DC Property Manager Exam – Questions with 100% Correct Answers | Updated 2024 Management Plan - Answer ✔️✔️-1. Current use 2. Current condition 3. Fiscal projections 4. Operational issues Market Analysis - Answer ✔️✔️-Regional and neighborhood evaluation focusing on: 1. Demographic conditions 2. Geographic features 3. Governmental perspective 4. Existing real estate supply 5. Future developments 6. Tenant demand Analysis of Alternatives - Answer ✔️✔️-Theo retical costs and potential for rent increase based on decision to: 1. Modernize 2. Rehabilitate 3. Change 4. Convert Capital Expenditures - Answer ✔️✔️-Projects that help extend a properties useful life. Three Types of Obsolescence - Answer ✔️✔️-1. Ph ysical Obsolescence is characterized as a condition of aging (i.e. wear and tear) or deferred maintenance. 2. Functional Obsolescence is characterized by old or outdated designs or building systems. 3. Economic Obsolescence represents a loss in value due to outside forces (i.e. location, market conditions). Five Types of Property Values - Answer ✔️✔️-1. Investment Value - This is the value that is generally used by investors. It is frequently determined either by calculating the Net Operating Income and applying a Capitalization Rate to it or from Cash Flow by determining the Return on Investment. 2. Assessed Value - This is the value used by government tax assessment offices. Since it is frequently determined using sophisticated mathematical models that are applied to many similar types of properties over a geographic area, it can be less accurate and produce results that are higher or lower than other types of "values". 3. Market Value - This is the value that is agreed to between a buyer and seller. It represents the "meeting of the minds". 4. Depreciated Value - This is used for income tax purposes and affects a property's tax basis. In the past, the Federal Government has implemented accelerated depreciation programs to help promote economic growth. 5. List price - This is only the price that the owner has offered to sell a property for. Rules of Ethics - Answer ✔️✔️-1. Loyalty to the client 2. Confidentiality 3. Accurate accounting and reporting 4. Protection of owner's funds 5. Conflicts of interest 6. Compliance with Laws and Regulations Management Agreement - Answer ✔️✔️-A formal and binding contract that establishes the authority and responsibilities that the manager has on behalf of the owner and in operating the property. It will assist the owne r in meeting their goals and objectives as well as maximizing the property's value and return. Grounds for Termination of Management Agreement - Answer ✔️✔️-1. Sale or transfer of the property 2. Improper financial reporting 3. Improper financial reportin g 4. Negligence 5. Commingling funds Comparison Analysis - Answer ✔️✔️-The purpose of this analysis is to not only identify physical differences as well as strengths and weaknesses, but also to determine a value for each element and to make adjustments to the subject property's rental rate, up or down, based on the results.
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