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DC PROPERTY MANAGEMENT LICENSE ACTUAL /
QUESTIONS AND ANSWERS| UPDATED
A shopping center is 15% vacant. Its Gross Potential Income is $5,000,000 and has Operating Expenses of
$2,275,000. Similar shopping centers recently sold for an 8% Capitalization Rate. What is the current value of the shopping center?
$24,687,500
If a shopping center recently sold for $10,000,000 and it had at Net Operating Income of $875,000, what was the
Cap Rate?
Net Operating Income/ Capitalization Rate= Value
$875,000/$10,000,000 = 8.75%
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A comparable property to the subject property being managed sold last month for a 7.5% Cap Rate. If the subject property's NOI is $1,340,000, what is its Investment Value?
Net Operating Income/ Capitalization Rate= Value
$1,340,000 I 0.075 = $17,866,667
Facilities Management: The overall objectives of a
maintenance program include:
• Implementing and accomplishing the owner's objectives
• Increasing resident/tenant satisfaction and retention rates
• Reducing operating costs
• Optimizing the property's physical capabilities
• Increasing the property's value
• Providing for the safety of tenants, residents, visitors and employees 2 / 4
Physical inspections are a primary method used to evaluate a property's condition and equipment as well as being the first step to develop a plan to address any issues.
There are at least four primary objectives to consider prior to
any inspection:
- What will be inspected
- What is the frequency of the inspection
- Who will conduct the inspection
- How will the results be reported and implemented
Request for Proposal or RFP
• Specify the scope of the service requested
• How it is to be perfonned
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• Frequency (monthly, quarterly, semi-annually)
• Special requirements
• Acceptable work hours
• Timetable to complete
• Insurance requirements
• Deadline for submission
• Number of personnel to be provided • Warranty period
• A place for the contractor to provide their price
• References
Payback Period
is one of the critical benchmarks in determining whether to move forward with a specific project. The Payback Period is
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