SU # 52__Property Management Agreements Flashcards
To whom is a property manager responsible?
A property manager is responsible BOTH to the owner and to the tenants of a property.
What is the definition of a resident manager?
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.
How do the owner and the property manager arrive at a management fee?
The fee is a negotiated item. It often is a base fee and/or a percentage of the collected rents.
What is a property manager’s first responsibility to the owner?
To realize the maximum profit on the property that is consistent with the owner’s instructions.
What are the three types of budgets that should be established for each project?
Operating budget
Capital reserve budget
Stabilized budget
How does preventive maintenance differ from corrective maintenance?
Preventive maintenance is a schedule of planned maintenance actions aimed at the prevention of breakdowns and failures, while corrective maintenance involves the repair or replacement of components which have already failed or broken down.
What kind of reports should a property manager be giving to the owner?
Monthly account statements
Delinquent accounts report
Detailed annual statement
Which of the following groups is not a professional property management trade organization?
National Property Management Association
Commercial Land Council
Urban Land Institute
International Council of Shopping Centers
Commercial Land Council
Which of these usually contributes to the property manager’s fee?
Rebates from suppliers
Percentage of rental income
A percentage of fees paid to outside workers
Capital improvement fund
Percentage of rental income
What is a budget that includes income and expenses for ongoing operations?
Capital reserve
Operating
Fixed
Stabilized
Operating
Which of the following would not be found in a management agreement?
Tenant credit histories
Property description
Extent of authority
Management fee information
Tenant credit histories
What does the management agreement create?
Designated agency
Sole proprietorship
General agency
Power of attorney
General agency
Which of these functions is not performed by a property manager?
Renting property
Leasing property
Keeping costs within budget
Preparing the property deed
Preparing the property deed
What task takes up the majority of a property manager’s time?
Evaluating tax incentives
Physically managing the property
Evaluating utility services
Allocating shares of stock for the units
Physically managing the property
Which IREM designation is reserved for individuals who meet a certain level of education and experience?
CPM
ARM
CPR
AMO
CPM
