CRM Property Management Operations 3 — Questions and Answers
Question 1: A property manager discovers a unit has mold growth after a tenant reports it. What is the correct sequence of actions?
- Wait for lease renewal to address it
- Document, notify the owner, remediate promptly, and follow up (Correct answer)
- Charge the tenant for the repair immediately
- Paint over the mold to conceal it temporarily
Correct answer: Document, notify the owner, remediate promptly, and follow up
Prompt documentation, owner notification, and remediation protect tenant health and minimize legal liability for the property owner.
Question 2: The Americans with Disabilities Act (ADA) most directly affects residential property managers by requiring:
- Universal design in all new apartment units
- Accessible common areas in properties with public accommodations (Correct answer)
- Ramp installation in every private unit
- Free unit modifications for all disabled tenants
Correct answer: Accessible common areas in properties with public accommodations
ADA primarily requires accessible public accommodation areas; the Fair Housing Act governs reasonable accommodations in housing units.
Question 3: Which metric measures the percentage of available rental units that are currently occupied?
- Capitalization rate
- Debt service coverage ratio
- Occupancy rate (Correct answer)
- Gross rent multiplier
Correct answer: Occupancy rate
Occupancy rate is calculated as occupied units divided by total available units, expressed as a percentage.
Question 4: A lease clause that automatically renews the tenancy for another term unless either party gives notice is called a:
- Holdover clause
- Automatic renewal clause (Correct answer)
- Subordination clause
- Escalation clause
Correct answer: Automatic renewal clause
An automatic renewal clause extends the lease for an additional period unless proper advance notice is given by either party.
Question 5: When preparing an annual operating budget for a residential property, which expense category is typically the largest?
- Insurance premiums
- Advertising costs
- Maintenance and repairs (Correct answer)
- Management fees
Correct answer: Maintenance and repairs
Maintenance and repairs typically represent the largest operating expense category for most residential properties.
Question 6: A property manager may legally disclose a tenant's personal information to a third party WITHOUT the tenant's consent in which situation?
- To a competing property for a reference
- To comply with a valid court order or subpoena (Correct answer)
- To a marketing company for advertising purposes
- To another tenant requesting information
Correct answer: To comply with a valid court order or subpoena
A valid legal order such as a court subpoena is a recognized exception to tenant privacy protections.
Question 7: What is the primary purpose of conducting a move-in inspection with the new tenant?
- To welcome the tenant to the community
- To establish a baseline condition for security deposit disputes at move-out (Correct answer)
- To collect the first month's rent
- To review the HOA rules
Correct answer: To establish a baseline condition for security deposit disputes at move-out
A documented move-in inspection protects both the landlord and tenant by recording the unit's condition before occupancy.
CRM Property Management Operations 3
A property manager discovers a unit has mold growth after a tenant reports it.
What is the correct sequence of actions?