SU # 52__Property Management Agreements Flashcards Preview

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Flashcards in SU # 52__Property Management Agreements Deck (17)
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1
Q

To whom is a property manager responsible?

A

A property manager is responsible BOTH to the owner and to the tenants of a property.

2
Q

What is the definition of a resident manager?

A

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.

3
Q

How do the owner and the property manager arrive at a management fee?

A

The fee is a negotiated item. It often is a base fee and/or a percentage of the collected rents.

4
Q

What is a property manager’s first responsibility to the owner?

A

To realize the maximum profit on the property that is consistent with the owner’s instructions.

5
Q

What are the three types of budgets that should be established for each project?

A

Operating budget
Capital reserve budget
Stabilized budget

6
Q

How does preventive maintenance differ from corrective maintenance?

A

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.

7
Q

What kind of reports should a property manager be giving to the owner?

A

Monthly account statements
Delinquent accounts report
Detailed annual statement

8
Q

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

A

Commercial Land Council

9
Q

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

A

Percentage of rental income

10
Q

What is a budget that includes income and expenses for ongoing operations?

Capital reserve

Operating

Fixed

Stabilized

A

Operating

11
Q

Which of the following would not be found in a management agreement?

Tenant credit histories

Property description

Extent of authority

Management fee information

A

Tenant credit histories

12
Q

What does the management agreement create?

Designated agency

Sole proprietorship

General agency

Power of attorney

A

General agency

13
Q

Which of these functions is not performed by a property manager?

Renting property

Leasing property

Keeping costs within budget

Preparing the property deed

A

Preparing the property deed

14
Q

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

A

Physically managing the property

15
Q

Which IREM designation is reserved for individuals who meet a certain level of education and experience?

CPM

ARM

CPR

AMO

A

CPM

16
Q

Which of the following would be considered as corrective maintenance?

Replace a defective water heater

Painting wood trim

Adding additional parking spaces.

Replacing furnace filters

A

Replace a defective water heater

17
Q

What is a property manager’s first responsibility to the owner?

Get liability insurance.

Prosecute delinquent tenants.

Realize maximum profit.

Cure functional obsolescence.

A

Realize maximum profit.

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