Unit 6 : Property Management

Front 1

A residential tenant has a serious water problem, and the landlord has been unable to solve the problem. The tenant may withhold rent until the problem is resolved

Back 1

False. The tenant may move out under the rule of constructive eviction, but the tenant may not withold rent and maintain possession

Front 2

Under a management agreement, the broker will be expected to make reasonable efforts to market the property for sale.

Back 2

False. The broker would advertise the property for lease, not for sale.

Front 3

Under a management agreement, the property owner will likely give the broker authority to advertise the property, make repairs, and institute legal action on behalf of the owner

Back 3

True

Front 4

An individual has been placed in an assisted living facility. An immediate family member makes arrangements to collect the rent and maintain the individual's home. The family member may legally be paid a nominal fee for collecting the rent.

Back 4

False. Property management requires a license regardless of your relationship with the owner

Front 5

A net lease requires the landlord to pay maintenance and other expenses for the property

Back 5

False. A landlord pays expenses under a gross lease. The tenant pays expenses under a net lease.

Front 6

Provisional brokers may be property managers once they have completed the appropriate property management course

Back 6

False. Provisional brokers may not be property managers. There is no property management course required to be a property manager

Front 7

Property managers must deposit rent payments no later than 5 banking days after receipt

Back 7

False. Rent, whether by cash or check, must be deposited no later than 3 banking days after receipt

Front 8

The essential elements of a property management agreement may include an automatic renewal clause, an alienation clause, a schedule of fees, and the management duties and responsibilities of the manager

Back 8

False. The alienation clause is never a part of a property management agreement

Front 9

The property management agreement establishes the owner-property management relationship

Back 9

True

Front 10

Unlicensed assistants working in property management may show rental units, negotiate rental rates, and complete preprinted lease forms

Back 10

False. The unlicensed assistants may show rental property and complete preprinted forms but may not negotiate rental rates.

Front 11

A property manager must be a licensed real estate broker

Back 11

True. A provisional broker may not be a property manager

Front 12

Property managers are typically expected to establish the depreciation schedule to be used and may give nonmonetary gifts to tenants for securing new renters

Back 12

False. Property managers typically cannot establish depreciation schedules and may not provide monetary or non monetary referral fees to tenants

Front 13

Property managers are responsible for maintaining the value of the property, including the authority to paint the unit between tenants as specified in the property management agreement, but not the authority for capital improvements

Back 13

True

Front 14

When screening potential tenants, a property manager is permitted to disqualify an individual with a service animal if the owner of the property does NOT allow pets

Back 14

False. A property manager may not discriminate against protected classes under fair housing laws regardless of the owner's wishes.

Front 15

Typically, a property manager is a general agent with unlimited power to bind the owner

Back 15

False. Normally, a property manager is a general agent, which means the agent has limited power to bind the owner, such as for the purpose of contracting repairs and such, according to the terms of th property management agreement

Front 16

Property managers have the duty to find good-quality tenants

Back 16

True

Front 17

Property managers have the duty to collect rent

Back 17

True

Front 18

Property managers have the duty to develop a budget and prepare financial reports

Back 18

True

Front 19

Property managers have the duty to invest profits

Back 19

False

Front 20

Property managers have the duty to investigate applicant qualifications

Back 20

True

Front 21

A broker who manages property would normally account to her principal for security deposits and rents received

Back 21

True

Front 22

A property manager is expected to invest and spend the profits

Back 22

False. Only owners spend the profits

Front 23

The property managers is usually given the authority to complete capital improvements to the property

Back 23

False. The owner would make this decision

Front 24

A property management contract usually obligates the broker to market the space, pay bills, and collect rents

Back 24

True

Front 25

When a property manager and the property owner sign a property management agreement, the property manager becomes a fiduciary to the property owner

Back 25

True