CA Real Estate Property Management 2 — Questions and Answers
Question 1: What financial report shows a property's income, expenses, and net operating income over a period of time?
- Balance sheet
- Operating statement (income statement) (Correct answer)
- Cash flow projection
- Rent roll
Correct answer: Operating statement (income statement)
An operating statement (income statement) summarizes a property's revenues and expenses to show net operating income.
Question 2: Which term describes all current tenants, their unit numbers, lease terms, and monthly rent amounts?
- Operating statement
- Rent roll (Correct answer)
- Estoppel certificate
- Vacancy report
Correct answer: Rent roll
A rent roll is a document listing all tenants, their units, lease dates, and rental amounts for a property.
Question 3: Under California's AB 1482 (Tenant Protection Act), which type of properties are generally exempt from statewide rent control?
- Single-family homes and condos (with proper notice) (Correct answer)
- Apartment buildings built before 1995
- All commercial properties
- All government-subsidized housing
Correct answer: Single-family homes and condos (with proper notice)
Single-family homes and condominiums are generally exempt from AB 1482 rent control if the owner provides proper written notice.
Question 4: What is the standard fee structure for most residential property managers in California?
- A flat monthly fee regardless of occupancy
- A percentage of collected monthly rents (typically 8–12%) (Correct answer)
- A per-tenant fee paid annually
- A one-time fee at the start of each lease
Correct answer: A percentage of collected monthly rents (typically 8–12%)
Most residential property managers charge a percentage of collected rents, typically ranging from 8% to 12% per month.
Question 5: Which type of lease requires the tenant to pay a base rent plus some or all of the property's operating expenses?
- Gross lease
- Net lease (Correct answer)
- Percentage lease
- Month-to-month lease
Correct answer: Net lease
A net lease requires the tenant to pay base rent plus some or all operating expenses such as taxes, insurance, and maintenance.
Question 6: Under which condition may a California landlord enter a rental unit without prior notice?
- Whenever they wish to inspect
- In an emergency situation (Correct answer)
- Once a month for routine inspections
- To show the unit to prospective buyers with 12 hours notice
Correct answer: In an emergency situation
California landlords may enter without notice only in genuine emergency situations such as fire or serious water damage.
CA Real Estate Property Management 2
What financial report shows a property's income, expenses, and net operating income over a period of time?