Download (Real Estate Exam - Chapter 17: Property Management) Flashcard

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Side A ------ Side B
A Property Manager must: ------ - Achieve goals of the owners- Generate income for owners- Presence and Increase value of the property
Property management begins with a: Managment
 PlanEnter into a Management Agreement (contract) ------ Prop manager is a general agent
Responsibilities:Financial Reports: ------ Operating budget - gives owner sense of profit to expect during a certain period Cash Flow Report - Monthly statement of all financial status (income, expenses, etc) **Look at Cash Flow formula notes Profit and Loss statement: general picture, not itemized **Look at Formula 
Renting the Property & Setting Rental Rates: ------ When occupansy level of an apt house / building exceeds 95%, should consider raising rents. - Calculate rent based on square footage (for commercial) **Formula
Maintaining property: 4 types ------ - Preventative (painting, applicance servicing) - Repair or Corrective- Routine (day-to-day i.e. cleaning) - Construction / build-outs (to meet a tenant's needs) 
Federal laws affecting property management:ADAECOAFHA  ------ ADA - existing barriers must be removed if can be in a readily achievable manner ECOA - can discriminate on credit only. Must do same for all. FHA - also Blockbusting and Steering are prohibited when trying to attract tenants 
Risk Management techniques: ACTOR ------ Avoid - Remove source of risk (i.e. pool)Control - Prepare i.e. put in sprinklers, camerasTransfer - Shift risk i.e. Insurance orRetain - Keep i.e. chance of event are too small
Surety Bonds:Multiperil Policies ------ - Type of insurance covering owner over financial losses caused by an employee's criminal acts

Side A ------ Side B
A Property Manager must: ------ - Achieve goals of the owners- Generate income for owners- Presence and Increase value of the property
Property management begins with a: Managment
 PlanEnter into a Management Agreement (contract) ------ Prop manager is a general agent
Responsibilities:Financial Reports: ------ Operating budget - gives owner sense of profit to expect during a certain period Cash Flow Report - Monthly statement of all financial status (income, expenses, etc) **Look at Cash Flow formula notes Profit and Loss statement: general picture, not itemized **Look at Formula 
Renting the Property & Setting Rental Rates: ------ When occupansy level of an apt house / building exceeds 95%, should consider raising rents. - Calculate rent based on square footage (for commercial) **Formula
Maintaining property: 4 types ------ - Preventative (painting, applicance servicing) - Repair or Corrective- Routine (day-to-day i.e. cleaning) - Construction / build-outs (to meet a tenant's needs) 
Federal laws affecting property management:ADAECOAFHA  ------ ADA - existing barriers must be removed if can be in a readily achievable manner ECOA - can discriminate on credit only. Must do same for all. FHA - also Blockbusting and Steering are prohibited when trying to attract tenants 
Risk Management techniques: ACTOR ------ Avoid - Remove source of risk (i.e. pool)Control - Prepare i.e. put in sprinklers, camerasTransfer - Shift risk i.e. Insurance orRetain - Keep i.e. chance of event are too small
Surety Bonds:Multiperil Policies ------ - Type of insurance covering owner over financial losses caused by an employee's criminal acts