CRM Property Management Operations 2

Question 1

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

Accepted Answer

Document the complaint and contact the offending resident

Answer

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

Question 2

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

Accepted Answer

Income and expense statement

Answer

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

Question 3

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

Accepted Answer

Hold it in a separate escrow or trust account

Answer

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

Question 4

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

Accepted Answer

Reducing vacancy through improved tenant retention

Answer

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

Question 5

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

Accepted Answer

Gross potential rent minus vacancy and credit losses

Answer

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

(CRM) Certified Residential Manager Practice Test