Download Property Management Examination revision questions and the answers and more Exams Project Management in PDF only on Docsity!
Property Management Examination revision
questions and the answers
Goal of the resident manager - Correct Answer increase net operating income Obligation of the manager - Correct Answer provide the highest quality of living environment to residents while preserving the property's value and producing a profit for the owner Key to success of the resident manager - Correct Answer to work effectively with the on-site team site-based positions - Correct Answer leasing professional, assistant manager, bookkeeper, maintenance supervisor, maintenance technician, housekeeping, ground workers, door staff and/or concierge, part-time or seasonal workers major responsibilities of the resident manager - Correct Answer maintaining the property, managing the staff, managing the occupancy, providing good customer service, marketing the property, risk management administration responsibilities of the resident manager - Correct Answer work within guidelines of formal management plan, maintain complete records, maintain system of account payable and receivable, make bank deposits, prepare budget, create a complete operations manual, create a resident handbook, upgrade security and safety procedures, collect rents, issue notices, process evictions, handle move-ins and move- outs, report accidents to regional manager Operations responsibilities of the resident manager - Correct Answer hire employees, supervise team, coordinate ordering of supplies, and obtain cost estimates, set up control system for service requests Marketing responsibilities of the resident manager - Correct Answer prepare a marketing plan, set up model or rental office, use good salesmanship techniques, and qualify prospects and process applications, market within guidelines of fair housing Public relations responsibilities of the resident manager - Correct Answer communicate to create a good image for the property, resolve problems quickly, stimulate resident pride in property
how to be a great manager - Correct Answer focus on making life at the property a positive experience for the residents, be responsive to the team, walk the property, cultivate good communication skills Conventional properties - Correct Answer residential rentals that rent at market rates without government assistance, privately owned government-assisted housing - Correct Answer provides housing for low to moderate income households, if managed properly almost assured of 100% occupancy, more regulations and paperwork, certificates not always accepted but must be accepted at tax credit properties Project-based assistance - Correct Answer one form of government assisted housing where everyone living there receives a subsidy Resident-based assistance - Correct Answer residential rentals that rent at fair market rates with rental assistance from the government, privately owned, no new construction today, greatest construction period during 1970s and 1980s, resident receives a housing voucher or certificate and government pays a portion of the rent to the management (Section 8 certificate) Section 236 - Correct Answer owner received discount on mortgage and, in turn, charges a lower rent Section 8 - Correct Answer type of housing built after 1974, but no longer being built today, most converted into conventional housing Public housing - Correct Answer federally subsidized housing where residents pay 30% of their income for housing, publicly owned, notorious for mismanagement and has become the poster child for government's failure to solve problems of poverty, today much is being torn down or renovated the new PHA - Correct Answer began in mid-90s with HUD monies, demolished 20 high-rise towers and replaced with low-rise homes, goal is to help the city revitalize tax credit properties (Affordable, Section 42, or LIHTC) - Correct Answer part of Tax Reform act of 1986, 1993 made a permanent part of the International Revenue Code, enables each state to allocate $1.75 of per capita federal tax credits for eligible housing projects each year, at least 20% of units must be rent restricted, must be occupied by residents with 50% or less of area median gross income adjusted for family size, responsible for much of new construction, specific laws imposed by IRS, management must know what they are doing or risk large penalties Trade association - Correct Answer an organization that promotes certain product
property management - Correct Answer "the skill and creative ability for the direction and control of physical, financial, and accounting matters related to the successful and rewarding operation of real property" Owner expectations - Correct Answer optimization of the return on the productive resources of the property Types of property managers - Correct Answer site manager, resident manager, property manager, community director, district manager, regional manager, senior manager, executive property manager or vice president, asset manager goals of ownership - Correct Answer periodic income, appreciation in value, speculation, control of investment, pride of ownership, for use by owner, financing leverage, income tax shelter, inflation hedge, estate building forms of ownership - Correct Answer individual investors, partnerships, joint ventures, corporate ownership, institutional ownership, REITs, shared interest associations, government, limited dividend and non-profit, foreign Types of rental properties - Correct Answer suburban garden apartments, mid-rise apartments, high-rise apartments, mixed-use communities, townhouse communities, vacation communities, scattered site properties Renters by choice - Correct Answer students, divorced and divorcing, immigrants, households that cannot afford to buy Resident vs. - Correct Answer tenant Owner/investor vs. - Correct Answer landlord Service request vs. - Correct Answer complaint Guidelines vs. - Correct Answer rules and regulations Apartment community vs. - Correct Answer project Information/welcome center vs. - Correct Answer office Apartment home vs. - Correct Answer unit Layout - Correct Answer more important than square feet, two-bedroom split often very popular Unit mix - Correct Answer influenced by location, market demand, economic conditions
How is mix determined? - Correct Answer figure out a market analysis Goal of the property manager - Correct Answer to increase Net Operating Income (NOI) by increasing collections and reducing expenses Net Operating Income (NOI) - Correct Answer collections less expenses Value from the income capitalization approach - Correct Answer value = net operating income/capitalization rate Income and expenditures flow chart - Correct Answer scheduled receipts
- Vacancy and collection losses
- Unscheduled, sundry, or ancillary income = actual receipts (effective gross income)
- operating expenses = Net Operating Income (NOI)
- Debt service (mortgage payments) = cash flow In-house management - Correct Answer management of the company's portfolio only Fee-based management - Correct Answer companies serve independent client properties only Management company objective - Correct Answer to provide housing Service business - Correct Answer multifamily Line positions - Correct Answer assistant property manager, property manager, senior manager, vice president, senior vice president, executive vice president, executive vice president, chief operating officer, president Staff positions - Correct Answer human resources, marketing, accounting Line/staff relationship - Correct Answer regardless of the size of the management company, the line/staff relationship must have clear-cut lines of authority and communication to avoid conflict factors affecting size of management portfolio - Correct Answer age and condition of properties, number of units and residents on each property, number of different locations and distance from management office, age or economic profile of the residents, experience and proficiency of manager and staff, owner's expectations and goals for each property
property, incentives for small business, and incentives for savings," caused an increase in apartment construction Federal Housing Administration (FHA) - Correct Answer created a national mortgage association to provide a secondary market where mortgages could be sold, which allowed more money to be available for both single-family and multi-family loans, charted Fannie Mae as a subsidiary of the RFC Federal Home Loan Mortgage Corporation (FHLMC) - Correct Answer Freddie Mac, replaced section 23 with the Section 8 Leased Housing Assistance Payment Program Federal National Mortgage Association (FNMA) - Correct Answer or Fannie Mae, was chartered by the FHA as a subsidiary of the Reconstruction Finance Corporation (RFC) Housing and Urban Development Act (HUD) - Correct Answer succeeded the Housing and Home Finance Agency as a cabinet level department Low Income Housing Tax Credit (LIHTC) - Correct Answer allocation of federal tax credits for the construction of affordable housing, has built more than 2 million units Resolution Trust Corporation (RTC) - Correct Answer took over thrifts holdings, management firms were hired to manage the foreclosed properties, adding another skill set to the evolving property manager who now had to understand economic factors Tax Reform Act (TRA) - Correct Answer forced property managers to focus on asset preservation and maximization as it eliminated many tax shelters and phased out many investment incentives for rental housing Housing Act of 1949 - Correct Answer authorized funds to localities to assist in slum clearance and urban redevelopment, emphasized new construction, provided funding for activities not directly related to housing construction Housing Act of 1954 - Correct Answer amended the 1949 Act to provide funding, not only for new construction and demolition, but for the rehabilitation and conservation of deteriorating areas, represented a substantive change in the evaluation of housing problems Fair Housing Act of 1968 - Correct Answer strengthened enforcement, added familial status and disabilities as protected classes, and redefined housing for older persons Civil Rights Act of 1968 - Correct Answer equality in housing opportunity was legislated by this, prohibited discrimination in the sale, financing, or lending of housing
Housing and Community Development Act of 1974 - Correct Answer replaced section 23 with the Section 8 Leased Housing Assistance Payment Program, Title I created a new community development block grant (CDBG) program Fair Housing Amendments Act of 1988 - Correct Answer extended the full protection of the Civil Rights Act of 1968, further prohibited discrimination based on familial status or disability Greenbelt towns - Correct Answer public cooperative communities - Greendale, Wisconsin; Greenhill’s, Ohio; and Greenbelt Maryland - were in response to the nation's housing shortage and provided affordable housing for government workers Affordable housing - Correct Answer Apartments play a key role in serving the affordable housing needs of the population. There are currently nearly 11.5 million extremely low income households in the United States, with only 3.2 million available affordable rental units. Multifamily is helping to serve the needs of this population as well as affordable workforce housing for service providers in law enforcement, health care, and education in high-demand markets where rents are generally at a premium. assisted living - Correct Answer Over the next ten years, seniors will spur demand for housing that offers multiple levels of care. This growing segment, coupled with the nearly 50 million Americans who currently have a physical impairment or functional disability, will require facilities that can assist the normal activities of daily living. Supportive housing - Correct Answer Supportive housing in long-term, community- based housing that has supportive services for homeless persons with disabilities. This type of housing enables special needs populations to live as independently as possible in permanent settings. The supportive services may be provided by the organization managing the housing or coordinated by the applicant and provided by other public or private service agencies. Permanent housing can be provided in one structure or several structures at one site or in multiple structures at scattered sites. There is no definite length of stay. renters by choice - Correct Answer those individuals who choose rental housing over owning homes, led by the Baby Boomers and Millennials, these renters have based their decisions on the lifestyle choices that apartment living affords Renters by circumstance - Correct Answer include the working poor and those in need of financial assistance from the government, the term also applies to persons requiring temporary housing due to special circumstances General partnership - Correct Answer has partners whose liability is not limited Limited partnership - Correct Answer involves two classes of ownership: one or more general partners, and the limited partners. The general partner is the quarterback
