In Class Quiz 1-5 Property management

A set of guidelines on good business conduct, which often requires the agent to act beyond the letter of the law
Code of ethics
A type of income producing property from which a particular service is rendered
Office Property
The assembly management and disposition of a portfolio of investment properties
Asset Manager
A type of commercial property from which goods are sold
Retail Property
A trend in property management that provides personal secretarial, catering, or other services to the occupants of office or residential buildings
Consierge services
Regional and neighborhood studies of economics and demographics to determine supply and demand and market trends
Market Analysis
A part of the management plan an assessment of 5 factors in the market area of the subject property
Neighborhood Analysis
A market condition in which available rental space is priced beyond the financial capabilities of potential tenants
Economic oversupply
A financial study of the projected income from a property in as-is condition versus financial returns from that property if suggested capital improvements were implemented
Comparative Income & Expenses analysis
A calculation of yearly costs of operation based on operating expenses from comparable properties and the maintenance needs of the subject property
Operating Costs
An individual who is legally empowered to act on behalf of another
Agent
A device by which a person or institution transfers legal ownership of property to someone else to hold or manage for the benefit of a 3rd party
Trust
A property management fee expressed as a dollar amount per year or per month
Flat or Fixed fees
The duties of an agent to the principal to maintain the greatest trust and confidence generally including care, obedience or lawful instructions, accountability, loyalty and disclosure of material facts
Fiduciary Duties
The greatest, or most important of the fiduciary duties
Honesty or Loyalty
One who is authorized to act on behalf of the principal on a range of matters and can obligate the principal to any contracts signed by the agent that is within the scope of the agent’s duties
General Agent
Working with outside licensed real estate brokers who have prospective tenants
Broker Cooperation
A special leasing area located in a real estate development, including a display area, furnished models and closing room
Rental Center
Someone who has been recommended by a satisfied tenant, best and least expensive method of renting property
Referral
Inexpensive line ads, most widely used when advertising residential property
Classified
This is the best and least expensive method of renting property
Referrals
Showing space, determining a prospect’s needs, spatial requirements and urgency are considered a part of
Negotiating
This is most often the best way to market a very large apartment complex
Rental Centers
What type of advertising is often favored by industrial and commercial property owners?
Direct Mail
What kind of marketing campaign is indicated if the building has a high vacancy rate?
Advertise and heavily promote to quickly draw potential tenant
Exchange of goods between buyers and sellers -most accurately describes this term
Market
Long-term movements in the real estate industry may be … (faster or shorter) than in the general economy
Shorter than
The four phases of the business cycle
Expansion
Recession
Contraction
Revival
Can a property manager measure economic trends through an operating budget?
No
Ways a property manager can measure economic trends
Regional Market Analysis
Neighborhood Market Analysis
Supply and Demand
The residential rental market corresponds to cycles in what type of housing starts
Multi-family housing starts
First Step in the management plan
Prepare the operation budget
What creates the principal-agent relationship in property management
Management agreement
Mixing owners funds with personal funds is (legal or illegal) and is called
Illegal
It is called commingling
What type of fee is a wonderful incentive when the owner wants the manager to generate more income
Percentage Fee
Primary function of property manager
Generate greatest income for owner
One factor that has contributed to the development of property management is the…
Invention of steel frame buildings and elevators
The largest demand for the services of the professional property manager is found in what type of property
residential
The oldest residential property management certification program in the U.S. that is HUD approved is
RAM
Registered apartment manager