Chapter 8: Important Points Flashcards
IP When a property manager enters into a management agreement, a … is created.
General Agency. The manager owes a fiduciary (undivided loyalty) responsibility to his principal.
IP In New York, if property management companies or individual property managers work for more than one owner, a real estate license is required.
Employees of property management companies or individuals that collect rent for more than one owner must have a minimum of a salesperson’s license.
IP Properties that may require management are…
Condos, co-ops, apartments, single-family rental houses, mobile home parks, office buildings, shopping malls, industrial property and farms.
IP The management agreement is…
A contract in which a property owner employs a property manager to act as the owner’s agent. The management agreement creates a general agency and the manager owes undivided loyalty to the owner-principal.
IP To be eligible for insurance, the applicant must have…
An insurable interest in the property.
IP Risk management embodies…
The concern for controlling and limiting risk in property ownership.
The overall goals of the property manager are to…
A) Produce the best possible net operating income from the property.
B) To maintain and increase the value of the principal’s investment.
IP Property managers fulfill their responsibilities by…
Creating a management plan; handling rentals, tenant relations, and employees; overseeing the budget; paying bills; and supervising maintenance.
IP The property manager must continuously…
Evaluate rents, budgets, and markets to ensure the best future return on the investment.
IP The property management report is…
A periodic accounting provided by a property manager to the property owner.
IP The property manager must be skilled in a number of areas including…
Accounting, budgeting, construction, and building systems, and owner-tenant relations. Real Estate-related knowledge is also essential.
IP Eviction
A legal action for removal of the tenant and his belongings from the premises. Actual eviction occurs when an owner removes a tenant without the aid of the court system. A tenant can claim constructive eviction when the tenant is prevented from the quiet enjoyment of the premises such as in the absences of heat or electricity.
IP Formal education and training for property management professions are available…
Through various institutions. Different types of designations may be awarded to individuals showing competence through education and experience.
IP Rental of Property Creates A…
Leasehold estate. Types of leasehold estates include tenancy or estate for years, periodic (year-to-year) estates, estate at will, estate at sufferance.
