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98 Cards in this Set
- Front
- Back
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Three goals of a PM
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achieve objectives of owner
generate income preserve/increase value |
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Demand for property management began in the 1800s with the invent of:
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steel frame buildings, electric elevator, development of suburbs, increasing investment opportunities
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real property=
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parcel of land, air above, soile beneath and anything permanently attached
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commercial property=
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provides goods, services, facilities or accomadations to the public
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Institute of Real Estate Management (IREM)
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developed in 1933; provides opportunities for PMs to meet and share ideas
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Assesing boundaries and land usage, local building codes and regulations, transportation and utilities, economy, supply and demand, neighborhood amenities and facilities =
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neighborhood analysis
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When there are more units available than potential tenants
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Technical oversupply
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When potential tenants cannot afford the price of the space
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Economic oversupply
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When taking over a new property, the PM...
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reads all info in leases and files
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The management plan cannot be completed until the PM has identified...
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the owners goals
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Most often found in banks, colleges and large corps; no formal contract is needed
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employer-employee relationship
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the PM's employees who handle funds need to be covered by a
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surety bond
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principal means of communication between the PM and owner
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Monthly earnings report
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Industrial and commercial properties are more likely to use _________ adveritising
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direct mail
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The most effective advertising brochure will hav a _____
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central theme
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Can be beneficial when leasing a new or very large development
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broker cooperation
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tenancy having a definte beginning and end; most typical in residential
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estate for years
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tenancy for an indefinite period of time;existing as long as both parties will for it to continue
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tenancy at will
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when tenant stays after lease is up without permission from owner
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tenancy at sufferance
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tenant pays fixed amount and owner pays all expenses for property, typical in residential
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gross lease
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tenant pays some or all of the property's expenses in addition to rent
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net lease
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commonly used for retail property; fixed base rental plus a percentage of the tenant's gross income
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percentage lease
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to prevent fraud or disputes over oral agreements
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statue of frauds
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complete and legal name; description of property; lease term; amount of rent; time and method of payment; use of premises; rights and obligations of both parties; possession of premises
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basic element of a lease
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specific rent increases at specific times
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step-up or escalation lease
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all tenants rights go to third property; some of tenants rights go to third property
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assignment of lease; sublet of lease
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vitally important in retail and commercial real estate
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tenant mix
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financial status of commercial or industrial tenants can be ascertained by consulting:
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Dunn & Bradstreet
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Lease renewal centers on:
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length of lease term, extent of repairs, amount of rent to be paid
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Residential tenants can be contacted ______ before expiration and industrial/commercial ____
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90 days; 6 months-1 year
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Replacing AC fillters on a regular basis is an example of
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preventative maintenance
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when repairs are not made when needed
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deferred maintenance
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Laws: when a license is not renewed by its expiration date, the penalty is _____
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$25 per month, up to 6 months
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Laws: minimum age to apply for broker license
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21
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Laws: minimum age to apply for PM license
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18
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Laws: after a revocation of license, a person may not reapply within a period of
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one year
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Laws: all monies received by a PM must be deposited within _______ of receipt
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48 hours
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Laws: Security deposits must be returned to tenant within
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30 days after termination and delivery of posession by tenant
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Laws: If PM does not return secuity deposit within 30 days....
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tenant may recover at 3 times the amount witheld and attorney's fees
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Laws: If landlord fails to deliver possesion of dwelling to tenant, the tenant can:
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terminate the rental agreement upon at least 5 days written notice to landlord and have all pre-paid rent and secuity returned
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Laws: If failure to deliver possession is willful and not in good faith, the aggrieved person may recover:
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not more than 3 months periodic rent or twice the actual dmages sustained (whichever is greater) and legal fees
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Laws: The unexplained absence of a tenant for a period of fifteen days after default in payment is considered ______
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abandonment of the dwelling
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This file contains all communications with tenant
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General correspondance file
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This file holds the management contract, mortgage/title info, labor contracts and legal description of property
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Permanent file
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This person takes care of the general administration, directs daily operation and reports to property management exectutive
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The property supervisor
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Gross rental income+Income from other sources+Losses incurred =
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Total Income
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Total income - Operating Expenses =
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Net operating income before debt service
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Net operating income before debt service - debt service - reserves =
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cash flow
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Accounts of decline in value from physical deterioration, functional obsolescence and economic obsolescence
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depreciation
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To qualify as materially participating, a person must
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devote 50 % of his personal services or more than 750 hours
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an index of the profit of that particular property
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cap rate
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Capitilzation =
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Net operating income before debt service divided by value of the property
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The higher the cap rate, the....
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higher the risk
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The purpose of federal antitrust laws, particularly the Sherman Antitrust Act is to....
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promote competition in an open marketplace
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the act of encouraging people to sell or rent by claiming the entry of a protected class will have a negative impact on property values
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blockbusting
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channeling of members of protected classes to buildings already occupied by members of other classes
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steering
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The Fair Housing Amendments of 1988 added
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familial status and handicap
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This law requires info about certain sex offenders be released to the general public
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Megan's Law
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Any housing constructed prior to ______ is affected by lead based paint
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1978
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Chipping and peeling lead paint can become
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airborne and widely spread
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This law was designed to standardize and regulate the relationship between PM's and their tenants
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Uniform Residental Landlord and Tenant Act
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If a unit is rendered uninhabitable by fire or any other causalty, the tenant....
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may give notice and terminate the lease immediately
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PUD stands for
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planned unite developments
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PUD owners own their homes and land, but share
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ownership and responsibility in certain public areas
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In this type of ownership, the apartment owner purchases shares in the corporation that holds the title to the apartment building.
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cooperative
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What do covenants, conditions and restrictions (CC&Rs) do?
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enhance the overall quality and desirability of the neighborhood to keep up values
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measuring to the inside finished surface of the dominant portion of the permanent outer walls
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rentable area
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# of square feet that can actually be occupied
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usable area
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these have automation systems and advanced telecommunications
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intelligent or smart buildings
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employee of the building occupany, responsible for internal arrangement and furnishing the space
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facilities manager
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100,000 square feet, supported by at lease 1000 families located within a 1.5 mile radius. 15 to 20 stores.
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neighborhood center
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300,000 to 1 million square feet, large anchor stores and smaller stores
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power center
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most effective method of finding shopping center tenants
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personal contact solicitation
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permits landlord to retain right to terminate percentage lease at the end of an acceptable time period
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recapture clause
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A Standard Manual of Accounting for Shopping Cener Operations is published by _____
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ULI Urban Land Institute
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Building is intact but the use is out of date
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functional obsolescence
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these industries sell to provate or industrial customers
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market-oriented
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a suburban industrial subdivision designed to offer land in outlying areas with good accesibility to comparatively smaller business
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industrial park
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in industrial property, one of the most important inquiries is
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exact zoning status
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tenant is lliable for taxes and assessments, insurance premiums and the cost of repairs and maintenance along with fixed lease price
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net net net or triple net
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annual rental rate for an industrial property is usually based on the owner's _____
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rent factor
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installing fire sprinklers and signs and physical barriers to warn people of hazards is _____
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controlling the risk
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Increasing the insurance deductible is a way of
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retaining the risk
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this guarantees taht partial damage to old, depreciated property will be replaced by new construction
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replacement cost insurance
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underground storage tanks or disposal sites require _______
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pollution liability insurance
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having this kind of insurance can protect against possible accounting mistakes or oversights
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errors and omissions insurance
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this can require the PM to indemnify the manager for any damages not caused by the manager's negligence
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indemnity clause
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by-product of a manufactured item which may not be subject to environmental law or regulation
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hazardous waste
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everyday items such as houehold cleaning products and paint
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hazardous substance
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This act of 1970 makes the EPA set national air quality standards for major pollutants
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Clean Air Act
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The Clean Air Act also makes the EPA regulate _____
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the emission of toxic air pollutants
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The famous Superfund law--two trust funds were created to help finance cleanup projects and payment of property damage claims
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CERCLA - Comprehensive Environmental Response, Compensation and Liability Act
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Number one prevention technique for mold
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moisture control
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Most common use of underground storage tanks is ____
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storage of petroleum
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best known of the volatile organic compounds is _____
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formaldehyde
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All persons have complete responsibility for the entire loss, damage or expense
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joint and severable liability
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clinically diagnosed condition caused by toxic substances or pathogens
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BRI building related illness
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employees of tenant companies who are schooled in emergency procedures
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tenant wardens
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