Chapter 6. Property Management

Question 0

Management Plan

Answer 0

Property manager is responsible for creating a management plan that meets the owner’s objectives, a budget of projected revenues and expenses, and occupancy and absorption rates.

Question 1

Property management agreement

Answer 1

Is a personal service contract, which means it is terminated upon death of either party.

Question 2

Management agreement

Answer 2

Negotiated between owner and the brokerage/ property manager, and it creates an agency relationship with fiduciary duties to the owner.

Question 3

Return on investment (ROI)

Answer 3

The ratio of the property’s after-tax cash flow (ATCF) to the money invested (Equity) in the property.

Question 4

Actual Eviction

Answer 4

When the landlord files a suit for possession because the tenant has breached the lease.

Question 5

Constructive Eviction

Answer 5

When the landlord breaches the lease and the tenant must leave the premises because they have become uninhabitable.

Question 6

Rent Control

Answer 6

Is a regulation by the state or local government agencies restricting the amount of rent landlords can charge their tenants.

Question 7

Personal Service Contract

Answer 7

Contract is terminated upon death of either party