Real Estate Investing Property Management Operations 2

Question 1

A property manager discovers a tenant has sublet the unit without permission. What is the most appropriate first step?

Accepted Answer

Send a written lease violation notice with a cure period

Answer

Immediately file for eviction

Answer

Accept the unauthorized subtenant and charge higher rent

Answer

Ignore the situation if rent is being paid on time

Question 2

Which metric best measures the financial efficiency of a rental property's operations?

Accepted Answer

Operating expense ratio

Answer

Gross rent multiplier

Answer

Loan-to-value ratio

Answer

Price-to-earnings ratio

Question 3

A landlord in a rent-controlled jurisdiction wants to raise rents. What must they do first?

Accepted Answer

Verify the allowable increase percentage set by the rent control board

Answer

Give 30 days notice regardless of local law

Answer

Require all tenants to sign new leases

Answer

Hire an attorney before any rent increase

Question 4

What is a capital expenditure reserve fund used for in property management?

Accepted Answer

Major improvements and replacements like roofs and HVAC systems

Answer

Day-to-day maintenance and repairs

Answer

Marketing and leasing costs

Answer

Property management fees

Question 5

Under the Americans with Disabilities Act (ADA), which properties are most affected by accessibility requirements?

Accepted Answer

Commercial properties and multifamily buildings with common areas

Answer

Single-family homes

Answer

Duplexes owner-occupied by the landlord

Answer

All residential properties regardless of size

Question 6

A property manager wants to reduce vacancy. Which strategy typically has the greatest immediate impact?

Accepted Answer

Offering competitive market rents and a referral program

Answer

Repainting the exterior

Answer

Installing new appliances in vacant units

Answer

Hiring additional maintenance staff

Question 7

What is the primary purpose of a move-in inspection checklist?

Accepted Answer

To document unit condition and protect both parties in security deposit disputes

Answer

To comply with mortgage lender requirements

Answer

To set rent for the upcoming lease term

Answer

To identify deferred maintenance for the annual budget