Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
Any cash left over after cash expenses is called:
A. Gross income
B. Change
C. Cash flow
D. Net income - ANSWER C. Cash flow
By using social media, which of the following can improve your property reputation online:
A. Encourage renters to leave a review
B.you can find a large number of highly qualified tenants
C.encourage potential renters to read reviews
D. All the answers are correct - ANSWER D. All the answers are correct
When the value of a real estate property increases over time, this is called:
A. Depreciation on capital gains
B. Appreciation
C. Equity
D. All the answers are incorrect - ANSWER B. Appreciation
A property management plan includes:
A. an analysis of the present state of the property's physical condition
,Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
B. nature of tenants, rents, and lease provisions
C. what you expect to achieve and how you will achieve it
D. all the answers are correct - ANSWER D. all the answers are correct
A property management plan that includes a budget for the first year based on anticipated expenses
and anticipated revenue is called a:
A. real property expectations statement
B. pro-forma statement
C. first year budget
D. reserve requirements statement - ANSWER B. pro-forma statement
National and local economic conditions can affect which of the following factors?
A. costs
B. rents
C. vacancy factors
D. all the answers are correct - ANSWER D. all the answers are correct
Use of signs, websites, online advertising, open houses, press releases, etc., are all part of a(n):
A. construction plan
B. marketing plan
C. financial plan
D. economic plan - ANSWER B. marketing plan
Which of the following are valid reasons for a property manager to refuse management services to an
owner?
,Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
A. negative cash flow
B. poor depreciation
C. inadequate commission compensation
D. negative cash flow and inadequate commission compensation - ANSWER D. negative cash flow and
inadequate commission compensation
An agreement between the owner and the property manager that clearly lists the obligations of the
parties is referred to as:
A. a property management contract
B. a service contract
C. an obligatory contract
D. all the answers are incorrect - ANSWER A. a property management contract
If an owner agrees to hold a manager harmless for damages or injuries to persons or property when the
manager is carrying out provisions of a contract, this is called:
A. compensation
B. special services
C. indemnification
D. waiver of subrogation - ANSWER C. indemnification
When renting to friends and relatives, as a property manager, you should:
a. give them a good deal on your fees
b. fully disclose any and all relationships to the owner
c. treat them with special circumstances
, Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
d. relax some of the occupancy rules - ANSWER b. fully disclose any and all relationships to the owner
Keeping a record of every tenant complaint can help you identify:
a. service contract problems
b. maintenance deficiencies
c. personnel problems
d. all answers are correct - ANSWER d. all answers are correct
The abuse of property that impairs the value of the property is called:
a. waste
b. over improvement
c. under improvement
d. all answers are correct - ANSWER a. waste
In a month-to-month tenancy, how many days notice is usually required to change the amount of rent?
a. 60-120 days
b. 30-60 days
c. 45-90 days
d. 0-15 days - ANSWER b. 30-60 days
If a tenant fails to pay the rent on time, the first step in eviction would be a notice called:
a. a three-day notice
b. a quit or cure notice
questions and CORRECT SOLUTIONS.
Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
Any cash left over after cash expenses is called:
A. Gross income
B. Change
C. Cash flow
D. Net income - ANSWER C. Cash flow
By using social media, which of the following can improve your property reputation online:
A. Encourage renters to leave a review
B.you can find a large number of highly qualified tenants
C.encourage potential renters to read reviews
D. All the answers are correct - ANSWER D. All the answers are correct
When the value of a real estate property increases over time, this is called:
A. Depreciation on capital gains
B. Appreciation
C. Equity
D. All the answers are incorrect - ANSWER B. Appreciation
A property management plan includes:
A. an analysis of the present state of the property's physical condition
,Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
B. nature of tenants, rents, and lease provisions
C. what you expect to achieve and how you will achieve it
D. all the answers are correct - ANSWER D. all the answers are correct
A property management plan that includes a budget for the first year based on anticipated expenses
and anticipated revenue is called a:
A. real property expectations statement
B. pro-forma statement
C. first year budget
D. reserve requirements statement - ANSWER B. pro-forma statement
National and local economic conditions can affect which of the following factors?
A. costs
B. rents
C. vacancy factors
D. all the answers are correct - ANSWER D. all the answers are correct
Use of signs, websites, online advertising, open houses, press releases, etc., are all part of a(n):
A. construction plan
B. marketing plan
C. financial plan
D. economic plan - ANSWER B. marketing plan
Which of the following are valid reasons for a property manager to refuse management services to an
owner?
,Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
A. negative cash flow
B. poor depreciation
C. inadequate commission compensation
D. negative cash flow and inadequate commission compensation - ANSWER D. negative cash flow and
inadequate commission compensation
An agreement between the owner and the property manager that clearly lists the obligations of the
parties is referred to as:
A. a property management contract
B. a service contract
C. an obligatory contract
D. all the answers are incorrect - ANSWER A. a property management contract
If an owner agrees to hold a manager harmless for damages or injuries to persons or property when the
manager is carrying out provisions of a contract, this is called:
A. compensation
B. special services
C. indemnification
D. waiver of subrogation - ANSWER C. indemnification
When renting to friends and relatives, as a property manager, you should:
a. give them a good deal on your fees
b. fully disclose any and all relationships to the owner
c. treat them with special circumstances
, Property Management Final Exam 197
questions and CORRECT SOLUTIONS.
d. relax some of the occupancy rules - ANSWER b. fully disclose any and all relationships to the owner
Keeping a record of every tenant complaint can help you identify:
a. service contract problems
b. maintenance deficiencies
c. personnel problems
d. all answers are correct - ANSWER d. all answers are correct
The abuse of property that impairs the value of the property is called:
a. waste
b. over improvement
c. under improvement
d. all answers are correct - ANSWER a. waste
In a month-to-month tenancy, how many days notice is usually required to change the amount of rent?
a. 60-120 days
b. 30-60 days
c. 45-90 days
d. 0-15 days - ANSWER b. 30-60 days
If a tenant fails to pay the rent on time, the first step in eviction would be a notice called:
a. a three-day notice
b. a quit or cure notice
