Hawaii Pre-Licensing National Practice Exam

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Prepare for the Hawaii Pre-Licensing National Exam. Study with flashcards and multiple choice questions, each question provides hints and explanations. Get ready for success!

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What is the principal purpose of a broker when managing a property?

To maximize tenant occupancy
To lower property expenses
To ensure compliance with local regulations
To serve the interest of the property owner

The correct answer is: To serve the interest of the property owner

The principal purpose of a broker when managing a property is to serve the interest of the property owner. This involves representing the owner's best interests in all aspects of property management, including financial performance, tenant relations, and compliance with applicable laws. By prioritizing the owner's objectives, a broker works to enhance the property's value, optimize returns, and make informed decisions that align with the owner's goals. While maximizing tenant occupancy, lowering property expenses, and ensuring compliance are important aspects of property management, these activities are ultimately geared towards achieving the broader goal of serving the property owner's interests. For instance, increasing tenant occupancy can lead to higher revenue for the owner, but it must be managed in a way that also aligns with the owner's long-term strategy. Similarly, cost management and regulatory compliance are critical but are considered tools to fulfill the broker's primary responsibility to protect and promote the property owner's investment.