Ch. 19 Property Management Flashcards
budget comparison statement
compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses
cash flow report
monthly statement that details the financial status of the property
corrective maintenance
correction of problems after they have occurred
management agreement
a contract creating a general agency relationship between the owner and the property manager. The management agreement defines the duties and responsibilities of each party; it is a guide used in operating the property, as well as a reference in case of any future disputes
management plan
plan outlines the details of the owner’s objectives with the property, as well as what the property manager expects to accomplish and how, including all financial objectives
multiperil policies
insurance policies that offer protection from a range of potential perils, such as fire, hazard, public liability, and casualty
operating budget
the projection of income and expense for the operation of a property over a one-year period
preventive maintenance
small repairs that help prevent bigger problems and expenses
profit and loss statement
financial picture of revenues and expenses used to determine whether a business has made money or suffered a loss
property manager
someone who manages real estate for another person for compensation. Duties include collecting rent, maintaining the property, and keeping up all accounting (typically considered a general agent)
risk management
evaluation and selection of appropriate property and other insurance/treatment of risk by deciding whether to Avoid it, Control it, Transfer it, or Retain it (ACTOR)
routine maintenance
day to day duties such as cleaning common areas, performing minor carpentry and plumbing adjustments, and providing regularly scheduled unkeep of heating, air-conditioning, and landscaping
surety bonds
cover an owner against financial losses resulting from an employee’s criminal acts or negligence while performing assigned duties
tenant improvements
build-outs, construction alterations to the interior of the bldg to meet a tenant’s particular space needs
workers’ compensation acts
State laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment
BRI & SBS
Building related illness/ sick bldg syndrome
HO-4
Renter’s insurance to protect personal belongings
Coinsurance Clause
requires the insured to carry fire coverage, usually in an amount equal to 80% of a bldgs replacement value
Leasing Agent
state-licensed real estate professional working as an independent contractor or property manager on a commission basis
Federal Laws affecting property management
Americans w/Disabilities Act (ADA), Equal Credit Opportunity Act (ECOA), Federal Fair Housing Act.
