Unit 19 Key Terms

Question 1

Compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses.

Answer 1

budget comparison statement

Question 2

A monthly statement that details the financial status of the property.

Answer 2

cash flow report

Question 3

Involves the actual repairs that keep the buildings equipment, utilities, and amenities functioning.

Answer 3

corrective maintenance

Question 4

Outlines the details of the owners objectives with the property, as well as what the PM plans to accomplish and how, including all financial objectives.

Answer 4

management plan

Question 5

Offers and insurance package that includes standard types of commercial coverage, such as fire, hazard, public liability and casualty.

Answer 5

multiperil policies

Question 6

Projection of income and expense for the operation of a property over a one-year period.

Answer 6

operating budget

Question 7

Preserves the long-range value and physical integrity of the building by completing regularly scheduled activities such as painting and seasonal servicing of appliances and systems.

Answer 7

preventive maintenance

Question 8

A financial picture of revenues and expenses used to determine whether a business has made money or suffered a loss.

Answer 8

profit and loss statement

Question 9

Carries out the goals of the property owner, generates income and preserve and increase the value of the property.

Answer 9

property manager

Question 10

PM’s responsibility to avoid enormous monetary losses.

Answer 10

risk management
Four alternative risk management techniques: ACTOR
avoid, control, transfer or retain

Question 11

Such day-to-day duties as performing minor carpentry and plumbing repairs, and providing regularly scheduled upkeep.

Answer 11

routine maintenance

Question 12

Cover an owner against financial losses resulting from an employee’s criminal acts or negligence while performing assigned duties.

Answer 12

surety bonds

Question 13

Construction alterations to the interior of the building to meet a tenants particular space needs.

Answer 13

tenant improvements

Question 14

Claims for medical or hospital payments for injuries sustained by building employees hurt in the course of their employment are covered by state laws.

Answer 14

workers compensation acts