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PMM611S - PROPERTY MANAGEMENT AND MAINTENANCE - 2ND OPP - JULY 2024 |
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n Am I BI A u n IVER s ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTYOF ENGINEERINGAND THE BUILT ENVIRONMENT
DEPARTMENT OF LAND AND SPATIALSCIENCES
QUALIFICATION(S): BACHELOR OF PROPERTYSTUDIES
DIPLOMA IN PROPERTYSTUDIES
QUALIFICATION(S)CODE: 08BOPS
06DIPS
NQF LEVEL:6
COURSECODE: PMM611S
COURSENAME: PROPERTYMANAGEMENT AND
MAINTENANCE
EXAMS SESSION:JULY 2024
PAPER:
THEORY
DURATION: 3 HOURS
MARKS:
100
SECONDOPPORTUNITY/SUPPLEMENTARY EXAMINATION QUESTION PAPER
EXAMINER(S) MS ELINA TEODOL
MODERATOR: MR VERINJAERAKO KANGOTUE
INSTRUCTIONS
1. Read the entire question paper before answering the Questions.
2. Please write clearly and legibly!
3. Please STARTEACHQUESTION ON A FRESHPAGE.
4. The question paper contains a total of 5 questions.
5. You must answer ALLQUESTIONS.
6. Make sure your Student Number is on the EXAMINATION BOOK(S).
PERMISSIBLEMATERIALS
1. Non-programmable Scientific Calculator
THIS QUESTION PAPERCONSISTSOF 9 PAGES(Including this front page)
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Property Management and Maintenance
PMM611S
Question 1
For each of the following statements indicate whether it is 'TRUE' or 'FALSE'.Each correct answer carries 1
mark.
(15)
a) Property managers often use market analysis to determine the best rental rates.
b) Tenant satisfaction is unrelated to how well the property is maintained.
c) Preventive maintenance only involves the mechanical systems of a property.
d) Landscaping maintenance should be conducted annually.
e) A property's operational efficiency can be gauged by its energy consumption levels.
f) Tenant screening involves verifying an applicant's credit history to reduce risks of non-payment.
g) Leaseagreements are optional documents that landlords may choose to implement.
h) Routine property inspections can help identify issues before they require costly repairs.
i) A drive-by inspection is as comprehensive as a move-out inspection.
j) Emergency maintenance is typically planned in advance.
k) Gutter cleaning is considered preventive maintenance.
I) The primary goal of property management is to ensure that all properties look aesthetically pleasing.
m) Risk management in property management includes managing insurance and legal compliance.
n) Maintenance costs are typically lower in well-maintained properties.
o) Tenant relations are solely the responsibility of the customer service department, not the property
manager.
[15]
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Question 2
a) As a property manager for a residential complex, you are tasked with upholding the living standards
and financial viability of the property. List two (2) fundamental responsibilities you have in this role.
(2)
b) Differentiate between corrective maintenance and preventive maintenance, providing an example of
a scenario that necessitates each approach in the context of property management.
(2)
c) You are reviewing the finances of a property you manage. According to the 50% rule, how should you
expect the costs for maintenance and repairs to relate to your total operating costs, and what
implications does this have for budget planning?
(1)
d) Discuss why a comprehensive understanding of building codes is crucial for a property manager and
the potential consequences of non-compliance.
(2)
e) When performing a comprehensive property inspection, what key elements must be evaluated to
ensure the integrity and safety of the property?
(3)
f) Define 'tenant screening' and explain its significance in maintaining the profitability and condition of
a rental property.
(2)
g) As technology continues to evolve, what role does it play in the maintenance of property and how
can it transform traditional property management practices?
(2)
h) Evaluate the impact of neglecting regular property maintenance on the overall operations and
reputation of a property management company.
(1)
i) Discuss four (4) strategies a property manager can employ to enhance tenant retention and the
importance of these strategies in the context of property management.
(4)
j) Define the 'implied warranty of habitability' and its practical implications for property managers in
the day-to-day operation of a rental property.
(2)
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k) Explain the significance of lease agreement negotiations in maintaining a balanced relationship
between landlords and tenants.
(2)
I) Describe a situation where emergency maintenance is necessary and outline the immediate steps
that should be taken by the property management team.
(2)
m) Describe a situation where emergency maintenance is necessary and outline the immediate steps
that should be taken by the property management team.
(2)
[27]
Question 3
As a property manager, your role encompasses the oversight of numerous systems and components within
a residential property. These elements are crucial for maintaining the property's functionality and ensuring
the comfort and safety of its occupants. The provided diagram is a visual tool that outlines various aspects
of a typical residential home, each crucial to the property's overall well-being.
Your task is to study the parts on the diagram below and use it to answer the following questions pertaining
to maintenance task for the building.
Eachcorrect answer carries one (1) mark.
(k) ____
_
(j),___
_
(i)
(h)
(g)
(b).____
_
r (d)
.,
l
t_,,,
(f)
a) Which maintenance task is critical for preventing water from damaging the interior walls and ceilings
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Property Management and Maintenance
at the part of the building labelled A?
A) Pruning trees
B) Inspection of Roof for openings/leakages
C) Cleaning gutters
D} Flushing the water heater
PMM611S
b} Which maintenance task is critical for preventing water from damaging the interior walls and ceilings
at the part of the building labelled B?
A) Pruning trees
B) Refreshing bathroom caulk
C) Cleaning gutters
D) Flushing the water heater
c) Identify the maintenance task at C which is often overlooked but can prevent moisture issues and
enhance bathroom's appearance?
A) Checking smoke detectors
B) Caulking the bathroom
C) Pruning trees
D) Inspecting the roof
d) What should be routinely replaced at buil9ing part labelled D to maintain indoor air quality and
system efficiency in HVACsystems?
A) Smoke detectors
B) HVAC filters
C) Door locks
D) Trees and shrubs
e) This preventative task involves removing sediment build-up in a specific appliance to ensure its
efficiency and longevity. Identify the appliance labelled E in the diagram provided above.
A) HVAC system
B) Smoke detectors
C) Water heater
D) Gutters
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f) Which maintenance activity should be carried out at building part F to contribute to the property's
aesthetic appeal and capable of preventing damage to the foundation?
A) Inspecting for pests
B) Flushing the water heater
C) Pruning trees and shrubs
D) Checking for water damage
g) Component of the building labelled G is a system which requires seasonal servicing necessary for the
device to handle extreme temperatures and ensure resident comfort year-round. Identify this
system.
A) Plumbing
B) Electrical
C) Heating and cooling
D) Insulation
h) Which security features labelled with an Hare essential for tenant safety and can influence insurance
premiums?
A) Water heater
B) Door and window locks
C) Smoke detectors
D) Bathroom caulk
i) Regular inspection of items tagged as/ in the diagram is essential for early detection of fire or carbon
monoxide presence in the home. Identify this item?
A) HVACfilters
B) Smoke and carbon monoxide detectors
C) Water heater
D) Bathroom caulk
j) What routine checks can a Property Manager conduct at part labelled J to minimise the risk of
accidents in common areas?
A) Refreshing bathroom caulk
B) Replacing HVACfilters
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Property Management and Maintenance
C} Pruning trees and shrubs
D) Checking for potential hazards
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k) To prevent infestations that can cause significant damage to a property, what regular inspection
should be carried out at building part labelled I<?
A) Water heater
B) HVACsystem
C} Pests
D) Door locks
[11)
Question 4
In managing a residential rental property, establishing a well-informed maintenance budget is imperative
for ensuring the property's safety, habitability, and financial viability. A realistic maintenance budget can
prevent costly emergency repairs and ensure that the property remains attractive to current and
prospective tenants.
You are required to apply standard estimation rules to determine the annual maintenance costs for a
hypothetical rental property. These rules are crucial for projecting expenses and formulating a budget that
accurately reflects the property's upkeep needs.
Usethe following property details for your calculations:
• Property Value: N$S00,000
• Annual Operating Costs: N$150,000
• Monthly Rental Income: N$7,S00
• Property Size: 4,500 square meters
• Cost per square meters: N$50
a) Utilising the 1% Rule, which estimates that annual maintenance costs should equate to 1% of the
property's value, calculate the expected yearly maintenance expenses for the hypothetical property.
Provide your answer with a brief explanation of the rule.
(5)
b) The 50% Rule suggests that maintenance and repairs will typically cost about 50% of a property's
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total operating costs. Calculate the amount to be allocated for maintenance and repairs according to
this rule and explain its significance in budgeting.
(6)
c) By applying the l.Sx Rule, which speculates that average annual maintenance costs will be 1.5 times
the monthly rental income, determine the maintenance budget for the given property. Discuss the
potential benefits of using this rule for properties with varying rental incomes.
( 6)
d) According to the Square Meters Formula, maintenance costs can be estimated at a set rate per
square meter. If the maintenance cost is N$S0 per square meter per year, calculate the total annual
maintenance cost for the property based on its size. Justify the use of this formula in maintenance
budget planning.
(6)
[23)
Question 5
Case Study: Overseeing Maintenance at The Otjomuise Heights Residences
Background:
You are the property manager of The Otjomuise Heights Residences, a mid-size apartment complex in a
suburban neighbourhood known for its quality living standards. The complex is 15 years old and is
beginning to show signs of wear and tear. Recently, the residents have raised several maintenance issues,
from the aging HVACsystem to minor plumbing leaks in various units. The complex consists of 50 units, and
the current maintenance budget is tightly constrained due to unexpected expenses in the previous fiscal
year.
The ownership is very concerned with the long-term health of the property and resident satisfaction but
wants to ensure that maintenance costs do not overrun. They have tasked you with developing a
maintenance plan that addresses current issues and sets the property up for the next five years of
operations.
Questions:
a) Draft an outline of a strategic maintenance plan for The Otjomuise Heights Residences that prioritizes
immediate concerns and long-term sustainability.
(8)
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b) Propose two cost-effective solutions to address the aging infrastructure that ensure quality and do not
compromise resident satisfaction.
(8)
c) Develop a communication plan to inform residents about the upcoming maintenance activities and
how they will impact them.
(8)
[24]
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