FINC 371 STUDY EXAMINER GUIDE QUESTIONS
AND ANSWERS SURE A+
✔✔Rental Agreement - ✔✔A less formal, typically shorter-term lease agreement, often
month-to-month.
✔✔Security Deposit - ✔✔A payment made by the tenant to cover potential damages or
unpaid rent, refundable at the end of the lease term if obligations are met.
✔✔Step-Up Rent Lease - ✔✔A lease where rent increases in scheduled steps over the
term.
✔✔Subleasing - ✔✔The act of a tenant leasing part or all of their rented property to
another party.
✔✔Tenancy at Sufferance - ✔✔A situation where a tenant remains on the property after
the lease expires without the landlord's consent.
✔✔Tenancy at Will - ✔✔A lease with no fixed end date, where either party can
terminate the lease at any time with appropriate notice.
✔✔Tenancy for a Stated Period - ✔✔A lease agreement that specifies a fixed term with
defined start and end dates.
,✔✔Tenancy from Period to Period - ✔✔A lease that automatically renews for a set
period, such as monthly or yearly, until either party gives notice to terminate.
✔✔Term - ✔✔The duration of the lease agreement, including its start and end dates.
✔✔Warranty of Habitability - ✔✔A legal requirement that the landlord maintain the
property in a condition fit for human habitation, addressing issues like safety, sanitation,
and repairs.
✔✔Eviction - ✔✔The legal process by which a property owner or manager removes a
tenant from a rental property due to lease violations, such as nonpayment of rent or
misuse of the property.
✔✔Landlord obligations - ✔✔Maintain habitable conditions and comply with safety
codes.
✔✔Negative renewal clause - ✔✔Tenant vacates if no renewal notice.
✔✔Positive renewal clause - ✔✔Lease renews unless tenant gives termination notice.
✔✔Asset Manager - ✔✔A professional responsible for maximizing the value and return
of a real estate portfolio by overseeing property performance, financial strategies,
acquisitions, dispositions, and overall investment goals.
✔✔Management Agreement - ✔✔A formal contract between a property owner and a
property management company or individual that outlines the responsibilities, authority,
and compensation for managing the property.
✔✔Property Manager - ✔✔An individual or company tasked with the day-to-day
operations of a real estate property, including leasing, maintenance, tenant relations,
and ensuring the property meets the owner's financial and operational goals.
✔✔Sale-and-Leaseback - ✔✔A financial transaction in which a property owner sells
their real estate to an investor and simultaneously leases it back.
✔✔Key Objectives of Property Managers - ✔✔Maximize rental income through
upgrades and amenities, minimize maintenance or repairs, and ensure property value is
sustained or increased.
✔✔Powers of the Property Manager - ✔✔Can set and collect rents, execute, extend, or
cancel leases, make settlements with tenants, hire, fire, and supervise personnel.
, ✔✔Compensation for Property Managers - ✔✔Based on a percentage of gross income
(4%-10%), depending on project size, manager responsibilities, and local market
competitiveness.
✔✔Employment by a management firm - ✔✔Fixed salary
✔✔Written contracts - ✔✔Minimize disputes and align incentives with ownership goals
✔✔Functions of a property manager - ✔✔Act as fiduciaries for property owners,
managing day-to-day operations under a contractual agency relationship
✔✔Responsibilities of property managers - ✔✔Span a wide range of tasks, including
administration, marketing and advertising, tenant selection, lease negotiation, move-in
inspections, property maintenance, rent collection, move-out inspections, and security
deposit returns
✔✔Administration in property management - ✔✔Involves record-keeping, report
generation, paying bills, monitoring employees, and overseeing operations
✔✔Marketing and advertising - ✔✔Rental spaces are perishable commodities requiring
continual marketing to maximize occupancy and property value
✔✔Effective marketing strategies - ✔✔Depend on tenant types, project advantages,
and target segments
✔✔Common advertising tools - ✔✔Include signs on the property, neighborhood flyers,
bulletin boards, internet sites, listings with leasing companies, newspaper ads, and
open house events
✔✔Tenant selection - ✔✔Property managers evaluate tenants to ensure alignment with
the owner's objectives and compliance with legal requirements
✔✔Fair Housing Act - ✔✔Must avoid discrimination based on protected characteristics
(e.g., race, religion, familial status)
✔✔Lease negotiation - ✔✔Establishes the terms and conditions of the lease, resolving
key questions like security deposit amount, rent due date, lease nature, and permitted
use of the property
✔✔Move-in inspections - ✔✔Conducted before tenant occupancy to document property
condition and ensure accountability for damages
✔✔Property maintenance - ✔✔Managers ensure prompt and proper repairs, hiring
contractors as needed for larger properties
AND ANSWERS SURE A+
✔✔Rental Agreement - ✔✔A less formal, typically shorter-term lease agreement, often
month-to-month.
✔✔Security Deposit - ✔✔A payment made by the tenant to cover potential damages or
unpaid rent, refundable at the end of the lease term if obligations are met.
✔✔Step-Up Rent Lease - ✔✔A lease where rent increases in scheduled steps over the
term.
✔✔Subleasing - ✔✔The act of a tenant leasing part or all of their rented property to
another party.
✔✔Tenancy at Sufferance - ✔✔A situation where a tenant remains on the property after
the lease expires without the landlord's consent.
✔✔Tenancy at Will - ✔✔A lease with no fixed end date, where either party can
terminate the lease at any time with appropriate notice.
✔✔Tenancy for a Stated Period - ✔✔A lease agreement that specifies a fixed term with
defined start and end dates.
,✔✔Tenancy from Period to Period - ✔✔A lease that automatically renews for a set
period, such as monthly or yearly, until either party gives notice to terminate.
✔✔Term - ✔✔The duration of the lease agreement, including its start and end dates.
✔✔Warranty of Habitability - ✔✔A legal requirement that the landlord maintain the
property in a condition fit for human habitation, addressing issues like safety, sanitation,
and repairs.
✔✔Eviction - ✔✔The legal process by which a property owner or manager removes a
tenant from a rental property due to lease violations, such as nonpayment of rent or
misuse of the property.
✔✔Landlord obligations - ✔✔Maintain habitable conditions and comply with safety
codes.
✔✔Negative renewal clause - ✔✔Tenant vacates if no renewal notice.
✔✔Positive renewal clause - ✔✔Lease renews unless tenant gives termination notice.
✔✔Asset Manager - ✔✔A professional responsible for maximizing the value and return
of a real estate portfolio by overseeing property performance, financial strategies,
acquisitions, dispositions, and overall investment goals.
✔✔Management Agreement - ✔✔A formal contract between a property owner and a
property management company or individual that outlines the responsibilities, authority,
and compensation for managing the property.
✔✔Property Manager - ✔✔An individual or company tasked with the day-to-day
operations of a real estate property, including leasing, maintenance, tenant relations,
and ensuring the property meets the owner's financial and operational goals.
✔✔Sale-and-Leaseback - ✔✔A financial transaction in which a property owner sells
their real estate to an investor and simultaneously leases it back.
✔✔Key Objectives of Property Managers - ✔✔Maximize rental income through
upgrades and amenities, minimize maintenance or repairs, and ensure property value is
sustained or increased.
✔✔Powers of the Property Manager - ✔✔Can set and collect rents, execute, extend, or
cancel leases, make settlements with tenants, hire, fire, and supervise personnel.
, ✔✔Compensation for Property Managers - ✔✔Based on a percentage of gross income
(4%-10%), depending on project size, manager responsibilities, and local market
competitiveness.
✔✔Employment by a management firm - ✔✔Fixed salary
✔✔Written contracts - ✔✔Minimize disputes and align incentives with ownership goals
✔✔Functions of a property manager - ✔✔Act as fiduciaries for property owners,
managing day-to-day operations under a contractual agency relationship
✔✔Responsibilities of property managers - ✔✔Span a wide range of tasks, including
administration, marketing and advertising, tenant selection, lease negotiation, move-in
inspections, property maintenance, rent collection, move-out inspections, and security
deposit returns
✔✔Administration in property management - ✔✔Involves record-keeping, report
generation, paying bills, monitoring employees, and overseeing operations
✔✔Marketing and advertising - ✔✔Rental spaces are perishable commodities requiring
continual marketing to maximize occupancy and property value
✔✔Effective marketing strategies - ✔✔Depend on tenant types, project advantages,
and target segments
✔✔Common advertising tools - ✔✔Include signs on the property, neighborhood flyers,
bulletin boards, internet sites, listings with leasing companies, newspaper ads, and
open house events
✔✔Tenant selection - ✔✔Property managers evaluate tenants to ensure alignment with
the owner's objectives and compliance with legal requirements
✔✔Fair Housing Act - ✔✔Must avoid discrimination based on protected characteristics
(e.g., race, religion, familial status)
✔✔Lease negotiation - ✔✔Establishes the terms and conditions of the lease, resolving
key questions like security deposit amount, rent due date, lease nature, and permitted
use of the property
✔✔Move-in inspections - ✔✔Conducted before tenant occupancy to document property
condition and ensure accountability for damages
✔✔Property maintenance - ✔✔Managers ensure prompt and proper repairs, hiring
contractors as needed for larger properties
