PROPERTY MANAGEMENT EXAM
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 2024
The demand for professional property management that occurred in the late 1800's resulted primarily
from - ANSWER Reshaping the urban center by building tall buildings with elevators
The traditional concentration of retail property in downtown areas became decentralized as a result of -
ANSWER Evolution of the suburban shopping center
The growth of shopping centers has been stimulated by - ANSWER Population shifts to the suburbs
All of the following should be goals of the professional property manager EXCEPT - ANSWER Maintain
100% occupancy
Which professional organization has the longest history? - ANSWER Building Owners and Managers
Association International (BOMA)
Incubator spaces are MOST likely to be found in: - ANSWER Research parks
What is an example of special-purpose property? - ANSWER Nursing home
Which type of real estate property utilizes more professional property managers? - ANSWER Residential
The professional property manager formulates plans to - ANSWER Achieve the objectives of the owner,
Generate income to the owner, and increase the value of the property
The construction of multifamily unit ownership housing has been stimulated by - ANSWER Rising land
and construction costs
Income-producing properties that offer services are known as - ANSWER Office property and business
parks
,The ability of a property manager to assess a market and implement sales promotion is MOST critical
when dealing with - ANSWER Retail property
Ministorage, unlike many other types of industrial property, is: - ANSWER Not designed to meet the
needs of any particular industry
Areas that are predominately warehousing, light manufacturing, or assembly zones are that are created
under state statutes are called: - ANSWER Enterprise zones
What are classified as special-purpose property? - ANSWER Hotels, motels, theaters, schools, and places
of worship
Which of the following offers a combination of home ownership and site rental? - ANSWER
Manufactured home parks
Messenger services, taxi services, fax services, and shopping are all services commonly offered by: -
ANSWER Concierges
Asset managers often have the task of: - ANSWER Monitoring the financial performances of a portfolio of
properties
If a property owner asks a property manager to manage the property in violation of current civil rights
laws, the property manager should: - ANSWER Terminate the management agreement
Ethical conduct refers to: - ANSWER Socially or culturally imposed imposed rules of conduct that go
above and beyond the letter of the law
A commercial property is generally considered to be a ________ _______________ - a private entity that
provides goods, services, facilities, or accommodations to the public - ANSWER public accommodation
Office property is a type of ___________ __________ commercial property from which a particular
service is rendered - ANSWER income-producing
,Retail property is a commercial property from which ______ _____ ______ - ANSWER goods are sold
_____________ ___________ includes all land and facilities that convert raw materials into finished
products - ANSWER Industrial property
What characterizes the expansion phase in the business cycle? - ANSWER production increases
At or just before the peak of the general business cycle, ______ ______ _________ - ANSWER supply
surpasses demand
Movements of the general economy that usually are measured over 50 years or more are called -
ANSWER Long-term movements
Cycles of the general business economy differ from those of the real estate market in that the - ANSWER
trends in real estate lag significantly behind trends in the general economy
From an economic standpoint, the rental market as a segment of the economy .... - ANSWER is generally
poor during a contraction phase
In the operating budget, what is the name of the expenditure that accounts for money for replacement
expenditures? - ANSWER Reserve funds
When more space is available than potential tenants demand it indicates: - ANSWER a technical
oversupply
In the market analysis, the specific goal of the property manager is to identify major economic trends
and their: - ANSWER Effect on the value of a specific property at the manager's particular market level
The objective in a market analysis is to - ANSWER determine the optimum rental price for a standard
space in the area
, To avoid any surprises when taking over a new property, the manager should first - ANSWER read all the
leases
When evaluating the data in a neighborhood market survey, a residential property manager will be most
concerned with - ANSWER trends in population demographics
Economic oversupply results when - ANSWER tenants cannot afford the rents
What should the manager do if the building is 100% occupied? - ANSWER Consider raising the rents
Prospective tenants form their initial impression of a rental property based on the - ANSWER curb appeal
of the property
After inspecting and analyzing the comparables, a property manager should be able to estimate the
routine operating costs for the subject property and - ANSWER provide the owner with an estimate of
the capital expenditures required to make the property competitive with similar properties
A good management plan is based on - ANSWER an operating budget for one year
What should a property manager keep in mind when setting goals and objectives? - ANSWER A property
manager may make a real contribution by assisting in establishing written goals
Cash flow from a property is predicted by which of the following formulas? - ANSWER Anticipated
revenue minus total adjusted operating expenses and minus debt service
The determining factor in the acceptance or rejection of the management plan will be the - ANSWER
owner's objectives
In preparing a management plan for the owner to review, the manager - ANSWER should realize the
owner's objectives will be the deciding factor in its adoption
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS 2024
The demand for professional property management that occurred in the late 1800's resulted primarily
from - ANSWER Reshaping the urban center by building tall buildings with elevators
The traditional concentration of retail property in downtown areas became decentralized as a result of -
ANSWER Evolution of the suburban shopping center
The growth of shopping centers has been stimulated by - ANSWER Population shifts to the suburbs
All of the following should be goals of the professional property manager EXCEPT - ANSWER Maintain
100% occupancy
Which professional organization has the longest history? - ANSWER Building Owners and Managers
Association International (BOMA)
Incubator spaces are MOST likely to be found in: - ANSWER Research parks
What is an example of special-purpose property? - ANSWER Nursing home
Which type of real estate property utilizes more professional property managers? - ANSWER Residential
The professional property manager formulates plans to - ANSWER Achieve the objectives of the owner,
Generate income to the owner, and increase the value of the property
The construction of multifamily unit ownership housing has been stimulated by - ANSWER Rising land
and construction costs
Income-producing properties that offer services are known as - ANSWER Office property and business
parks
,The ability of a property manager to assess a market and implement sales promotion is MOST critical
when dealing with - ANSWER Retail property
Ministorage, unlike many other types of industrial property, is: - ANSWER Not designed to meet the
needs of any particular industry
Areas that are predominately warehousing, light manufacturing, or assembly zones are that are created
under state statutes are called: - ANSWER Enterprise zones
What are classified as special-purpose property? - ANSWER Hotels, motels, theaters, schools, and places
of worship
Which of the following offers a combination of home ownership and site rental? - ANSWER
Manufactured home parks
Messenger services, taxi services, fax services, and shopping are all services commonly offered by: -
ANSWER Concierges
Asset managers often have the task of: - ANSWER Monitoring the financial performances of a portfolio of
properties
If a property owner asks a property manager to manage the property in violation of current civil rights
laws, the property manager should: - ANSWER Terminate the management agreement
Ethical conduct refers to: - ANSWER Socially or culturally imposed imposed rules of conduct that go
above and beyond the letter of the law
A commercial property is generally considered to be a ________ _______________ - a private entity that
provides goods, services, facilities, or accommodations to the public - ANSWER public accommodation
Office property is a type of ___________ __________ commercial property from which a particular
service is rendered - ANSWER income-producing
,Retail property is a commercial property from which ______ _____ ______ - ANSWER goods are sold
_____________ ___________ includes all land and facilities that convert raw materials into finished
products - ANSWER Industrial property
What characterizes the expansion phase in the business cycle? - ANSWER production increases
At or just before the peak of the general business cycle, ______ ______ _________ - ANSWER supply
surpasses demand
Movements of the general economy that usually are measured over 50 years or more are called -
ANSWER Long-term movements
Cycles of the general business economy differ from those of the real estate market in that the - ANSWER
trends in real estate lag significantly behind trends in the general economy
From an economic standpoint, the rental market as a segment of the economy .... - ANSWER is generally
poor during a contraction phase
In the operating budget, what is the name of the expenditure that accounts for money for replacement
expenditures? - ANSWER Reserve funds
When more space is available than potential tenants demand it indicates: - ANSWER a technical
oversupply
In the market analysis, the specific goal of the property manager is to identify major economic trends
and their: - ANSWER Effect on the value of a specific property at the manager's particular market level
The objective in a market analysis is to - ANSWER determine the optimum rental price for a standard
space in the area
, To avoid any surprises when taking over a new property, the manager should first - ANSWER read all the
leases
When evaluating the data in a neighborhood market survey, a residential property manager will be most
concerned with - ANSWER trends in population demographics
Economic oversupply results when - ANSWER tenants cannot afford the rents
What should the manager do if the building is 100% occupied? - ANSWER Consider raising the rents
Prospective tenants form their initial impression of a rental property based on the - ANSWER curb appeal
of the property
After inspecting and analyzing the comparables, a property manager should be able to estimate the
routine operating costs for the subject property and - ANSWER provide the owner with an estimate of
the capital expenditures required to make the property competitive with similar properties
A good management plan is based on - ANSWER an operating budget for one year
What should a property manager keep in mind when setting goals and objectives? - ANSWER A property
manager may make a real contribution by assisting in establishing written goals
Cash flow from a property is predicted by which of the following formulas? - ANSWER Anticipated
revenue minus total adjusted operating expenses and minus debt service
The determining factor in the acceptance or rejection of the management plan will be the - ANSWER
owner's objectives
In preparing a management plan for the owner to review, the manager - ANSWER should realize the
owner's objectives will be the deciding factor in its adoption
