FHCE 3350 MIDTERM EXAM FULLY SOVED & UPDATED

Which of the following factors will affect how many onsite positions are needed? - answer-a) The product type b) The age of the community c) The number and type of amenities d) Technology e) N/A - None of these answers are correct. There should always be 2 onsite jobs for every 100 homes. f) The services provided for residents Correct answer: A,B,C,D and F Which of the following are property management software companies? - answer-a) Yardi b) Appfolio c) Entrata d) RealPage Correct answer: All Which position is most likely to have these daily activities - collections, running reports, backup for showing rental homes, backup for overseeing the community? - answer-Assistant Manager Residents typically deal with the emotions of loss when moving in. - answer-True In residential property management, it is usually more profitable to retain residents than to lease to new residents. - answer-True Asset Managers primarily focus on maximizing income, buying, selling, and what else? - answer-Financing Which report would be best for determining how much money is coming in and going out? - answer-Cash flow statement In large property management companies, budgets are typically produced over what time period? - answer-Over a few months Which of these is NOT considered an operating expense? (Select all that apply.) - answer--Rent Loss -Debt service Which of the following is included in rent loss? (Select all that apply.) - answer--Discounts -Uncollected rent -Vacancy NOI is usually the same amount as cash flow. - answer-False A current trend in RPM is centralization of functions. - answer-True Which of the following is usually true about working onsite in a large multifamily company? (Select all that apply.) - answer-a) There is not much variety b) There are a lot of interruptions c) Good people skills are very important d) Managers put a lot of focus on daily balance sheet analysis Correct answer: A,B, and C In laying out a leasing office, which of the following usually needs to be considered? (Select all that apply.) - answer-a) Parking b) How easy it is to find c) Space for collaboration d) Privacy Correct answer: A,B,C, and D Leasing paperwork should not be signed until the day of move-in. - answer-False Residents are usually more likely to renew when they have frequent contact with the onsite team. - answer-True In Georgia, it is usually good to accept partial payments if the resident doesn't pay in full. - answer-False Which of the following is a good practice when a resident gives a notice to vacate? (Select all that apply.) - answer-a) Schedule a move out inspection b) Get a forwarding address c) Provide written information about move out expectations Correct answer: A,B, and C Which of the following do onsite inspections? (Select all that apply.) - answer-a) The onsite team b) Owners/investors c) Lenders d) Corporate e) Property tax officials f) Regional managers g) Insurance companies Correct answer: All In case of an emergency, which of the following should the Community Manager prioritize? - answer-Protecting people Which of the following is true of residential real estate? (Select all that apply.) - answer-a) It is a form of ownership and occurs when land sanctioned for residential use is purchased by someone and becomes real property. b) It is the most common type of real estate. c) It is housing. Correct answer: All The two main types of residential property managers are fee managers and owner/managers. - answer-True What is the best term to describe an organization that develops, owns, constructs, and manages residential properties? - answer-Vertically integrated Which of the following is usually true of residential property management? - answer-a) It has had more opportunity than other forms of real estate during recessions. b) Strategies should be aligned with the owner's goals for the property. c) There is a growing need for more advanced skills, and college degrees are more important than they were in getting hired. d) There are diverse responsibilities. Correct answer: All Which of the following does the multifamily industry do? (Select all that apply.) - answer-a) Provides jobs and homes b) Participates in philanthropy c) Efficiently uses space and resources because of high density d) Serves as housing advocates Correct answer: All Match the product type to the fitting description. ___5-9 stories ___Requires the most land ___Garden style ___The most complicated to manage 1. Low rise 2. Mid rise 3. Highrise - answer-2 1 1 3 There is no standard global definition for Class A, B, or C product types. - answer-True Most multifamily housing is: - answer-Market rate Which of the following is true about the Institute of Real Estate Management (IREM)? (Select all that apply.) - answer-a) It is the only real estate support group for all forms of real estate. b) It is global. c) Students with an emphasis in Residential Property Management place out of 7 of the 8 CPM certification courses. d) One of their professional certifications is ARM. Correct answer: All Please put these in the order of when they have evolved as a primary focus in professional property management. 1 is the oldest & 5 is the current focus. ___Caretaker ___Emergence of professional management ___Sales and marketing ___Agility, experiences ___Income maximization - answer-(1) Caretaker (2) Emergence of professional management (3) Sales and marketing (4) Agility, experiences (5) Income maximization Large apartment communities are considered both residential and commercial. - answer-True Currently, the three most favored real estate investment types are multi-family, industrial, and single family build to rent. - answer-True The multifamily industry contributes approximately what % to the GDP? - answer-2 In comparing single family build to rent (BTR) to traditional single family rentals, which of the following is true of BTR? - answer-a) Easier to scale b) Operating it is typically more efficient c) Harder to get zoned d) Harder to finance e) More expensive Correct answer: All Which of the following is true about student housing? (Select all that apply.) - answer-A) Many large multifamily companies have invested in it in recent years and D) There is much more pre-leasing than in non-student housing. If a company develops, owns, constructs and manages, it may be referred to as vertically integrated? - answer- Which of the following is a functional role in the RPM industry? - answer--General Management -Sales -Finance -Marketing -Accounting -Construction/Development Most residential property is market rate? - answer-True In prof. Managed apts, the onsite position most involved with collections and running reports has been the Asst. Mgr. - answer-True Move-in has a heightened impact on renewal because of intense emotions, such as change and loss. - answer-True NOI includes debt service. - answer-False Which of the following has a caused in increase in adaptive reuse? - answer--A decrease in brick and mortar stores -Housing mortgage -ESG Condominium conversions became popular because of profit and favorable laws. - answer-True Once apartments are converted to condominiums it is fairly easy to revert them back to apartments - answer-False Single family detached housing uses less energy than multifamily. - answer-False Long-term holders often have more focus on preventive maintenance than short-term holders. - answer-True Which of the following is true in comparing fee managers with owner management - answer--Fee managers focus more on fees -Strategies for OMs usually include more focus on preventive maintenance -Owner managers usually have less expertise in property management apps. -OMs may branch into fee mgmt and fee mgrs may branch into owner mgmt When comparing multi-family to single-family rentals, which is usually true of multi-family - answer--It is more efficient to manage -It is more expensive Build to rent tends to draw large global investors. - answer-True Which of these is true about short-term leases? - answer--They are good in markets with rising rental rates -Sometimes RPMs charge a premium for them. Which of the following is true about IREM - answer--Student membership extends for awhile after graduation -It is international -It supports residential, commercial, retail, and industrial real estate. In the lifecycle of a property, following decline/obsolescence a decision needs to be made on whether to renovate. - answer-True RPMs deal with more liability issues than many other managers. - answer-True The National Apartment Association has more members than IREM. - answer-True Which of the following are RPM niches? - answer--Senior housing -Renovations -Affordable housing -Student housing Currently, the top three investment choices (in order) are industrial, multi-family, BTR - answer-False Rental housing has grown in favor as a housing choice. - answer-True Which of the following is an RPM trend? - answer-- There is more need for technical and advanced skills - The customer experience has much more focus than it did. - It is more complex than it was. Onsite property managers, focus on the income statement for NOI, escrows, and reserves. - answer-False Gross potential is calculated as all homes rented at market rate, no vacancies, no concessions, and all $ collected. - answer-True Income, expenses, and NOI are often referred to in per unit terms. - answer-True Which of the following is true about operating expenses? - answer-- Increasing them lowers NOI - The onsite team should be involved in budgeting them. - If they are 45% of Total Income, there is a reason for concern. - Properly controlling them is important to profitability Which of the following is true about public housing? - answer-- They contract with landlords - HUD notifies them when funds are available - They impact homes and & approve leases in rental assistance programs. - They re-examine family eligibility for rental assistance. Following renovations, it is likely you will need strong leasing because several residents will probably move. - answer-Ture By 2030, the need for senior living is likely to double. - answer-False Which of the following is true about senior housing? - answer-- It has high operating coasts and heavy staffing needs - It usually requires more time than any other sections to get a lease signed - There is increased product diversity - Marketing is often geared to potential resident and their family Marketing for active living is usually geared toward physically fit people 55+ years old. - answer-True Which is true of independent living communities? - answer-- They are sometimes called retirement communities - They often offer optional services, such as transportation - Amenities such as music, dancing, swimming pools, and cards are popular Which of the following is usually true about variance reports? - answer-- They should provide why actual numbers vary from budgeted numbers - They are often done by Community Managers - They are done monthly According to KrisAnn Kizer, how many favorable reviews does it take to overcome one one-star review? - answer-7 Gen-Z prefers videos 1 minute ling followed by videos 30 minutes long. - answer-True Industrial real estate tends to be ahead of trends and is a good indicator of whether to develop rental housing. - answer-True Good branding can reduce other marketing costs. - answer-True