Question

Property Management Tenth Edition A projection of income and expense for the operation of a prop- erty over a one-year period 10 Ideal rent for specific type of unit in a defined market area; may need to be adjusted to reflect pros and cons of subject property A study made to familiarize the manager with the nature and condition of a building, its position relative to comparable prop- erties, and its estimated income and operating expenses 12 An expense category in the operating budget, monies set aside for replacement expenditures not covered by insurance 13 Market condition in which available rental space exc demand 14 eeds tenant A calculation of yearly costs of operation based on operating expenses from comparable properties and the maintenance needs of the subject property 15 Unit 2: True/False 1. TF One business cycle consists of expansion, recession, contraction, and revival 2. TF Long-term business cycles occur regularly once a year 3. TF Hurricanes and terrorist attacks are considered part of long-term movements. 4. TF The management plan considers the surrounding area, the subject property, and the owner's goals Real estate is not generally influenced by outside market forces. When taking over a new property, the manager should begin by reading all the existing 5. TF 6. TF 7. TF 8T F 9. TF leases The outward appearance of the building is often referred to as "curb appeal Owners of rental properties usually have similar goals and interests An optimum rent may have to be adjusted to reflect the advantages and disadvantages of the subject property 10. TF The amount of money that is available for use after paving expenses and the debt ser vice is called reserve funds. 92017 Kaplan, Inc. May be reproduced for educational uses only Property Management Tenth Edition

need answer for true or false section with a one sentence explination

Answer 1

1) True

The major stages of a the business cycle over a period of time consists of the following four stages:

a) Expansion or Boom or peak ,

b) Recession,

c) Decline or contraction or trough

d) Revival

2) False

Occurrence of Business cycle clearly depends upon the economic conditions, and other major factors such as technology , innovation, methods of production, competition in industry etc , thus they don't have a definite occurrence. Infact for one Long term business cycle to complete, it takes several years.

3) True

Yes hurricanes and terrorist attacks are considered a part of long term movements because both of them take long time to occur.

Hurricane are a result of lot of climate changes and do not occur in blink of an eye. They only take place after drastic changes in atmosphere and related factors.

Similarly Terrorist attacks are full fledged plans that take a long time and resources for execution.

4)True

Although the mgtt plans takes much more things into consideration but mostly the environment in which it operates , the product in which it deals, and the objectives of owner are the key considerations.

5) True

Real estate do get affected by outside forces but not generally or drastically, such as land , property etc do not get directly affected by outside forces such as political, economic etc conditions e.g the rates of land hardly move down due to outside forces such as decline in prices of commodities or political pressure groups

6)True

The manager needs to ensure that during the transfer of ownership of the property from one party to another ,no claims from fraudulent parties or interferences of third party arises who might claim the property in future , moreover to protect oneself from deception resulting from contract of leases and due or advance payments, the stipulated period given etc should be consulted for smooth transfer with no complexities in future.

Thus existing leases should be read thoroughly.

7) True

the attractiveness if a building through visual appearance when viewed from street or from outside is referred to curb appeal.

8) False

It is not always possibly applicable that owner's of rentals will have common interest as it depends upon the nature and type of the person. some owners might be having only the profit motive so will charge high rents , while others might have the motive of keeping the rental building well maintained or social welfare.

9) True

The rent reflects the true worth of subject property thus they need to be adjusted as per their uses, benefits , features etc. Inorder to genuinely reflect the worth and value accordingly.

Adjusting prices reflects the superiority or inferiority and helps in making comparisons.

10) True

Reserve funds are the highly liquid amount belonging to an individual to meet any unusual cost such as medical bill or obligation or unexpected expenses , thus kept as savings and availed mostly during retirement.

Thankyou

Hope i explained well and all options are correct as i tried best as per my expertise as well as research.

God bless n god luck

Apology for typing mistake.:)