CRM Tenant Relations & Leasing 3 — Questions and Answers
Question 1: A current tenant requests permission to sublet their unit for three months while they travel. What should the property manager do first?
- Automatically deny since subletting is always prohibited
- Review the lease agreement for subletting provisions (Correct answer)
- Allow it since the tenant is still responsible for rent
- Contact local housing authorities for guidance
Correct answer: Review the lease agreement for subletting provisions
The property manager should first review the lease to determine if subletting is permitted, prohibited, or requires written consent before responding.
Question 2: What does the term 'gross lease' mean in residential property management?
- The tenant pays all operating expenses separately
- The landlord pays most or all operating expenses included in a flat rent (Correct answer)
- The rent amount increases annually based on a gross income index
- The lease covers the gross square footage including common areas
Correct answer: The landlord pays most or all operating expenses included in a flat rent
In a gross lease, the landlord pays most or all property operating expenses (taxes, insurance, maintenance) and charges the tenant a single flat rent amount.
Question 3: A tenant's lease is expiring and they have not responded to renewal notices. What is the best practice for a property manager?
- Assume they are vacating and begin re-marketing the unit immediately
- Send a final written notice with a clear deadline for response and intention to re-market (Correct answer)
- Hold the unit indefinitely until the tenant decides
- Offer a significant rent reduction to secure renewal
Correct answer: Send a final written notice with a clear deadline for response and intention to re-market
Best practice is to send a final written notice with a firm response deadline, documenting all communication while protecting the property owner's financial interest.
Question 4: Under the Fair Housing Act, which of the following is NOT a federally protected class?
- Race
- National origin
- Source of income (Correct answer)
- Familial status
Correct answer: Source of income
Source of income (e.g., housing vouchers) is not a federally protected class under the Fair Housing Act, though many states and localities have added this protection.
Question 5: What is the purpose of a concession in residential leasing?
- To penalize tenants who break their lease early
- To provide an incentive such as free rent or reduced deposit to attract tenants (Correct answer)
- To legally transfer lease obligations to a third party
- To document tenant acknowledgment of property condition
Correct answer: To provide an incentive such as free rent or reduced deposit to attract tenants
A leasing concession is an incentive offered to prospective tenants, such as one month free rent or a waived fee, to fill vacancies faster or compete with other properties.
Question 6: A tenant is consistently late paying rent but always pays within the grace period. Can the property manager charge a late fee?
- Yes, lateness alone justifies a fee regardless of grace period
- No, if payment is received within the contractual grace period, no late fee applies (Correct answer)
- Yes, but only after the third consecutive late payment
- No, late fees are never enforceable in residential leases
Correct answer: No, if payment is received within the contractual grace period, no late fee applies
If rent is paid within the grace period specified in the lease or by state law, late fees cannot legally be charged since payment is considered timely.
Question 7: Which document establishes the mutual rights and obligations between a landlord and tenant at the start of a tenancy?
- Certificate of occupancy
- Lead-based paint disclosure
- Lease or rental agreement (Correct answer)
- Move-in inspection report
Correct answer: Lease or rental agreement
The lease or rental agreement is the binding contract that defines the terms, rights, and obligations of both landlord and tenant for the duration of the tenancy.
CRM Tenant Relations & Leasing 3
A current tenant requests permission to sublet their unit for three months while they travel.
What should the property manager do first?