UNIT 19 PROPERTY MANAGEMENT Flashcards
BUDGET COMPARISON STATEMENT
Compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses.
CASH FLOW REPORT
A monthly statement that details the financial status of the property.
CORRECTIVE MAINTENANCE
Correction of problems after they have occurred.
MANAGEMENT AGREEMENT
A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the manager’s authority.
MANAGEMENT PLAN
A highly detailed plan that lays out the owner’s objectives for a property, as well as what the property manager wants to accomplish and how, including all budgetary information.
MULTIPERIL POLICIES
Insurance policies that offer protection from a range of potential perils, such as fire, hazard, public liability, and casualty.
OPERATING BUDGET
A property’s anticipated financial performance in the present and future. It gives the owner a sense of expected profit.
PREVENTATIVE MAINTENANCE
Small repairs that help prevent bigger problems and expenses.
PROFIT AND LOSS STATEMENT
A general financial picture based on the monthly cash flow reports; does not include itemized information.
PROPERTY MANAGER
Someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up on all accounting.
RISK MANAGEMENT
Evaluation and selection of appropriate property and other insurance.
ROUTINE MAINTENANCE
Day to day duties such as cleaning common areas, performing minor carpentry and plumbing adjustments, and providing regularly scheduled upkeep of heating, air conditioning, and landscaping.
SURETY BONDS
An agreement by an insurance or bonding company to be responsible for certain possible defaults, debts, or obligations incurred by an insured party; in essence, a policy insuring one’s personal and/or financial integrity. In real estate business, a surety bond is generally used to ensure that a particular project will be completed at a certain date or that a contract will be performed as stated.
TENANT IMPROVEMENTS
Alterations to the interior of a building to meet the functional demands of the tenants. Also known as build-outs.
WORKER’S COMPENSATION ACTS
State laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment.
