CRM Property Management Practices 2 — Questions and Answers
Question 1: A residential manager discovers a tenant has sublet their unit without permission in violation of the lease. What is the most appropriate first step?
- Immediately file for eviction
- Issue a written notice to cure or quit (Correct answer)
- Contact the unauthorized subtenant directly
- Ignore the violation if rent is current
Correct answer: Issue a written notice to cure or quit
A written notice to cure or quit gives the tenant an opportunity to remedy the lease violation before eviction proceedings begin.
Question 2: Which document establishes the legal authority of a property manager to act on behalf of a property owner?
- Lease agreement
- Management agreement (Correct answer)
- Certificate of occupancy
- Property deed
Correct answer: Management agreement
The management agreement is the contract that grants the property manager authority to act as the owner's agent.
Question 3: A tenant's security deposit is $1,500 and they move out leaving $400 in damages. How much must the manager return?
- $0
- $400
- $1,100 (Correct answer)
- $1,500
Correct answer: $1,100
The manager must return $1,100, which is the deposit minus the $400 in legitimate damages.
Question 4: Under the Americans with Disabilities Act (ADA), a prospective tenant requests a reserved parking space near their unit as a reasonable accommodation. The manager should:
- Deny the request because parking is first-come, first-served
- Grant the request if it does not create undue hardship (Correct answer)
- Charge an extra fee for the reserved space
- Require the tenant to provide a doctor's note before considering the request
Correct answer: Grant the request if it does not create undue hardship
Managers must grant reasonable accommodations for persons with disabilities unless doing so causes undue hardship.
Question 5: What is the primary purpose of a move-in inspection checklist?
- To set the rental price for the unit
- To document the unit's condition and protect both parties regarding the security deposit (Correct answer)
- To determine the tenant's creditworthiness
- To comply with zoning regulations
Correct answer: To document the unit's condition and protect both parties regarding the security deposit
A move-in checklist documents the pre-existing condition of the unit, protecting the manager from false damage claims and the tenant from unjust deductions.
Question 6: A property manager wants to raise rents for all units in a building. Which factor is LEAST relevant to this decision?
- Current market rental rates
- Operating expense increases
- The property owner's personal financial goals
- Tenant's personal income levels (Correct answer)
Correct answer: Tenant's personal income levels
Rent-setting decisions are based on market conditions and operating costs, not individual tenant income levels.
Question 7: Which lease clause protects a landlord's ability to increase rent in a long-term lease to offset rising costs?
- Subordination clause
- Escalation clause (Correct answer)
- Exculpatory clause
- Estoppel clause
Correct answer: Escalation clause
An escalation clause allows rent to increase periodically during the lease term, often tied to a cost-of-living index.
CRM Property Management Practices 2
A residential manager discovers a tenant has sublet their unit without permission in violation of the lease.
What is the most appropriate first step?