Chapter 18 - Property Management Flashcards
Actual Eviction
Legal process of eviction
Anchor tenant
In commercial/retail development, a major retailer who serves at the center of the development to attract business for smaller tenants
Building Manager
Property manager managing just one building.
Capital Expense
Used to improve property and increase value - roof, air conditioning, other long term investment components.
Capital Reserve Budget
Reserve budget for capital expenses - variable expenses.
Constructive Eviction
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.
Corrective Maintenance
Fix a problem/broken things
Cosmetic Maintenance
Increases appeal - paint job, landscaping.
Fiduciary
Person in a position of trust, he’d by law to high standards of faith and loyalty
General Agent
Authorized to handle all of principal’s affair in one area or specified areas.
Lessee
Tenant.
Lessor
Landlord.
Management Agreement
Written agreement governing relationship between property owner/investor and property manager.
Management Proposal
Prepared by manager for overseeing property - includes analysis of the market and financial reports including budget.
Operating Budget
Project income and expenses over one year period.
Preventative Maintenance
Routine maintenance to keep everything in working order.
Principal
Owner of property who hires property manager (agent)
Property Management
Leasing real property of others for a fee, commission, compensation.
Property Management Report
Prepared monthly by property managers for owners, including income, expenses, and disbursement to inform owners on status of property.
Property Manager
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
Rent Roll
Spreadsheet or listing of key information about property and tenants - lease dates, rent paid, etc.
Resident Manager
Represents property management firm and may live on premises.
Risk Management
Identifying, managing, and minimizing potential risks to a property.
Stabilized Budget
Long term plan over 5 years - takes into account market trends and growth.
Variable Expense
Expenses necessary to property that depend on level of occupancy.
Self-help eviction
ILLEGAL. Landlord forces tenant out.
