DC Property Manager Exam -with complete
verified solutions (Guaranteed Success )
Management Plan - 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 - 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.
Analysis of Alternatives - answer This looks at the theoretical costs and
corresponding increase in rents by making different improvements,
even the subject property's redevelopment.
Capital Expenditures - 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 - 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 - 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outdated designs or building systems.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outdated bathroom fixtures because of changing designs and tastes.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 - 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 - 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 - 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
Investment Value - answer An amount that is frequently determined
either by calculating the Net Operating Income and applying a
verified solutions (Guaranteed Success )
Management Plan - 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 - 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.
Analysis of Alternatives - answer This looks at the theoretical costs and
corresponding increase in rents by making different improvements,
even the subject property's redevelopment.
Capital Expenditures - 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 - 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 - 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 - 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 - 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 - 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
Investment Value - answer An amount that is frequently determined
either by calculating the Net Operating Income and applying a
