Chapter 18 - Property Management Flashcards
What is the most common tenant complaint?
Service and maintenance requests
When is a CAM license required?
When managing a residential association (Condo, co-op, HOA) that is greater than 10 units or an annual budget in excess of $100,000.
A CAM licensee cannot sell real estate unless also licensed as a sales associate or broker.
A real estate licensee cannot manage a residential association without a CAM license
Vacation rentals are exempt from real estate licensure.
What is the concept of “oversupply” in property management?
Technical oversupply is when available units outnumber potential tenants (too much space)
Economic oversupply is when available space is priced beyond the purchasing power of potential tenants (the rent is too damn high, so not enough tenants)
How are security deposits handled in a property management account?
In separate, non-interest-bearing account OR
Separate interest-bearing account (pay tenant 75% of the avg interest or a straight 5%, whichever landlord elects)
Commingle the funds upon posting a surety bond with the Clerk of Court for the total amount of the deposits or $50,000, whichever is less and pay tenant straight 5% interest (a BROKER may never do this; only an owner).
What may a property manager do to transfer risks involved with a property?
Buy insurance, make sure all contractors who come on the property are insured, and encourage tenants to carry renters’ insurance
When does a landlord have a right to enter a property that is rented?
With 12 hours notice and between 7:30 am and 8:00 pm: To inspect, repair, supply agreed upon services, or show the property. Cannot abuse right of entry to harass tenant.
Without notice: to preserve premises in an emergency.
