Property ManagementIntermediateDelaware Exam

A property manager preparing an annual budget for the owner should include:

AOnly fixed expenses like taxes and insurance
BIncome projections, operating expenses, reserves for replacements, and debt serviceCorrect
COnly the maintenance expense history
DOnly the projected rent increases

Why Income projections, operating expenses, reserves for replacements, and debt service Is Correct

Answer B: Income projections, operating expenses, reserves for replacements, and debt service

A comprehensive property management budget includes projected income (rents), all operating expenses (maintenance, taxes, insurance, management fees), debt service, and reserves for capital replacements.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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