Chapter 19 Property Management Flashcards
Property Manager MUST
achieve the goals of the owners
generate income and
preserve and or increase the value of the property
a property manager is considered
a general agent who is charged with the fiduciary responsibilities of care, obedience, accounting, loyalty, and disclosure
rental commissions
are based on annual rent from a property
management plan
outlines the details of the owner’s objectives with the property, as well as what the property manager expects to accomplish and how including all financial objectives.
operating budget
the projection of income and expense of the operation of a property over a one year period
cash flow report
a monthly statement that details the financial status of the property.
income
gross rentals collected delinquent rental payments, utilities, vending machine proceeds, contracts late fees, and storage charges.
any losses from uncollected rental payments or evictions are deducted from total gross income to arrive at net operating income.
profit and loss statement
a financial picture of revenues and expenses used to determine whether a business has made money or suffered a loss.
Gross receipts- operating expenses -total mortgage payment + mortgage loan principal = Net Profits
Budget comparison statement
compares actual results with the original budget, often giving either percentages or a numerical variance of actual vs projected income and expenses
ECOA equal Credit Opportunity Act
prohibits a lender from denying a loan based on a person’s race, color, religion, national origin, sex, marital status, age or receipt of public assistance.
The Fair Housing Act
prohibit discrimination in the sale, rental, or financing of housing based on race, color, religion, national origin, sex familial status, or disability
Risk Management
involves answering the ? what if something goes wrong?
A-Avoid C-Control T-Transfer O-Or R-Retain
