Ch. 19 Flashcards Preview

Modern Real Estate Practice > Ch. 19 > Flashcards

Flashcards in Ch. 19 Deck (15)
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1
Q

Budget Comparison Statement

A

Compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses.

2
Q

Cash Flow Report

A

The net spendable income from an investment, determined by deducting all operating and fixed expenses from the gross income. When expenses exceed income, a negative cash flow results.

3
Q

Corrective Maintenance

A

Correction of problems after they have occurred.

4
Q

Management Agreement

A

A contract between the owner of income property and a management firm or individual property manager that outlines the scope of the manager’s authority.

5
Q

Management Plan

A

A highly detailed plan that lays out the owner’s objectives for a property, as well as what the property manager wants to accomplish and how, including all budgetary information.

6
Q

Multiperil Policies

A

Insurance policies that offer protection from a range of potential perils, such as fire, hazard, public liability, and Casualty.

7
Q

Operating Budget

A

A property’s anticipated financial performance in the present and future. It gives the owner a sense of expected profit.

8
Q

Preventive Maintenance

A

Small repairs that help prevent bigger problems and expenses.

9
Q

Profit and Loss Statement

A

A general financial picture based on the monthly cash flow reports; does not include itemized information.

10
Q

Property Manager

A

Someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting.

11
Q

Risk Management

A

Evaluation and selection of appropriate property and other insurance.

12
Q

Routine Maintenance

A

Day-to-day duties such as cleaning common areas, performing minor carpentry and plumbing adjustments, and providing regularly scheduled upkeep of heating, air conditioning, and landscaping.

13
Q

Surety Bonds

A

An agreement by an insurance or bonding company to be responsible for certain possible defaults, debts, or obligations incurred by an insured party; in essence, a policy insuring one’s personal and/or financial integrity. In the real estate business, a surety bond is generally used to ensure that a particular project will be completed at a certain date or that a contract will be performed as stated.

14
Q

Tenant Improvements

A

Alterations to the interior of a building to meet the functional demands of the tenant. Also known as build-outs.

15
Q

Workers’ Compensation Acts

A

State laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment.