ch 12 Property Management

A property manager is what type of agent?

A general Agent

Removing the existing barriers when readily achievable in public buildings such as adding braille markings to an elevator buttons, is a requirement of which law?

American with Disabilities act

Title III of the Americans with disabilities act impacts which type of property?

Commercial and public accommodations

repairing a boiler is classified as which type of maintenance?

Corrective maintenance

A property manager must....

Have a an active non provisional real estate brokers license

Preventive maintenance

Helps prevent problems and expenses.

Which of the following would suggest rent is too low?

High occupancy rate

Potential gross income

Includes potential gross rentals, if 100 percent occupied and collected, delinquent rental payments, utilities, vending, contracts, late fees and storage charges.

Property Manager

Is someone who preserves the value of an investment property while generating income as an agent for the owner.

A guest slips on an icy apartment building stair and is hospitalized . A claim aganist the building owner for medical expenses may be paid under which of the following policies held by the owner?

Liability

readily achievable

Means it can be performed without much difficulty or expense

Apartment rental rates are usually expressed in..

Monthly payments page 264

Management plan

Outlines the details of the owners objectives with the property, as well as what the property manager expects to accomplish and how including all financial objectices.

An important concern in setting rents is..

Prevailing rates in the area and current vacancy rates

How should the property manager deposit funds?

The NCREC's rules require the property manager to deposit funds into trust accounts by mandated deadlines and maintain detailed and accurate trust account records.

collecting rent

The terms of rental payment SHOULD be spelled out in detail the lease agreement.

property management agreement

This agreement creates a relationship between the owner and the property manager.

Generally the provisions of the management agreement should include all of the following

a definition of the managers responsibilities, the extent of the manager authority, the calculations of management fees.

An active real estate license will be needed if the property manager is

an employee of a partnership that owns the property to be managed.

vacancy and collection losses

any losses or bad debt expenses.

what are some examples of variable expenses

building repairs

When a property manager is establishing a budget for the building all of the following should be included as an operation expense

cleaning supplies, management fees, routine repairs.

Budget Comparison statement

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

What is the propery manager expected to do?

control operation expenses in order to maximize income.

Corrective maintenance

corrects problems after they have occurred.

A property manager is usually responsible for..

developing a budget and controlling expenses, and communicating with the owner about physical problems with a building.

The property owner can utilize the services of other licensees and unlicensed salaried employees with limited authority. They cannot.....

negotiate the amount of security deposits or rental payments and shall not negotiate leases or any rental agreements on behalf of the owner or broker.

cash flow

potential gross rental income + other income- Losess incurred= Effective gross income

a semiannual statement sent to an owner that does NOT reflect the entire debt service as an expense is called...

profit and loss statement

Avoid, Control, transfer, or retain are the 4 alternative techniques of

risk management

In preparing for variable expenses in a budget, the property manager should setup what type of fund?

setup a cash reserve fund

In renting units in an apartment building a property manager must comply with..

the terms of the management agreement, the lawful instructions of the owner, fair housing. BUT DOES NOT have to comply with AMA code of Ethics

selecting tenants

1. the size and the space meets the tenants requirments 2. tenant has the ability to pay 3. the tenants business is compatible with the building and the other tenants businesses 4. expansion space will be available if the tenant is wanting to expand in the future.