Flag question: Question 1Question 1

1 pts

A client wants to reduce the property's hazard insurance coverage substantially, in order to save money on the premiums. If the property manager tries to arrange this, the insurance company might:

Group of answer choices

terminate coverage based on a charge of fraud

keep the policy in force, but lower the client's credit rating

agree to reduce the coverage only if the deductible is increased by a corresponding amount

refuse to reduce the coverage, because insurers generally require that property be insured to at least 80% of its value

Flag question: Question 2Question 2

1 pts

A continuous operation provision in a lease is most likely to apply to:

Group of answer choices

an anchor tenant in a shopping center

the landlord of a stand-alone retail property

a tenant leasing Class C office space

the owners association in a condominium or other CID

Flag question: Question 3Question 3

1 pts

A conversion ratio measures:

Group of answer choices

how much of the multi-family housing stock in this market has been converted to condominiums

how many prospects it takes to get a signed lease for a rental space

what percentage of a property's tenants have occupied their spaces for over one year

what percentage of a property's tenants renew their leases if offered the opportunity

Flag question: Question 4Question 4

1 pts

A developer builds a large office tower in a city where there is a shortage of office space and rents are high. This will:

Group of answer choices

increase demand, which will tend to lower rents

increase demand, which will tend to increase rents

increase supply, which will tend to lower rents

increase supply, which will tend to increase rents

Flag question: Question 5Question 5

1 pts

A difficult and tight-fisted client is making it just about impossible for Serena to maintain and operate the property in compliance with landlord-tenant laws and other legal requirements. Assuming that their management agreement is typical, which of the following is correct?

Group of answer choices

The client's failure to keep the property in compliance with legal requirements is a breach of the management agreement

The contract requires Serena to use her own funds to prevent legal violations if the client fails to do so

Serena is contractually liable for any fines, damages, or other penalties that result from legal noncompliance

Serena is contractually obligated to report the legal violations to the appropriate authorities

Flag question: Question 6Question 6

1 pts

A lease in which all of the operating expenses are passed through to the tenant is called a:

Group of answer choices

triple net lease

CAM lease

gross lease

shadow lease

Flag question: Question 7Question 7

1 pts

A maintenance employee assaulted one of the tenants in a building that Clive manages. Clive hired and supervised the employee. Regarding Clive's potential liability in connection with this incident, which of the following is correct?

Group of answer choices

Clive can't be held liable because he didn't authorize the employee's action

Clive's liability is likely to depend on whether he was negligent in his hiring, supervision, or retention of the employee

Clive can be held liable only if he failed to do a criminal background check when the employee was hired

Clive can be held liable only if he participated in the incident, benefited from it in some way, or assisted the employee after the fact

Flag question: Question 8Question 8

1 pts

A maintenance request form for tenants to fill out should include:

Group of answer choices

an estimate of how long the work is likely to take

a hold harmless clause, protecting the manager against liability for work negligently performed

work order and purchase order numbers, if applicable

an authorization for entry into the tenant's rental space or unit, to be signed by the tenant

Flag question: Question 9Question 9

1 pts

A new client who just inherited a commercial building has told her property manager that she doesn't plan to sell the property, but her primary financial goal is a quick, high return. In this situation, the manager should:

Group of answer choices

persuade the client to sell the property, even if that isn't in the manager's self-interest

realize that the client will probably be reluctant to authorize any expenditures unless they're necessary to maintain or increase the property's net income in the short term

explain the income tax consequences of that choice to the client

tell the client that his fiduciary duties do not allow him to represent her on those terms

Flag question: Question 10Question 10

1 pts

A new commercial tenant is requesting build-out work that will cost more than the agreed improvement allowance. The property manager should:

Group of answer choices

notify the tenant that the requested improvements will have to be scaled back

remind the tenant that any construction costs in excess of the allowance will be the tenant's responsibility

increase the allowance to cover the additional work, as long as the changes will increase the value of the property as a whole

consult with the client before agreeing to increase the tenant's improvement allowance

Flag question: Question 11Question 111 pts

A property manager has a legal obligation to protect and promote her client's interests. This is because the manager:

Group of answer choices

is the client's agent and owes the client fiduciary duties

is a member of a professional association with a code of ethics that specifically requires this

is subject to the Uniform Standards of Professional Property Management

has signed a contract (the management agreement) that expressly requires this

Flag question: Question 12Question 121 pts

A property manager is preparing a management plan for a new client's property. The manager's property analysis:

Group of answer choices

should focus primarily on the property's physical condition at this stage

should include an evaluation of the property's current operations, leasing, management, and financial condition, as well as its physical condition

should be performed after the market analysis, for most types of property

must be based on an appraisal performed by a state-licensed or -certified appraiser within the previous six months

Flag question: Question 13Question 131 pts

A property manager is deciding on a marketing plan for a vacant retail space. How much advertising will be needed in order to find the next tenant for the space is most likely to be affected by:

Group of answer choices

branding

the target market

the property's location

the cost per prospect

Flag question: Question 14Question 141 pts

A property manager is doing a preliminary study in order to prepare a management plan. As usual, the preliminary study will involve five main categories of analysis. These categories include all of the following, except:

Group of answer choices

analysis of alternatives

analysis of demographics

regional analysis

neighborhood analysis

Flag question: Question 15Question 151 pts

A property manager may suggest physical changes to a client's property in order to correct or address different forms of depreciation. Which of the following is true?

Group of answer choices

Correcting curable external obsolescence is called remodeling

Correcting curable physical deterioration is called remodeling

Correcting curable functional obsolescence is called rehabilitation

Correcting deferred maintenance is called rehabilitation

Flag question: Question 16Question 161 pts

A property manager needs a bad debt and vacancy factor for a residential property's annual operating budget. She is most likely to:

Group of answer choices

check the MSA website to see projected average vacancy rates for her area

evaluate the property's actual rent collection record in previous years

base it on changes in the Consumer Price Index

use the figure agreed to in the management agreement

Flag question: Question 17Question 171 pts

A property manager rejected a rental application for a retail space because of the applicant's race. Was this legal or illegal?

Group of answer choices

Legal, because this is commercial property and the Fair Housing Act applies only to residential property

Legal, because antidiscrimination laws apply to real estate sales transactions, not lease transactions

Illegal, because any discrimination by a property manager is a violation of the manager's fiduciary duties

Illegal, because the Civil Rights Act of 1866 prohibits discrimination based on race or color in all real estate transactions

Flag question: Question 18Question 181 pts

A property manager records rents collected from tenants when they are actually paid (not merely owed), but he records certain operating expenses as they accrue (as opposed to when they're paid). This manager is using the:

Group of answer choices

payment point accounting method

certified accounting method

modified cash-basis accounting method

triple-entry accounting method

Flag question: Question 19Question 191 pts

A property manager should not give "welcome to the building" gifts to new tenants:

Group of answer choices

that cost more than $25, the legal limit

because such gifts are a form of illegal kickback

unless all tenants receive exactly the same gift

without the property owner's prior authorization

Flag question: Question 20Question 201 pts

A property manager's rent collection records should include:

Group of answer choices

both a rental ledger and a rent roll

either a rental ledger or a rent roll

a rental ledger rather than a rent roll

a rent roll rather than a rental ledger

Flag question: Question 21Question 211 pts

A rental application form or packet should include:

Group of answer choices

an inquiry regarding race, ethnic background, familial status, and disability, to enable the manager to demonstrate Fair Housing Act compliance

an authorization for a citizenship status check, signed by the applicant, for Patriot Act compliance

an authorization for a credit check (and a criminal background check, if desired), signed by the applicant, for FCRA compliance

an authorization for entry without notice in emergencies, signed by the applicant, for URLTA compliance

Flag question: Question 22Question 221 pts

A residential lease should be signed by:

Group of answer choices

everyone who will occupy the unit

all competent adults who will occupy the unit

only one competent adult, as the fully liable representative of all other occupants

only the occupant(s) who have accepted joint and several liability for the rent, at least one of whom must be a competent adult

Flag question: Question 23Question 231 pts

A residential property manager looking for new tenants for a single-family rental house rejects an application from two men because she thinks they are gay. Which of the following is true?

Group of answer choices

Sexual orientation is not one of the protected classes in the federal Fair Housing Act

The federal Fair Housing Act does not apply to the rental of single-family homes

The property manager did not personally violate the law if the property owner gave her written instructions not to rent to homosexuals

The property manager has violated the federal Fair Housing Act

Flag question: Question 24Question 241 pts

A retail space that is separate from a mall's main shopping area but still within the boundaries of the parking lot is called:

Group of answer choices

an island

a satellite space

an outparcel

a magnet store

Flag question: Question 25Question 251 pts

A tenant who pays rent on a monthly basis has abandoned the leased space when there are still six months remaining in the lease term. In this situation:

Group of answer choices

the space cannot be leased to a new tenant until the former tenant's lease term expires

the former tenant can be held responsible for no more than three months of additional rental payments

the former tenant is still liable for the rent for six more months, even if a new tenant is found right away

the former tenant could still be liable for the rent for six more months, but the landlord or manager must make an effort to find a new tenant promptly

Flag question: Question 26Question 261 pts

Administrative regulations:

Group of answer choices

are merely guidelines, without the force of law

may be federal, state, or local

are enacted by a legislative body

apply only in a particular city or county

Flag question: Question 27Question 271 pts

After an apartment building's operating expenses and mortgage payment have been paid, the amount of money left over from the rents collected that month is called the:

Group of answer choices

equity

leverage

appreciation

cash flow

Flag question: Question 28Question 281 pts

All of the following statements about industrial parks are correct, except:

Group of answer choices

Industrial parks are also called business parks

They typically have single-story shell buildings with high ceilings

They may be developed as condominiums

They usually allow only manufacturing uses, so that business offices and warehouses must be located elsewhere

Flag question: Question 29Question 291 pts

All of the following investor-owners would be likely to hire a professional property manager, except:

Group of answer choices

Mary Ann, a surgeon who owns a residential duplex and rents both units to tenants

Paul, a commercial fisherman who owns 20 acres of undeveloped land that he's holding for appreciation

the Cartwright Group, a partnership that recently purchased and renovated an 80-unit apartment building constructed in the 1920s

Ernesto, a retiree who owns a small office building and lives in another state

Flag question: Question 30Question 301 pts

An R/U ratio is often used to determine:

Group of answer choices

the maximum number of people that can legally occupy a residential unit

the optimum number of smaller stores for a shopping center with a particular type of anchor store

how much a commercial tenant will have to pay toward the building's common area expenses

how many parking spaces a retail building will need in order to accommodate customers and employees

Flag question: Question 31Question 311 pts

An asset manager's services would include:

Group of answer choices

paying the property taxes and insurance premiums for a client's property when due

evaluation of whether a client's property is serving its highest and best use

hiring and supervising the staff for a client's property

heading the leasing team for a client's property

Flag question: Question 32Question 321 pts

"Any allocation of funds that is expected to generate a profit for the owner" is a definition of:

Group of answer choices

appreciation

dividend

investment

security

Flag question: Question 33Question 331 pts

Anya is preparing a management plan for an office building. In her regional analysis, Anya is likely to be especially interested in data concerning:

Group of answer choices

average family size

HVAC alternatives

consumer trends

future employment growth

Flag question: Question 34Question 341 pts

As a general rule, and without reference to specific provisions in the lease agreement, notice of termination is required:

Group of answer choices

only when a landlord (or his property manager) wants to end a tenant's periodic tenancy

when a tenant wants to end a term tenancy

when either the landlord or the tenant wants to end a periodic tenancy

when either the landlord or the tenant wants to end a term tenancy

Flag question: Question 35Question 351 pts

As a general rule, employees who work under a property manager need to be bonded only if:

Group of answer choices

the property owner requests it

they handle money as part of their job

they have a criminal record

the property's hazard insurance does not cover them

Flag question: Question 36Question 361 pts

At one of the properties Tyree manages, rent is due by the fifth of the month; if payment is received after 5:00 PM on the fifth, a flat $50 late fee is imposed. The biggest disadvantage of this policy is that:

Group of answer choices

most tenants will wait until the fifth to pay, instead of paying on the first of the month

once tenants have incurred the late fee in a given month, they have no incentive to get the rent paid sooner rather than later

imposing a late fee gives tenants the impression that late payment is acceptable

adding a late fee only makes it more difficult for delinquent tenants to pay the overdue rent

Flag question: Question 37Question 371 pts

Ava and Benjamin are organizing an investment syndicate to purchase an income property. They're planning to invite various business associates and acquaintances to participate. All of the following are true, except:

Group of answer choices

the syndicators may manage the property themselves or hire a professional property manager

federal and state securities laws may apply when the syndicators offer interests in the syndicate to others

the syndicators must have unlimited liability, although the other participants may have limited liability

collaborating with other investors will enable them to purchase a larger, more expensive property than they could on their own

Flag question: Question 38Question 381 pts

Banks generally won't finance development of a new shopping center:

Group of answer choices

unless there will be at least four anchor tenants

until the developer has signed lease agreement(s) with the anchor tenant(s)

until the land has been purchased and the site infrastructure prepared

if there is already another shopping center of similar size and character within a ten-mile radius

Flag question: Question 39Question 391 pts

Breakpoints are a feature of:

Group of answer choices

percentage leases

industrial leases

high-rise buildings

annual operating budgets

Flag question: Question 40Question 401 pts

Buying real estate as an investment has some disadvantages compared to various other types of investments. One disadvantage is that:

Group of answer choices

no tax deductions apply to real estate owned as an investment (as opposed to personal use property)

a real estate purchase generally requires a larger cash outlay than other investments

real estate can't be expected to depreciate as quickly as other investments

real estate provides a return to the investor only when the asset is sold

Flag question: Question 41Question 411 pts

Byron keeps trust funds for all of his property management clients in a single pooled account. It's an interest-bearing account, specifically designated as a trust account, in a financial institution whose accounts are insured by the Federal Deposit Insurance Corporation (FDIC). The pooled account's balance is $380,000, and the FDIC's coverage limit is currently $250,000. Which of the following is correct?

Group of answer choices

Because the pooled account's balance exceeds the coverage limit, none of the client funds in the account are insured

Because the pooled account's balance exceeds the coverage limit, the excess funds are uninsured

The FDIC's coverage limit is applied to each client separately, even when their funds are pooled together in a single trust account, so all of the funds may be insured

The FDIC will not insure a client's funds in a pooled trust account if that client has any other money deposited at the same financial institution

Flag question: Question 42Question 421 pts

Do Not Call laws:

Group of answer choices

do not apply to property managers who are licensed real estate agents

prohibit cold calls to people who have listed their phone numbers in the FTC's Do Not Call Registry

prohibit cold calling altogether

prohibit cold calling, and also prohibit returning calls from people who don't already have an established relationship (as client or tenant) with the manager

Flag question: Question 43Question 431 pts

Edie is evaluating applicants for a vacant apartment in a client's building. Using a written checklist of minimum standards, Edie eliminates one applicant because he's been employed at his current job for less than a year, and another because she declared bankruptcy less than five years ago. What is the source (or the most likely source) of the minimum standards that Edie is applying?

Group of answer choices

They were probably set by Edie herself, perhaps in consultation with the client

They were probably imposed by the client's mortgage lender, as a condition for financing the purchase of the building

They probably come from the state's real estate license law, which regulates the business practices of property managers

They were established by federal regulations, to help prevent housing discrimination

Flag question: Question 44Question 441 pts

Eileen is a professional property manager. She currently works as a full-time employee for a corporation, managing the office building that the corporation owns and occupies as its main business location. In this capacity, Eileen would be referred to as a/an:

Group of answer choices

institutional manager

comptroller

facilities manager

asset manager

Flag question: Question 45Question 451 pts

For an office building, the property manager's accounting and reports to the owner should usually:

Group of answer choices

treat overdue pass-through charges as passive losses

include CAM charges and other pass-through charges in the rent figure rather than listing them separately

show separate figures for CAM charges and other pass-through charges as well as rent figures

list only pass-through charges, since the base rent and CAM charges are already known

Flag question: Question 46Question 461 pts

From a client's point of view, setting a property manager's compensation as a percentage of the property's gross income has this advantage:

Group of answer choices

it gives the manager a direct incentive to increase the property's income

the client won't have to pay the manager for any months in which the property has an operating deficit

the manager's compensation will be reduced in a month when operating expenses exceed the budgeted amount

the manager's compensation will be reduced by an appropriate bad debt/vacancy factor

Flag question: Question 47Question 471 pts

Hal is preparing an annual operating budget for a 30-unit apartment complex. In calculating the property's potential gross income, Hal will probably:

Group of answer choices

use market rents, except for current vacancies

use contract rents, except for current vacancies

subtract contract rents from market rents

subtract market rents from contract rents

Flag question: Question 48Question 481 pts

How high a vacancy rate is acceptable for a managed property depends on:

Group of answer choices

the type of property and the owner's goals

supply and demand in the submarket

general economic conditions

All of the above

Flag question: Question 49Question 491 pts

How many days a residential landlord or property manager is allowed for fixing a particular type of maintenance problem is most likely to be determined by:

Group of answer choices

the lease or rental agreement

the management agreement

state and/or local landlord-tenant laws

the Americans with Disabilities Act

Flag question: Question 50Question 501 pts

In a real estate market, a period of prosperity is likely to lead to:

Group of answer choices

overbuilding

diversification

price stagnation

negative cash flow

Flag question: Question 51Question 511 pts

In an office building, the building standards:

Group of answer choices

dictate uniform construction materials and workmanship for build-out work

specify the types of activities that tenants and visitors are and are not allowed to engage in on the premises

require tenants to leave the leased space in turnkey condition at the end of the lease

should be updated at least every three years, and more frequently if possible

Flag question: Question 52Question 521 pts

In most states, a property manager is legally required to keep tenants' security deposits:

Group of answer choices

separate from trust funds

separate from non-trust funds

in an account that's in the name of the property owner (the landlord) rather than the name of the property manager

in a pooled interest-bearing account, with interest paid to the state treasury

Flag question: Question 53Question 531 pts

In property management, the term "footloose" is applied to:

Group of answer choices

residential tenants under 30 who don't have children yet

retail outlets located outside the central business district

commercial tenants that have moved much more frequently than is typical for the type of business in question

industrial businesses that don't need to choose their location based on utility costs or proximity to resources or transportation points

Flag question: Question 54Question 541 pts

In regard to an insurance policy covering managed property, the insurable interest requirement generally means that:

Group of answer choices

the policy must be in the name of the client (the property owner), not the property manager

it's better to have the policy issued in the property manager's name rather than the owner's name

the insurance premiums must be paid by the property owner, not the property manager

the policy must name not only the property owner, but also the property manager and the tenant(s)

Flag question: Question 55Question 551 pts

In the income approach to property valuation, an appraiser translates the property's net operating income into an estimate of market value by using a/an:

Group of answer choices

income ratio

cap rate

value factor

bad debt/vacancy factor

Flag question: Question 56Question 561 pts

In the market analysis for a management plan, the property manager must:

Group of answer choices

determine the relevant submarket

allow the client to specify the relevant submarket

use the submarket categories established by IREM for MSAs with populations over 100,000

define the submarket in compliance with IRS accounting rules

Flag question: Question 57Question 571 pts

Investors are advised to diversify their investments because:

Group of answer choices

it will allow them to draw on cash reserves to offset investment losses

only a diverse mix of investments can be considered truly liquid

a poor yield from one type of investment may be offset by good yields from other types

diversified investments are generally tax-deductible

Flag question: Question 58Question 581 pts

Jeff has new tenants in the residential buildings he manages fill out a walk-through checklist. This form:

Group of answer choices

limits Jeff's liability (and his client's) regarding issues affecting habitability

must be filled out while Jeff or an assistant is present, or it will not be legally binding

should be signed by the tenant, and any problems noted should be verified by Jeff or an assistant

should not be used in determining how much of the tenant's security deposit to refund at the end of the tenancy

Flag question: Question 59Question 591 pts

Life-cycle costing refers to:

Group of answer choices

taking into account costs and potential savings over time (not just the initial cost) when deciding whether to replace or upgrade building equipment

recording expenditures on maintenance as they accrue rather than when they are incurred

treating expenditures on preventive maintenance as income rather than operating expenses

adjusting the percentage of gross income that will be spent on maintenance to take into account both the actual age and the remaining useful life of the building

Flag question: Question 60Question 601 pts

Most industrial leases contain an escalation clause, because:

Group of answer choices

the term of an industrial lease is usually at least ten years, and frequently longer

market rents are more volatile for industrial property than for other types

the property manager's compensation is tied to the tenant's gross sales

industrial properties are more likely to have environmental issues than other types of commercial properties

Flag question: Question 61Question 611 pts

On-site staff that a property manager hires for an office building will be:

Group of answer choices

employees of the property owner, not the property manager

employees of the property manager (or her management firm), but treated as employees of the property owner for tax purposes

independent contractors rather than employees

paid out of the building's operating funds

Flag question: Question 62Question 621 pts

One of the properties that Terry manages had an operating deficit this month. How should he deal with this?

Group of answer choices

Terry is legally required to notify the client within 24 hours

Terry should take the steps specified in the management agreement

It's customary to cover a deficit by deducting the amount of the shortfall from the manager's compensation

The usual practice is to cover the deficit using a credit card, then roll the charge over into the next fiscal year

Flag question: Question 63Question 631 pts

Pat manages 16 properties owned by ten different clients, all of whom are individual investor-owners. She sets her own schedule, juggling her tasks for all of the properties, and makes management decisions primarily using her own judgment. For tax purposes and various other legal purposes, Pat's status in relation to her clients is almost certainly that of:

Group of answer choices

a trustee

an employee

a gratuitous agent

an independent contractor

Flag question: Question 64Question 641 pts

Paying current tenants a fee as an incentive for referring new tenants:

Group of answer choices

is one of the best ways to find prospects that will fit in

is unlikely to be cost-effective unless the property is very unusual in some way

violates the Fair Housing Act (if the rental property is residential)

is illegal in many states

Flag question: Question 65Question 651 pts

Power washing the exterior of a building is an example of:

Group of answer choices

corrective maintenance

preventive maintenance

custodial maintenance

deferred maintenance

Flag question: Question 66Question 661 pts

Roger and Marianne are property managers who work for ABC Property Management. Ginny and Louis are property managers who work for XYZ Property Management. Which of the following scenarios describes an antitrust violation?

Group of answer choices

ABC assigns Roger to work exclusively in the West neighborhood and Marianne to work exclusively in the East neighborhood

ABC decides to focus only on high-end properties in the West neighborhood

ABC and XYZ agree that ABC will focus on the West neighborhood and XYZ will focus on the East neighborhood

XYZ assigns both Ginny and Louis to focus on high-end properties in the East neighborhood

Flag question: Question 67Question 671 pts

Saving the client money is one important reason why a property manager should:

Group of answer choices

encourage tenants to report maintenance issues promptly

respond only to complaints that have been submitted in writing

wait at least three days before responding to non-emergency complaints, which frequently solve themselves

handle complaints in a way that will keep tenants' maintenance expectations low

Flag question: Question 68Question 681 pts

Shell space is:

Group of answer choices

unfinished commercial space, ready for a tenant's build-out

partially enclosed retail space in the center of a large mall

the per-floor square footage of an office building, minus areas taken up by stairwells, elevator shafts, ductwork, and other equipment necessary to the functioning of the building

None of the above

Flag question: Question 69Question 691 pts

State law and/or the management agreement may require a property manager to be covered by an E&O policy. This type of policy is also called:

Group of answer choices

fidelity bonding

professional liability insurance

commercial general liability insurance

all perils insurance

Flag question: Question 70Question 701 pts

Subsidized housing:

Group of answer choices

may be either public housing or government-assisted housing

is usually housing for the elderly

generally must be managed by a licensed community association manager

All of the above

Flag question: Question 71Question 711 pts

The Building Owners and Managers Association (BOMA) developed the widely used system of classifying office buildings as Class A, B, or C properties. BOMA:

Group of answer choices

publishes annual ratings for all the major office buildings located in the CBD of a metropolitan area

has standardized the ratings so that a Class B building in one market will be very similar to Class B buildings across the country

does not recommend publishing a classification rating for an individual property

no longer uses the A, B, C classification system itself and discourages others from using it

Flag question: Question 72Question 721 pts

The Patriot Act effectively requires a property manager to:

Group of answer choices

check a prospective tenant's name against the SDN list

check a prospective client's name against the SDN list

decline to work for or lease to anyone whose name appears on the SDN list

All of the above

Flag question: Question 73Question 731 pts

The central aim that guides a property manager's work, no matter what context the manager works in, is managing the property in order to:

Group of answer choices

generate the greatest net income for the owners

increase the property's value as much as possible

ensure that the property reaches its highest and best use

achieve the owners' goals for the property

Flag question: Question 74Question 741 pts

The consideration of tenant mix in leasing is most important for:

Group of answer choices

residential property

office property

retail property

industrial property

Flag question: Question 75Question 751 pts

The federal Fair Labor Standards Act sets rules concerning:

Group of answer choices

minimum wage and overtime pay

vacation and sick leave

notice of termination

workplace safety

Flag question: Question 76Question 761 pts

The federal income tax return for the investor-owner of a commercial property would probably show a tax deduction for:

Group of answer choices

capital expenditures

the initial basis

passive income

depreciation of the building(s)

Flag question: Question 77Question 771 pts

The implied covenant of quiet enjoyment:

Group of answer choices

applies to residential tenancies but not commercial tenancies

applies to commercial tenancies but not residential tenancies

must be expressly included in any written lease

applies to a tenancy even if it is not expressly stated in the lease

Flag question: Question 78Question 781 pts

The owner of an apartment building is legally required to allow a disabled tenant to make reasonable modifications to his unit, at the tenant's expense. This is required by:

Group of answer choices

the federal Fair Housing Act

the Americans with Disabilities Act

Both a) and b)

Neither a) nor b); this is a requirement of state law, not federal law

Flag question: Question 79Question 791 pts

The tenant who's moving out has kept the unit in decent shape, except that at some point she badly scorched the kitchen countertop with a hot pan. The countertop was in good condition when the tenant moved in a year ago, but it will have to be replaced before the unit can be rented again. Can the property manager make a deduction from the tenant's security deposit because of the scorched countertop?

Group of answer choices

This counts as normal wear and tear, so a deduction is not allowed

This does not affect the habitability of the unit, so a deduction is not allowed

Under the "useful life" rule, it would have been necessary to replace the countertop anyway, so a deduction is not allowed

This is damage, not normal wear and tear, so a deduction is justified

Flag question: Question 80Question 801 pts

The tenants in a shopping center are typically required to:

Group of answer choices

advertise their own businesses, but not to participate in marketing the shopping center

make monthly contributions to the shopping center's marketing fund based on their leased square footage

pay for marketing the shopping center as part of their CAM charges

join the merchant's association and make an annual contribution to marketing costs based on their gross sales for the previous year

Flag question: Question 81Question 811 pts

The term "qualification package" refers to:

Group of answer choices

a summary of the property manager's credentials and experience, with supporting documents, included in a management proposal

the requirements for membership in a professional association such as BOMA or IREM, or for a particular designation conferred by such an association

orientation materials provided to new tenants in large residential complexes, typically including information about the property's amenities, a list of neighborhood resources, and an appropriate welcome gift

a prospective commercial tenant's rental application and supporting documents, such as profit and loss statements and income tax returns

Flag question: Question 82Question 821 pts

There are many differences between residential property and commercial property that affect their management. All of the following statements about the differences are correct, except:

Group of answer choices

residential leases generally have longer terms

residential properties are more likely to require round-the-clock management

residential property managers (and/or their staff) typically have to spend a greater proportion of their time on marketing and leasing

residential tenancies are generally subject to many more landlord-tenant law requirements

Flag question: Question 83Question 831 pts

There are several ways a property manager may try to increase a property's NOI without raising the rents, including:

Group of answer choices

improving the occupancy rate

making a larger percentage of each tenant's security deposit nonrefundable

cutting back on capital expenditures that are not immediately necessary

arranging for the owner to refinance the property's mortgage

Flag question: Question 84Question 841 pts

To evaluate the effectiveness of marketing efforts, a property manager is likely to use:

Group of answer choices

traffic reports

direct solicitation

hit tickets

projection rates

Flag question: Question 85Question 851 pts

To woo industrial businesses to their area, governments may use:

Group of answer choices

tax relief

relaxed legal requirements

financing assistance

All of the above

Flag question: Question 86Question 861 pts

Under CERCLA, the federal toxic waste cleanup law, the current owner of a contaminated property can be held liable for cleanup costs:

Group of answer choices

only if she directly caused the contamination

only if she modified the property in some way that caused a foreseeable release of contaminants onto neighboring property

if she knew about or should have known about the contamination when the property was acquired

if she leases the property to another party without providing a contamination disclosure report

Flag question: Question 87Question 871 pts

Under the FCRA, a property manager must:

Group of answer choices

obtain a rental applicant's credit report from at least three different credit bureaus

provide all residential rental applicants with a booklet explaining their rights under the law

provide a written notice to a residential or commercial rental applicant rejected based on a credit report

run credit checks on all rental applicants, both residential and commercial

Flag question: Question 88Question 881 pts

Unlimited liability means:

Group of answer choices

the liability of the investors who own a property may exceed the value of the property itself

any judgments entered against the business or the individual investors are not subject to the federal liability cap

the personal assets of a business owner or investor can be reached by creditors of the business

the debts and obligations of the business may exceed the value of the investment property owned

Flag question: Question 89Question 891 pts

When a property manager or leasing agent discusses office space with a prospective tenant, the first issue that has to be addressed is usually:

Group of answer choices

pass-through charges

the size and configuration of the available space

the tenant improvement allowance

common area maintenance

Flag question: Question 90Question 901 pts

When marketing property for lease, a property manager decides to include the amount of the rent and other cost information in the advertising. This is likely to:

Group of answer choices

help prevent wasted time and effort for the manager

trigger Truth in Lending Act requirements

put off well-to-do and older prospects, who tend to feel it's in poor taste to discuss money matters publicly

discourage many qualified prospects who would have submitted an application if they had come to see the property

Flag question: Question 91Question 911 pts

Which of the following is most likely to be the absorption rate for an area?

Group of answer choices

8 months

8%

8 to 1

80,000 square feet

Flag question: Question 92Question 921 pts

Which of the following is or are counted as operating expenses for a managed property?

Group of answer choices

Debt service

Management fees

Capital expenditures

All of the above

Flag question: Question 93Question 931 pts

Which of the following would be most likely to enter into a sale-leaseback agreement or a ground lease?

Group of answer choices

The marketing director for a regional shopping center

An industrial business that needs to construct a special purpose building

A tenant in an office building who needs to expand into additional space

A condominium owner who can't rent out his unit without the prior approval of the community association

Flag question: Question 94Question 941 pts

Which of the following disclosure laws is a federal statute that applies throughout the U.S.?

Group of answer choices

A law that requires residential landlords or property managers to make disclosures to tenants regarding lead-based paint in some cases

A law that requires residential landlords or property managers to disclose that a registered sex offender lives in the vicinity

A law that requires landlords or property managers to have the property tested for pests and provide inspection reports to prospective tenants

A law that requires a property manager to disclose to the client any payment or other financial benefit received through her work for the client

Flag question: Question 95Question 951 pts

Which of the following statements about the Americans with Disabilities Act is correct?

Group of answer choices

It applies to office property, but not to retail property

It applies to retail property, but not to office property

When retail property is leased, both the landlord and the tenant are responsible for ADA compliance

ADA compliance is solely the landlord's responsibility; a tenant cannot be sued for violations

Flag question: Question 96Question 961 pts

Which of the following would be the best starting point for an example illustrating the concept of leverage?

Group of answer choices

Alison purchased a rental property by making a 15% downpayment; when she sold the property, it had increased in value by 6%

Jerry's rental property decreased in value by 2% during his period of ownership

The annual operating expenses for Carmen's rental property came to 63% of the gross income

Ralph receives a monthly income of approximately $1,100 from his rental property

Flag question: Question 97Question 971 pts

Which of these are not commonly factors in creating the boundaries of a neighborhood?

Group of answer choices

Bodies of water

Zoning restrictions

Government survey maps

Ethnic or racial identity and discrimination

Flag question: Question 98Question 981 pts

Which of these statements about hiring contractors is correct?

Group of answer choices

It's only appropriate to use contractors for maintenance work; other tasks should generally be performed by employees

Contractors should be hired and paid by the property owner, not the property manager, whenever possible

Contractors cost more per hour than employees, but they require less administrative work and do not receive benefits

A property manager should purchase a fidelity bond to cover each contractor hired

Flag question: Question 99Question 991 pts

Why does the liquidity of an investment matter?

Group of answer choices

Less liquid investments have consistently lower yields than more liquid investments

The investor might want the invested funds for a different investment opportunity or for emergency expenses

The number of liquid investments that an investor can hold at one time is limited by law

Federal deposit insurance does not cover liquid investments

Flag question: Question 100Question 1001 pts

With an operating expense escalation clause, the property manager:

Group of answer choices

must base increases on a widely accepted standard, such as the Consumer Price Index

must wait until the actual operating expense figures are known before charging tenants for increases

may use estimates of operating expense increases, then make adjustments later when the actual expenses are known

may use estimates, but cannot charge tenants an additional amount if the actual expenses turn out to be higher than the estimates