This concludes Chapter 25. Below is a brief summary which you can review before you take your chapter quiz.
A property manager preserves the value of an investment property while generating income as an agent for the owners. Parts of a Management Agreement: A property manager becomes a fiduciary when a management agreement is signed with an owner.
A property management agreement would contain:
The owner’s objectives will be the deciding factor in an adoption of management plans. A property manager would not want his/her job dependent on the Allowable Vacancy Rate.
The property management escrow account is for security deposits; the property management account is for current rents and management.
A property manager could be paid a percentage of income, a salary, or a flat fee.
Escalator clause: A contract provision permitting an adjustment of certain payments either up or down to cover certain contingencies. Functions of a Property Manager:
A property manager is usually a general agent because of the authority vested by the principal. The Property Manager's first responsibility is to realize the Maximum Profit on the property that is consistent with the owner's instructions.
Duties to the landlord include:
An Estate for Years is the most commonly used commercial lease. It is for a definite time period. No need to give notice to the landlord.
An Estate from Period to Period, or a Periodic Tenancy is a lease that continues for a specific period of time or until proper notice is given by the tenant to cancel. The difference between this lease and an Estate for Years is that the tenant must give notice to vacate.
Income, Expenses, and Rate of Return for the Owner: A good property manager will always work to achieve the highest possible rate of return for the owner.
The federal and state fair housing laws must be followed at all times.
Maintenance programs:
Another primary responsibility of a property manager is the proper handling of the owner's money, including fees, security deposits, and rent collection.
Services to Tenants: Honesty; Accuracy and Disclosure of Material Facts.
Americans with Disabilities Act is designed to eliminate discrimination against individuals with disabilities.
Property management information:
In California, any apartment building that has 16 OR MORE rental units MUST have an onsite manager, also known as a residential manager.
No. | Subject | Author | Date | Views |
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100 | TEST 27 | admin | 2019.03.27 | 441 |
99 | Chapter 27 Conclusion | admin | 2019.03.27 | 229 |
98 | TEST 26 | admin | 2019.03.27 | 233 |
97 | Chapter 26 Conclusion | admin | 2019.03.27 | 164 |
96 | TEST 25 | admin | 2019.03.27 | 275 |
» | Chapter 25 Conclusion | admin | 2019.03.27 | 338 |
94 | TEST 24 | admin | 2019.03.27 | 284 |
93 | Chapter 24 Conclusion | admin | 2019.03.27 | 182 |
92 | TEST 23 | admin | 2019.03.27 | 147 |
91 | Chapter 23 Conclusion | admin | 2019.03.27 | 137 |
90 | TEST 22 | admin | 2019.03.27 | 285 |
89 | Chapter 22 Conclusion | admin | 2019.03.27 | 197 |
88 | TEST 21 | admin | 2019.03.25 | 292 |
87 | Chapter 21 Conclusion | admin | 2019.03.25 | 222 |
86 | TEST 20 | admin | 2019.03.25 | 219 |
85 | Chapter 20 Conclusion | admin | 2019.03.25 | 157 |
84 | TEST 19 | admin | 2019.03.25 | 321 |
83 | Chapter 19 Conclusion | admin | 2019.03.25 | 193 |
82 | TEST 18 | admin | 2019.03.23 | 672 |
81 | Chapter 18 Conclusion | admin | 2019.03.23 | 249 |