Real Estate Investing Property Management Operations Questions and Answers

Question 1

A tenant's lease is expiring, and they have provided proper notice to vacate.
During the move-out inspection, the property manager notes several large nail holes in the drywall where a TV was mounted and significant pet stains on the carpet.
The security deposit can legally be used to cover the cost of:

Accepted Answer

Patching the drywall holes and professionally cleaning the carpet stains.

Answer

Repainting the entire apartment a new, more modern color.

Answer

Replacing the 10-year-old carpet with brand new, upgraded flooring.

Answer

Changing the locks for the next tenant.

Question 2

A property manager for a 50-unit apartment complex is analyzing performance. At the end of the month, three units were empty and un-rented for the entire month. Which metric specifically calculates the percentage of units that were not occupied?

Accepted Answer

Physical Vacancy Rate

Answer

Operating Expense Ratio

Answer

Collection Loss Percentage

Answer

Gross Rent Multiplier

Question 3

A property manager is screening applicants for a two-bedroom apartment. Which of the following is a legally permissible reason to reject an applicant under the Federal Fair Housing Act?

Accepted Answer

The applicant's verifiable gross monthly income is only 1.5 times the monthly rent.

Answer

The applicant is a single parent with a toddler, and the manager prefers quieter tenants.

Answer

The applicant's primary language is not English.

Answer

The applicant receives public assistance to supplement their employment income.

Question 4

A commercial property investor wants a lease structure where the tenant is responsible for paying property taxes, building insurance, and all common area maintenance (CAM) costs in addition to their base rent. Which type of lease should the investor use?

Accepted Answer

Triple Net (NNN) Lease

Answer

Gross Lease

Answer

Percentage Lease

Answer

Modified Gross Lease

Question 5

The cost of replacing the entire roof on a 20-unit apartment building would be classified as what type of expense for a property manager creating a budget?

Accepted Answer

Capital Expenditure (CapEx)

Answer

Operating Expense (OpEx)

Answer

Variable Expense

Answer

Debt Service

Question 6

A comprehensive property management plan should include a strategy for handling unforeseen events that could disrupt operations or cause financial loss, such as a fire, natural disaster, or major liability claim. This part of the plan is primarily focused on:

Accepted Answer

Risk Management

Answer

Marketing and Leasing

Answer

Financial Reporting

Answer

Tenant Relations