Unit 18

Question 1

Property Manager

Answer 1

Agency Relationship w/ owner
Goals:
-achieve objectives of property owners
-generate income for owners
-preserve and/or increase value of investment property

in IL, property managers must be licensed brokers or managing brokers
exception: resident managers

Question 2

Property Management Company

Answer 2

Firm manages properties for a number of owners under management agreements

Question 3

Community Association Management

Answer 3

Different license for this – cannot perform any broker duties

Question 4

Management Plan

Answer 4

prepared by Property Manager to outline the owner’s objectives of the property

Question 5

Management Agreement

Answer 5

this creates general agency relationship. Should be in writing

Question 6

Rental commissions

Answer 6

generally based on annual rent
ex. if rent is $1000/month, commission 8%
1000 x 12 x 8% = commission

Question 7

Cash Flow Report

Answer 7

monthly statement

Question 8

True or False:

Fair Housing Law DOES NOT apply to commercial property

Answer 8

TRUE – its ADA

Question 9

Types of maintenance

Answer 9

Preventative
Repair or Corrective
Routine
Construction

Question 10

Risk Management

Answer 10

Avoid risk - removing source ex pool
Control Risk - Preparing for
Transfer Risk - shifting responsibility - getting insurance
Retain risk - insurance policy with large deductible

Question 11

Fire and Hazard Insurance

Answer 11

Fire

Question 12

Consequential loss insurance

Answer 12

Disaster; can cover loss of rent or revenue

Question 13

Contents and Personal Property

Answer 13

Building contents and personal property when not on premises

Question 14

Liability Insurance

Answer 14

public entering the building injured

Question 15

Casualty

Answer 15

Theft, burglary, vandelism

Question 16

Surety

Answer 16

Financial loss from employees criminal acts