(T/F) A property's managers primary function is to preserve the value of an owner's investment property while generating income for the owner.
True
(T/F) A property manager is usually considered to be a special agent
False, general agent
(T/F) A property manager who is the owners agent must have an active provisional real estate broker's license.
True
(T/F) All property management agreements must be in writing before the first tenant is contracted.
False, must be in writing from its inception.
Operating Budget
the projection of income and expense for the operation of a property over a one-year period.
Cash flow report
a monthly statement that details the financial status of the property.
Potential gross income
includes potential gross rentals if 100 percent occupied and collected
Effective gross income
deducts vacancy and collection losses
Fixed vs. Variable expenses
fixed remain constant and do not change, variable may be recurring or nonrecurring and can include repairs and landscaping.
Profit and Loss Statement
a financial picture of the revenues and expenses used to determine whether the business has made money or suffered a loss. Does not include itemized information.
Budget comparison statement
compares the actual results with the original budget.
(T/F) A low vacancy rate could mean that the rates are too low.
True
(T/F) In NC, property managers deposit funds into trust accounts by mandated deadlines and maintain detailed and accurate trust account records.
True
Preventive Maintenance
Helps prevent problems and expenses
Corrective Maintenance
Corrects problems after they've occurred
Title III of the ADA
prohibits discrimination in commercial properties and public accommodations
Consequential Loss Insurance
covers the loss of revenue if the property can not be used.
Liability Insurance
Covers injuries due to negligence
Casualty Insurance
coverage against theft, burglary, vandalism, and machinery damage
Surety Bonds
cover an owner against financial losses resulting from an employee's criminal acts or negligence