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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
-
A monthly statement that details the financial
status of the property.
Cash flow report
-
Corrects 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 with the property, as well as what the property manager wants to
accomplish and how, including all budgetary information.
Management plan
-
Insurance policies that offer protection from a
range of potential perils, such as those of a fire, hazard, public liability,
and casualty.
Multiperil policies
-
A guide of the property’s financial performance in
the present and future. It gives the owner a sense of expected profit.
Operating budget
-
Small repairs that help prevent bigger problems
and expenses.
Preventive maintenance
-
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
-
Evaluation and selection of appropriate property
and other insurance.
Risk management
-
Day-to-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 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, 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
-
Alterations to the interior of a building to
meet the functional demands of the tenant. Also known as build-outs.
Tenant improvements
-
Laws that require an employer to obtain
insurance coverage to protect employees who are injured in the course of their
employment.
Workers’ compensation acts
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