Chapter 19. Flashcards
Anchor Stores
A key tenant in retail. Typically one of the larger stores in a shopping mall, usually a department store or a major retail chain (Macys, Nordstrom, etc.)
Capital Expense (CAPEX)
Expenditures creating future value. Incurred when a property owner spends money to upgrade a building in an effort to add value and/or extend the useful life of the building.
Capital Reserve Budget
Money set aside by a property owner for long-term capital expenditures (ხარჯები) to a property
Corrective Maintenance
A maintenance task performed to identify, isolate, and rectify ( გასწორება) a problem with a property so that the property can be restored to an acceptable condition.
Eviction
A legal proceeding by a lessor landlord to recover possession of real property.
Fiduciary ( სანდო პირი)
A person who on behalf of or for the benefit of another transacts business or handles money or property not the person’s own; such relationship implies great confidence and trust.
General Agent
Someone authorized to transact every kind of business for the principal.
Lessee
A person to whom property is rented under a lease.
Lessor
One who rents property to another under a lease.
Management Agreement
A contract between the owner of a property and someone who agrees to manage it.
Management Proposal
A document that sets forth the duties of the manager when employed by the owner.
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.
Planned Unit Development
A highly designed residential project that features relatively dense clusters of houses, which are usually surrounded by areas of commonly owned open space maintained by a nonprofit community association.
Preventative Maintenance
Keeping property and equipment in a good state of repair so as to minimize the need for more costly major repair work or replacement.
Property Management
The administration of residential, commercial and/or industrial real estate. Property management typically involves the managing of property that is owned by another party or entity. Property managers are typically paid a fee and/or a percentage of the rent brought in for the property while under management.
Property Management Report
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period.
Property Manager
An individual or company responsible for the day-to-day functioning of a piece of real estate.
Resident Manager
A manager of a property who lives on-site.
Risk Management
Controlling and limiting risk in property ownership.
Stabilized Budget -
A forecast of income and expenses for a property, typically over a three to five year period.
Tenancy for Years
A lease for a fixed period of time. For a tenancy for years lease, no notice is needed for termination, the lessee knows the termination date from the outset of the lease.
Variable ( ცვლადი) Expense
Property expenditures ( ხარჯი) that vary depending of the operations of the property.
Which of the following is NOT typically found in a Management Agreement…?
General agency disclosure
What is the total monthly rent roll of a building with the following rents: (1) 3 bedrooms at $4,600/month (8) 2 bedrooms at $3,800/month (8) 1 bedroom at $3,300/month (2) Studios at $2,200/month
65800
In which type of property management must a manager understand the layout needs and desires of the tenant…?
Office Management
Repairing a leak in the roof is an example of this type of maintenance…?
Corrective Maintenance
This individual acts as the owner’s advisor to determine the best long-term strategy for a property…?
Asset Manager
What is typically the overall goal of the property manager…?
Produce the best NOI for the property
This document is developed by the property manager and describes how rents will be maximized…?
Marketing Plan
A property management report is typically delivered to the owner on what basis…?
Monthly
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period is known as a/an…?
Property Management Report
Which of the following is typically found in the Management Agreement between the property manager and the owner…?
Length of the agreement
Replacing filters is an example of this type of maintenance…?
Preventative Maintenance
Which of the following is an example of corrective maintenance…?
Repairing an air handling unit
In a rental property, how is the management fee typically calculated…?
Percentage of the income collected
Where does a property manager typically hold the rents collected on behalf of the owner…?
Trust Account
Which of the following is typically found in the Management Agreement between the property manager and the owner…?
Which of the following is typically found in the Management Agreement between the property manager and the owner…?
In what type of property management must a manager understand the needs and desires of an anchor tenant…?
Retail Management
Which of the following is an example of corrective maintenance…?
Repairing an air handling unit
This institute offers courses to obtain the Certified Property Manager (CPM) designation…?
IREM
In which building type are water and sewer billbacks commonly found as an additional source of income for the owner…?
Retail
Which of the following expenses is typically related to the age of the building…?
Building repairs
This document is developed by the property manager and describes how rents will be maximized…?
Marketing Plan
Which of the following is NOT included in the marketing plan…?
Operating Budget
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively is known as a/an…?
Operating Budget
A highly designed residential project that features relatively dense clusters of houses, which are usually surrounded by areas of commonly owned open space maintained by a nonprofit community association is known as a…?
Planned Unit Development
In a general agency relationship between the property manager and owner, who serves as the agent…?
The property manager
In which type of property management is a manager most likely to be involved in the enforcement of the building association’s rules and regulations…?
Condominium and Cooperative Management
This individual acts as the owner’s advisor to determine the best long-term strategy for a property…?
Asset Manager
Which of the following is an example of a variable expense…?
Water and sewer fees
Which of the following is typically found in the Management Agreement between the property manager and the owner…?
The management fees
In which type of property management must a manager understand the layout needs and desires of the tenant…?
Office Management
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period is known as a/an…?
Property Management Report
Which of the following is NOT prepared by a property manager when managing a rental building…?
Tenant fit-out budget
Property expenditures that vary depending of the operations of the property are known as…?
Variable Expense
Which of the following is an example of ‘Other Miscellaneous Income’, found in the operating budget…?
Application fees
