SOUTH DAKOTA PROPERTY
MANAGEMENT TEST PREP QUESTIONS
AND ANSWERS WITH VERIFIED
SOLUTIONS 2024
The permanent property file should include - ANSWER management contract
The MOST important operating record kept by the property manager is - ANSWER monthly report on
cash flow.
When both fixed and variable expenses are deducted from gross collectible income, the result is -
ANSWER net operating income.
Net operating income is total income minus operating expenses before debt service - ANSWER True
A budget forecast should be based on anticipated rental increases. - ANSWER False
The primary function of the property manager is to - ANSWER generate the greatest income for owner.
Commercial real estate includes - ANSWER office buildings.
Properties designed to meet specific needs of heavy industry are generally - ANSWER occupied and
managed by the owner.
The professional manager, acting as agent for the owner, should - ANSWER understand what the owner
wants to achieve.
What are the four major classifications of real estate? - ANSWER Industrial, commercial, residential, and
special-purpose
, The demand for professional property management that occurred in the late 1800s resulted primarily
from - ANSWER reshaping the urban center by building tall buildings with elevators.
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.
The financial and operational strategy for the ongoing management of a property is the - ANSWER
management plan.
If a property manager wants to find out if occupancy levels for a given type of property are rising or
falling, the property manager should - ANSWER survey comparable properties.
More available units than tenants indicates - ANSWER technical oversupply.
Which of the following is the first step in the management plan? - ANSWER Prepare an operating budget
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.
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
MANAGEMENT TEST PREP QUESTIONS
AND ANSWERS WITH VERIFIED
SOLUTIONS 2024
The permanent property file should include - ANSWER management contract
The MOST important operating record kept by the property manager is - ANSWER monthly report on
cash flow.
When both fixed and variable expenses are deducted from gross collectible income, the result is -
ANSWER net operating income.
Net operating income is total income minus operating expenses before debt service - ANSWER True
A budget forecast should be based on anticipated rental increases. - ANSWER False
The primary function of the property manager is to - ANSWER generate the greatest income for owner.
Commercial real estate includes - ANSWER office buildings.
Properties designed to meet specific needs of heavy industry are generally - ANSWER occupied and
managed by the owner.
The professional manager, acting as agent for the owner, should - ANSWER understand what the owner
wants to achieve.
What are the four major classifications of real estate? - ANSWER Industrial, commercial, residential, and
special-purpose
, The demand for professional property management that occurred in the late 1800s resulted primarily
from - ANSWER reshaping the urban center by building tall buildings with elevators.
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.
The financial and operational strategy for the ongoing management of a property is the - ANSWER
management plan.
If a property manager wants to find out if occupancy levels for a given type of property are rising or
falling, the property manager should - ANSWER survey comparable properties.
More available units than tenants indicates - ANSWER technical oversupply.
Which of the following is the first step in the management plan? - ANSWER Prepare an operating budget
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.
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
