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DC Property Manager Exam – Questions with 100% ANSWERs | Updated
Management Plan:
ANSWER: Assists the owner in meeting their goals while
maximizing the property's value and return. The plan describes in detail the subject property's current use along with its physical condition, fiscal projections, and operational issues (includes an analysis of the market regional & neighborhood).
Organizational and educational programs available to assist in enhancing the property manager's knowledge, identifying resources to resolve issues, and expanding their business
network:
ANSWER: Institute of Real Estate Management (IREM),
National Association of Realtors (NAR), Greater Capital Area Association of Realtors (GCARR), Building Owners & Managers Association (BOMA), National Association of Real Estate Brokers, International Council of Shopping Centers (ICSC), and National Property Management Association.
Market Analysis:
ANSWER: Focuses on regional and neighborhood evaluations.
Includes demographic conditions, geographic features,
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governmental prospective, existing real estate supply, future developments, and tenant/resident demand.
Market Analysis & Competitive Property Analysis helps to:
ANSWER: Identify the subject property's strengths and
weaknesses.
The Highest & Best Use:
ANSWER: When the property manager considers alternatives to
improve the property's weaknesses or further enhance its strengths to improve overall economic performance.
Analysis of Alternatives:
ANSWER: Looks at the theoretical costs and corresponding
increase in rents by making different improvements, even property's redevelopment.
When determining the best use of property, alternatives to
consider are:
ANSWER: Rehabilitate without altering its existing use,
Modernize by updating finishes (more efficient equipment),
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Change the Use of building (including conversion), or Conversion to a condominium ownership structure.
Capital Expenditures:
ANSWER: Projects that help extend the property's life.
Physical Obsolescence:
ANSWER: Is characterized as a condition of aging (i.e. wear &
tear) or deferred maintenance. Examples are worn carpet, peeling paint, a leaking roof, or dead landscaping.
Functional Obsolescence:
ANSWER: Is characterized by old or outdated designs or
building systems.
Economic Obsolescence:
ANSWER: Represents a loss in value due to outside forces (i.e.
location, market conditions). Examples would be an office building, located in a small town, where the major employer closes.
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Investment Value:
ANSWER: A value generally used by investors.
Assessed Value:
ANSWER: The value used by government tax assessment
offices.
Market Value:
ANSWER: The value that is agreed to between a buyer & seller.
Rules of Ethics for Property Manager:
ANSWER: Loyalty to client, confidentiality, accurate
accounting & reporting, protection of owner's funds, conflicts of interest, and compliance with law regulations.
An owner can be directly affected by manager's:
ANSWER: Improper handling of evictions, unlawful rent
collections, failure to return security deposits, not maintaining proper compliance with the Rental Accommodations Division