Hawaii Pre-Licensing National Practice Exam

A property manager primarily works in the best interest of the?

1. Tenants

2. Real estate agents

3. Owner

4. Community

The correct answer is: Owner

A property manager primarily works in the best interest of the owner. Their main responsibility is to oversee the operation of the property while maximizing the owner’s return on investment. This includes tasks such as setting rental rates, maintaining the property, managing tenants, and ensuring compliance with local laws and regulations. While property managers must certainly consider tenant relationships and foster a good living environment, their fiduciary duty is to the property owner. This involves not only maintaining the property to keep tenants satisfied but also implementing strategies that enhance the property's value and profitability for the owner. In contrast, tenants have their own interests, such as seeking quality housing and fair treatment, which can sometimes align with the owner’s interests, but ultimately, the property manager's primary obligation is to the owner of the property. Real estate agents and the community can also be important considerations in the management process, but they do not hold the same weight regarding the property manager's primary responsibility.