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Which of the following is NOT a source of income in managing a manufactured home park? A. Lot rentals B. Laundry facilities C. Providing nursing homes D. Storage rentals Correct Answer: C. Providing nursing homes Rationale: Nursing homes are a different type of facility and not a typical income source for manufactured home parks. Developing a sense of community spirit is especially useful for encouraging referrals in: A. Apartment complexes B. Condominiums C. Manufactured home parks D. Office buildings Correct Answer: C. Manufactured home parks Rationale: Community spirit fosters resident satisfaction and word-of-mouth referrals in these close-knit environments. In most states, the Articles of Incorporation: A. Serve as business licenses B. Allow taxation C. Establish owners associations D. Provide zoning exceptions Correct Answer: C. Establish owners associations Rationale: These articles often form the legal foundation for associations in commonin
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Which of the following is NOT a source of income in managing a manufactured home park? A. Lot rentals B. Laundry facilities C. Providing nursing homes D. Storage rentals Correct Answer: C. Providing nursing homes Rationale: Nursing homes are a different type of facility and not a typical income source for manufactured home parks. Developing a sense of community spirit is especially useful for encouraging referrals in: A. Apartment complexes B. Condominiums C. Manufactured home parks D. Office buildings Correct Answer: C. Manufactured home parks Rationale: Community spirit fosters resident satisfaction and word-of-mouth referrals in these close-knit environments. In most states, the Articles of Incorporation: A. Serve as business licenses B. Allow taxation C. Establish owners associations D. Provide zoning exceptions Correct Answer: C. Establish owners associations Rationale: These articles often form the legal foundation for associations in common- interest communities. A manager concerned with property design, social events, and medical emergencies is likely managing: A. Retail center B. Office tower
C. Housing for the elderly D. Low-income housing Correct Answer: C. Housing for the elderly Rationale: Elderly housing often includes social coordination and emergency support. The initial management agreement for a new condominium is typically between the manager and the: A. HOA B. Unit owners C. Developer of the project D. City zoning department Correct Answer: C. Developer of the project Rationale: Before residents assume control, the developer manages the property. Condominium and cooperative managers typically use financial reporting systems similar to those used by: A. Retail chains B. Government housing C. Managers of apartment buildings D. Hotel managers Correct Answer: C. Managers of apartment buildings Rationale: These property types have similar operating expense and revenue structures. With regard to insurance, a condo owner must: A. Buy commercial liability insurance B. Purchase an HO-6 condo policy C. Only insure the roof D. Rely solely on the association’s insurance Correct Answer: B. Purchase an HO-6 condo policy Rationale: This policy covers personal property and the interior portion of the unit. The condo management fee is typically: A. Flat for all units B. Paid only by renters C. Prorated by ownership interest D. Paid by the city Correct Answer: C. Prorated by ownership interest Rationale: Each unit owner pays based on their share in the common areas. The initial sellout of condos and co-ops is generally accomplished through: A. Word of mouth B. Government programs
Correct Answer: B. The same as private housing Rationale: Consistent rent policies are necessary for financial stability. HUD contracts with subsidized housing property managers are generally: A. Month-to-month B. For a term of years C. Based on tenant demand D. Conditional on elections Correct Answer: B. For a term of years Rationale: These long-term contracts provide stability in operations. Which of the following is NOT useful when marketing office property? A. Personal networking B. Internet listings C. Brochures D. Classified ads Correct Answer: D. Classified ads Rationale: Classified ads are outdated and less effective for office leasing. To protect the owner from inflation during a long lease, the lease should include: A. Cancellation clause B. Maintenance clause C. Escalation clause D. Arbitration clause Correct Answer: C. Escalation clause Rationale: Allows periodic rent increases tied to costs or inflation. The person responsible for arranging the internal layout of an office space is called the: A. Property manager B. Leasing agent C. Facilities manager D. Interior designer Correct Answer: C. Facilities manager Rationale: Facilities managers coordinate interior office planning and furnishings. One of the most effective ways to locate office tenants is: A. Social media B. Radio advertising C. Canvassing qualified prospects D. Mailing flyers Correct Answer: C. Canvassing qualified prospects Rationale: Direct outreach to potential tenants yields better results.
Absorption rate in office leasing refers to: A. Vacancies B. Market trends C. Leased square footage per year D. Owner profit Correct Answer: C. Leased square footage per year Rationale: Indicates the rate at which space is being taken up in the market. The most important factor in choosing office facilities, according to surveys, is: A. Design B. Location C. Cost D. Technology Correct Answer: C. Cost Rationale: Rent or purchase price often dominates tenant decisions. Office space is designated Class A, B, C, or D based on: A. Zoning codes B. Owner income C. Age, location, and market position D. Number of floors Correct Answer: C. Age, location, and market position Rationale: These factors determine quality, rent levels, and classification. The base rate for an office building should: A. Be equal for all floors B. Be set by city regulation C. Reflect amenities and competition D. Be fixed regardless of changes Correct Answer: C. Reflect amenities and competition Rationale: Rent should match the building's value and local demand. According to BOMA standards, an older renovated building in a prime area would likely be classified as: A. Class A B. Class C C. Class B D. Class D Correct Answer: C. Class B Rationale: Even with upgrades, age may prevent a Class A rating. According to the BOMA method, construction area is determined by: A. Lease negotiation
C. Floor’s total square footage D. Rentable area Correct Answer: C. Floor’s total square footage Rationale: Usable area is the tenant's actual working space. If an office lease does not prohibit assignment or subletting, the tenant may: A. Never assign it B. Assign it only with zoning board approval C. Assign the space to another party D. Sell it back to the landlord Correct Answer: C. Assign the space to another party Rationale: Unless prohibited, lease rights can be transferred. The cost of tenant alterations above building standard is typically the responsibility of the: A. City B. Owner C. Lessee D. Architect Correct Answer: C. Lessee Rationale: Tenants pay for customizations beyond the standard package. The purpose of a building standard is to: A. Determine zoning class B. Set tax rates C. List owner-provided amenities D. Limit use of electricity Correct Answer: C. List owner-provided amenities Rationale: Clarifies what the owner will provide without extra cost. A recapture provision is intended to benefit the: A. Lessee B. Tenant association C. Landlord D. State Correct Answer: C. Landlord Rationale: Allows the owner to reclaim space under certain conditions. A key difference in maintaining office buildings compared to residential buildings is: A. Weekend security patrols B. Emergency access C. Nighttime cleaning of tenant spaces
D. More elevators Correct Answer: C. Nighttime cleaning of tenant spaces Rationale: Cleaning is usually done after business hours. Before shopping centers, retail merchants typically located: A. In suburbs B. In industrial parks C. In central business districts (CBDs) D. Near schools Correct Answer: C. In central business districts (CBDs) Rationale: Proximity to transportation and foot traffic was key. A typical neighborhood shopping center serves an area of approximately: A. 1 mile B. 2 miles C. 3 miles D. 5 miles Correct Answer: C. 3 miles Rationale: These centers meet local, day-to-day shopping needs. Most regional shopping centers are shaped like a: A. Square B. Circle C. Dumbbell D. Octagon Correct Answer: C. Dumbbell Rationale: Anchors at each end with smaller stores in between. Which business type requires the most parking spaces? A. Jewelry store B. Hardware store C. Clothing boutique D. Restaurant Correct Answer: D. Restaurant Rationale: High turnover and short visits demand more parking. A shopping center that draws from a 5-mile radius is classified as: A. Neighborhood B. Community C. Regional D. Local Correct Answer: B. Community Rationale: Community centers attract customers from surrounding neighborhoods.
Correct Answer: C. $1, Rationale: Total sales = $31,000; 6% of $31,000 = $1,860 → but since monthly minimums apply, October: $600, Nov: $660, Dec: $720 = $1,980. Tenant mix percentage studies are conducted by: A. Urban Land Institute B. International Council of Shopping Centers C. Building Owners Association D. Chamber of Commerce Correct Answer: B. International Council of Shopping Centers Rationale: This organization provides research and guidelines on shopping center planning and tenant composition. When evaluating tenant mix, managers must also assess: A. Employee benefits B. Store lighting C. Parking facility needs D. Store logos Correct Answer: C. Parking facility needs Rationale: Tenants with high customer flow need ample parking. If a percentage lease charges 6% of the first $15,000 of gross monthly sales and 5% on the next $15,000, what’s the rent on $42,000 in sales? A. $2, B. $2, C. $2, D. $2, Correct Answer: B. $2, _Rationale: 6% of $15,000 = $ 5% of next $15,000 = $ Assuming the remaining $12,000 is also at 5% = $ Total = $900 + $750 + $600 = $2, But based on original structure, only sales up to $30,000 are considered → total = $
A recapture clause in a retail lease allows the landlord to terminate the lease if: A. Rent is paid late B. Sales fall below a set level C. New tenant is available D. Store changes layout Correct Answer: B. Sales fall below a set level Rationale: Protects landlords from underperforming tenants in key locations. Overlapping rights and duties of landlords, tenants, and co-owners are defined in: A. Deeds B. Reciprocal easement agreements C. Lease abstracts D. CC&Rs Correct Answer: B. Reciprocal easement agreements Rationale: These agreements govern shared areas and mutual responsibilities. Tenant improvement negotiations are most complex when: A. A new building opens B. A kiosk is added C. A long-term tenant vacates D. A small shop renews lease Correct Answer: C. A long-term tenant vacates Rationale: The space may require extensive renovations for new uses. The standard manual for accounting in shopping centers is published by: A. BOMA B. IREM C. Urban Land Institute D. ICSC Correct Answer: C. Urban Land Institute Rationale: ULI provides guidelines and accounting best practices. To compare shopping center data nationally, managers refer to: A. Green Book B. Real Estate Market Reports C. Dollars and Cents of Shopping Centers D. Lease Ledger Summary Correct Answer: C. Dollars and Cents of Shopping Centers Rationale: This publication offers benchmarking data for performance comparison. All of the following are examples of risk avoidance EXCEPT: A. Not allowing open flames B. Avoiding hazardous property
Correct Answer: C. Loss due to injury or damage to others Rationale: These policies cover third-party injuries and liability claims. Proper ventilation can greatly reduce the presence of: A. Asbestos B. Radon C. Mold D. Carbon monoxide Correct Answer: B. Radon Rationale: Radon is a gas mitigated through ventilation systems. Independent property managers should be: A. Bonded by the city B. Listed in MLS C. Named as additional insured on the owner’s policy D. Covered under tenant’s policy Correct Answer: C. Named as additional insured on the owner’s policy Rationale: This gives them legal protection while operating the property. Which of the following helps alleviate mold problems? A. Increasing temperature B. Painting walls C. Decreasing humidity D. Adding insulation Correct Answer: C. Decreasing humidity Rationale: Mold thrives in moist environments. Environmental Impact Statements for major developments are required by: A. State governments B. Local zoning boards C. Federal government only D. HOA Correct Answer: C. Federal government only Rationale: Under NEPA, federal agencies require these for major projects. In order to survive and grow, mold needs a food source and: A. Oxygen B. Humidity C. Moisture D. Ventilation Correct Answer: C. Moisture Rationale: Mold cannot grow without moisture.
CERCLA, which created the Superfund, addresses: A. Rent control B. Affordable housing C. Hazardous substances cleanup D. Foreclosure laws Correct Answer: C. Hazardous substances cleanup Rationale: It holds parties responsible for environmental contamination. A potential hazard from an incorrectly vented space heater is: A. Lead B. Nitrogen C. Carbon monoxide D. Sulfur dioxide Correct Answer: C. Carbon monoxide Rationale: CO is a deadly gas produced by incomplete combustion Although cash flow projections appear to be complex
What percentage fee? - Ans - 6.5% Monthly management fee / gross income 2500 + 2500*.3 / 50, Direct costs 35000 Indirect costs 20000 750 units 20% profit Minimum per unit fee? - Ans - 35,000+20,000 / 750 . $ 50 units Gross income $300, Vacancy 6% Per unit fee $ Percentage management fee? - Ans - 300 * 50 = 15, 300,000.06 = 282, 15/282 = 5% The most important operating record kept by the property manager is - Ans - monthly report on cash flow Which of the following is a nonrecurring variable expense? - Ans - An addition to the building For the final quarter of the year, all of the following tax forms concerning employees must be filed by the manager except - Ans - Form 1099 Which statement accurately described income tax withholding forms - Ans - Form W- 4 is filled out by the employee, but the responsibility for obtaining it is on the employer A manager would MOST likely want a percentage of the collected rents in which of the following situations? - Ans - Upscale apartment building with high demand Unemployment taxes are levied and must be paid when filing - Ans - FUTA A commercial prop containing 35,000 sq. ft. is rented at 6$ per foot. Actual collected only $168,000. What occupancy rate should be used in budget forecast for next year - Ans - 80%
An apartment building has fixed costs of $75,000 per year and a variable cost ratio of 25%. What is the breakeven point? - Ans - 100, What is the cap rate? - Ans - A method to convert future income to present value A property manager had two vacancies. When a single parent and her child inquired about an apartment they were told that the building was 100% occupied. This is... - Ans
What is the basis for sound tenant relations - Ans - Open lines of communication Maintaining litter-free grounds and well-trimmed lawns are examples of - Ans - curb appeal An apartment building consists of 10 one-bedroom apartments renting for $180, 10 twobedroom $210, and 10 three-bedroom for $240. All of the unites are rented except for four-three bedroom units. The vacancy rate of the three-bedrooms can be expected to decrease by 10% with a $10 rental cut. THe prop manager should establish which of the following rental schedules - Ans - $190, $220, $ The show list of apartments to be rented - Ans - is designed for use by the manager What tol can the manager use as a control for marketing and as a source of feedback on marketing success or failure? - Ans - Show list Which is most effective method of renting apartments - Ans - Classified Ads A manager who assumes maintenance responsibilities because there is no on-site help is most likely found in - Ans - small walkup apartments Which of the following should be carefully explained to tenants - Ans - When and where rent must be paid Of the following, which is most likely to be prepared by the resident manager - Ans - Property condition, work performed, and jobs anticipated in the following weeks Responsibility for condtrolling the daily operations of an apartment building rests with the - Ans - resident manager Preventative and corrective maintenance of residential units is generally coordinated by the - Ans - resident manager Specialists who can most effectively market the property are - Ans - leasing agents All of the following could be used as an additional revenue stream except - Ans - deposits per child Although cash flow projections appear to be complex - Ans - they are based on figures from the data already gathered 12 - Ans - Unlike a manager of an inverstor-owned apartment building, the manager of a
cooperative or condominium has no responsibility for maintaining - Ans - occupancy levels A PUD is similar in management to a - Ans - condo In managing condos and cooperatives emphasis is on managing for - Ans - value The condo legal structure has been more popular than the cooperative because - Ans - condominium owners do not risk losing their units in event of default of the owning association Generally property taxes are assessed separately on each unit in a - Ans - condo When managing a manufactured home park, income can come from all of the following sources except - Ans - providing nursing homes Developing a sense of community spirit is often useful in encouraging referrals in - Ans - manufactured home parks In MOST states, the articles of Incorporation - Ans - establish owners associations under most state laws When a manager is concerned with the physical design of the property and who may have to handle social events and medical emergencies, he or she may be managing a - Ans - housing for the elderly the initial agreement for management of a new condominium is usually between the manager and the - Ans - developer of the project Condo and cooperative managers generally use the same financial reporting system as that used by - Ans - managers of apartment buildings With regard to insurance, the condo owner must - Ans - purchase an HO-6 condo policy The management fee for a condo generally is - Ans - prorated among the occupants according to their interests in the property The initial sellout of cooperative and condo properties is - Ans - usually accomplished through display and classified ads Fannie mae regulates condos - Ans - by prescribing standards for condo mortgages that it purchases in the secondary market