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Ch 41 Property Management Questions And Answers With Verified Solutions 100% Correct!!!
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Ch 41 Property Management Questions And Answers With Verified Solutions 100% Correct!!!
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Ch 41 Property Management QuestionsAnd Answers With Verified Solutions
100% Correct!!!
Property management - ANSWER✔✔ can be defined as the administration of
rental or other property by a person or a team of people who are acting for the
owner. The management of the property is done for a fee.
There are a number of tasks under the property management umbrella, including
such things as collecting rent, maintaining the property, performing marketing and
budgeting functions and overseeing relations with tenants. All tasks may or may
not be performed by the property manager.
Functions of a Property Manager - ANSWER✔✔ A property manager has a dual
responsibility - to the owner and to the tenants of a property. He or she must
understand that the owner is interested in the highest return from the property and
the tenants want the best value for their money, including space that is properly
maintained.
In general, a property manager is responsible for: - ANSWER✔✔ Renting the
units promptly at the highest market rent possible
Keeping operational and other costs within budget
Preserving and enhancing the physical value and prestige of the property
Types of Property Managed - ANSWER✔✔ Property managers, or in some cases
management companies, oversee various types of income-producing properties.
Managed properties include:
Apartments
Condominiums
Duplexes
Industrial complexes
Office complexes
Shopping centers
License Requirements - ANSWER✔✔ According to real estate law in many states,
a property manager does not need a real estate license when the property manager
,or management company performs real-estate-related tasks, such as collecting rent
for one owner who is paying the manager a salary.
If the person or company is working for more than one owner, that person or
company should have a real estate license. Persons working for such a
management company should have a salesperson's license so they can collect the
rent and perform other real estate tasks.
There are several types of property managers - ANSWER✔✔ individual property
manager
individual building manager
resident manager
real estate asset manager
individual property manager - ANSWER✔✔ is usually a real estate broker who
manages properties for one owner or a number of owners. Such a manager may be
a member of a small property management firm devoted to full time property
management, he or she may be a self-employed manager, or he or she may be one
of several managers in a large real estate firm.
individual building manager - ANSWER✔✔ usually manages a single large
property. This manager may be employed by a property manager or directly by an
owner and may or may not have a real estate license.
resident manager - ANSWER✔✔ lives on the property and may be employed by a
real estate broker, a managing agent or an owner to manage a property on a part-
time or full-time basis.
real estate asset manager - ANSWER✔✔ acts as the property owners' agent and
adviser for the property. He or she plans and directs the purchase, development,
and disposition of real estate on behalf of the business and investors. A real estate
asset manager focuses on long-term strategic financial planning rather than on day-
to-day operations of the property.
management proposal - ANSWER✔✔ Before entering into a formal agreement, a
property manager will submit a management proposal to the property owner.
A proposal would include such things as: - ANSWER✔✔ A description of the
property, including the land and all improvements
, A list of what maintenance will be required
Information about how maintenance records will be kept
Information regarding the accounting procedures the manager will use
A schedule of property inspections
Several proposed budgets - operating budget, capital improvement budget,
stabilized budget
Information about the proposed management fee
management agreement - ANSWER✔✔ is the employment contract for a property
manager.
The owner is the principal and the property manager is the agent in this agreement,
which creates a general agency between the parties. As such, the property manager
owes fiduciary duties to the owner.
The agreement details the responsibilities and obligations of both parties. A
property management agreement would contain some or all of the following
information: - ANSWER✔✔ The beginning date of the contract
Identification of the parties
Property description
Duration of the agreement
Definition of manager responsibilities
Definition of owner responsibilities
Extent of authority
Accounting responsibilities
Insurance and risk management
Reporting requirements
Management fee
Agreement Termination
The property management agreement should be signed and dated by the parties.
Identification of the Parties - ANSWER✔✔ The name of the owner and the
property manager (or company) should be stated in the agreement. If the owner is a
partnership, each partner should be named and should sign. If a corporation is the
owner, an authorized officer must sign the agreement.
Property Description - ANSWER✔✔ It is standard to use the street address, but
always helpful and wise to have the legal description attached as well. The contract
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