Practice Test Geeks(CRM) Certified Residential Manager Practice Test
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Property Management Practices Flashcards

7 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 7 Property Management Practices flashcards as text

  1. A tenant complains that the heating system has failed in January. Under the implied warranty of habitability, the manager must:

    Answer: Repair the heating within a reasonable and prompt timeframe

    The implied warranty of habitability requires landlords to maintain essential services like heat, and repairs must be made promptly.

  2. What is constructive eviction?

    Answer: When a landlord's failure to maintain habitability forces a tenant to vacate

    Constructive eviction occurs when uninhabitable conditions created or allowed by the landlord force the tenant to leave.

  3. A residential property manager is comparing two vendor bids for landscaping. Bid A is lower cost but the vendor has mixed reviews. Bid B is higher cost with excellent references. What is the best approach?

    Answer: Evaluate total value including cost, quality, and references before deciding

    Effective vendor selection balances cost with quality, reliability, and references to achieve the best overall value.

  4. Which type of insurance protects a property owner against loss of rental income when a property becomes uninhabitable due to a covered peril?

    Answer: Loss of rents (rent loss) insurance

    Loss of rents insurance (also called business interruption insurance) replaces rental income when a property cannot be rented due to a covered loss.

  5. What is the purpose of a pro forma statement in residential property management?

    Answer: To project future income and expenses for a property

    A pro forma statement is a projected financial statement used to forecast a property's income and expenses over a future period.

  6. A tenant installs a satellite dish on the exterior of their apartment without permission. Under FCC rules, the manager may:

    Answer: Regulate placement to protect safety and aesthetics but cannot ban it outright

    The FCC's OTARD rule allows tenants to install satellite dishes but permits landlords to impose reasonable restrictions on placement for safety and aesthetics.

  7. Which of the following best describes the 'net operating income' (NOI) of a property?

    Answer: Gross income minus all operating expenses, before debt service

    NOI is calculated by subtracting all operating expenses from gross income, before accounting for mortgage payments or debt service.