Property Management

Question 1

Property Manager

Answer 1

someone who is hired by a property owner to market, maintain, and oversee the day-to-day operation of a property.

the vocation of renting or leasing someone else’s real property on their behalf in exchange for compensation and in accordance with a property management employee contract.

main responsibilities are to realize the highest return possible on the owner’s investment.

Question 2

absentee owner

Answer 2

is a property owner who does not occupy the property in question and therefore often utilizes a property manager’s services. It’s hard to keep tabs on your property when you’re not there.

Question 3

community association manager (CAM)

Answer 3

the difference between a property manager and a community association manager is that a community association manager must hold a CAM license, while a property manager does not need a CAM license.

Question 4

CAMs manage community associations such as:

Answer 4

Mobile home parks

Planned unit developments (PUDs)

Homeowners associations

Cooperatives

Timeshares

Condominiums

Question 5

CAM license

Answer 5

If a license holder is managing one of these types of properties, and if that property has eleven or more units or an annual budget over $100,000.

Question 6

Property Management Responsabilities

Answer 6

Landlords
Marketing
Relationships
Rento collection

Question 7

rent roll for rent collection to property managers

Answer 7

It is a good idea to document all collected rent in an organizational tool

Question 8

Property Specialization

Answer 8

Industrial property

Special-purpose property

Residential property

Commercial property

Question 9

Special purpose property

Answer 9

t’s not uncommon to find special-purpose properties that are managed by members of that particular niche business.
These members are often uniquely skilled to address the property management needs of that specific property.
imagine the type of specialized knowledge you would need to manage a professional sports arena.

Question 10

Management agreement

Answer 10

The management agreement is a written contract between a property owner and a property manager to establish all duties of the property manager, including operation and leasing activities.

should be expressed in detail in writing in something called the management agreement, also called the property management contract.

Question 11

Common elements of property management

Answer 11

property managers can obtain property management agreements from their brokerages, from professional organizations, or they can even have an attorney draft one up. It all depends on the property’s needs.

Question 12

Management fees

Answer 12

The management fee is the price an owner pays the manager (or management company) for their services.

The management fees must be clearly expressed in the management agreement.

Question 13

Percentage Fee vs Flat fee

Answer 13

A percentage fee is a fee paid to the manager based on the effective gross income (EGI) of the building. This includes income from rent plus additional revenue streams.

A flat fee, or base commission, is a fixed fee paid per unit, not based on a percentage of the income.

Oftentimes, management fees are made up of both a flat fee and a percentage fee. A property manager may collect a base fee commission plus a specific percentage of the effective gross income.

Question 14

Rental agents on property management

Answer 14

Rental agents can be a type of property manager. They are specifically tasked with the duty of finding tenants to rent units in a property and handle leasing affairs. Rental agents are usually compensated with a commission or fee per tenant they find