Chapter 15 - Property Management and Leasing
What is a Double Net Lease?
A Double Net Lease is where the tenant pays for the insurance as well as the taxes and the base rent.
What is a "holdover" clause in a gross lease?
A Holdover clause in a gross lease materially raises the rent when the lease period expires. This encourages the tenant to either sign the new lease or vacate the premises.
What is a Licensee/Property Manager and what are the duties of such a person?
A Licensee/Property Manager is a licensee of a real estate office or agency that manages a number of properties for various owners. Persons working under the direct supervision of a licensed property manager need not be licensed to show property, accept preprinted rental applications, provide information on rental terms and accept signed leases and deposits.
What is a Single Net Lease?
A Single Net Lease is where the tenant pays the taxes and the base rent
What is a Step-Up Lease?
A Step-Up-Lease has a fixed rent but provides for increases at. Set periods.
What is a Triple Net Lease?
A Triple Net Lease is where the tenant pays the taxes, insurance, base rent and is responsible for all property maintenance and repairs. The Term Net Lease is generally used in reference to a triple net lease.
What process can a landlord use to sue for back rent or damages?
A landlord can sue for beck rent on damages as follows in small claims court: 1. Determine the full legal name and address of the person you are suing. 2. Visit the small claims court and complete the forms and paying the fees. 3. Arrrange for the order to be served to the defendant by someone else, or have small claims mail it for a fee 4. Gather all important documents and have them ready. Arrange for any witnesses and arrange them to come to the trial 5. Come to court, go to the courtroom and check the court calendar for your case 6. When called, give your testimony 7. If you win, ask the defendant for the money awarded you in the judgment. 8. If you can't collect, ask the clear to assist you. 9. If you are the plaintiff, you are not allowed to appeal if you lose.
What is unlawful detainer?
A landlord may evict tenants and bring an unlawful detainer action against the tenant for failure to pay rent when due, violation of the provisions contained in the lease or failure to vacate the premises after termination of a 30 or 60 day written notice.
What part of the lease does and AirBNB violate?
A leased unit rented under AirBNB violates the lease because usually the lessor must approve subleasing. Some Lessors want a cut of the action and AirBNB is now working on some type of arrangement.
What is a Leasehold estate?
A leasehold estate arises when an owner or property manager acting as the owner's agent grants a tenant the right to occupy the owner's property for a specified period for a consideration. The lessor is the owner the the lessee is the tenant.
When can a lessor gain right of entry to a tenants property?
A lessor has the right to check the property for specific purposes in the absence of an agreement as follows: 1. An emergency requires entry 2. The tenant consents to an entry 3. The entry is during normal business hours and after a 24 hour notice to make necessary repairs. 4. The tenant has abandoned or surrendered the premesis 5. The landlord has obtained a court order to enter.
What does a management agreement do for a manager?
A management agreement (written) formalizes the relationship between the owner and the manager and points out the rights and duties of each party
What must a park manager give to tenants in a mobile home park?
A park manager must give tenants a 12 month lease on request at the current rent and must furnish tenants with an annual copy of the current California Civil Code covering mobile parks that that tenants understand their rights and responsibilities.
What is a Percentage Lease?
A percentage lease provides for a stated percentage of the gross receipts of a business to be paid as rent. Generally the percentage lease is tied in with a minimum rent and a covenant to remain in business. The percentage lease may include specific hours of operations and prohibit off property warehouse sales.
What does a conscientious manager need to realize when working in this capacity?
A property manager needs to realize the following with working as a PM: 1. Renters need to know what is expected of them and what they can or cannot do (have it in writing) 2. Answers residents questions properly and promptly 3. If any request is denied have it in writing as to why? 4. Treat the resident in a fair and impartial manner and listen to their needs. 5. Properly ensure that the tenants' and prospective tenants rights are protected. 6. As an agent, the property manager must show good faith and loyalty to the principal, perform the duties with skill, care and due diligence, fully disclose all pertinent facts; avoid co-mingling funds refrain from personal profits
What damages can a tenant collect with regards to a retaliatory eviction?
A tenant can sue if a landlord is shown to have acted maliciously and would be entitled to damages plus $100 to $2000 in punitive damages. The landlord is subject to $2,000 in damages for threatening a residential tenant to vacate by force or by other menacing conduct. A tenant cannot waive their rights against retaliatory eviction.
What items can the tenant have installed within a leased premises?
A tenant cannot be prohibited from installing a satellite dish within the area under tenant control and the landlord must allow the installation of an electric vehicle charging station as long as the station meets minimum standards. Also, the landlord must allow the tenant agriculture in portable containers that meet minimum standards.
What rights does a tenant have regarding retaliatory eviction menance?
A tenant has rights and cannot be bullied by a landlord because the tenant complained to the landlord about the habitability, complained to a public agency about defects, or lawfully organizing a tenant association. A landlord cannot decrease services, increase rent, or evict a tenant within 180 days after the tenant exercises a right protected under the law with regards to the above.
What is a "Trust Ledger"?
A trust ledger is required per Section 2830 of the commissioners regulations and is required for property management management for establishing accounts. Rents are posted as received into the ledger. Also, money paid out on behalf of the owner including any repair costs, payments of encumbrances and payments for utilities and commissions.
Why should you have a written Lease Agreement?
A written lease agreement is needed so that it clearly sets forth lessor and lessee duties and obligations. Any lease should include the full name of all parties and the tenants should sign "jointly and severally" so it is clear that each signer is liable for the entire rent should one tenant default on his part of the rent. Therefore, each tenant is responsible for the entire rent should the others default.
What limits are there on cleaning and security deposits?
According to the law, the amount of security deposit that may be demanded or received is limited to an amount equal to two months rent in the case of an unfurnished residential property and up to three months rent for a furnished residential apartment. Non refundable deposits such as cleaning deposits are not allowed. The security deposits functions as a form of insurance for the landlord in case the rental premises are left damaged or dirty or rent is owed.
What does a Accrediated Resident Manager (ARM) have to do to gain membership as an ARM (IREM) to a company?
An ARM for a company must have the following: A) Have at least one CPM in charge B) have property management as a primary activity C) follow minimum standards and the rules of IREM and D) Renew it's accreditation yearly.
Unless prohibited, a tenant has the right to assign or sublease the interest in the property. What is an "Assignment" and what is a "sublease?"
An Assignment transfers the entire leasehold rights to a third party (assignee) and. that assignee pays the rent directly to the original lessor. If the assignee fails to pay the rent, the original lessee is still liable for the payment. A Sublease of property transfers a part of the tenant's interest. The sublease pays rent to the original lessee, who in turn is responsible to the lessor. The original lessee is said to have a "sandwich lease" in that the one piece of bread is the lessor, the middle is the former lessee and the other piece of the bread is the sub-lessee.
What is an Estate at Sufference?
An Estate at Sufference is created when a tenant obtains possession of property legally, but remains on the property without the owners consent after the tenancy ends. This tenant would need to be evicted from this property.
What is an Estate at Will?
An Estate at Will has no specified time limit and possession is given with permission but no agreement is made as to rent. Under California law, this requires a 30 day notice to terminate.
What is an Estate for Years?
An Estate for Years is an estate that continues for a definite fixed period of time. Most property managers insist on an estate for years.
What is an Estate from Period to Period?
An Estate from Period to Period is commonly called a periodic tenancy. The lease continues from period to period (year to year or month to month) or week to week).
What is an exculpatory clause?
An exculpatory clause (hold harmless clause) whereby the tenant agrees to relieve the landlord from liability for injury or property damage resulting from the condition of the property or the negligence of the owner. NOTE: These clauses are INVALID for residential leases.
What must an individual do to maintain the CPM Designation?
An individual must do the following in order to maintain the CPM designation: A) actively support the institute's rules and regulations B) demonstrate honesty, integrity, and the ability to manage real estate, concluding at least three years experience in a responsible real estate management position and C) be a member of a local real estate board and a member of the National Association of Realtors
When can a lease be terminated and what are the conditions?
Aside from a tenancy for a specific period of an estate for years where there term date is specified in the agreement, a lease can be terminated under these conditions: 1. The tenant violates the landlords duty to place the tenant in quiet possession 2. The tenant is a victim of a domestic violence 3. The tenant for the landlords failure to repair. 4. The tenant on eviction by the landlord 5. Either party on destruction of the premises 6. The landlord on the use of the premises is for unauthorized purposes or on abandonment of the premed is by the tenant 7. Either party on breach of a condition of the lease 8. The tenant for the landlord's breach of the implied warrant of habilitability.
At the termination of a tenancy, what does the owner need to do?
At the termination of a tenancy, the landlord is permitted to retain only that portion of the security deposit reasonably necessary to remedy tenant defaults. The landlord must notify the lessee in writing as to the retention of any portion of the security deposit unless expenses were less than $125. Copies of receipts for labor and material must be included for those amounts deductible from the security deposit.
What is "Effective Rent?"
Effective rent is less than scheduled rent if inducements are provided to the tenant i.e., one months free rent for a one year year lease.
For Office Buildings many are mostly commercial property. What kind of merchandising of this office space is needed?
For Office Buildings - commercial property, they are tied to the following: 1. Appearance of surroundings 2. Transportation facilities 3. Prestige and image of area 4. Proximity to clients 5. Building appearance 6. Lobby appearance 7. Elevator appearance and conditions 8. Corridor appearance 9. Office interiors 10. Tenant services offered 11. Management 12. Other tenants
If a sublet is allowable and is rented for a higher amount, what should be in the contract to prevent the lessee from profiting from this arrangement?
If a sublet is allowable, the agreement should have some language that says if the sublet is for a higher amount the difference will be split between the lessor and the original lessee.
If the premises are untenable, what rights does the tenant have?
If the landlord demands or collects rent for an untenable dwelling, the lessor is liable for actual damages sustained by the tenant and special damages of not less than $100 or more than $5,000. The tenant can also raise the defense of habitability against any eviction action.
In 1938, the IREM changed their policy and developed the designation Certified Property Manager (CPM) to do what?
In 1938, the IREM developed the Certified Property Manager to certify individual managers rather than the companies that employed them. This was to ensure that managers have the general business and industry specific experience necessary to maintain high standards within the profession.
What management duties does a manager have in a mobile home park?
In a mobile home park, a manager has the duties involving park development, ensuring public amenities, enforcement of the park rules and approval of lease assignments on the sale of units . He should be aware of laws governing evictions from rental space parks.
Who has the highest, midpoint and lowest markup on percentage leases?
In percentage leases, the highest markup would be Jewelry (7% and up), the midpoint would include Pet Stores (5-8%), Restaurants (4-7%) and the lowest would be Grocery stores (1-2%) ad Liquor Stores (1.5 - 5%)
Why is it important to inspect the premises before leasing and prior to vacating a lease?
It is important to inspect the premises prior to leasing for a walk thru inspection. Deficiencies should be noted on the form and should be signed by the tenant and the landlord. Also on vacating the unit, there should be a walk through to see if there is any damage and if so you can deduct reasonable costs for repairs.
How does managing for foreign owners differ than if an owner is a citizen?
Managing for foreign owners and who remit payments to a foreign owner must remit 30% unless exempt by a tax treaty. Failure to comply may result in the manager's iliability for 30% of the gross rent plus penalties and interest .
Where are Net Leases generally found?
Net Leases (Triple Net Leases) are generally long term leases and are found in Sale-Lease-Backs and where buildings are constructed for a particular tenant.
Can a lease be terminated if a landlord goes into foreclosure?
No, due to the Foreclosure Act of 2009, the lease survives foreclosure and the tenant is allowed to remain in possession until the lease term expires. However, if a buyer at foreclosure intends to occupy the property, the lease may be terminated within 90 days notice.
In a condominium association does the property manager make policy?
No, in a condominium association, the property manager does NOT make policy but carries out policy as directed by the board of directors and the CC&R's. A property manager, however, has the duty to make informed recommendations to the board.
What is the maximum penalty that OSHA can access for a single violation or repeated violations?
OSHA can access $7,000 for a single violation or up to $70,000 for repeated or willful violations.
Where are percentage leases typically found?
Percentage leases are typically found in shopping centers. A percentage leases may also include a "recapture" clause which provides that should a tenant not obtain a desire gross then the lessor has the right to terminate the lease.
Why do rent schedules need to be established?
Rent schedules need to be established based on the premise of scarcity and comparability of values in the area.
What should resident property managers be familiar with?
Residential property managers should be familiar with local rent control ordinances to make sure that rents and rent increases charged are not in violation of the law.
Safety is an issue in any type of property. What is some information that a property manager should know?
Safety issues. In any property are a concern to all. Some areas that a property manager should know are: 1. Emergency evacuation plan 2. Are exits property marked? 3. Is the landscaping appropriate around entrances and walkways 4. Is their exterior lighting 5. Is there adequate interior lighting in the hallways, and stairwells 6. Is the circuit breaker box locked 7. Are the exterior and unit doors all solid core? 8. Do the doors have dead bolts and a strike plate held by screws three inches or longer? 9. Are there security latches on the windows and are tenants able to easily open these windows in an emergency?
What is Section 8 housing?
Section 8 housing is a rental program under which all or part of a low income tenant's rent is paid through the county. County administrators must inspect the property for eligibility and tenants must meet stated criteria and be approved by the county.
What kind of knowledge would you need in Industrial Mangement?
Since Industrial Management is so specialized there are different skills required such as: 1. Fire suppression systems 2. Floor and ceiling load capacities 3. Hazardous and toxic substances 4. Air and water quality control 5. Loading dock requirements 6. Electrical capacity and three prong wiring 7. Reading blueprints for modification 8. Specific zoning regarding uses allowed 9. Special Insurance requirements 10. Security and security systems 11. Large cooling, heating and ventilation systems.
What are some professional qualifications of a property manager?
Some Professional qualifications of a property manager are: A. Merchandising specialist B. Leasing expert C. Accounting specialist 4. Maintenance supervisor 5. Purchasing supervisor 6. credit specialist 7. Insurance adviser 8. Tax interpreter 9. Psychology expert 10. Budget manager
What are some of the good qualities of a resident manager?
Some good qualities of a resident manager include the following: 1. Has the merchandising ability to contract, show and close the rental of a unit 2. Has a high degree of self confidence and willingness to take charge. 3. Is accurate in handling money, checks, bank deposits and othe bookkeeping duties 4. Has awareness and sensitivity to the events occurring on and around the property 5. Has orderliness and legibility in keeping records and meticulouness in filing, cataloging and making reports 6. Has computer skills such as the ability to access and interepret data 7. has the ability to select residents on the basis of economic capability and credit references 8. Has the diligence to maintain the property. 9. State law requires a resident manager for property containing 16 or more units to be a "responsible" person 10. Mobile home parks having more than 50 units must have a resident manager.
What are the names of some other professional property management associations?
Some names of other professional property management associations are: A) Real Estate Management Broker's Institute of the National Association of Real Estate Brokers B) The Apartent Owners and Managers Association of America C) The Building Owners and Managers Association International (BOMA) D) National Society of Professional Resident Managers
What are the duties of the condominium association. Also relates to cooperatives.
Some of the duties of condominium association management include: A. Collecting fees and assessments from members B. Issuing financial statements to the association C. Ensuring homeowners associations provide members a financial statement and the assessment and reserve funding disclosure summary form D. Contracting for or hiring for all maintenance and repairs E. Enforcing CC&Rs F. Handling tenant interpersonal disputes/complaints G. Filing tax returns if applicable as well as handing workers' comp, unemployment comp, insurance etc. H. Seeing that the property is insured as to damanges and owner liability I. Making suggestions the board of directors J. Attending directors meetings.
What are some of the laws that a property manager needs to know?
Some of the laws that a property manager needs to know are: 1. Federal and state anti discrimination statutes. 2. Understand what constitutes sexual harassment 3.OSHA for those managers who hire 7 or more employees 4. Compliance with safety standards,, equipment conditions and maintenance and safety precautions.
What precautions should a residential manager take before accepting a renter?
Some precautions that a residential manager should take before accepting a renter would be to be sure the person is cleared as being a desirable tenant (credit report and other reports) and that the deposit and rent check clears before occupancy.
What are some types of property management programs available to keep track of everything?
Some types of property management programs are: 1. Yardi - www.yardi.com 2. AppFolio - www.appfolio.com 3. Buildium - www.buildium.com 4. Yield Star Price Optimizer - www.realpage.com/yield star/price-optimizer-difference/
What is the Costa-Hawkins Rental Housing Act?
The Costa Hawkins Rental Housing Act refers to allowing all rental increases. For landlords who are under rent control, they are free to establish new base rents for new tenants as well as for subleases and assignees when landlord consent is required for sublease or assignment.
What is the Institute of Real Estate Management (IREM) and what did they certify?
The Institute of Real Estate Management was a subdivision of. The National Association of Realtors was formed in 1933 and they certified that they would: A) refrain from commingling their client's funds with personal funds B) Bond all employees handling client funds C) disclose all fees, commissions or other payments received as a result of activities relating to the client properties.
What should the description of the premises include?
The description of the premises should include a description i.e., 2 bedroom/2 bath, whether the garage or parking space is included, room by room description and items included i.e., curtain rods, light bulbs, carpeting etc.
What are the duties of a resident manager?
The duties of a resident manager who lives on the property and may be employed by the owner or the managing agent. The resident manager does NOT require a real estate license.
What are the duties of an Individual Property Manager
The duties of an individual property manager manages a single property for the owner and may or may NOT possess a real estate license.This person is usually employed on a straight salary basis.
What are the functions of a Property Manager?
The functions of a property manager are varied and some of the responsibilities are: 1. Be the administrator for the owner and get the highest return from the property (highest rent) and preserve the physical value of the property. 2. All executive functions and all details connected with the operation or physical upkeep of the property.
What must the landlord do if the tenant was a victim of domestic violence?
The landlord cannot terminate or refuse to renew the lease because the tenant was the victim of domestic violence. Protection is waived if the victim allows the perpetrator to visit the property. The landlord must rekey at the tenants request within 24 hours of written proof that a court protection order is in effect.
What is the time limit that a landlord has to return a tenants security deposit?
The landlord has return the deposit within three weeks of the end of the tenancy (60 days for non residential). If the landlord fails to return the amounts within the specified time period, the landlord will be subject to a penalty of up to two times the amount of the security deposit.
What must a landlord do to remove a tenant for being behind in the rent?
The landlord must do the following to remove a tenant for being behind in rent: 1. Landlord serves the tenant with a three day notice to quit or pay rent 2. If the tenant disregards the notice, the landlord files an unlawful detainer action in court. 3. If the landlord wins, the court awards the landlord a judgment. The landlord files for a writ of possession authorizing the sheriff to evict the tenant. 4. The sheriffs sends the tenant an eviction notice. If the tenant fails to leave, the sheriff then physically removes the tenant.
What are the landlords responsibilities within a residential lease?
The landlords responsibility in a residential lease is the implied warranty of habitability. This duty to provide does not relate regarding tenant cleanliness. These landlord responsibilities are: 1. Plumbing is in proper working order 2. The heats, lights and wiring work and are safe. 3. The floor stairways and railings are in good condition 4. When rented, the premesis are clean and free of pests 5. Areas under lessor control are maintained 6. The roof does not leak and no doors or windows are broken
What kind of language should be used for pets in a lease.
The language that should be included in a lease for pets are common in residential leases and most require additional deposit and also charge additional rent or limit the size and type of pet allowed. Type of pet allowed i.e., dogs/cats only etc. Pet deposits are refundable except for damage amounts.
What mandatory disclosures must landlords make to the tenants?
The mandatory disclosures that landlords must make to tenants include: 1. Existence of registered sex offender database (Megan's Law) 2. Presence of known lead-based paints 3. Pesticides used 4. Any asbestos discovered on the property 5. An known carcinogenic materials (if the landlord has 10 or more employees) 6. Meth contamination 7. Application for a demolition permit 8. That the building is within one mile of a closed military base where explosives were stored 9. If a previous tenant died on the premises within the past three years 10. If the unit is in a condominium conversion project
In a period to period estate, what is the notice that my be given to a tenant for a regular tenant, mobile home tenant and a Section 8 housing tenant.
The notice to vacate tenancy is given to tenants who are regular tenants with a 30 day notice, a mobile home tenant with a 60 day notice and a Section 8 tenant with a 90 day notice to terminate the tenancy.
What is the objective of good property management?
The objective of good property management is to achieve the combination of rent and vacancy that provides the owner with the greatest net.
What was the reason the IREM was created?
The reason IREM was created was to slow down the failure trend of managers and to improve the professional standing of this professional group
What should the rent and late charge language include?
The rent should be clearly stated and when the rent is due. Also the rent can be further clarified regarding whether cash or check is preferred and any charges for bounced checks and late charges for late payment. The late charge should be reasonable.
What is the reporting form that is used by the IRS to report rental income?
The reporting form that is used by any person who receives rental income is IRS Form 1099 for all services providers of $600 or more.
What does the state require of property managers?
The state (California Bureau of Real Estate has certain duties that a property manager must adhere to: A.. Establish the rental schedule that will yield the highest revenues B. Merchandise the space and collect the rents C. Create and supervise maintenance schedules and repairs D. Supervise all purchasing E. Deveop a policy for tenant/resident relations F. Develop employee policies and supervise employees operations G. Maintain proper records and make regular reports to the owner H. Qualify and investigate prospective tenant's credit I. Prepare and execute leases J. Prepare decorating specifications and secure estimates K. Hire, instruct and maintain satisfactory personnel to staff the buildings L Audit and pay Bills M. Advertise and publicize vacancies through selected media and broker lists N. Plan alterations and modernizing programs O. Inspect vacant space frequently P. Keep abreast of economic conditions and posted competitive market conditions Q. Pay insurance premiums and taxes and recommend tax appeals when warranted
What rights does the tenant have with regards to corrective action on repairs or habilitability?
The tenant has rights regarding habitability or for repairs as follows: 1. The tenant may abandon the property and not be held liable for back rents or an unfulfilled lease. 2. The tenant may refer the problem to a mediator or arbitrator or in serious cases, small claims court. 3. The tenant may notify the owner in writing of an emergency situation that must be taken care of. If no response, the tenant may call in a professional repairman and offer the cost of repair with up to one months rent. However, the tenant may only due this twice during the tenancy. 4. The tenant can remain on the premesis and pay a reduced rent based on the reduction of usefulness of the premesis when the landlord fails to maintain a habitable dwelling.
What is needed to set up a rent schedule?
The things that are needed to set up a rent schedule include: 1. The character of the immediate neighborhood 2. The economic level and size of families 3. Trends in population growth and occupants per unit. 4. Directional growth of the community and expansion and grown of local industries 5. Availability of transportation, recreation shopping, churches, and schools 6. The condition of the housing market versus the population growth trends 7. Current area vacancy factors 8. Prices of other units in the area.
What are the three types of Property Managers?
The three types of property managers are: A) Licensee/Property Manager B) Individual Property Manager C) Resident Manager
What two factors facilitated the need for the property management profession?
The two factors facilitated the need for property management profession were: A) The invention of the electric elevator and the use of structural steel which allowed for high rise construction. B) The Great Depression of the 1930's which resulted in lenders accumulating vast inventories of properties because of foreclosures
What kind of language should be used for water beds in a lease?
The type of language in a lease that includes a waterbed should provide the tenant have a liner and pay for a policy of waterbed insurance should the water bed cause damage to the property.
What types of Accounting Records are necessary?
The types of accounting records needed depends on the type of property managed and the volume of business involved, the selection and maintenance. There must be an adequate fund accounting system in the property management because of the fiduciary nature of the business. It is recommended that an outside accountant be employed to review and audit the accounting system.
What types of items must be in a management agreement?
The types of items that must be in a management agreement are: 1. Identification of the parties 2. Sufficient identification of the property 3. The contract period including the beginning and termination dates 4. Management and Owners responsibilities 5. Management fees, the amount when it is to be paid and the manner of payment 6. Provision for management accounting including records to be kept and reports to be made.
What types of Leases are there?
The types of lease available today are: 1. Gross Lease 2. Net Lease 3. Percentage Lease 4. Step Up Lease
What kind of maintenance is required in office buildings?
The types of maintenance required in office buildings include: 1. Servicing all operating equipment and public facilities including the lobbies, lights and washrooms 2. Maintaining elevators 3. Cleaning - custodial 4. Other routine maintenance including window cleaning, garbage, light bulb replacement, heating, ventilation and air conditioning 5. Preparing and updating a maintenance operations manual listing all equipment and vital information 6. Compliance with health and fire codes as well as ADA
What types of management fees are there?
The types of management fees are: 1. Flat fees 2. Minimum fee 3. Minimum plus percentage of the gross (most common) 4. Leasing fee (flat fee or a percentage of the lease rental where the first year is higher and the subsequent years lower 5. Additional fees or percentages for special services 6. Reimbursement process for cost incurred. 7. Generally, the more management problems, the higher fee percentage is charged.
What types of properties can be managed?
The types of properties that can be managed are: 1. Condominium associations 2. Industrial parkes 3. Mobile home Parks 4. Mini-Warehouses 5. Marinas 6. Airports.
What kind of Lesehold Estates are there?
There are 4 types of Leasehold Estates. They are: 1. Estate for Years 2. Estate from period to period 3. Estate at sufferance 4. Estate at Will
What reasons are there for Accounting Records in property management?
There are a number of basic reasons for keeping orderly records in property management:. They are: 1. The law states that a separate record must be kept for each managed property. 2. The fiduciary relationship between the owner and the manager dictates full disclosure. 3. Contractural relationships call for an accounting of all funds 4. Records are needed for income tax purposes 5. It may be necessary to satisfy third parties who have an interest in the property 6. Accurate records serve as controls in evaluating income and expenses, analyzing costs and preparing budgets 7. Records provide the broker with a source of information when inquiries are made or problems arise.
About how many units are there of public housing in the United States?
There are approximately 1.2 million units controlled by the 3,300 public housing authorities. The main management concern is that on the physical and financial aspects of the projects.
What types of Net Leases are there?
There are three types of Net Leases. They are: 1. Single Net Lease 2. Double Net Lease 3. Triple Net Lease 4. Percentage Lease 5. Step Up Lease
True/False - A tenant having a higher percentage markup on sales should be able to pay a higher percentage of the sales as rent?
True, a tenant having a higher percentage of markup on sales should be able to pay a higher percentage of the sales as rent.
Generally, what information is needed from a prospective tenant who wishes to rent a place?
Typical information needed from a prospective tenant would be: 1. A copy of the last pay stub to verify income 2. Verification of present employment 2a. A copy of the driver's license. 3. Check with current landlord regarding payment history 4.Credit Report 5. Other reports as necessary (Criminal, Megan's Law etc). 6. Screen fee charged to prospective renter per Civil Code 1950.6. Fee is adjusted annually for inflation.
What audit requirements are typically included in a percentage lease?
Typically, in a percentage lease, it would include an audit provision that allows the landlord the ability to periodically audit the books of a tenant to determine whether the tenant is reporting correctly.
What notice must be given to tenants regarding Civil Code Section 2924.85
Under Civil Code Section 2924.85, requires rental applicants to be given notice that an owner has received a notice of default and that there is a pending foreclosure.
What is a Net Lease?
Under a Net Lease, the tenant pays the basic rent plus building expenses are passed thru to the tenant.
What is a Gross Lease?
Under a gross lease, the tenant pays a fixed rental and the owners pays all the other expenses of the property. Most residential leases and small commercial leases on office buildings are gross leases.
Under the California Civil Code, what is the tenant required to do under the lease?
Under the California Civil Code, the tenant is obligated to do the following? 1. Keep the living area clean and sanitary 2. dispose of garbage ad other waste sanitation 3. Use all utility fixtures property, keeping them clean and sanitary 4. Avoid defacing or damaging property 5. Use property only for its intended lawful purpose 6. Pay rent on time 7. Abide by rules and regulations 8. Give 30 day notice when vacating (month to month lease) 9. Return door and mailbox keys when vacating 10. Leave the unit in a clean condition when vacating.
With regards to dates on the lease, what time period should be shown for a estate for years and what must be shown for a periodic tenancy?
With regards to what to put on the lease for dates, an estate for years should have a beginning date and an ending date. A periodic tenancy would have a beginning date and a length of period.
Can a landlord prohibit smoking of tobacco or other products on the premises if stated on the lease?
Yes, a landlord can prohibit smoking of tobacco or other products on the premises if it is stated on the lease. For existing tenants, a notice of change of terms of tenancy must be given.
Are Managers liable for failure to comply with health and safety ordinances and building code violations?
Yes, managers are liable for compliance to H&S codes as well as to building code violations. If funds are not available for these fixes it is better to not work at the facility.