Property Management Operations Flashcards

A property manager receives a noise complaint at 11 PM on a Saturday. What is the most appropriate first step?

Answer: Document the complaint and contact the offending resident

Documenting the complaint and contacting the offending resident is the appropriate first response, balancing tenant rights with community rules.

Which financial statement best shows a property's revenue and expense performance over a specific period?

Answer: Income and expense statement

The income and expense statement (profit and loss statement) reflects revenues and costs over a defined reporting period.

Under most state laws, how must a landlord handle a tenant's security deposit?

Answer: Hold it in a separate escrow or trust account

Security deposits must be held in a separate trust or escrow account to protect tenant funds and comply with state statutes.

A property manager wants to increase net operating income (NOI) without raising rents. Which strategy is most effective?

Answer: Reducing vacancy through improved tenant retention

Improving tenant retention reduces costly vacancies and turnover expenses, directly increasing NOI without a rent increase.

What does the term 'effective gross income' represent in property management?

Answer: Gross potential rent minus vacancy and credit losses

Effective gross income equals gross potential rent minus an allowance for vacancy and collection losses.

Which maintenance category includes replacing a roof or HVAC system at end of useful life?

Answer: Capital expenditure

Replacing major systems at end of their useful life is a capital expenditure, not a routine operating expense.

A prospective tenant has a low credit score but a strong rental history and solid income. What is the best fair housing-compliant approach?

Answer: Apply consistent written screening criteria and evaluate all factors together

Applying consistent, documented criteria that weigh all qualifying factors ensures fair housing compliance and reduces liability.