lease is - ✔✔when the tenant agrees to pay rent, taxes, maintenanance etc
the purpose of calculating the rate of return is - ✔✔to measure the profitability of the
property
a property manager is responsible for the development of many docs for the owner,
but which doc is not his responsibility: - ✔✔The lease agreement
what does asbestos, radon and urea formaldehyde have in common? - ✔✔they are
classified as environmental hazards, and property mgr must be aware of it
which of the following terms could be found in a lease or mortgage? - ✔✔an
escalation clause
a tenant pays a fixed rent and the owner pays all other ownership expenses what
type of lease is this - ✔✔gross lease
An automatic renewal clause would be found in what type of lease? - ✔✔Periodic
tenancy
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 1
, On a profit and loss statement, what doesnt need to be entered - ✔✔the property
manager's compensation
A person entered into a property management agreement with a co. the agreement
most likely stipulates that he will be paid a % of - ✔✔this year's gross income
To compute the return on investment, a prop. mgr must - ✔✔divide the after-tax
cash flow by the equity and multiply by 100%
The primary purpose of a profit and loss statement is to - ✔✔analyze how the
property was managed, what changes should be made, and projections for the new
year
A property manager must take into consideration what to determine the net
operating income that a property produces - ✔✔Vacancy /rent loss
Unless the lease agreement says otherwise, the upkeep of the electrical, heating and
plumbing is the responsibility of: - ✔✔The owner/lessor
When a property manager binds a principal/owner to a contract, the manager is
directly operating under the fiduciary duty of : - ✔✔Care and skill
Net Operating income - ✔✔is the effective gross income minus operating expenses.
property management agreement is a: - ✔✔personal service contract and it creates
and agency relationship
An operation budget is based on: - ✔✔the anticipated revenues and expenses
Under a lease, the leasehold estate is a right belonging to the: - ✔✔tenant
Effective gross income is: - ✔✔the potential gross income minus vacancy and
collection losses.
Net Operating income is: - ✔✔the effective gross income minus operating expenses
Potential gross income is: - ✔✔how much the property is producing in rental plus
other source of income
COPYRIGHT © 2025 BY SOPHIA BENNETT, ALL RIGHTS RESERVED 2
