Property Management Fundamentals Flashcards

A management plan typically includes all of the following EXCEPT:

Answer: Owner's tax return preparation

A management plan covers market analysis, property analysis, and strategies but does not include preparation of the owner's personal tax returns.

What is 'vacancy rate' as used in property management?

Answer: Percentage of rentable space not occupied or generating income

Vacancy rate is the percentage of all available rental units or space that is unoccupied and therefore not generating rental income.

Which document transfers possessory rights of a property to a tenant for a specified period in exchange for rent?

Answer: Lease

A lease is the legal contract that grants a tenant the right to occupy and use property in exchange for rent payments over a defined term.

In property management, what does 'turnover' refer to?

Answer: The process of a unit becoming vacant and being re-leased to a new tenant

Turnover refers to the cycle of a tenant vacating, the unit being prepared, and a new tenant moving in.

Which of the following is a gross lease?

Answer: Tenant pays a fixed rent and landlord covers most or all operating expenses

In a gross lease, the tenant pays a single fixed rent and the landlord is responsible for paying most or all operating expenses.

What is the purpose of a property inspection during a tenant move-out?

Answer: To document the property's condition and determine security deposit deductions

A move-out inspection documents the property's condition compared to move-in, forming the basis for any legitimate security deposit deductions.