Property Management Chapter Quizzes Self-Check Answer ..., Exercises of Construction

Download Property Management Chapter Quizzes Self-Check Answer ... and more Exercises Construction in PDF only on Docsity! Property Management Chapter Quizzes Self-Check Answer Keys THE CAREER INSTITUTE PROFESSIONAL PROPERTY MANAGEMENT Chapter 1: Multiple Choice 1. The primary function of the property manager is to a) rent units for owners. b) generate greatest income for owner. c) show space to prospective tenants. d) decrease the value of the property. 2. One of the contributing factors that has contributed to the development of property management is the a) declining cost of apartment building construction. b) centralization of traditional downtown areas. c) increased use of trolleys and rail lines. d) invention of steel frame buildings and elevators. 3. The oldest residential property management certification program in the United States and which is HUD-approved is a) Certified Apartment Manager (CAM). b) Professional Property Manager (PPM). c) Registered Apartment Manager (RAM). d) Accredited Residential Manager (ARM) 4. Commercial real estate includes a) apartment buildings. b) farms. c) mines. d) office buildings. 5. The largest demand for the services of the professional property manager is found in what type of property? a) Residential b) Commercial c) Industrial d) Government 6. Shopping centers, factory outlets and super regional malls are examples of a) special purpose properties. b) distribution facilities. c) office property. d) retail property. 7. Many business parks offer a combination of office and industrial space that is divided into units of various sizes. These spaces are called a) loft buildings. b) incubator spaces. c) ministorage. d) light industrial. 8. Properties designed to meet specific needs of heavy industry are generally a) developed by real estate speculators. b) managed by large real estate companies. c) occupied and managed by the owner. d) sold to investors and leased back. 9. More available units than tenants indicates a) occupancy trends. b) curb appeal. c) economic oversupply. d) technical oversupply. 10. Which of the following is the first step in the management plan? a) Prepare five-year forecast b) Prepare an operating budget c) Establish optimum rents d) Predict anticipated revenue Chapter 3: Multiple Choice 1. The principal-agent relationship in property management is created by a) management agreement. b) listing agreement. c) employment contract. d) equitable title. 2. A property manager who is authorized to obligate his/her principal in a contractual manner is a a) trustee. b) trustor. c) special agent. d) general agent. 3. The relationship that a property manager who is an agent has with the owner who is a principal is a) confidential. b) ethical. c) fiduciary. d) power of attorney. 4. If a property manager were negotiating with a property owner to manage a large property, the term of the management contract should be at least a) six months. b) three years. c) one year. d) five years. 5. Mixing owners funds with personal funds is an illegal activity called a) redlining. b) commingling. c) steering. d) conversion. 6. How are management fees determined? a) Agreement of participating property managers b) Average of local rates charged c) Set by state law d) Negotiated between the parties 7. Which type of fee is a wonderful incentive when the owner wants the manager to generate more income? a) Per-unit fee b) Flat fee c) Percentage fee d) Cost plus fee 8. To insure a smooth takeover of a property, all of the following should be done EXCEPT a) owner should provide all necessary documents. b) manager should use a takeover checklist. c) manager should personally inspect the entire property. d) offer the tenants an opportunity to terminate their leases. 9. Security deposit balances and accounting are an essential part of a property takeover. How should the new property manager handle security deposits? a) Follow the owner's instructions b) Handle the deposits in the same manner as the previous manager c) Adhere to state laws d) Create a new system 10. To maintain an on-going satisfactory relationship with the owner, the manager should a) send the owner reports only upon written request from the owner. b) send monthly earnings report and a personal letter. c) contact the owner only in an emergency. d) send quarterly written reports and monthly phone calls. Chapter 5: Multiple-Choice 1. A leasehold estate used by most residential property managers is a(n) a) estate by the entireties. b) estate from period to period. c) estate for years. d) tenancy at will. 2. An estate that occurs at the end of a lease term without the consent of the owner is a(n) a) estate for years. b) tenancy at will. c) estate by the entireties. d) tenancy at sufferance. 3. A lease under which the tenant pays a flat fee and the landlord pays all the ex? penses of the building is called a a) net lease. b) gross lease. c) percentage lease. d) triple-net lease. 4. All of the following are correct regarding the basic elements of a valid lease EXCEPT a) Description of the property b) Names and signatures of lessors and lessees c) Consideration or amount of rent d) Racial composition of the tenants 5. Which statute requires any leases not fully performable within one year be in writing to be legally enforceable? a) Statute of time and use b) Statute of limitations c) Statute of frauds d) None of the above 6. Options to renew a lease favor the a) tenant. b) landlord. c) landlord and tenant. d) None of the above 7. The clause in a lease that could help a new starting business is the a) index clause. b) step up clause. c) pass-through. d) expense stop. 8. The transfer of a tenant's rights of all the remaining interest to a third party is called a) an assignment. b) subletting. c) subrogation. d) release of liability. 9. The tenant may terminate his lease when the landlord fails to provide essential services by claiming a) will noncompliance. b) notice to quite. c) actual eviction. d) constructive eviction. 10. Which is about the only reason that a manager should use a standard lease form? a) Inexpensive b) May be out of date c) Often require much revision d) Manager is familiar with the legal ramifications and provisions Chapter 6: Multiple Choice 1. Every prospect who walks in the door should complete a a) visitors registration form. b) lease application. c) credit report application. d) referral form. 2. The Civil Rights Act of 1968 (Fair Housing Act) make it illegal to refuse a prospective purchaser on the basis of a) public assistance, age, marital status. b) inability to hold a job. c) race, color, religion, sex, national origin, familial status and handicap. d) race, religion, sexual orientation, number of people in the rental unit. 3. To legally obtain a credit report, a property manager a) submits a phone request to national credit agency. b) need not obtain the applicant's consent. c) can do so for some applicants and not for others. d) can only do so with the applicant s permission. 4. All of the following are correct regarding the rationale behind validating a prospect's financial references EXCEPT a) Slow or erratic payers usually retain this pattern. b) Prompt and steady payers are inconsistent in meeting their obligations. c) Prospective tenant with an erratic history should be turned down. d) If there are only one or two lapses, allow the prospect to explain. 5. Another word for concession is a(n) a) bribe. b) give away. c) inducement. d) bargaining. 6. One of the major concessions granted to balance the needs of the tenant and the prevailing market is a) owner alterations. b) expansion options. c) temporary free rent. d) to defray moving expenses. 7. Residential tenant alterations are usually restricted to a) highly customized alterations to meet their needs. b) decorating expenses. c) the established building standard. d) those done by the tenant. 8. What is the clause in a lease that allows a tenant an exclusive right to operate without competition? a) Step-up b) Noncompeting c) Encumbrance d) Acceleration 9. One of the best ways for a manager to avoid misunderstandings when a tenant decides to vacate would be to a) have a long talk with the tenant. b) have an attorney contact the tenant. c) write a letter outlining the procedures for moving out. d) ignore the situation. 10. If a landlord intends to keep part or all of a security deposit, he or she should a) need not give the tenant an itemized statement explaining the withholding of the deposit. b) just keep the money with no other obligation. c) may not be able to retain all or part of the deposit because of damages caused by the tenant. d) follow state laws in regard to time periods. Chapter 8: Multiple Choice 1. Which of the following types of maintenance is aimed at preserving the physical integrity of a property? a) Corrective maintenance b) Preventive maintenance c) Deferred maintenance d) Routine maintenance 2. Which category of maintenance is closely tied to tenant relations? a) Corrective maintenance b) Routine maintenance c) New construction d) Preventive maintenance 3. What person usually coordinates and executes all maintenance operations of an apartment building? a) Property manager b) Maintenance chief c) Construction crew d) Resident manager 4. Regarding maintenance, the property manager a) need not be conversant with the economics, staffing and scheduling of maintenance personnel. b) must be aware of the maintenance needs of the building and where to turn for help when needed. c) should be able to fix of all mechanical and electrical systems. d) must be a decorator, painter, roofer and plumber. 5. Who should have the responsibility for approving the hiring and firing of employees? a) Property manager b) Resident manager c) Construction superintendent d) Property management executive 6. A manager could hire which of the following individuals to supervise and do the work of various skilled trades? a) Construction superintendent b) Subcontractor c) General contractor d) Any of the above 7. The first step in designing a preventive maintenance program is a) keep records. b) inventory equipment and buildings. c) calculate costs. d) schedule tasks. 8. What is the importance of a maintenance check? a) Few serious potential problems can be averted by regular inspections. b) The manager does not need a checklist of the building's features. c) Maintenance checks can be done sporadically, when there is time. d) The manager should inspect the interior and exterior of each property. 9. Which of the following laws requires that businesses and other facilities open to the public must remove physical barriers? a) Americans with Disabilities Act (ADA) b) Equal Credit Opportunity Act (ECOA) c) Fair Housing Amendments of 1988 d) Truth-in-Lending (T-I-L) 10. An example of appropriate life-cycle costing is a) computing the cost of an energy product over one year. b) ignoring investment tax credits when purchasing energy equipment. c) buying a higher priced item with lower operating costs. d) buying a lower priced item, no matter what. Chapter 10: Multiple Choice 1. Which of the following is a forbidden activity under antitrust laws? a) Blockbusting b) Steering c) Price-fixing d) Redlining 2. Which law was reinforced by the Jones v. Alfred H. Mayer Company Supreme Court decision prohibiting all racial discrimination? a) Civil Rights Act of 1866 b) Title VIII of the Civil Rights Act of 1968 c) Equal Credit Opportunity Act d) Fair Credit Reporting Act 3. Which of the following are protected classes under the Equal Credit Opportunity Act but not under the Fair Housing Laws? a) Race and color b) Religion and national origin c) Age and marital status d) Sex and handicap 4. Housing for the elderly is intended for a) those over the age of 55. b) those over the age of 62. c) elderly handicapped people. d) families with no infant children. 5. Residential rental properties must be handicap accessible if built before a) 1989. b) 1991. c) 1995. d) 2000. 6. Civil penalties assessed in fair housing actions are paid to a) the aggrieved party. b) HUD. c) United States treasury. d) the attorneys. 7. Which of the following is permitted information to consider when malting a loan under the Equal Credit Opportunity Act? a) Birth control practices b) Widowed or married c) Single or divorced d) Proof of income 8. The purpose of looking at a credit report is to see a) how a prospect has treated other lenders. b) privileged medical information. c) driving records. d) comments concerning job performance. 9. The lead-based paint disclosure act was passed to protect a) property management companies. b) children under the age of six. c) elderly tenants. d) vacationers. 10. The Lead-Based Paint Disclosure Act places a burden on owners and managers to a) contain chipping and peeling paint. b) remove all lead-based paint. c) include blood testing for all children who live there. d) destroy all buildings built before 1978. Chapter 11: Multiple Choice 1. What is the major difference(s) between managing scattered site housing and apartment buildings? a) There is no difference b) Geography and time c) Single-family homes are centralized d) Repair costs for apartments are less 2. Surveys of comparable properties and economic conditions are part of the a) building analysis. b) economic analysis. c) market analysis. d) management analysis. 3. A prospective tenant's first impression of a property is created by the property's a) location. b) parking availability. c) design. d) curb appeal. 4. When a property manager compiles a "show list," it should include a) the names of nearby residents. b) at least five apartments of each type. c) general features of the building. d) specific apartments that are available for inspection. 5. The major vehicle for advertising residential properties is a) television. b) radio. c) classified ads. d) signage. 6. Apartment journals a) are published weekly. b) usually cost more than a newspaper display ad. c) list most rental houses in a local area. d) are free and are distributed in display stands. 7. How are most leasing agents compensated? a) Hourly rate b) Number of units rented c) Biweekly d) Annual salary 8. Whether to hire full-time or contract services for maintenance depends on a) hourly rates in the area. b) extent of benefits that must be added to salaries. c) whatever is most convenient for the manager. d) services required and cost-effectiveness to the owner. 9. Condominium income is derived primarily from a) special assessments. b) reserve funds left by developers. c) owner s monthly assessments. d) auxiliary services such as laundry facilities and vending machines. 10. The federal government has programs that property managers can use to create drug-free climates in the properties they manage. Which statement is correct? a) HUD has written a model paragraph to include in leases. b) New laws have been written to allow police and housing inspectors to inspect certain units under certain conditions. c) All public housing authorities must certify a drug-free workplace. d) All of the above Chapter 13: Multiple Choice 1. The number-one factor influencing the selection of office facilities is a) bus and highway accessibility. b) environment of area. c) cost. d) labor market. 2. Which of the following provides a basis for setting a rental schedule, estimating income and expenses and anticipates prospect reaction? a) Market analysis b) Property analysis c) Neighborhood analysis d) Comparable analysis 3. The standard method of floor measurement that measure construction, rental and usable space was developed by a) IREM. b) BOMA. c) New York. d) NAR. 4. Which of the following reflects the features of the property and relative cur-rent value? a) Minimum rate b) New York method c) Base rent d) Optimum rents 5. The best prospecting method for leasing office space is a) canvassing. b) referrals. c) signs. d) ads. 6. An open or closed work area for more than one person is called a(n) a) single-office space. b) open space. c) multipersonnel space. d) special facility. 7. Which clause protects the owner when leases run for more than a year? a) Recapture clause b) Assignment clause c) Sublet clause d) Escalation clause 8. Which of the following requires constant maintenance to provide good service, safety and cleanliness? a) Lobby b) Elevators c) Stairs d) Restrooms 9. Which of the following is significantly different between managing a residential property and managing an office building? a) Preventive maintenance b) Housekeeping c) Showing properties d) Negotiating a lease 10. Another source of income in an office building is that from a) charging to clean offices at night. b) routine cleaning fees. c) charging tenants to comply with the ADA. d) Selling remodeling construction to existing tenants Chapter 15: Multiple Choice 1. When a corporation sells a property and leases it back, it is called a a) sale contract back. b) conditional sale. c) sale leaseback. d) All of the above 2. Technological changes make specialized industries susceptible to what kind of depreciation? a) Functional obsolescence b) Physical deterioration c) Economic obsolescence d) Locational obsolescence 3. When two large industrial or business centers expand with allied businesses or plants on two major arteries, this grouping will be called a(n) a) industrial park. b) corridor development. c) regional cooperation. d) business park. 4. Which of the following allows a company to import finished goods or component parts, and to warehouse them duty free until shipped? a) Industrial revenue bonds b) Research and development c) Private industry councils d) Foreign trade zone 5. What have been established in economically depressed areas in some states to encourage the establishment of industry and business? a) Enterprise zones b) Foreign trade zones c) Incubator spaces d) None of the above 6. Industries that need to be near sources of raw material are called a) labor-oriented industries. b) resource-oriented industries. c) market-oriented industries. d) consumer-industries. 7. One important consideration in industrial tenant qualifications not found in other groups is a) available amenities. b) prestige of property. c) zoning requirements. d) availability of research facilities. 8. More than any other type of property, environmental contamination is greatest in industrial properties. What should a property manager do when leasing industrial property? a) The manager should make a thorough inquiry into the possibility of hazardous materials b) Put provisions in lease regarding proper disposal of hazardous waste c) Periodically monitor the operation of the property d) All of the above 9. The most common lease used by industrial tenants is the a) ground lease. b) gross lease. c) percentage lease. d) net lease. 10. The property manager of industrial property is most involved in a) leasing space and enforcing terms of lease. b) security procedures. c) maintenance activities. d) housekeeping activities. Chapter 16: Multiple Choice 1. Safety programs coupled with loss reduction plans and emergency preparedness are examples of a) avoiding the risk. b) retaining the risk. c) transferring the risk. d) controlling the risk. 2. Shifting risk in part or wholly to insurers is an example of a) avoiding the risk. b) retaining the risk. c) transferring the risk. d) controlling the risk. 3. The property owner wants to ensure that the insurance policy will pay for a new roof if the ten-year-old roof is totally damaged by a windstorm. What kind of insurance policy should the owner obtain? a) Actual cash value policy b) Replacement cost insurance policy c) Actual depreciated value policy d) Multiperil insurance policy 4. Which of the following coverage must always be purchased as a separate policy from the standard owners multiperil insurance policy? a) Fire b) Windstorm c) Loss of income d) Flood 5. Which of the following pollutants is caused by faulty water heaters and inadequately vented furnaces? a) Carbon monoxide b) Radon c) Molds d) Chlorofluorocarbons 6. Which of the following is implicated as a cause of many indoor air quality complaints? a) Radon b) Carbon monoxide c) Chlorofluorocarbons d) Formaldehyde 7. Many commercial managers have had to supervise the removal of a) radon. b) formaldehyde. c) PCBs. d) asbestos. 8. Any present or past property owner may be required to pay for the cleanup of a hazardous substance as a) potentially responsible parties. b) innocent landowners. c) strictly nonliable. d) a deep pocket.