chapter 18-Property Management Flashcards
The Property Management:
-maintains the owner’s investment and
-ensures that the property produces income.
-Property manger is typically considered a general agent to the property owner.
Involves the leasing, managing, marketing, and overall maintenance of real state owned by others.
-preserve and/or increase the value of the investment property
-maintain the owners investment and ensure the property produces income.
What are the basic management duties?
Include budgeting, setting rental rates, selecting tenants, collecting rent, maintaining the property, completing with legal requirements, and proving periodic financial and operational reports to the owner.
SPECIALIZED OPPORTUNITIES
Community Association Management:
Working as a part of a team, these property managers assist in providing a comprehensive array of services to a volunteer boards.
Asset management:
Monitor a portfolio of the properties similar to a securities portfolio by analyzing the performance of the properties and making recommendations to the owners of the properties.
Corporate Property Management:
Manage properties for corporations that invest in real state.
THE MANAGEMENT PLAN AND AGREEMENT
The Management Plan:
-Property management begins with a management plan prepared by the property manager.
-A management plan outlines the details of the owner’s objectives for the property, as well as what property manager expects to accomplish and how, including financial objectives.
Management Agreement:
-Description of the property
-Time period the agreement covers
-Definition of Property Manger’s responsibility
-Statement of owner’s purpose
-Extent of the manager’s authority
-Reporting
-Management fee
-Allocation of costs
-
Property Managers Responsibilities:
-Financial Reports
Operating budget
Income
Expenses
Cash flow report
Profit and loss statement
Budget comparison statement
-Renting the Property
Setting rental rates
Selecting tenants
Collecting rents
-Maintaining Good Relations with Tenants
-Maintaining the Property
Preventive maintenance
Repair or corrective maintenance
Routine maintenance
Regulations:
Handling environmental Concerns
Americans with Disability ACt
Risk Management
Security Tenants
Insurance
Claims
-Depreciated our actual cash value
-Current replacement cost
The Management Profession
Which type of insurance overage insures and employer against MOST claims for job-related injuries?
Worker’s compensation
Residential leases are usually expressed as
Avoid, control, transfer, or retain are the four alternative techniques of
Risk management
From a management point of view, apartment building occupancy that reaches as high as 98% would tend to indicate that
Rent could be raised
A guest slips on an icy stair at an apartment building and is hospitalized. A claim against the building owner for medical expenses may be paid under which of these policies held by the owner?
Liability
