CHAPTER 18: PROPERTY
MANAGEMENT QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
2024
Proerty management - ANSWER The property manager's task is: (1) to produce the highest possible
profit for the owner, (2) to protect the owner's interest and (3) to free the owner of the burden of
operation of the property. A great degree of skill is required on the part of the manager in advertising,
showing and selecting tenants. The property manager must have a thorough understanding of leases,
tenancy agreements and other legal documents involved in the operation of income property. Property
management involves the leasing; managing, marketing, and overall maintenance of real estate owned
by others, usually rental property and must take responsibility for maintaining the owner's investment
and making sure the property earns income. The property manager must also see to it that the property
is kept well maintained, repair work is done promptly and vital services are provided without
interruption.
Types of Properties Requiring Management - ANSWER As a specialized field, property management is
one of the fastest growing areas of real estate. All types of property, from farms to hotels need efficient
management for a smooth and productiveoperation.
Themostcommontypesofpropertiesrequiringfullorparttime management are office and industrial
buildings, store properties and residential buildings. Management may involve a single building or a
complex, such as an industrial park or a shopping center.
Types of Managers - ANSWER Many mortgage lenders require that investors hire a professional property
manager to manage their properties. Property managers vary from the large firm specializing only in
property management, to the small office, which manages a few properties as part of its brokerage
operation. A building manager is employed by a firm or an owner to oversee the
managementofasinglebuilding. Aresidentmanagerisabuildingmanagerwholivesinthe building. Building
and resident managers are usually paid a straight salary. A management company is compensated on a
fee basis depending upon the gross rents and the number of rental units.
building manager - ANSWER
resident manager - ANSWER
, Goals of the Property Manager - ANSWER 1. The physical property must be maintained in good
condition.
2. Responsible for budgeting and controlling expenses.
3. Keep proper accounts and,
4. Making periodic reports to the owner
Functions of Property managers - ANSWER 1. Secure tenants and lease space.
2. Collect rents and keep records.
3. Achieve the goals of the owners.
4. Maintain the property and preserve value of the property.
5. Hire and fire on-site personnel.
6. Generate income for the owners.
7. Keep the premises properly insured.
8. Keep proper records and render periodic reports.
License Requirement for Property Managers - ANSWER Property managers and their regular employees,
while acting under a management contract, are not required to be licensed. However a property
manager who receives an additional fee or commission for selling the owner's building is required to
have a real estate broker's license.
Note: In most states, licensed real estate brokers are permitted to manage properties for others and in
cases where separate property managers must be licensed. However when employed by the owner, non-
licensed individuals are permitted by some states to manage properties.
Whilesomestatesrequirelicensinginordertomanagecondominiumor cooperative homeowners
association, others do not. Some states require an on-site manager for residential income-producing
properties having more than a certain number of units.
True or False:
"In most states, licensed real estate brokers are permitted to manage properties for others and in cases
where separate property managers must be licensed. However when employed by the owner, non-
licensed individuals are permitted by some states to manage properties.
Whilesomestatesrequirelicensinginordertomanagecondominiumor cooperative homeowners
association, others do not. Some states require an on-site manager for residential income-producing
properties having more than a certain number of units. " - ANSWER True
MANAGEMENT QUESTIONS AND
ANSWERS WITH VERIFIED SOLUTIONS
2024
Proerty management - ANSWER The property manager's task is: (1) to produce the highest possible
profit for the owner, (2) to protect the owner's interest and (3) to free the owner of the burden of
operation of the property. A great degree of skill is required on the part of the manager in advertising,
showing and selecting tenants. The property manager must have a thorough understanding of leases,
tenancy agreements and other legal documents involved in the operation of income property. Property
management involves the leasing; managing, marketing, and overall maintenance of real estate owned
by others, usually rental property and must take responsibility for maintaining the owner's investment
and making sure the property earns income. The property manager must also see to it that the property
is kept well maintained, repair work is done promptly and vital services are provided without
interruption.
Types of Properties Requiring Management - ANSWER As a specialized field, property management is
one of the fastest growing areas of real estate. All types of property, from farms to hotels need efficient
management for a smooth and productiveoperation.
Themostcommontypesofpropertiesrequiringfullorparttime management are office and industrial
buildings, store properties and residential buildings. Management may involve a single building or a
complex, such as an industrial park or a shopping center.
Types of Managers - ANSWER Many mortgage lenders require that investors hire a professional property
manager to manage their properties. Property managers vary from the large firm specializing only in
property management, to the small office, which manages a few properties as part of its brokerage
operation. A building manager is employed by a firm or an owner to oversee the
managementofasinglebuilding. Aresidentmanagerisabuildingmanagerwholivesinthe building. Building
and resident managers are usually paid a straight salary. A management company is compensated on a
fee basis depending upon the gross rents and the number of rental units.
building manager - ANSWER
resident manager - ANSWER
, Goals of the Property Manager - ANSWER 1. The physical property must be maintained in good
condition.
2. Responsible for budgeting and controlling expenses.
3. Keep proper accounts and,
4. Making periodic reports to the owner
Functions of Property managers - ANSWER 1. Secure tenants and lease space.
2. Collect rents and keep records.
3. Achieve the goals of the owners.
4. Maintain the property and preserve value of the property.
5. Hire and fire on-site personnel.
6. Generate income for the owners.
7. Keep the premises properly insured.
8. Keep proper records and render periodic reports.
License Requirement for Property Managers - ANSWER Property managers and their regular employees,
while acting under a management contract, are not required to be licensed. However a property
manager who receives an additional fee or commission for selling the owner's building is required to
have a real estate broker's license.
Note: In most states, licensed real estate brokers are permitted to manage properties for others and in
cases where separate property managers must be licensed. However when employed by the owner, non-
licensed individuals are permitted by some states to manage properties.
Whilesomestatesrequirelicensinginordertomanagecondominiumor cooperative homeowners
association, others do not. Some states require an on-site manager for residential income-producing
properties having more than a certain number of units.
True or False:
"In most states, licensed real estate brokers are permitted to manage properties for others and in cases
where separate property managers must be licensed. However when employed by the owner, non-
licensed individuals are permitted by some states to manage properties.
Whilesomestatesrequirelicensinginordertomanagecondominiumor cooperative homeowners
association, others do not. Some states require an on-site manager for residential income-producing
properties having more than a certain number of units. " - ANSWER True
