Price Stagnation

QUESTION 1

Hal is preparing an annual operating budget for a 30-unit apartment complex. In calculating the property’s potential gross income, Hal will probably:

a.use market rents, except for current vacancies

b.use contract rents, except for current vacancies

c.subtract contract rents from market rents

d.subtract market rents from contract rents

QUESTION 2

How high a vacancy rate is acceptable for a managed property depends on:

a.the type of property and the owner’s goals

b.supply and demand in the submarket

c.general economic conditions

d.All of the above

QUESTION 3

How many days a residential landlord or property manager is allowed for fixing a particular type of maintenance problem is most likely to be determined by:

a.the lease or rental agreement

b.the management agreement

c.state and/or local landlord-tenant laws

d.the Americans with Disabilities Act

QUESTION 4

In a real estate market, a period of prosperity is likely to lead to:

a.overbuilding

b.diversification

c.price stagnation

d.negative cash flow