CPM Property Management Fundamentals 3

Question 1

What is 'economic occupancy' in multifamily property management?

Accepted Answer

The ratio of actual rental income collected to potential gross income

Answer

The percentage of units physically occupied

Answer

The number of leases signed in a month

Answer

The percentage of tenants who renew leases

Question 2

A property manager who commingles client funds with personal funds is violating which duty?

Accepted Answer

Duty of accounting

Answer

Duty of disclosure

Answer

Duty of loyalty

Answer

Duty of obedience

Question 3

Which lease type is most common in large retail or commercial properties where rent is tied to the tenant's sales volume?

Accepted Answer

Percentage lease

Answer

Net lease

Answer

Gross lease

Answer

Ground lease

Question 4

What does 'concession' mean in property leasing?

Accepted Answer

A discount or incentive offered to attract or retain tenants

Answer

A clause allowing the landlord to recapture the space

Answer

A penalty for late rent payment

Answer

A provision for rent escalation

Question 5

The IREM Code of Professional Ethics requires CPM members to do all of the following EXCEPT:

Accepted Answer

Guarantee a specific rate of return to clients

Answer

Act in the best interests of the client

Answer

Maintain confidentiality of client information

Answer

Disclose conflicts of interest

Question 6

What is the primary purpose of a market analysis in property management?

Accepted Answer

To identify competitive properties and set appropriate rental rates

Answer

To determine the property's assessed value for taxes

Answer

To calculate depreciation schedules

Answer

To evaluate the property for financing