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11 Cards in this Set
- Front
- Back
What are a property manager's functions?
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1. Leasing and marketing function
2. Financial function 3. Maintenance function 4. Advisory function |
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leasing and marketing functions of a property manager
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1. Advertise and show rental units
- in a multi-unit commercial property an important function is finding the tenant mix that maximizes value for the property owner 2. Negotiate leases- goal in negotiations should be to maximize the value of the owner's investment - an important decision is the tradeoff between higher rent and higher vacancy or lower rent and lower vacancy 3. Provide for tenant needs |
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Professional organizations of property managers, and designations they confer:
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1.Institute of Real Estate Management (IREM)- a branch of the National Association of Realtors
2. Building Owners and Managers Association (BOMA)- an independent organization -these both publish income and expense information that is used by investment analysts as benchmarks. |
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Points to note:
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**Under old Illinois law a person had to have a real estate broker's license to manage property for outside parties
** new law has created a special licensed leasing agent category for managers working only with residential properties (can bew/o a license if you are an employee of the person/firm that owns the property |
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rent controls
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-In few cities, notably NYC and Berkeley, CA, rents for many apartments are controlled by local government.
-In theory the controls protect poor tenants from greedy landlords. - In practice, the controls often help wealthy tenants at the expense of small property owners. - Economists feel that tenants still end up spending as much as if they paid market-level rents, cuz they must incur waiting costs, pay search costs, and make bribe-like payments to owners, agents or current tenants |
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In one New York case many years ago:
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lessor was found to be within his rights in refusing to rent an apartment to a lawyer
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Another case in New York many years ago:
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lessor was found in violation of the rent control law when he replaced a human-operated elevator with an automatic, self-service model (deemed that it was a reduction in services- not allowed unless the rent is lowered)
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A building owner or property management firm generally is?
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- financially liable for injuries/damage caused by legal acts of an employee
- owner/management firm is not legally/financially liable for illegal acts their employee commits outside the scope of employment **However, they may be held liable if they didn't carefully screen potential employees for criminal histories and worker then engages in harmful behavior that reasonable could have been foreseen |
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Fair housing anti-discrimination laws apply to who?
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property managers renting residential properties, just as they do to brokers selling residential properties
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Americans with Disabilities Act (ADA)
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states that individuals with disabilities can't be denied access to public accommodations
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Under the Fair Housing Act:
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disabled residential tenants must be permitted to make reasonable alterations, but that is at their own expense if the changes are made inside their units
Problems arise: mental illness or substance addiction under treatment -landlord may find it legally difficult to evict them, even if disruptive or threat to other tenants |