Unit 12 Exam Test With Questions and Correct Graded A+ Answers
The Property Management Agreement addresses some federal laws, as well including all fair housing
laws. As part of the agreement, another federal issue of disclosure is presented regarding disclosure
compliance for
A)deaths on the property.
B)approved electrical systems.
C)RICO laws.
D)lead-based paint. - Answer-D
Found as part of the miscellaneous provisions of the form, the disclosure is part of the Lead-Based Paint
Hazard Reduction Act compliance.
Among the duties of a property manager, one is to assess risk and minimize it to the lowest degree
possible. Which of the options below is NOT typically an option to consider for a property manager?
A)Control the risk
B)Transfer the risk
C)Avoid the risk
D)Hide the risk - Answer-D
Hiding a risk still allows for the chance someone will find it and the property owner will be liable if
something happens. Avoiding the risk (removing it from the property completely) is the correct
approach to sweeping risk under a rug to be found later.
Real estate taxes are an example of
A)variable expenses.
B)fixed expenses.
C)capital expenses.
D)reserves. - Answer-B
, The rental income must be sufficient to cover the property's fixed charges, such as taxes and insurance,
and operating expenses, such as maintenance.
Owners and property managers will decide on minimizing some risk by retaining insurance for their
property and the premises surrounding it. The owner and the manager can lower their financial risk by
requiring all tenants to have
A)a rainy day fund.
B)a wealthy co-signer.
C)renter's insurance.
D)a guard dog. - Answer-C
This minimizes the owner's and manager's potential liability for damages caused by renters within their
units.
Which of the following would be considered a variable expense when a manager develops an operating
budget?
A)Building repairs
B)Property taxes
C)Basic operating costs
D)Employee wages - Answer-A
Variable expenses may be recurring or nonrecurring and can include items such as building repairs and
landscaping. Fixed expenses that remain constant and do not change include employee wages and other
basic operating costs.
Fixed expenses that the property manager should consider when developing the operating budget
include all the following EXCEPT
A)repairs.
B)employees' salaries.
C)insurance premiums.
D)real estate taxes. - Answer-A
The Property Management Agreement addresses some federal laws, as well including all fair housing
laws. As part of the agreement, another federal issue of disclosure is presented regarding disclosure
compliance for
A)deaths on the property.
B)approved electrical systems.
C)RICO laws.
D)lead-based paint. - Answer-D
Found as part of the miscellaneous provisions of the form, the disclosure is part of the Lead-Based Paint
Hazard Reduction Act compliance.
Among the duties of a property manager, one is to assess risk and minimize it to the lowest degree
possible. Which of the options below is NOT typically an option to consider for a property manager?
A)Control the risk
B)Transfer the risk
C)Avoid the risk
D)Hide the risk - Answer-D
Hiding a risk still allows for the chance someone will find it and the property owner will be liable if
something happens. Avoiding the risk (removing it from the property completely) is the correct
approach to sweeping risk under a rug to be found later.
Real estate taxes are an example of
A)variable expenses.
B)fixed expenses.
C)capital expenses.
D)reserves. - Answer-B
, The rental income must be sufficient to cover the property's fixed charges, such as taxes and insurance,
and operating expenses, such as maintenance.
Owners and property managers will decide on minimizing some risk by retaining insurance for their
property and the premises surrounding it. The owner and the manager can lower their financial risk by
requiring all tenants to have
A)a rainy day fund.
B)a wealthy co-signer.
C)renter's insurance.
D)a guard dog. - Answer-C
This minimizes the owner's and manager's potential liability for damages caused by renters within their
units.
Which of the following would be considered a variable expense when a manager develops an operating
budget?
A)Building repairs
B)Property taxes
C)Basic operating costs
D)Employee wages - Answer-A
Variable expenses may be recurring or nonrecurring and can include items such as building repairs and
landscaping. Fixed expenses that remain constant and do not change include employee wages and other
basic operating costs.
Fixed expenses that the property manager should consider when developing the operating budget
include all the following EXCEPT
A)repairs.
B)employees' salaries.
C)insurance premiums.
D)real estate taxes. - Answer-A
