Chapter 19: Property Management Flashcards
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.
- Functions:
- Produce the greatest net return for the owner.
- Protect & increase the owner’s investment.
Property Management
A contract between the owner of a property and someone who agrees to manage it.
Management Agreement
An individual or company responsible for the day-to-day functioning of a piece of real estate.
Property Manager
A manager of a property who lives on-site.
Resident Manager
An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period.
Property Management Report
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.).
Anchor Stores
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 Expense (CAPEX)
Money set aside by a property owner for long-term capital expenditures to a property.
Capital Reserve Budget
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.
Corrective Maintenance
A legal proceeding by a lessor landlord to recover possession of real property.
Eviction
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.
Fiduciary
Someone authorized to transact every kind of business for the principal.
General Agent
A person to whom property is rented under a lease.
Lessee
One who rents property to another under a lease.
Lessor
A document that sets forth the duties of the manager when employed by the owner.
Management Proposal
An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively.
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.
Planned Unit Development
Keeping property and equipment in a good state of repair so as to minimize the need for more costly major repair work or replacement.
Preventative Maintenance
Controlling and limiting risk in property ownership.
Risk Management
A forecast of income and expenses for a property, typically over a three to five year period.
Stabilized Budget
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.
Tenancy for Years
Property expenditures that vary depending of the operations of the property.
Variable Expense
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
