CRM Property Management Practices 3

Question 1

A tenant complains that the heating system has failed in January. Under the implied warranty of habitability, the manager must:

Accepted Answer

Repair the heating within a reasonable and prompt timeframe

Answer

The implied warranty of habitability requires landlords to maintain essential services like heat, and repairs must be made promptly.

Question 2

What is constructive eviction?

Accepted Answer

When a landlord's failure to maintain habitability forces a tenant to vacate

Answer

Constructive eviction occurs when uninhabitable conditions created or allowed by the landlord force the tenant to leave.

Question 3

A residential property manager is comparing two vendor bids for landscaping. Bid A is lower cost but the vendor has mixed reviews. Bid B is higher cost with excellent references. What is the best approach?

Accepted Answer

Evaluate total value including cost, quality, and references before deciding

Answer

Effective vendor selection balances cost with quality, reliability, and references to achieve the best overall value.

Question 4

Which type of insurance protects a property owner against loss of rental income when a property becomes uninhabitable due to a covered peril?

Accepted Answer

Loss of rents (rent loss) insurance

Answer

Loss of rents insurance (also called business interruption insurance) replaces rental income when a property cannot be rented due to a covered loss.

Question 5

What is the purpose of a pro forma statement in residential property management?

Accepted Answer

To project future income and expenses for a property

Answer

A pro forma statement is a projected financial statement used to forecast a property's income and expenses over a future period.

(CRM) Certified Residential Manager Practice Test

(CRM) Certified Residential Manager Practice Test

CRM Property Management Practices 3