Real Estate Investing Property Management Operations 5

Question 1

A tenant requests permission to have a service animal despite a no-pets policy. What is the legally correct response?

Accepted Answer

Grant a reasonable accommodation under the Fair Housing Act and cannot charge a pet deposit

Answer

Service and assistance animals are not classified as pets under the Fair Housing Act; landlords must grant reasonable accommodations and cannot charge pet fees for them.

Question 2

Which financial statement is most useful for understanding a rental property's monthly cash flow?

Accepted Answer

Income and expense statement (profit and loss)

Answer

The income and expense statement shows monthly rental income minus operating expenses, directly revealing the property's cash flow performance.

Question 3

What is the function of an estoppel certificate in property management?

Accepted Answer

It confirms tenant lease terms and occupancy status for a lender or buyer

Answer

An estoppel certificate is signed by tenants to verify their lease terms, current rent, and any disputes—commonly required during property sales or refinancing.

Question 4

Which practice helps property managers comply with Fair Housing Act tenant screening requirements?

Accepted Answer

Applying consistent, written, objective screening criteria to all applicants

Answer

Consistent, written screening criteria applied equally to all applicants is the best defense against Fair Housing discrimination claims.

Question 5

What is the typical timeframe for a property manager to return a security deposit after a tenant vacates in most US states?

Accepted Answer

14 to 30 days, depending on state law

Answer

Most states require landlords to return security deposits within 14 to 30 days of move-out, along with an itemized statement of any deductions.

Real Estate Investing Practice Test

Real Estate Investing Practice Test

Real Estate Investing Property Management Operations 5