DC Property Manager Exam Flashcards
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questions with verified answers
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Management |Plan |- |CORRECT |ANSWER-This |describes |in |detail |the |subject |property's |current |use |
along |with |its |physical |condition, |fiscal |projections, |and |any |operational |issues. |It |also |includes |an |
analysis |of |the |market |(both |regional |and |neighborhood), |the |competing |properties, |as |well |as |
potential |improvements |or |alternative |uses |for |the |subject |property.
Market |Analysis |- |CORRECT |ANSWER-This |focuses |on |both |a |regional |and |neighborhood |evaluation, |
which |includes |the |demographic |conditions, |geographic |features, |governmental |prospective, |existing |
real |estate |supply, |potential |future |developments, |and |tenant/resident |demand.
, DC Property Manager Exam Flashcards
| | | | |
questions with verified answers
| | |
Analysis |of |Alternatives |- |CORRECT |ANSWER-This |looks |at |the |theoretical |costs |and |corresponding |
increase |in |rents |by |making |different |improvements, |even |the |subject |property's |redevelopment.
Capital |Expenditures |- |CORRECT |ANSWER-Work |performed |on |properties |that |are |occupied |and |
operational |with |the |goal |of |trying |to |prevent |the |property |from |declining |and |becoming |obsolete.
Physical |Obsolescence |- |CORRECT |ANSWER-A |status |characterized |as |a |condition |of |aging |(i.e. |wear |
and |tear) |or |deferred |maintenance. |Examples |are |worn |carpets, |peeling |paint, |a |leaking |roof, |or |dead
|landscaping.
Functional |Obsolescence |- |CORRECT |ANSWER-A |status |characterized |by |old |or |outdated |designs |or |
building |systems. |Examples |include |equipment |that |is |not |repairable |because |parts |or |no |longer |
manufactured; |single |pane |window |systems |because |they |waste |a |large |amount |of |energy; |outdated |
bathroom |fixtures |because |of |changing |designs |and |tastes.
Economic |Obsolescence |- |CORRECT |ANSWER-A |status |that |represents |a |loss |in |value |due |to |outside |
forces |(i.e. |location, |market |conditions). |An |example |would |be |an |office |building, |located |in |a |small |
town, |where |the |major |employer |closes. |This |may |result |in |both |lower |demand |and |rental |rates.
Depreciation |- |CORRECT |ANSWER-The |process |by |which |properties |begin |to |deteriorate |as |soon |as |
they |are |completed. |It |represents |the |loss |in |value |from |the |various |forms |of |obsolescence.
Depreciated |Value |- |CORRECT |ANSWER-The |amount |value |that |a |property |loses |per |year |due |to |the |
various |forms |of |obsolescence. |Ex: |$12,000,000 |x |2.5% |(0.025) |= |$300,000 |per |year
| | | | |
questions with verified answers
| | |
Management |Plan |- |CORRECT |ANSWER-This |describes |in |detail |the |subject |property's |current |use |
along |with |its |physical |condition, |fiscal |projections, |and |any |operational |issues. |It |also |includes |an |
analysis |of |the |market |(both |regional |and |neighborhood), |the |competing |properties, |as |well |as |
potential |improvements |or |alternative |uses |for |the |subject |property.
Market |Analysis |- |CORRECT |ANSWER-This |focuses |on |both |a |regional |and |neighborhood |evaluation, |
which |includes |the |demographic |conditions, |geographic |features, |governmental |prospective, |existing |
real |estate |supply, |potential |future |developments, |and |tenant/resident |demand.
, DC Property Manager Exam Flashcards
| | | | |
questions with verified answers
| | |
Analysis |of |Alternatives |- |CORRECT |ANSWER-This |looks |at |the |theoretical |costs |and |corresponding |
increase |in |rents |by |making |different |improvements, |even |the |subject |property's |redevelopment.
Capital |Expenditures |- |CORRECT |ANSWER-Work |performed |on |properties |that |are |occupied |and |
operational |with |the |goal |of |trying |to |prevent |the |property |from |declining |and |becoming |obsolete.
Physical |Obsolescence |- |CORRECT |ANSWER-A |status |characterized |as |a |condition |of |aging |(i.e. |wear |
and |tear) |or |deferred |maintenance. |Examples |are |worn |carpets, |peeling |paint, |a |leaking |roof, |or |dead
|landscaping.
Functional |Obsolescence |- |CORRECT |ANSWER-A |status |characterized |by |old |or |outdated |designs |or |
building |systems. |Examples |include |equipment |that |is |not |repairable |because |parts |or |no |longer |
manufactured; |single |pane |window |systems |because |they |waste |a |large |amount |of |energy; |outdated |
bathroom |fixtures |because |of |changing |designs |and |tastes.
Economic |Obsolescence |- |CORRECT |ANSWER-A |status |that |represents |a |loss |in |value |due |to |outside |
forces |(i.e. |location, |market |conditions). |An |example |would |be |an |office |building, |located |in |a |small |
town, |where |the |major |employer |closes. |This |may |result |in |both |lower |demand |and |rental |rates.
Depreciation |- |CORRECT |ANSWER-The |process |by |which |properties |begin |to |deteriorate |as |soon |as |
they |are |completed. |It |represents |the |loss |in |value |from |the |various |forms |of |obsolescence.
Depreciated |Value |- |CORRECT |ANSWER-The |amount |value |that |a |property |loses |per |year |due |to |the |
various |forms |of |obsolescence. |Ex: |$12,000,000 |x |2.5% |(0.025) |= |$300,000 |per |year
