Unit19:property management

Question 1

budget comparison statement

Answer 1

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

Question 2

building-related illness (BRI)

Answer 2

An illness due to air quality problems, typically toxic substances or pathogen’s; a clinically diagnosed condition. Symptoms include asthma, allergies, and hypersensitivity.

Question 3

cash flow

Answer 3

The new spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed income, a negative cash flow results.

Question 4

cash flow report

Answer 4

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

Question 5

commingling

Answer 5

The illegal act by a real estate professional of placing client or customer finds with personals funds. By law, real estate professionals are required to maintain, a separate trust or escrow account for other parties’ funds held temporarily by the real estate professional.

Question 6

community association management

Answer 6

Provides a team of property managers, accounting staff, office staff, and property consultants to manage property.

Question 7

corrective maintenance

Answer 7

Correction of problems after they have occurred.

Question 8

management agreement

Answer 8

A contract between the owner the owner of income property and a management firm or individual property manager that outlines the scope of the manager’s authority

Question 9

management plan

Answer 9

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.

Question 10

multiperil policies

Answer 10

Insurance policies that offer protection from a range of potential perils, such as fire, hazard, public liability, and casualty.

Question 11

operating budget

Answer 11

A property’s anticipated financial performances in the present and future. It gives the owner a sense of expected profit.

Question 12

profit and loss statement

Answer 12

A general financial picture based on the monthly cash flow reports; does not include itemized information.

Question 13

property manager

Answer 13

someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting

Question 14

preventaive maintenance

Answer 14

Small repairs that help prevent bigger problems and expenses.

Question 15

risk management

Answer 15

Evaluation and selection of appropriate property and to other insurance

Question 16

routine maintenance

Answer 16

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.

Question 17

sick building syndrome (SBS)

Answer 17

An illness caused by poor air quality, typically in large commercial buildings. Symptoms include fatigue, nausea, headache, and sensitivity to odors.

Question 18

surety bonds

Answer 18

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 the 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.

Question 19

tenant’s insurance

Answer 19

Insurance on the personal belongings of tenants.

Question 20

tenant improvements

Answer 20

Alterations to the interior of a building to meet the functional demands of the tenant. Also known as build-outs.

Question 21

workers’ compensation acts

Answer 21

state laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment.