Unit 19: Property Management Flashcards
(21 cards)
Compares actual results with the original budget, often giving either percentages or a numerical variance of actual versus projected income and expenses.
Budget Comparison Statement
An illness due to air quality problems, typically toxic substances or pathogens; a clinically diagnosed condition. Symptoms include asthma, allergies, and hypersensitivity.
Building-related Illness (BRI)
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.
Cash Flow
A monthly statement that details the financial status of the property.
Cash Flow Report
The illegal act by a real estate professional of placing client or customer funds with personal funds. By law, real estate professionals are required to maintain a separate trust or escrow account for other parties’ funds held temporarily by the real estate professional.
Commingling
Provides a team of property managers, accounting staff, office staff, and property consultants to manage property.
Community Association Management
Correction of problems after they have occurred.
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.
Management Agreement
A highly detailed plan that lays out the owner’s objectives for a property, as well as what the property manger wants to accomplish and how, including all budgetary information.
Management Plan
Insurance policies that offer protection from a range of potential perils, such as fire, hazard, public liability and casualty.
Multiperil Policies
A property’s anticipated financial performance in the present and future. It gives the owner a sense of expected profit.
Operating Budget
A general financial picture based on the monthly cash flow reports; does not include itemized information.
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.
Property Manager
Small repairs that help prevent bigger problems and expenses.
Preventive Maintenance
Evaluation and selection of appropriate property and other insurance.
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.
Routine Maintenance
An illness caused by poor air quality, typically in large commercial buildings. Symptoms include fatigue, nausea, headache, and sensitivity to odors.
Sick Building Syndrome (SBS)
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.
Surety Bonds
Insurance on the personal belongings of tenants.
Tenant’s Insurance
Alterations to the interior of a building to meet the functional demands of the tenant. Also known as build-outs.
Tenant Improvements
State laws that require an employer to obtain insurance coverage to protect employees who are injured in the course of their employment.
Workers’ Compensation Acts
