Chapter 19

Question 1

Property Management

Answer 1

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.

Question 2

Resident Manager

Answer 2

A manager of a property who lives on-site.

Question 3

Management Agreement

Answer 3

A contract between the owner of a property and someone who agrees to manage it.

Question 4

Property Management Report

Answer 4

An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period

Question 5

Anchor Stores

Answer 5

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.).

Question 6

Capital Expense (CAPEX)

Answer 6

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.

Question 7

Capital Reserve Budget

Answer 7

Money set aside by a property owner for long-term capital expenditures to a property.

Question 8

Corrective Maintenance

Answer 8

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.

Question 9

Eviction

Answer 9

A legal proceeding by a lessor landlord to recover possession of real property.

Question 10

Fiduciary

Answer 10

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.

Question 11

General Agent

Answer 11

Someone authorized to transact every kind of business for the principal.

Question 12

Lessee

Answer 12

A person to whom property is rented under a lease.

Question 13

Lessor

Answer 13

One who rents property to another under a lease.

Question 14

Management Proposal

Answer 14

A document that sets forth the duties of the manager when employed by the owner.

Question 15

Operating Budget

Answer 15

An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.

Question 16

Planned Unit Development

Answer 16

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.

Question 17

Property Management

Answer 17

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.

Question 18

Property Manager

Answer 18

An individual or company responsible for the day-to-day functioning of a piece of real estate.

Question 19

Risk Management

Answer 19

Controlling and limiting risk in property ownership.

Question 20

Stabilized Budget

Answer 20

A forecast of income and expenses for a property, typically over a three to five year period.

Question 21

Tenancy for Years

Answer 21

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.

Question 22

Variable Expense

Answer 22

Property expenditures that vary depending of the operations of the property.