Chapter 18 - Property Management

Question 1

Actual Eviction

Answer 1

Legal process of eviction

Question 2

Anchor tenant

Answer 2

In commercial/retail development, a major retailer who serves at the center of the development to attract business for smaller tenants

Question 3

Building Manager

Answer 3

Property manager managing just one building.

Question 4

Capital Expense

Answer 4

Used to improve property and increase value - roof, air conditioning, other long term investment components.

Question 5

Capital Reserve Budget

Answer 5

Reserve budget for capital expenses - variable expenses.

Question 6

Constructive Eviction

Answer 6

Eviction because tenant is no longer able to live in property - poor plumbing, no heat, etc. Tenant must vacate property to legally claim constructive eviction.

Question 7

Corrective Maintenance

Answer 7

Fix a problem/broken things

Question 8

Cosmetic Maintenance

Answer 8

Increases appeal - paint job, landscaping.

Question 9

Fiduciary

Answer 9

Person in a position of trust, he’d by law to high standards of faith and loyalty

Question 10

General Agent

Answer 10

Authorized to handle all of principal’s affair in one area or specified areas.

Question 11

Lessee

Answer 11

Tenant.

Question 12

Lessor

Answer 12

Landlord.

Question 13

Management Agreement

Answer 13

Written agreement governing relationship between property owner/investor and property manager.

Question 14

Management Proposal

Answer 14

Prepared by manager for overseeing property - includes analysis of the market and financial reports including budget.

Question 15

Operating Budget

Answer 15

Project income and expenses over one year period.

Question 16

Preventative Maintenance

Answer 16

Routine maintenance to keep everything in working order.

Question 17

Principal

Answer 17

Owner of property who hires property manager (agent)

Question 18

Property Management

Answer 18

Leasing real property of others for a fee, commission, compensation.

Question 19

Property Management Report

Answer 19

Prepared monthly by property managers for owners, including income, expenses, and disbursement to inform owners on status of property.

Question 20

Property Manager

Answer 20

Person hired by property owner to administer, market, and maintain property (specifically rental property). Usually oversees multiple properties. Obligations:

1) fulfill goals/objectives of owners
2) create income
3) maintain or increase property’s value

Question 21

Rent Roll

Answer 21

Spreadsheet or listing of key information about property and tenants - lease dates, rent paid, etc.

Question 22

Resident Manager

Answer 22

Represents property management firm and may live on premises.

Question 23

Risk Management

Answer 23

Identifying, managing, and minimizing potential risks to a property.

Question 24

Stabilized Budget

Answer 24

Long term plan over 5 years - takes into account market trends and growth.

Question 25

Variable Expense

Answer 25

Expenses necessary to property that depend on level of occupancy.

Question 26

Self-help eviction

Answer 26

ILLEGAL. Landlord forces tenant out.