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A comprehensive review of key concepts and definitions related to property management, focusing on the dc property manager exam. It includes a series of questions and answers covering topics such as lease administration, operating expenses, leasehold interests, maintenance, ethics, and management agreements. Valuable for individuals preparing for the dc property manager exam, offering insights into common exam topics and providing a structured approach to understanding the subject matter.
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documenting all of the rights, terms and obligations that both the owner and resident/tenant have agreed to in the lease."
of this format is a ___________ with a base amount (or base year). The property owner pays all Operating Expenses up to the specified amount (the base) and the tenant pays for all Operating Expenses above that base amount. This is commonly found in office building leases."
The tenant pays for some or all operating expenses in addition to base rent. Derivatives of this structure are Net-Net & Triple Net Leases"
____________, a tenant would pay for all Operating Expenses including real estate taxes, insurance, roof maintenance, landscaping, etc. This is commonly found in industrial leases."
directly to the tenant's gross sales. This is often in addition to base rent and it is commonly used in shopping center leases."
control, the right of exclusion, the right of enjoyment, the right to sell."
temporarily transfers to the tenant a portion of the right of possession."
may terminate the leasehold interest at any time by giving reasonable notice, which is typically 30 days or it may be stated in the lease. It usually occurs in the absence of a written lease and can occur after a lease expires, but the resident/tenant continues to occupy the space and the landlord continues to accept the rental payment"
and resident/tenant continues to occupancy the apartment or space without the landlord's consent."
to increase the rent on the lease's anniversary date. This concept is referred to as an"
the property manager's accounts. This is called"
and asking rates, negotiates commercial leases, evaluates mortgages & opportunities to refinance the loan, considers strategies to maximize value and when to market the property for sale."
factors, including the property type, economic conditions, interest rates, location, and the property's condition."
Net operating income is divided by the capitalization rate (NOI/Cap Rate = Value)"
the money saved"
routine & preventative"
already broken ex. fixing a broken sink faucet"
the time when a problem is discovered ex. when manager notices some minor paint peeling in a stairwell, but delays hiring a painter until more painting work is needed"
day ex. vacuuming the carpet in the building hallways"
the intention of extending the useful life of the building and its equipment; helps to protect the property from unforeseen risks or potential equipment failures, can reduce the likelihood of term-53costly emergency services and may increase tenant satisfaction"
staffing levels, marketing plans, and capital expenditures, but it is the owner who accepts or modifies the budget. The manager can make recommendations to renovate a building or to change common area finishes, but the owner makes the final decision. Similarly, when it becomes time to sell a property, the manager can make suggestions to enhance its appeal, but the owner decides which, if any, improvements will be made prior to sale."
strengths and weaknesses compared to its competition are important factors to know and to be able to explain to the owner. Since most prospective tenants or residents will visit a number of properties before making a decision, it is important to understand how the subject property may rank in relation to its competitors. By understanding this information, the manager can develop a strategy to improve the weaknesses and enhance the strengths through the management plan and budget. For example, if most competitive properties offer concierge services or a health club, then the manager should investigate the cost to implement these amenities and present the findings to the owner. Often the only way to discover some of this information is to tour each of the competing properties."
properties, including:
anticipated income and expenses (both operating and capital)."
property can generate from all sources. It represents the total potential income from all units or spaces being fully occupied and all amounts owed by the residents/tenants being collected in full."
use along with its physical condition, fiscal projections, and any operational issues. It also includes an analysis of the market (both regional and neighborhood), the competing properties, as well as potential improvements or alternative uses for the subject property. These items will be discussed further in this section."
evaluation, which includes the demographic conditions, geographic features, governmental prospective, existing real estate supply, potential future developments, and tenant/ resident demand"
"By performing the ____________ and a ______________, it is easier to identify the subject property's
increase in rents by making different improvements, even the subject property's redevelopment."
tear) or deferred maintenance. Examples are worn carpets, peeling paint, a leaking roof, or dead landscaping."
building systems. Examples include equipment that is not repairable because parts or no longer manufactured; DC Property Management Study Guide - 3 single pane window systems because they waste a large amount of energy; outdated bathroom fixtures because of changing designs and tastes."
location, market conditions). An example would be an office building, located in a small town, where the major employer closes. This may result in both lower demand and rental rates."
This process is called ____________. and it represents the loss in value from the various forms of obsolescence. __________ can be economically estimated on a broad level." "If a new 400 unit apartment building is worth $12,000,000 and depreciates in value at 2.5% per year,
per year of Depreciated Value $300,000 x 5 years = $1,500,000 accumulated Depreciation $12,000,000 - $1,500,000 = $10,500,000 Depreciated Value after 5 years"
frequently determined either by calculating the Net Operating Income and applying a Capitalization Rate to it or from Cash Flow by determining the Return on Investment"
Since it is frequently determined using sophisticated mathematical models that are applied to many similar types of properties over a geographic area, it can be less accurate and produce results that are higher or lower than other types of "values"."
represents the "meeting of the minds"."
property's tax basis. In the past, the Federal Government has implemented accelerated depreciation programs to help promote economic growth"
"If the Gross Potential Rental Income is $800,000, the Expense Reimbursements are $100,000, the Vacancy and Credit Loss is 10% of the Gross Potential Rental Income and Miscellaneous Income is
Income $800,000 + Expense Reimbursements + $100,000 - Vacancy and Credit Loss - ($800,000 x 0.1) + Miscellaneous Income + $ 25,000 = Effective Gross Income = $845,000" "In a 150,000 SF commercial building, the rental rates are $20/SF and it is 5% vacant. What is the
150,000SF x $20/SF = $3,000,000. Vacancy Loss Calculation $3,000,000 x 5% = $150,000. Effective Gross Income Calculation $3,000,000 - $150,000 = $2,850,000."
maintaining a property" "If a commercial property is 100,000 SF and its annual electricity costs are $225,000, what is the
Operating Expenses are subtracted from Effective Gross Income; is not only a critical measure of the property's ability to pay its bills but is one of the components often used in calculating a property's investment value."
subtracted from net operating income"
from net operating income"
investment is worth purchasing, annual cash flow/initial cash investment = _________"
property that extends its useful life."
income (typically a commercial lease)"
subtracted from Net operating income;"
and expenses"
owner's objectives, increase resident/tenant satisfaction rates, reduce operating costs, optimize the property's physical capabilities, increase the property's value, providing safety of tenants, residents, visitors, and employees."
a variety of claims including bodily injury, property dmage and personal injury."
of an underliying general liability policy"
neighborhood analysis, property analysis, market analysis, analysis of alternatives, proposed property analysis, investment analysis"
save money"
repairing cracks"
inspecting, maintaining and repairing a facility and its equipment"
damage"
Boiler & Machinery, Rent Loss, & Catastrophe, Earthquake, Plate Glass, Liability, Excess Liability."
with authority to lease, legal address of property, statement of rental amount etc."
Realtist"
special requirements, work hours, timetable to complete, insurance requirements, deadline for submission, number of personnel to be provided, warranty, & references."
payment of rent
"For all cases of eviction other than non-payment of rent, a filing with _____________ is required -
their rental payment amount & lease term, even if the tenant is month-to-month"
DC based on race, color, religion, national origin, sex, age, marital status, personal apperance, sexual orientation, familial status, family responsibilities, matriculation, political affiliation, disability, source of income and place of residence or business" "An owner asks the property manager to submit an Offer of Sale under DOPA. The property manager should submit the offer to: A. The District of Columbia Mayor's office B. The District of Columbia Department of Housing and Community Development C. The District of Columbia Real Estate Commission
Columbia Department of Housing and Community Development" "Which of the following is a legal reason for a landlord to evict a tenant? A. The property experiences a foreclosure B. The lease expires C. Landlord wants to occupy the rental unit
along with its physical condition, fiscal projections, and any operational issues. It also includes an analysis of the market (both regional and neighborhood), the competing properties, as well as potential improvements or alternative uses for the subject property."
which includes the demographic conditions, geographic features, governmental prospective, existing real estate supply, potential future developments, and tenant/resident demand."
increase in rents by making different improvements, even the subject property's redevelopment."
operational with the goal of trying to prevent the property from declining and becoming obsolete."
and tear) or deferred maintenance. Examples are worn carpets, peeling paint, a leaking roof, or dead landscaping."
building systems. Examples include equipment that is not repairable because parts or no longer manufactured; single pane window systems because they waste a large amount of energy; outdated bathroom fixtures because of changing designs and tastes."