Property Management - Exam 1 - Chapters 1-5 | 100% Correct Answers

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Chapter 1 Correct Answer: Goals of the Property Manager Correct Answer: 1. Achieve the objectives of the property owners; 2. Generate income for the owners; 3. Perserve and/or increase the va... lue of the investment property. Development of the Property Management Profession Correct Answer: Steel frame buildings and the electric elevator. Development of the suburban areas. Classification of real property Correct Answer: 1.Residential 2. Commercial 3. Industrial 4. Special-purpose Chapter 2 Correct Answer: Season Variations Correct Answer: Weather, School - College housing, Seasonal - retired people head south. These are predictable. Cyclical Fluctuations Correct Answer: Expansion; - 7 yr. Cycle, Take proceeds reinvesting. Recession; - Supply begins to surpass demand. Contraction; Revival; Lull. Management Plan Correct Answer: The financial and operational strategy for the ongoing management of the property. Three factors when formulating management plan Correct Answer: Regional and neighborhood market analysis; Specific property analysis; Analysis of an owner's objectives. Technical Oversupply Correct Answer: Occurs when there are more units available than potential tenants. Economic Oversupply Correct Answer: Reflects the fact that potential tenants cannot afford to pay the price of the available space. Chapter 3 Correct Answer: Three basic relationships between manager and property manager Correct Answer: 1. Employer-employee relationship 2. Formal fiduciary relationship (trust) 3. Principal-Agent Arrangement Employer-Employee Relationship Correct Answer: The employee-manger is directly responsible to the officers of the owner-employer corporation or institution, which may be the principle occupant of the property. Formal Fiduciary Relationship (Trust) Correct Answer: A trust is a device by which one person or institution transfers legal ownership of property to someone else to hold or manage for benefit of the third party. Principle Agent Relationship Correct Answer: Between Principle (one who hires) and the agent (one who does the work). [Show More]

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