CH 15 - Real Estate Management

A tenant makes a rental payment in cash. When is the property management firm required to deposit the cash in the escrow account?

• no later than three banking days after receipt

• no later than 72 hours after receipt

• immediately, but no later than three banking days after receipt

• no later than 72 hours after receipt but not counting holidays

Which of the following actions is a property manager permitted to perform?

l. Prepare depreciation schedules for the property owner.

ll. Make capital improvements to the property for the property owner when the property manager deems them necessary for the property owner.

• l only

• ll only

• Both l and ll

• Neither l nor ll

A real estate broker acting as an owner's property manager may:

• profit from private contracts at the expense of the owner

• manage the client's property in a manner most advantageous to the broker

• be held accountable for complete and accurate trust account records

• hold a provisional broker license so long as he is the principal broker of the management firm

All of the following are important functions of a property manager, EXCEPT:

• supervising the maintenance of the property

• protecting the physical integrity of the property

• meeting the functional requirements of the tenants

• preparing the owner's income tax returns

The property manager's chief concern should be that the property:

• is seldom vacant because it is consistently rented at the lowest rent that produces a profit

• is managed to achieve the highest rate of return possible for the owner's investment

• manager's time is maximized in management of the property

• exhibits the proper amount of the owner's pride of ownership

Functions of the property manager include all of the following, EXCEPT:

• producing the best possible net operating income for the owner

• preservation and maintenance of the property

• carrying out a fiduciary relationship to the owner

• fulfilling fiduciary duties and obligations to the tenants

A property manager's primary obligation is to:

• the tenants

• the owner

• the banker

• government authorities

The type of maintenance that is most often overlooked is:

• corrective maintenance

• repairs

• routine maintenance

• preventative maintenance

Because of the complexity of the laws that affect today's properties, property managers are required to have knowledge in all of the following areas, EXCEPT:

• environmental hazards

• accessible construction

• nondiscriminatory practices

• investment securities laws

A property manager is paid 8% of all collected rents each month from a 20-unit apartment building. There are 5 one-bedroom units that rent for $500, 10 two-bedroom units that rent for $650 and 5 three-bedroom units that rent for $800. If the units are fully leased and the property manager collects for all the units except two of the two-bedroom units, how much is the management fee for this month?

• $912

• $936

• $1,040

• $1,950