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Chapter 27 Property Management Questions And Answers With Verified Solutions 100% Correct!!!
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Chapter 27 Property Management Questions And Answers With Verified Solutions 100% Correct!!!
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Chapter 27 Property ManagementQuestions And 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.
dual responsibility - 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✔✔ 1. Renting the
units promptly at the highest market rent possible
2. Keeping operational and other costs within budget
3. Preserving and enhancing the physical value and prestige of the property
Managed properties include: - ANSWER✔✔ 1. Apartments
2. Condominiums
3. Duplexes
4. Industrial complexes
5. Office complexes
6. 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 sales associate's license so they can collect
the rent and perform other real estate tasks.
individual property manager - ANSWER✔✔ An individual property manager 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✔✔ An individual building manager
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✔✔ A resident manager 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✔✔ A real estate asset manager 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✔✔ 1. A description of the property, including
the land and all improvements
2. A list of what maintenance will be required
3. Information about how maintenance records will be kept
4. Information regarding the accounting procedures the manager will use
5. A schedule of property inspections
6. Several proposed budgets - operating budget, capital improvement budget,
stabilized budget
7. Information about the proposed management fee
management agreement - ANSWER✔✔ The management agreement 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.
A property management agreement would contain some or all of the following
information: - ANSWER✔✔ 1. The beginning date of the contract
2. Identification of the parties
3. Property description
4. Duration of the agreement
5. Definition of manager responsibilities
6. Definition of owner responsibilities
7. Extent of authority
8. Accounting responsibilities
9. Insurance and risk management
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