Property Management

Question 1

Types of Property Managers (3)

Answer 1

• Individual property managers handle multiple property types.
• Individual building managers focus on a specific building or complex.
• Resident managers live on-site and manage a residential property while residing there.

Question 2

A management proposal is

Answer 2

a plan that a property manager creates for managing a property that includes an analysis of the market along with the financial standing, operating budget, and other important factors of the property.

Question 3

So when an owner sells their property, they can deduct any __________ made on their property when figuring capital gains tax.

Answer 3

capital improvements

Question 4

Rental Schedules

Answer 4

evaluate national, regional, and local trends for the type of property they are managing, along with an analysis of comparable properties that are available for rent. A rental schedule should also include an operating budget in order to analyze the property’s projected expenses.

Question 5

rent roll vs property management report

Answer 5

In summary, a “Rent Roll” specifically focuses on rental income details, while a “Property Management Report” offers a more comprehensive view of the property’s management, encompassing financial, operational, and tenant-related information. The former is often used for financial analysis, while the latter serves as a broader management tool.

Question 6

The capital reserve budget is

Answer 6

a budget that accounts for variable expenses.

Question 7

stabilized budget

Answer 7

A stabilized budget is a property’s income and expenses averaged over a period of five years.

Question 8

Operating Budget

Answer 8

an itemized budget created by using anticipated revenues and expenses for a property over a period of one year.

Question 9

Operating statements

Answer 9

on the other hand, weigh a property’s income and operating expenses over the previous year. An operating statement is historical.