chapter 15 quiz questions only – answers will be revealed with Post-License subscriptions
1 of 15 – Which two important items does the operating budget help an owner understand?
The physical condition of the property and net operating income.
The gross profit and vacancy rate.
A history of past performance and projection of future operation.
The fees paid to the property manager and employees.
2 of 15 – John lives in an apartment building, collects rents, shows apartments and does odd jobs for the owner. In exchange for showing and negotiating the apartments, he receives reduced rent and is paid a percentage from each unit he helps rent. John does not have a real estate license. Which is true of John’s status?
John is in violation of Chapter 475 and may be found guilty of practicing real estate without a license.
John is covered by an exemption in the real estate license law because he lives in the apartment building.
John is performing ministerial acts and is not in violation of Chapter 455.
John is in violation of Sherman Anti-Trust Laws and could face up to 60 days in jail.
3 of 15 – A type of advertising that is free and effective is?
A classified ad in the local newspaper.
A display ad on a large billboard near a local shopping center.
A full color page with photos in the apartment finder magazine
A referral from a satisfied tenant.
4 of 15 – Florida grants a specialty license for
a Public Property Manager.
a Dual Agent Specialist.
a Community Association Manager.
a Real Estate Investment Trust Manager.
5 of 15 – An apartment building has an occupancy rate of 98%. According to the course, this is an indication that?
Rents may be raised.
The property is in the best school district.
Competing properties are in need of repairs.
Rents are 10% below other market rents.
6 of 15 – Rental Deposits received by a property manager?
Should be treated as other people’s money and be properly escrowed.
May be held in the operating accounting to make needed repairs as long as the amount is under $500.
Do not need to be held in trust because they are given to a broker in connection with a lease and not a sale.
Would require a manager to deposit the damage deposit into the escrow account, but not the last month’s rent.
7 of 15 – Which type of maintenance is MOST often neglected by a property manager?
8 of 15 – How are cash reserves treated in the operating budget?
They are listed as a fixed expense.
They are distributed to the owner with the cash flow report.
Reserves are included in the variable expense category.
Cash reserves are kept in the same category as depreciation.
9 of 15 – How does the job of a leasing agent differ from that of a property manager?
The leasing agent works with residential property, while the property manager can only work on commercial or industrial properties.
A property manager deals with rental rates, while the leasing agent actively searches for new properties to add to the company’s portfolio.
The property manager can appraise real property while the leasing agent can only perform CMA’s.
The leasing agent deals with tenants and rental rates, while the property manager is concerned with the long-term health of the property.
10 of 15 – A Community Association Manager’s license is required when an association has?
Only commercial property.
Only industrial property.
More than 10 units.
More than 3 full-time employees.
11 of 15 – A broker collects monthly rent for one property, for one owner. The broker markets the space when vacant and handles tenant complaints, but has no authority to sign for the owner. This is an indication that?
The broker has a license and is a special agent.
The broker has an expired license and is afraid of being caught.
The contract between the manager and owner is a general agency agreement.
There is no representation agreement between the broker and property owner.
12 of 15 – Which statement is NOT true with regard to the Property Management Contract?
The agreement contains an expiration date.
The agreement should be notarized and recorded.
The agreement includes a description of the property being managed.
The agreement includes the extent of the manager’s authority.
13 of 15 – Which of these statements BEST describes Florida law and the use of a residential lease form by licensees?
Because licensees work with contracts all of the time, a licensee may advise a landlord or tenant about the complexity of any lease document.
Licensees may complete the Florida Supreme Court-approved lease forms if the term is for one year or less.
A licensee may modify the approved lease form at the request of the property owner, if there is a representation agreement executed.
As long as the lease is not being recorded, a licensee may prepare any type of lease.
14 of 15 – When pricing space that is vacant, a property manager?
Should aim for the highest rent possible, for the short term.
Needs to consider the other properties available in the market.
Should lower the rents to keep the vacancy rate down.
Should discriminate in pricing to get tenants they can trust.
15 of 15 – An employee for a large condo-hotel association has an office on the site. This employee prepares financial statements, attends the board meetings, and rents units nightly to walk-in visitors. On occasion, the employee will assist an owner by negotiating a lease with a winter visitor for 90 days. Is this employee required to have a real estate license?
No. The employee is legally covered by an exemption in Florida law.
Yes, because the employee does other than nightly rentals.
Yes. The employee is conducting the business of real estate.
Yes, because the employee is acting as an officer for the association.