14: Property Management Practice Test

Rents are typically set:

• a. After an analysis of the building by a certified appraiser
  

• b. Somewhat arbitrarily
  

• c. Based on the expenses of the building
  

• d. Based on market rents and vacancy rates

D

A feature unique to a ground lease is:

• a. The lease may be exceptionally long.
  

• b. The tenant pays all expenses.
  

• c. The tenant pays no expenses.
  

• d. The tenant pays rent based on the revenue the property generates.

A

The tenant rents an apartment. The tenant pays rent, and the landlord pays all the expenses. This is:

• a. A net lease
  

• b. A proprietary lease
  

• c. A triple net lease
  

• d. A gross lease

D

Landlord A leased space to Tenant B. Tenant B agrees to rent the same space to Tenant C. This is most likely:

• a. An assignment
  

• b. A novation
  

• c. A sublease
  

• d. A net lease

C

A tenant’s lease expires, and the landlord does not give the tenant a new lease but instead allows her to stay and collects rent from her each month. Which of the following is true?

• a. An estate for years has become an estate at sufferance.
  

• b. A periodic estate has become an estate at will.
  

• c. A periodic estate has become an estate for years.
  

• d. An estate for years has become a periodic estate.

D

An owner who is selling a building allows a tenant to stay until the building is sold. This is:

• a. An estate at will
  

• b. An estate for years
  

• c. A periodic estate
  

• d. An estate at sufferance

A

The rent for an apartment is $500. The maximum security deposit allowable in Michigan is:

• a. No limit
  

• b. $500
  

• c. $750
  

• d. $1,000

C

A lease with a start and end date and where the rent is paid monthly is called:

• a. Estate for years
  

• b. Periodic estate
  

• c. Estate at will
  

• d. Proprietary lease

A

The timeline for actual eviction in Michigan is:

• a. 20 days
  

• b. 14 days
  

• c. 40 days
  

• d. 30 days

D

Intentional constructive eviction is:

• a. Illegal
  

• b. Permissible with a court order
  

• c. Performed only by a property management company
  

• d. Requires a police report

A

What is property management?

• a. The ownership of real estate
  

• b. The process of buying and selling real estate
  

• c. The management of real estate on behalf of the owner
  

• d. The appraisal of real estate

C

Who hires a property manager?

• a. Tenants
  

• b. Property owners
  

• c. Lenders
  

• d. Real estate agents

B

What is a property management agreement?

• a. A lease agreement between a landlord and tenant
  

• b. A contract between a property owner and property manager
  

• c. A mortgage document
  

• d. A deed

B

Which of the following is NOT a typical responsibility of a property manager?

• a. Collecting rent
  

• b. Marketing the property
  

• c. Screening tenants
  

• d. Selling the property

D

What is a lease?

• a. A contract between a buyer and seller
  

• b. A contract between a property owner and property manager
  

• c. A contract between a landlord and tenant
  

• d. A mortgage document

C

Which of the following is NOT typically included in a lease?

• a. The amount of rent
  

• b. The length of the lease term
  

• c. The tenant's responsibilities
  

• d. The property's market value

D

What is a security deposit?

• a. Money paid by the landlord to the tenant
  

• b. Money paid by the tenant to the landlord to cover potential damages
  

• c. Money paid by the lender to the landlord
  

• d. Money paid by the tenant to the real estate agent

B

What is eviction?

• a. The legal process of removing a tenant from a property
  

• b. The process of screening tenants
  

• c. The process of collecting rent
  

• d. The process of marketing a property

A

Which of the following is a valid reason for a landlord to evict a tenant?

• a. Non-payment of rent
  
• b. Violation of lease terms
  
• c. Damage to the property
  
• d. All of the above

D

What is a landlord's lien?

• a. A lien placed on a tenant's personal property for unpaid rent
  
• b. A lien placed on a property for unpaid property taxes
  
• c. A lien placed on a property for unpaid mortgage payments
  
• d. A lien placed on a property for unpaid contractor fees

A

What is preventive maintenance?

• a. Repairs made after something breaks
  
• b. Regular maintenance to prevent problems from occurring
  
• c. Emergency repairs
  
• d. Cosmetic improvements

B

What is corrective maintenance?

• a. Repairs made after something breaks
  

• b. Regular maintenance to prevent problems from occurring
  

• c. Emergency repairs
  

• d. Cosmetic improvements

A

What is a property manager's responsibility regarding tenant safety?

• a. To ensure the property is safe and habitable
  

• b. To provide security guards
  

• c. To install alarm systems
  

• d. To guarantee the tenant's safety

A

What is a property manager's responsibility regarding fair housing?

• a. To comply with all fair housing laws
  

• b. To treat all tenants fairly and equally
  

• c. To avoid discrimination based on protected characteristics
  

• d. All of the above

D

What is an operating budget?

• a. A financial plan for the property's income and expenses
  
• b. A marketing plan for the property
  
• c. A maintenance plan for the property
  
• d. A legal document describing the property

A

What is a capital reserve budget?

• a. Money set aside for major repairs and replacements
  
• b. Money used for daily operating expenses
  
• c. Money used for marketing the property
  
• d. Money used for legal fees

A

What is a rent roll?

• a. A list of all tenants and the rent they pay
  
• b. A list of all property expenses
  
• c. A list of all property income
  
• d. A list of all maintenance requests

A

What is a vacancy rate?

• a. The percentage of units that are occupied
  

• b. The percentage of units that are vacant
  

• c. The average length of a tenant's stay
  

• d. The number of new tenants per month

B

What is tenant retention?

• a. The process of finding new tenants
  

• b. The process of screening tenants
  

• c. The process of keeping existing tenants
  

• d. The process of evicting tenants

C

Which of the following is a benefit of professional property management?

• a. Increased rental income
  

• b. Reduced vacancy rates
  

• c. Improved tenant satisfaction
  

• d. All of the above

D