Unit19: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.
building-related illness (BRI)
An illness due to air quality problems, typically toxic substances or pathogen’s; a clinically diagnosed condition. Symptoms include asthma, allergies, and hypersensitivity.
cash flow
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.
cash flow report
A monthly statement that details the financial status of the property.
commingling
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.
community association management
Provides a team of property managers, accounting staff, office staff, and property consultants to manage property.
corrective maintenance
Correction of problems after they have occurred.
management agreement
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
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 performances in the present and future. It gives the owner a sense of expected profit.
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 all accounting
preventaive maintenance
Small repairs that help prevent bigger problems and expenses.
risk management
Evaluation and selection of appropriate property and to 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.
sick building syndrome (SBS)
An illness caused by poor air quality, typically in large commercial buildings. Symptoms include fatigue, nausea, headache, and sensitivity to odors.
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 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.
tenant’s insurance
Insurance on the personal belongings of tenants.
tenant improvements
Alterations to the interior of a building to meet the functional demands of the tenant. Also known as build-outs.
workers’ compensation acts
state laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment.
