Chapter 19 Flashcards
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.
Resident Manager
A manager of a property who lives on-site.
Management Agreement
A contract between the owner of a property and someone who agrees to manage it.
Property Management Report
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period
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 to a property.
Corrective Maintenance
A maintenance task performed to identify, isolate, and rectify 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
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 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.
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 Manager
An individual or company responsible for the day-to-day functioning of a piece of real estate.
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 Expense
Property expenditures that vary depending of the operations of the property.
