Property Management Exam 1

Front 1

What is the definition of property management

Back 1

The administration, operation, marketing, maintenance, and financial oversight of real property in order to achieve the objectives of the property owner.

Front 2

What are the entry, medium, and high levels of property management

Back 2

Property-entry, asset-medium, portfolio-highWhat are some examples of natural attachments

Front 3

What are some examples of natural attachments

Back 3

Trees, valuable mineral deposits, and oil

Front 4

What are some examples of artificial improvements

Back 4

Buildings, sidewalks, and fences

Front 5

What are items that would be handled by the asset manager

Back 5

Stocks, bonds, cash, real estate, commodities. They also handle the structures. Physical structure, financial structure, ownership structure

Front 6

What would a portfolio manager handle

Back 6

The portfolio manager would handle a bunch of different types of assets

Front 7

What regulates what Canon can’t be written in rental agreements

Back 7

Uniform residential landlord and tenant act

Front 8

What regulates anti-discrimination laws

Back 8

Fair housing act, ADA, equal credit opportunity act

Front 9

What state agency is responsible for maintaining fair housing

Back 9

The California Department of fair employment and housing (DFEH)

Front 10

How many days notice of required for pay or quit

Back 10

Three days

Front 11

What properties are covered by the tenant protection act of 2019

Back 11

Properties less than 15 years old, single-family properties with no corporate owner, duplexes where are the owner occupied one of the units, Property were owner and tenant sure common area

Front 12

What are the two parts of the tenant protection as of 2019

Back 12

Just cause evection law and state wide rent cap law

Front 13

What are some examples of no-fault just cause

Back 13

The property is taken off the market, the property will be demolished or remodeled, the owner friends or family intends to occupy the unit

Front 14

What must an owner do for no-fault evictions

Back 14

Owner must pay one month relocation fee

Front 15

What are the rent caps

Back 15

5% a year plus local CPI not to exceed 10%

Front 16

What entity certified property managers

Back 16

IREM

Front 17

What entity covers RMP and MPM certificates

Back 17

NARPM

Front 18

What’s indemnity

Back 18

The owner should keep the property in compliance with all government regulations

Front 19

What’s the flat fee composed of

Back 19

Gross dollars plus profit margin

Front 20

What are reasons that a property manager might charge additional fees

Back 20

Overseeing rehabilitation or modeling, finding a tenant (50 to 100 percent of monthly rent

Front 21

What is the issue with the percentage fee system

Back 21

It creates an agency problem

Front 22

What is net operating income comprised of

Back 22

Net operating income equals gross rental income minus operating expenses

Front 23

What’s the agency problem with percentage fee

Back 23

The property manager has no incentive to control operating expenses

Front 24

What are the obligations of the property manager

Back 24

Obedience, loyalty, disclosure, Confidentiality, accounting, reasonable care

Hint 24

Obedience, loyalty, disclosure

Front 25

True or false, California labor laws only apply to employees not contractors

Back 25

True

Front 26

What are some examples of building components

Back 26

Roofing, flooring, water heaters, furnaces, elevators, and air conditioners

Front 27

What is the property status report/inspection report

Back 27

The current physical and financial condition of the property

Front 28

What is an annual operating budget

Back 28

And itemize list of all estimated income and expenses during the year

Front 29

What is net operating income

Back 29

Expected gross income minus operating expenses plus replacement reserves

Front 30

What is expected gross income

Back 30

Potential gross income minus vacancy and collection fees

Front 31

What is cash flow

Back 31

Net operating income minus debt service

Front 32

What are the two parts in the two-step process to determine whether there’s a contractor or employee, Integration, liability

Back 32

Step one who controls the detail of the work. Step two ownership of tool/chance of profit or loss

Front 33

Did the two reports that are owed to the owner

Back 33

Financial statements and operation reports

Front 34

What is part of the financial statements

Back 34

Profit and loss statement, statement of cash flow’s

Front 35

Is the tenant mix report

Back 35

Used primarily in commercial properties. Tenants should attract similar clients

Front 36

What are the three steps in creating a management plan

Back 36

One gather information, to prepare the management plan, 3% management plan

Front 37

What is a management plan

Back 37

Financial and operational blueprint created by the property manager in order to achieve the owners investment goal

Front 38

What is an estoppel certificate

Back 38

A signed statement by the tenant verifying that the lease information is accurate

Front 39

What is a lease abstract

Back 39

Names lease terms unit number square footage monthly rent renewal options.

Front 40

What are the four things involved in gathering information

Back 40

Owners investment goal, property inspection, lease analysis, income and expense analysis