Sales and Business Ethics Flashcards

A prospect asks if they can negotiate the rent on a market-rate apartment. What is the best approach for the leasing professional?

Answer: Explain current market conditions, present available specials, and consult management about flexibility

Explaining market conditions and checking with management shows professionalism while giving the prospect an honest picture of negotiation possibilities.

Under ethical sales standards for leasing professionals, 'puffery' refers to:

Answer: General promotional statements like 'the best community in the city' that no reasonable person takes as fact

Puffery involves general, non-specific boastful claims that are understood to be opinions rather than factual statements, and are generally permissible.

A leasing professional shows a unit and the prospect mentions they have Section 8 housing assistance. In states where source of income is a protected class, the leasing professional must:

Answer: Treat the prospect the same as any other applicant and evaluate them on qualifying criteria

In jurisdictions where source of income is protected, leasing professionals must treat voucher holders the same as other applicants.

Which metric best measures the effectiveness of a leasing professional's sales conversion?

Answer: The ratio of leases signed to total qualified prospects who toured

The lease-to-tour closing ratio directly measures how effectively a leasing professional converts tours into signed leases.

When a leasing professional misrepresents the availability of a unit to create urgency, this practice is considered:

Answer: Unethical and potentially fraudulent misrepresentation

Creating false urgency through misrepresentation of availability is unethical and can constitute fraud, exposing the property to legal liability.

A leasing professional overhears a colleague making racially biased comments about a prospect after the tour. The correct ethical response is to:

Answer: Report the behavior to management as a potential Fair Housing violation

Discriminatory conduct by staff must be reported to management because it creates Fair Housing liability for the property and violates professional ethics.

What is the 'needs analysis' phase of the leasing sales process?

Answer: Asking discovery questions to understand what the prospect needs in a home

Needs analysis involves asking targeted questions to learn the prospect's lifestyle, budget, timeline, and must-haves so the agent can match them with the right unit.