Property Management
A Montana property manager overseeing a residential development's HOA must ensure that the association maintains adequate reserves for major capital repairs. This is important because:
AThe state requires all HOAs to maintain a minimum reserve balance
BInadequate reserves can lead to special assessments, deferred maintenance, and reduced property values—affecting all homeowners✓ Correct
CReserve funds earn tax-free interest under Montana law
DOnly commercial condominiums need reserve funds
Explanation
Adequate HOA reserves are critical for long-term property value. Without reserves, associations must levy special assessments for major repairs (roof replacement, parking lot resurfacing), creating financial burden and potentially reducing property values and sales prices.
Related Montana Property Management Questions
- A Montana property manager who wishes to evict a tenant for non-payment of rent must first serve:
- A Montana property manager handling a mixed-use commercial and residential property must be aware that leasing the residential units requires compliance with:
- A Montana property manager who acts outside the scope of authority granted in the management agreement may expose the property owner to liability because:
- A Montana property manager must maintain accurate records of all trust account transactions for a minimum of:
- A Montana property manager who discovers a habitability problem (such as a broken heating system in winter) must:
- A Montana property manager who discovers a carbon monoxide detector is missing from a rental property should:
- When a Montana commercial tenant exercises a lease renewal option, the property manager should ensure:
- A Montana property manager who collects rent on behalf of a property owner for a fee must hold:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →