CAM Property Management & Leasing Operations 2 — Questions and Answers
Question 1: A prospective resident applies for a unit but has a credit score of 580. The property's minimum is 620. What is the most appropriate action?
- Approve the application as an exception
- Decline the application and document the reason consistently with written criteria (Correct answer)
- Ask the applicant to reapply in 30 days
- Require a larger security deposit and approve
Correct answer: Decline the application and document the reason consistently with written criteria
Consistent application of written screening criteria protects the property from Fair Housing claims and ensures equitable treatment.
Question 2: Which lease clause protects the owner's right to enter the unit for repairs with proper notice?
- Right of first refusal clause
- Landlord access clause (Correct answer)
- Hold-harmless clause
- Subordination clause
Correct answer: Landlord access clause
A landlord access clause defines the conditions and notice requirements under which management may enter the unit.
Question 3: What is the primary purpose of a move-in inspection report signed by both the leasing agent and new resident?
- To establish monthly rent amount
- To document pre-existing conditions and protect both parties on security deposit disputes (Correct answer)
- To confirm the resident's identity
- To record the number of occupants
Correct answer: To document pre-existing conditions and protect both parties on security deposit disputes
A signed move-in inspection creates a baseline record of unit condition, reducing disputes when the resident vacates.
Question 4: Occupancy rates at a 200-unit community drop from 95% to 88%. What metric should management analyze first?
- Gross potential rent
- Net operating income trend
- Move-out reasons and traffic sources (Correct answer)
- Capitalization rate
Correct answer: Move-out reasons and traffic sources
Analyzing move-out reasons and traffic sources identifies whether the cause is pricing, maintenance, service, or marketing.
Question 5: A resident's lease expires in 30 days and they have not responded to renewal offers. Under most state laws, if they remain without signing a new lease, tenancy converts to:
- A periodic tenancy (month-to-month) (Correct answer)
- An estate at sufferance
- A tenancy at will terminated immediately
- A fixed-term lease renewal
Correct answer: A periodic tenancy (month-to-month)
When a fixed-term lease expires and the resident holds over with the landlord's implied consent, it typically converts to a month-to-month periodic tenancy.
Question 6: Which document establishes the legal relationship between a property owner and the management company?
- Lease agreement
- Management agreement (Correct answer)
- Operating budget
- Certificate of occupancy
Correct answer: Management agreement
The management agreement defines the scope of authority, fee structure, and responsibilities between the owner and the management company.
Question 7: When calculating economic occupancy, a manager divides:
- Occupied units by total units
- Actual rent collected by gross potential rent (Correct answer)
- Net operating income by gross potential rent
- Occupied units by total leasable square footage
Correct answer: Actual rent collected by gross potential rent
Economic occupancy measures the percentage of potential rental income actually collected, accounting for vacancies, concessions, and non-payment.
CAM Property Management & Leasing Operations 2
A prospective resident applies for a unit but has a credit score of 580.
The property's minimum is 620.
What is the most appropriate action?