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CAPS Knowledge Check: Module 1

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Module 1: Client Services and Stakeholder Relations

1. What are the key questions to ask in order to determine if you are acting in an ethical manner?

Reveal answer
  • Is it legal?
  • Who is affected by your decision, and how?
  • What are the long-term consequences of your decision?
  • How will your decision make you feel?
  • Have you examined all the alternatives?

2. What are the key elements of the CAPS role?

Reveal answer
  • Manage the relationship between property owners and the management company
  • Make sure portfolio performs to expectations
  • Increase performance of underperforming properties
  • Recommend and implement operational and financial improvements

3. What are property owners’ most common goals?

Reveal answer
  • Specific rate of return
  • Regular cash flow
  • Refinancing
  • Renovating or retrofitting
  • Repositioning the property
  • Income to acquire more properties

4. What are the elements of a good financial strategy when working with a property owner?

Reveal answer
  • Keep owner well informed with details
  • Factor owner goals into all key financial activities
  • Provide incisive and timely analysis
  • Take decisive and effective steps to correct shortfalls
  • Recommend strategies and tactics
  • Assess property or portfolio growth regularly

5. How can you best communicate with owners?

Reveal answer
  • Be proactive
  • Vary the amount of communication based on size and condition of property/portfolio and preferences of owner
  • Defer to the owner’s preference for type of communication (phone, email, etc.)
  • Document all interactions (issues discussed and decisions made)

6. What are the key components of a Management Agreement?

Reveal answer
  • Budget and Business Plan
  • Minimum Leasing Guidelines
  • Obligation to Advance Payments
  • Operating Expenses
  • Extraordinary Expenses
  • Legal Fees
  • Money Left at the End of the Month
  • Who Gets Paid First?
  • Reports
  • Financial Audits
  • Leasing and Rental Practices
  • Performance of Repairs
  • Contracts, Utilities, and Services
  • Contract Limitations
  • Budget and Business Plan
  • Established jointly by owner and management company
  • Gives the management company financial guidelines
  • Minimum Leasing Guidelines
  • Establishes management company accountability for property performance
  • Termination
  • Complete Agreement

7. What property information should appear on a Property Information Sheet?

Reveal answer
  • Location, size, name, age
  • Relevant building codes
  • Mix of unit types
  • Amenities
  • Mortgage information
  • Tax parcel ID numbers

8. Which report is created in order to give a clear picture of how a property has performed for previous month, quarter, and year, and to link property performance to the owner’s objectives?

Reveal answer

The owner’s report

9. As a CAPS, what should you look for in your review of an owner’s report?

Reveal answer
  • Clarity
  • A thorough explanation of property performance
  • A thorough explanation of action plans
  • Explanation of budget variances
  • Supporting data and other reports

10. What are the major parts of an owner’s report?

Reveal answer
  • Executive Summary
  • Overview of Market/Economic Conditions
  • Capital Expenses/Physical Plant
  • Financial Operations
  • Property Operations Activity Reports

11. What’s the key advantage, and key disadvantage, of government-sponsored loans?

Reveal answer
  • Advantage: lower interest rates
  • Disadvantage: additional requirements for the borrower

12. What types of discrimination are prohibited by the Fair Housing Act?

Reveal answer
  • Race
  • Color
  • National origin
  • Religion
  • Sex
  • Familial status
  • Disabilities

13. What must a property do in order to comply with the Fair Credit Reporting Act (FCRA)?

Reveal answer
  • Provide written notice and receive authorization from the subject of credit report
  • Certify to credit reporting agency that the information won’t be used for discriminatory purposes

14. What are the requirements of the Occupational Safety and Health Act (OSHA)?

Reveal answer

Employers must provide place of employment that is “free from recognized hazards that are causing, or are likely to cause, death or serious physical harm to employees.”

15. What law requires that federally-assisted housing be readily accessible to and usable by individuals with disabilities?

Reveal answer

Section 504 of the Rehabilitation Act of 1973

16. What does Title I of the Americans with Disabilities Act (ADA) mandate?

Reveal answer

It prohibits employment discrimination against qualified applicants or employees with a disability who, with or without reasonable accommodation, can perform the essential functions of the employment position.

17. What does Title III of the Americans with Disabilities Act (ADA) mandate?

Reveal answer

It requires that public spaces and common areas used by the public be accessible to persons with disabilities.

18. What are the five major OSHA standards?

Reveal answer
  • Hazard Communication Standard for Chemicals
  • The Lockout/Tagout Standard for Controlling Energy Sources
  • Bloodborne Pathogens
  • Personal Protective Equipment (PPE)
  • The Electrical Safety Training Program.

19. What are some ways to be sure a property complies with the Fair Housing Act?

Reveal answer
  • Display Fair Housing posters where they can be easily seen by prospects and residents. Minimum size required by law is 11” x 14”
  • Train employees right from the start
  • Establish screening protocols for situations when potential Fair Housing conflicts arise
  • Monitor staff compliance with mystery shoppers
  • Consider a third-party resident screening company

20. What’s the definition of a disability?

Reveal answer

A mental or physical condition that substantially limits one or more major life activities.

21. What are the accessibility requirements for all buildings built after March 13, 1991?

Reveal answer
  • Wheelchair accessible entrances on an accessible route
  • Accessible public and common use areas
  • Usable doors
  • Accessible routes into and within the dwelling
  • Switches, outlets, environmental controls at specific heights
  • Usable kitchens and bathrooms
  • Bathroom walls reinforced for grab bar installation
  • These apply to all units in buildings with elevators, and to the ground floor in buildings without elevators.

22. What is a property legally required to provide to make it “habitable”?

Reveal answer
  • Protection from weather
  • Working utilities
  • Trash collection
  • Clean safe common areas
  • Addressing environmental hazards
  • Controlling nuisances

23. How can you best avoid habitability issues?

Reveal answer
  • Hire good community managers
  • Ensure maintenance is timely and high quality
  • Ensure adequate maintenance personnel and financial resources
  • Perform inspections

24. What crime deterrence measures should a CAPS coach a community manager to implement?

Reveal answer
  • Track type, frequency, location of crimes in the neighborhood
  • Stay in contact with law enforcement and other apartment communities in the area
  • Ensure all necessary precautions are taken, such as key control and installation of security equipment
  • Keep residents informed about safety

25. If a resident comes directly to you with a problem, what should you do or not do?

Reveal answer
  • Tell them you’ll investigate
  • Research and make fair decision, but your first instinct should be to back up community manager
  • Do not just give in to their demands to make the problem go away

26. What are some ways to cultivate a relationship with the community?

Reveal answer
  • Work with local law enforcement on crime and safety
  • Get involved in community events
  • Implement “green” initiatives
  • Develop relationships with businesses
  • Comply with local laws
  • Develop good relationship with local government
  • Keep in touch with local NAA affiliate.