CRM Maintenance & Capital Improvements Flashcards
6 cards from real CRM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CRM Maintenance & Capital Improvements flashcards as text
What is the primary purpose of a capital reserve fund in residential property management?
Answer: To fund long-term major repairs and replacements
A capital reserve fund is set aside specifically to finance major long-term expenditures such as roof replacement, HVAC systems, and structural repairs.
Which document outlines the schedule and estimated costs for major component replacements at a residential property?
Answer: Reserve study
A reserve study analyzes property components, estimates their remaining useful life, and projects future replacement costs to guide reserve fund contributions.
A property manager notices the HVAC system is 18 years old with an expected lifespan of 20 years. What is the most prudent action?
Answer: Begin planning and budgeting for replacement in the near term
Proactive planning for imminent end-of-life equipment avoids emergency expenditures and allows for competitive bidding and proper reserve funding.
Which of the following is considered a capital improvement rather than a routine maintenance expense?
Answer: Installing a new elevator in an existing building
A capital improvement adds value, extends useful life, or adapts the property to a new use, such as adding an elevator that did not previously exist.
What is preventive maintenance in property management?
Answer: Scheduled inspections and servicing to prevent failures before they occur
Preventive maintenance involves regularly scheduled servicing of equipment and systems to identify and correct issues before they become costly failures.
When selecting a contractor for a major capital project at a residential property, which practice best protects the owner's interests?
Answer: Obtaining at least three competitive bids with detailed scopes of work
Soliciting multiple competitive bids with clearly defined scopes of work ensures fair pricing, quality comparison, and legal protection for the property owner.