Property Management Mock Exam #4/ 100 Qs
with Certified Ans.
What type of relationship do colleges, large corporations, and private institutions
that require the services of a property manager for their properties prefer? -
Answer: Employer-employee relationship---These special purpose properties
would hire an internal person with the expertise in their specific field.
The fact that a property manager must put the owner's interest above the
property manager's own and act without self-interest is best expressed in which
of the following fiduciary duties? - Answer: Loyalty---The manager is hired to
represent the clients interest not their own.
A tenant of which of the following properties normally uses a gross lease? -
Answer: Apartment---A gross lease is most common in residential
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,A tenant is required to pay additional amounts to the landlord only if and when
the business volume justifies an increase. This tenant MOST likely has a - Answer:
percentage lease---Retail uses a percentage lease. The tenant would pay base rent
plus a percentage of gross sales.
In order to ensure continuity from store to store and to control expenses, many
national franchising retail chains prefer - Answer: net leases---The tenant would
pay part or all of the expenses.
A long-term lease requires $400 for the first two years, $500 during the third year,
and a $600 for the last two years. This lease contains a(n) - Answer: step-up
clause---The lease would include agreed upon rent increases at specific intervals.
When renting residential property, a manager - Answer: may want to obtain
individual credit reports---Finance terms are not discriminatory and may show the
responsibility of the tenant.
One of the MOST important considerations in selecting commercial tenants is -
Answer: their compatibility with the other tenants---Gender race and religion are
protected classes
One of the BEST reporting services to acquire a reliable financial report on
commercial or industrial tenants would be - Answer: Dun and Bradstreet---Dun
Page 2 of 19
, and Bradstreet is a credit reporting agency that publishes credit ratings for many
corporate businesses.
When professional property managers are negotiating contracts - Answer: their
primary goal is a signed lease beneficial to both parties---Securing a quality tenant
will support the owner's goals.
One of the BEST ways to establish a good tenant relationship would be to -
Answer: have a joint inspection of the premises prior to the tenant moving in.---
The inspection would be a way for both parties to address any concerns up front.
Which of the following can assist a manager with developing a stable tenant
population? - Answer: All of these---All of these would help retain existing
tenants.
When a property manager is negotiating a renewal of a lease, the terms,
conditions, and any concessions may be influenced by many factors. What will
exert the strongest influence over the terms and conditions of the new lease? -
Answer: Market conditions at the time of expiration of the present lease---The
manager would consider what the competition is offering.
Residential tenants should be approached about renewing a lease - Answer:
about three months before its expiration---The timing would allow the manager to
consider the upcoming economic conditions and retain rent for cash flow.
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with Certified Ans.
What type of relationship do colleges, large corporations, and private institutions
that require the services of a property manager for their properties prefer? -
Answer: Employer-employee relationship---These special purpose properties
would hire an internal person with the expertise in their specific field.
The fact that a property manager must put the owner's interest above the
property manager's own and act without self-interest is best expressed in which
of the following fiduciary duties? - Answer: Loyalty---The manager is hired to
represent the clients interest not their own.
A tenant of which of the following properties normally uses a gross lease? -
Answer: Apartment---A gross lease is most common in residential
Page 1 of 19
,A tenant is required to pay additional amounts to the landlord only if and when
the business volume justifies an increase. This tenant MOST likely has a - Answer:
percentage lease---Retail uses a percentage lease. The tenant would pay base rent
plus a percentage of gross sales.
In order to ensure continuity from store to store and to control expenses, many
national franchising retail chains prefer - Answer: net leases---The tenant would
pay part or all of the expenses.
A long-term lease requires $400 for the first two years, $500 during the third year,
and a $600 for the last two years. This lease contains a(n) - Answer: step-up
clause---The lease would include agreed upon rent increases at specific intervals.
When renting residential property, a manager - Answer: may want to obtain
individual credit reports---Finance terms are not discriminatory and may show the
responsibility of the tenant.
One of the MOST important considerations in selecting commercial tenants is -
Answer: their compatibility with the other tenants---Gender race and religion are
protected classes
One of the BEST reporting services to acquire a reliable financial report on
commercial or industrial tenants would be - Answer: Dun and Bradstreet---Dun
Page 2 of 19
, and Bradstreet is a credit reporting agency that publishes credit ratings for many
corporate businesses.
When professional property managers are negotiating contracts - Answer: their
primary goal is a signed lease beneficial to both parties---Securing a quality tenant
will support the owner's goals.
One of the BEST ways to establish a good tenant relationship would be to -
Answer: have a joint inspection of the premises prior to the tenant moving in.---
The inspection would be a way for both parties to address any concerns up front.
Which of the following can assist a manager with developing a stable tenant
population? - Answer: All of these---All of these would help retain existing
tenants.
When a property manager is negotiating a renewal of a lease, the terms,
conditions, and any concessions may be influenced by many factors. What will
exert the strongest influence over the terms and conditions of the new lease? -
Answer: Market conditions at the time of expiration of the present lease---The
manager would consider what the competition is offering.
Residential tenants should be approached about renewing a lease - Answer:
about three months before its expiration---The timing would allow the manager to
consider the upcoming economic conditions and retain rent for cash flow.
Page 3 of 19
