DC Property Manager Test questions with answers

DC Property Manager Test questions with
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answers

Management Plan - CORRECT ANSWERS ✔✔The plan describes in |\ |\ |\ |\ |\ |\ |\ |\


detail the subject property's current use along with its physical
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condition, fiscal projections, and any operational issues. It also
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includes an analysis of the market (both regional and
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neighborhood), the competing properties, as well as potential |\ |\ |\ |\ |\ |\ |\ |\


improvements or alternative uses for the subject property. These |\ |\ |\ |\ |\ |\ |\ |\ |\


items will be discussed further in this section.
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Market Analysis - CORRECT ANSWERS ✔✔A ______ focuses on
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both a regional and neighborhood evaluation, which includes the
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demographic conditions, geographic features, governmental |\ |\ |\ |\ |\


prospective, existing real estate supply, potential future |\ |\ |\ |\ |\ |\ |\


developments, and tenant/ resident demand |\ |\ |\ |\




By performing the ____________ and a ______________, it is easier to
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identify the subject property's strengths and weaknesses. -
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CORRECT ANSWERS ✔✔Market Analysis, Competitive Property
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Analysis


Analysis of Alternatives - CORRECT ANSWERS ✔✔Looks at the
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theoretical costs and corresponding increase in rents by making
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different improvements, even the subject property's
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redevelopment.

,Physical Obsolescence - CORRECT ANSWERS ✔✔is characterized
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as a condition of aging (i.e. wear and tear) or deferred
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maintenance. Examples are worn carpets, peeling paint, a |\ |\ |\ |\ |\ |\ |\ |\


leaking roof, or dead landscaping. |\ |\ |\ |\




Functional Obsolescence - CORRECT ANSWERS ✔✔is |\ |\ |\ |\ |\ |\


characterized by old or outdated designs or building systems. |\ |\ |\ |\ |\ |\ |\ |\ |\


Examples include equipment that is not repairable because parts
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or no longer manufactured; DC Property Management Study
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Guide - 3 single pane window systems because they waste a
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large amount of energy; outdated bathroom fixtures because of
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changing designs and tastes. |\ |\ |\




Economic Obsolescence - CORRECT ANSWERS ✔✔represents a |\ |\ |\ |\ |\ |\ |\


loss in value due to outside forces (i.e. location, market
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conditions). An example would be an office building, located in a |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


small town, where the major employer closes. This may result in
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both lower demand and rental rates.
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Depreciation - CORRECT ANSWERS ✔✔Properties begin to |\ |\ |\ |\ |\ |\ |\


deteriorate as soon as they are completed. This process is called |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


____________. and it represents the loss in value from the various |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


forms of obsolescence. __________ can be economically estimated
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on a broad level.
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If a new 400 unit apartment building is worth $12,000,000 and
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depreciates in value at 2.5% per year, what is its Depreciated |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


Value after five years? - CORRECT ANSWERS ✔✔$12,000,000 x
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0.025 = $300,000 per year of Depreciated Value $300,000 x 5
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years = $1,500,000 accumulated Depreciation $12,000,000 -
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$1,500,000 = $10,500,000 Depreciated Value after 5 years |\ |\ |\ |\ |\ |\ |\

, Investment Value - CORRECT ANSWERS ✔✔This is the value that|\ |\ |\ |\ |\ |\ |\ |\ |\ |\


is generally used by investors. It is frequently determined either
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by calculating the Net Operating Income and applying a
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Capitalization Rate to it or from Cash Flow by determining the |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


Return on Investment |\ |\




Assessed Value - CORRECT ANSWERS ✔✔This is the value used
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by government tax assessment offices. Since it is frequently
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determined using sophisticated mathematical models that are |\ |\ |\ |\ |\ |\ |\


applied to many similar types of properties over a geographic
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area, it can be less accurate and produce results that are higher
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or lower than other types of "values".
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Market Value - CORRECT ANSWERS ✔✔This is the value that is
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agreed to between a buyer and seller. It represents the "meeting
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of the minds".
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Depreciated Value - CORRECT ANSWERS ✔✔This is used for |\ |\ |\ |\ |\ |\ |\ |\ |\


income tax purposes and affects a property's tax basis. In the
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past, the Federal Government has implemented accelerated
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depreciation programs to help promote economic growth |\ |\ |\ |\ |\ |\




List Price - CORRECT ANSWERS ✔✔This is only the price that the
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owner has offered to sell a property for
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There are certain responsibilities and limitations that the
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manager needs to be aware of and follow including .... -
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CORRECT ANSWERS ✔✔• Loyalty to the client |\ |\ |\ |\ |\ |\ |\