Property Management

Question 1

The management of a property on behalf of the owner is called:

A. Property management
B. An independent contractor agreement
C. A management agreement
D. An open agreement

Answer 1

A. Property management

• The main goal of property management is to protect the owner’s investment as well as maximize the owner’s return on that investment.
• Property Management Real Estate Agents are General Agents to the Owners.
• Depending on the scope of the management contract, he or she will:
• Attract new tenants
• Retain existing tenants
• Collect rents
• Pay expenses
• Hire and supervise repairs
• Maintain the property.

Question 2

Property manager’s duties include all of these except:

1. Market and advertise vacancies
2. Qualify and investigate a prospective tenant’s credit
3. Prepare and execute a lease
4. None of the above

Answer 2

4. None of the above

Property Manager’s Duties

1. create rental schedule.
2. market the space.
3. advertise vacancies through selected media.
4. develop a tenant/resident relations policy.
5. qualify and investigate a prospective tenant’s credit.
6. prepare and execute leases
7. collect the rent.
8. review and pay bills.
9. obtain and pay insurance premiums and taxes.
10. create and supervise maintenance schedules and repairs.
11. maintain proper records and make regular reports to the owner.
12. comply with Fair Housing Laws.

Question 3

The property management FEES:

1. Are negotiated
2. May be a percentage of the gross rents collected
3. May be compensated for repairs made
4. All of the above

Answer 3

4. All of the above

Fees
• Management fees are negotiated between the owner and the property manager.
• They can be either a flat amount per month, a percentage of the gross rents collected, or a combination of the two.
• Property managers usually base their fees on a percentage of the gross rents collected.
• Property managers who also act as leasing agents will often receive additional compensation for the renewal of leases and for supervising major repairs or alterations.

Question 4

The property management contract should:

1. Shows the terms of the agreement between the owner and the property manager.
2. The agreement should be a written contract
3. Should include the terms and period of the contract
4. All of the above

Answer 4

4. All of the above

Contract
• Shows the terms of the agreement between the owner and the property manager.
• The owner employs and authorizes the broker to perform the duties listed in the contract.
• The agreement should be a written contract, which clearly sets forth the responsibilities of both parties.
• Contract should include the terms and period of the contract
• Policies pertaining to the management of the premises, management fees, and the authority and powers that are given by the owner to the agent.

Question 5

Which of the following would be a legal instruction to a property manager from a client?

A. Refuse to rent to anyone with children under 18
B. Prepare a lease
C. Obtain permission and obtain a credit report for all prospective tenants
D. Refuse to rent to a blind tenant with a service dog

Answer 5

C. Obtain permission and obtain a credit report for all prospective tenants

• Under the Federal Fair Housing Act, you cannot discriminate because of:
– Race
– Religion
– Color
– Sex
– National origin
– Handicap/Disability
– Familial status
• Doing a credit check with the tenant’s permission is legal

Question 6

A brokerage company has for sale several rental properties it manages. A salesperson wishes to show one of the properties but cannot reach the tenant.

The salesperson:
A. Can show property provided reasonable notice is given
B. Can show without the tenant’s permission since showings for sale don’t require reasonable notice
C. Can show if it is an emergency
D. Can show because the salesperson has the permission of the owner

Answer 6

A. Can show property provided reasonable notice is given

• Under California law, a landlord cannot enter a tenant’s residence without at least 24 hours notice, unless in the case of an emergency concerning health or safety
– Showing the property is NOT an emergency!

Question 7

Melanie is a property manager in Roseville. The agency relationship between her and the property owner is created by:

A. Payment of a management fee
B. An independent contractor agreement
C. A management agreement
D. An open agreement

Answer 7

C. A management agreement

• The management agreement between a property manager and a property owner creates an agency relationship
• The landlord and the property manager are the parties to a management agreement
• The agreement sets forth duties expected from the property manager