Unit 19 - Property Management Flashcards
Property manager primary responsibilities
Achieve objectives of property owner
Generate income for owner
Preserve or increase value of property
Maintain condition of property
Find suitable tenants
Hire/ supervise employees
Budget control expense
General agency
General agent - does many tasks for owner
No license needed if
You work for one person
Rent lease manage
Cant be paid a commission or extra for completing a task
Community association management
Manage a community- HOA
Condominium association
Housing for seniors
Mature living property management
Manufactured homes
Homes built in factories for HUD management
Resort housing
Maintain often vacant property
Short term tenants
Concierge service
Office building
Assets management
Monitors a portfolio of properties
Corporate property manager
Corporations who invest in RE
Often an employee who works for that company
Leasing agent
Fill rentals
Usually independent contractor working on commission
Elements of a management agreement
Description of property Time period- how long is the contract for Manger responsibilities Stating Owners purpose Extent of mangers authority Reporting requirements Compensation Allocation of cost- who pays what Liability- be on owners insurance policy Anti trust provisions- no price fixing Equal opportunity housing statement
Management plan
Creates an agency relation ship between property owner and manager
Like a listing agreement
Owner objective
Regional and neighborhood market
Specific property/target property
Corral points
Absorption rate - shows real life consumed demand *demand cab exists with out getting it. Getting into Harvard
New starts
Occupancy
Financial report
Operating budget -estimate future income and expenses. Developed before attempting to rent
Cash flow- detailed monthly statement. Cash on hand at given point. Most important report
Profit and loss statement - created from cash flow report. Summary of cash flow report
Budget comparison - compares reports cash flow vs operating budget
Fixed charges \ operating
Profits
CPL
Cost per lead
Renter do not pay on time the PM needs a
Collection plan
Rent per square foot(commercial)
Calculate floor space
Rental amount for the year
Divide rent by square foot
Preventative maintenance
Most over looked
Corrective maintenance
Currently broken
Routine maintenance
Painting
Construction
Tenant improvements
Build outs
Environmental concerns
Waste disposal
Air quality
Recycling
BRI / SBS
Building related illness
Sick Building syndrome
Risk management techniques
ACTOR
Avoid - remove source of risk
Control - pre plan for emergency
Transfer- shift risk to third party(insurance (
Or Retain- risk to small to worry about
NOT IGNORE
Tenant security
Protect tenant from intruders.
Rental insurance
HO-4
Claims
Replacement cost
Actual cost - depreciation considered
Coinsurance clause
80% of the building must be coveted
Content and personal property policy
Cover items in event of loss personal property
Multiperil policies
Insurance that covers alot of little things
Surety bond
Covers employees bad deeds
Worker’s compensation act
Covers injured employees
