Intro to property management Final
What is the ratio between net operating income and value?
Capitalization rate
"for use by owner" is a
Characteristic of Industrial Real-Estate
how can branding of apartments be defined?
Consistent policies regardless of physical locations
Sundry income
Fees not controlled by management (Laundry room receipts)
As a CAM what does your knowledge, skills & decisions directly contribute to?
Financial success & value of a property
Growth
a term that describes an investment increasing in value.
Why are Capital Replacements not an operating expense?
- differ owners have different standards -some replacements have a depreciation value -some properties have reserves to draw from
What are the 2 primary factors of life considered by renters when they choose to rent instead of buying a home?
-Flexibiility & the ability to move easily -reluctance to maintain a house
Why is debt service not an operating expense
-owners could have different terms than others -Down payments may be different
What are 3 primary factors of locations renters consider when deciding to rent?
-proximity to work, school, stores -walkability -proxomity to public transportation
Sundry vs. Ancillary
-sundry income is not controllable by management -ancillary is controlled by management
If a home has a living room, a bedroom, a guest bathroom, a master bedroom, a master bathroom, and a kitchen, it counts as ...
4 rooms
What is the motivation for owning and investion in apartment
A hedge against inflation- home values and rents typically increase in value during times of inflation
What is anything that is a direct cost in producing a good in its cost base?
Absorption
What is ADA?
American Disability Act
Investors, owners, and lenders
Are the role of investors advocate
what are considered senior housing
Assisted living independent living full service senior care
what is the best unit mix in an apartment community
It varies time to time, depending on economic conditions
NOI
Key number and basis for valuation of an investment
which of the following is always counted when counting rooms?
Kitchen
After subtracting the operating expense from income you arrive at...
NOI
Does branding ensure success?
No
What are considered operating expenses?
Payroll office supplies air conditioning repairs
"STACK" ?
Potential Gross Income-Vacancy/Collection Loss= Effective gross Income Effective Gross Income - Operating Expense = Net Operating Income
(LOTL) loss to old lease
The difference between the Potential Gross Rent & the Gross Potential Rent.
Maintaining ethics and balance
What are the key advocating for all groups?
corporate apartment
What is a furnished apartment fully appointed with amenities
Co-op
When a resident owns a share in a propertty and occupies a unit, they are an owner of a
Is branding necessary ?
Yes
Residents, prospects, neighbors, and employers are
included in the role of resident advocate
Ancillary income
other income controlled by management(application fees, and late fees)
What percentage of Americans live in rental housing?
over 1/3
what are considered affordable housing?
section 8 low income housing tax credits workforce housing
(IRV) Income Rate & Value
the acronym to determine the rate of return on a property & the value of a property
Absorption
the factors that impact investments
Is it possible for a property to have no debt service?
yes
