Property Management - Exam 1 -
Chapters 1-5 | 100% Correct Answers
Chapter 1 Correct Answer:
Goals of the Property Manager Correct Answer: 1. Achieve the objectives of the
property owners;
2. Generate income for the owners;
3. Perserve and/or increase the value of the investment property.
Development of the Property Management Profession Correct Answer: Steel
frame buildings and the electric elevator. Development of the suburban areas.
Classification of real property Correct Answer: 1.Residential
2. Commercial
3. Industrial
4. Special-purpose
Chapter 2 Correct Answer:
Season Variations Correct Answer: Weather, School - College housing, Seasonal -
retired people head south.
These are predictable.
Cyclical Fluctuations Correct Answer: Expansion; - 7 yr. Cycle, Take proceeds
reinvesting.
Recession; - Supply begins to surpass demand.
Contraction;
Revival;
Lull.
Management Plan Correct Answer: The financial and operational strategy for the
ongoing management of the property.
Three factors when formulating management plan Correct Answer: Regional and
neighborhood market analysis;
, Specific property analysis;
Analysis of an owner's objectives.
Technical Oversupply Correct Answer: Occurs when there are more units
available than potential tenants.
Economic Oversupply Correct Answer: Reflects the fact that potential tenants
cannot afford to pay the price of the available space.
Chapter 3 Correct Answer:
Three basic relationships between manager and property manager Correct Answer:
1. Employer-employee relationship
2. Formal fiduciary relationship (trust)
3. Principal-Agent Arrangement
Employer-Employee Relationship Correct Answer: The employee-manger is
directly responsible to the officers of the owner-employer corporation or
institution, which may be the principle occupant of the property.
Formal Fiduciary Relationship (Trust) Correct Answer: A trust is a device by
which one person or institution transfers legal ownership of property to someone
else to hold or manage for benefit of the third party.
Principle Agent Relationship Correct Answer: Between Principle (one who hires)
and the agent (one who does the work). Written agreement creating this
relationship is called the management contract; it empowers the property manager,
as agent, to act on behalf of the owner, or principle, in certain institutions.
General Agent Correct Answer: Long term relationship. Gives agent the authority
to execute contracts within a scope of time.
Special Agent Correct Answer: Limited scope of time.
Fiduciary Duties Correct Answer: Loyalty;
Care;
Obedience;
Accounting;
Disclosure.
Chapters 1-5 | 100% Correct Answers
Chapter 1 Correct Answer:
Goals of the Property Manager Correct Answer: 1. Achieve the objectives of the
property owners;
2. Generate income for the owners;
3. Perserve and/or increase the value of the investment property.
Development of the Property Management Profession Correct Answer: Steel
frame buildings and the electric elevator. Development of the suburban areas.
Classification of real property Correct Answer: 1.Residential
2. Commercial
3. Industrial
4. Special-purpose
Chapter 2 Correct Answer:
Season Variations Correct Answer: Weather, School - College housing, Seasonal -
retired people head south.
These are predictable.
Cyclical Fluctuations Correct Answer: Expansion; - 7 yr. Cycle, Take proceeds
reinvesting.
Recession; - Supply begins to surpass demand.
Contraction;
Revival;
Lull.
Management Plan Correct Answer: The financial and operational strategy for the
ongoing management of the property.
Three factors when formulating management plan Correct Answer: Regional and
neighborhood market analysis;
, Specific property analysis;
Analysis of an owner's objectives.
Technical Oversupply Correct Answer: Occurs when there are more units
available than potential tenants.
Economic Oversupply Correct Answer: Reflects the fact that potential tenants
cannot afford to pay the price of the available space.
Chapter 3 Correct Answer:
Three basic relationships between manager and property manager Correct Answer:
1. Employer-employee relationship
2. Formal fiduciary relationship (trust)
3. Principal-Agent Arrangement
Employer-Employee Relationship Correct Answer: The employee-manger is
directly responsible to the officers of the owner-employer corporation or
institution, which may be the principle occupant of the property.
Formal Fiduciary Relationship (Trust) Correct Answer: A trust is a device by
which one person or institution transfers legal ownership of property to someone
else to hold or manage for benefit of the third party.
Principle Agent Relationship Correct Answer: Between Principle (one who hires)
and the agent (one who does the work). Written agreement creating this
relationship is called the management contract; it empowers the property manager,
as agent, to act on behalf of the owner, or principle, in certain institutions.
General Agent Correct Answer: Long term relationship. Gives agent the authority
to execute contracts within a scope of time.
Special Agent Correct Answer: Limited scope of time.
Fiduciary Duties Correct Answer: Loyalty;
Care;
Obedience;
Accounting;
Disclosure.
