Chapter Seventeen Flashcards Preview

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Flashcards in Chapter Seventeen Deck (15):

compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses. 298

budget comparison statement


a monthly statement that details the financial status of the property. 297

cash flow report


corrects problems after they have occurred. 302

corrective maintenance


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. 295

management agreement


a highly detailed plan that lays out the owner's objectives with the property, as well as what the property manager wants to accomplish and how, including all budgetary information. 295

management plan


insurance policies that offer protection from a range of potential perils, such as those of a fire, hazard, public liability, and casualty. 307

multi-peril policies


a guide of the property's financial performance in the present and future. It gives the owner a sense of expected profit. 297

operating budget


small repairs that help prevent bigger problems and expenses. 302

preventive maintenance


a general financial picture based on the monthly cash flow reports; does not include itemized information 298

profit and loss statement


someone who manages real estate for another person for compensation. Duties include collecting rents, maintaining the property, and keeping up all accounting. 5

property manager


evaluation and selection of appropriate property and other insurance. 310

risk management


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. 302

routine maintenance


an agreement by an insurance or bonding company to be responsible for certain possible defaults, debts, or obligations contracted for by an insured party; in essence, a policy insuring one's personal and/or financial integrity. In the real estate business it's generally used to ensure that a particular project will be completed at a certain date or that a contract will be performed as stated. 307

surety bonds


alterations to the interior of a building to meet the functional demands of the tenant. Also know as build-outs. 302-303

tenant improvements


laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment. 307

workers' compensation