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Related Flashcards
Cards In This Set
| Front | Back |
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A Property Manager must:
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- Achieve goals of the owners
- Generate income for owners - Presence and Increase value of the property |
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Property management begins with a: Managment
Plan
Enter into a Management Agreement (contract) |
Prop manager is a general agent
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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 |
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Renting the Property & Setting Rental Rates:
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When occupansy level of an apt house / building exceeds 95%, should consider raising rents.
- Calculate rent based on square footage (for commercial) **Formula |
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Maintaining property: 4 types
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- Preventative (painting, applicance servicing)
- Repair or Corrective - Routine (day-to-day i.e. cleaning) - Construction / build-outs (to meet a tenant's needs) |
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Federal laws affecting property management:
ADA ECOA FHA |
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 |
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Risk Management techniques: ACTOR
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Avoid - Remove source of risk (i.e. pool)
Control - Prepare i.e. put in sprinklers, cameras Transfer - Shift risk i.e. Insurance or Retain - Keep i.e. chance of event are too small |
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Surety Bonds:
Multiperil Policies |
- Type of insurance covering owner over financial losses caused by an employee's criminal acts
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