Property Management Review Guide New

Front 1

Civil Rights Act of 1866

Back 1

Prohibits all racial discrimination

Front 2

Fair Housing Act of 1968

Back 2

Prohibits discrimination based on 7 protected classes:
Race, Color, Religion/Creed, National Origin, Sex/Gender, Familial Status, Handicap
(Fresh Corn)

Front 3

Fair Housing Act of 1968: Violations Prohibited

Back 3

Blockbusting: Inducing Panic Peddling
Steering- Channeling protected classes to particular area or building
Redlining- Refusing services to area

Front 4

Fair Housing Act of 1968: Enforcement

Back 4

Complaint may be filed up to one year with HUD

Front 5

Fair Housing Act of 1968: Civil Penalties

Back 5

Up to $100K, court and legal fees

Front 6

Americans W/Disabilities Act (1992)

Back 6

Requires businesses and public facilities open to the public be accessible to disabled persons

Front 7

Sherman Anti Trust Act

Back 7

Federal act which promotes competition in an open marketplace, no boycotts, monopolies, price fixing, allocating customers or markets, enforced by the FTC

Front 8

Lead Based Paint Act (1978)

Back 8

Banned lead based paint

Front 9

Megan's Law

Back 9

Requires information about certain sex offenders be released to the general public

Front 10

Clean Air Act (1970)

Back 10

Established a comprehensive approach for combating air pollution by the EPA

Front 11

Workers Compensation

Back 11

Insurance coverage to protect injured employees

Front 12

SC Law and Requirements - Property Manager

Back 12

Property Manager- 30 Hours pre licensing course, state exam, under BIC/PMIC

Front 13

SC Law and Requirements- BIC/PMIC

Back 13

Responsible for agent's actions, all money, trust accounts, etc.

Front 14

SC Law and Requirements- Law Violations

Back 14

Lying, Bird- dogging, conversion, dual contract, non-disclosure, fraud, commingling

Front 15

SC Law and Requirements- Handling of Money

Back 15

Deposit cash within 48 hours, checks 48 hours after offer is accepted.

Front 16

SC Law and Requirements- Accounting Requirements

Back 16

Journal/ledger, receipts and disbursement, reports and all documentation

Front 17

Fiduciary Duty

Back 17

Duty of trust and confidence

Front 18

Special Agent

Back 18

Representative of only the principal on a specific matter or transaction

Front 19

General Agent

Back 19

Property manager: obtain objectives of owner, generate income, preserve and increase property value

Front 20

Risk Management

Back 20

Insurance purchase for leased property is transferring the risk

Front 21

Operating Reports

Back 21

Income/Expense, Budget, Profit/Loss, Tax Records, Cash-flow statement

Front 22

Preventative Maintenance

Back 22

Eliminates corrective maintenance

Front 23

Purpose of the SCRL Tenant Act

Back 23

Simplify, clarify, modernize, and revise the law governing the rental of dwelling units, rights and obligations of landlords and tenants

Front 24

Exclusions to the SCRL Tenant Act

Back 24

Timeshare rentals, hotels, institutions, agricultural, shelters

Front 25

Landlord Obligations of the SCRL Tenant Act

Back 25

Disclose owner/agent in writing , deliver possession of unit, bring action to recover, liability limited after sale

Front 26

Landlord Payment of Rent of the Payment of Rent

Back 26

If the rental agreement does not specify when rent is due, the rent shall be due at the beginning of the rental period

Front 27

Security deposit/prepaid rent

Back 27

Must be completed in 30 day accounting period showing itemized deductions or tenant may recover amount equal to 3 times amount withheld

Front 28

Escrow Account

Back 28

Hold and protect third party money

Front 29

Maintenance of Premises

Back 29

Housing codes/habitable, essential services-water, heat, common areas, major facilities

Front 30

Tenant Remedies for Landlord's Non Compliance

Back 30

When landlords do not keep properties habitable tenants may constructively evict themselves after 14 days written notice

Front 31

Prohibited Retaliation

Back 31

Over increased rent or limits essential services or ejects due to tenant complaining

Front 32

Entry/Quiet Enjoyment

Back 32

Anytime for emergency, 8 am - 6pm for scheduled maintenance

Front 33

Tenant Obligations

Back 33

Must comply with all housing codes affecting health and safety, keep the dwelling unit reasonably safe and clean

Front 34

Landlord Remedies for Tenant's Non Compliance

Back 34

-Tenant must remedy breach of lease within 14 days or legal action can be taken if rent is not paid within 5 days landlord can evict
- For holdover tenancy landlord may recover 3x's rent of 2x's damages

Front 35

Actual Eviction-Ejectment

Back 35

Court action to remove tenant-evictions

Front 36

Constructive Eviction

Back 36

Tenant moves out due to conditions of property 14 days after written notice

Front 37

Abandonment

Back 37

15 day's absences after default of rent, abandonment does not terminate the lease, hold personal property up to $500.00 value

Front 38

Disclosure

Back 38

The tenant must be advised in writing on or before the commencement of the lease- the name and address of the owner of the property, or the name and address of the owner's agent

Front 39

Capitalization Rate

Back 39

Rate of return received on investment based on Net Income...............thus the Lower rate of return=Higher Value

Front 40

Capitalization Rate Example

Back 40

A property generates annual net operating income of $6,600, at a cap rate of 12% the property value is $55,000 ($6,600/12% = $55,000) and/or paid $55,000 for a property anticipates making $6,600 in NOI your cap rate would be 12% ($6,600/$55,000 = .12 OR 12%

Front 41

Net Operating Income

Back 41

Income left after subtracting operating expenses

Front 42

Gross Potential Income

Back 42

100% Occupancy at market rates

Front 43

Cash Flow

Back 43

Net Spendable NOI minus debt service

Front 44

Condominiums

Back 44

Individual ownership within, undivided outside, separately assessed and taxed

Front 45

Cooperatives-proprietary Lease

Back 45

Personal property, owns stock or shares in corporation who owns property, fulfill corporate aims

Front 46

Planned Unit Development

Back 46

Usually lower priced with minimum maintenance cost, higher density, and open spaces

Front 47

Commercial Property

Back 47

Marketing- advertising by signs, brochures, ads, direct mailings, public relations, referrals, rental center.
Qualifying Tenant- spatial requirements budget
Manager Maintains budget, expenses and income and maintain common elements

Front 48

Industrial Property

Back 48

Assess the prospect's space, transportation and labor needs

Front 49

Vacation Time Share

Back 49

Sharing Ownership Plan- Purchaser receives an ownership interest in real property and the right to use accommodations for a period of time during a given year, not necessarily consectutive years, which extends for a period of more than one year. Initial fee of $10.00 per each seven day use availability, but not exceeding a maximum initial filing fee of $500.000 must accompany and application for registration a vacation time sharing plan contract may be cancelled within 5 days after date contract is signed

Front 50

Escalation Lease

Back 50

Provides for specific increases at a specific time

Front 51

Gross Lease

Back 51

Residential, Lessee pays fixed rent

Front 52

Net Lease

Back 52

Commercial Industrial, Lessee Pays rent, utilities, taxes, and assessments

Front 53

Net Net Lease

Back 53

Industrial, Lessee Pays rent, utilities, taxes, and assessments plus insurance

Front 54

Net Net Net Lease

Back 54

Industrial, Lessee pays rent, utilities, taxes, assessments, insurance plus maintenance

Front 55

Percentage Lease

Back 55

Retail, Lessee pays basic rent plus % of gross sales, may pay some or all property costs

Front 56

Ground Lease

Back 56

Tenant pays rent for the land only and any improvements made on the property will revert to the landlord upon termination of the lease

Front 57

Estate for Years

Back 57

Definite beginning and a definite end date

Front 58

Tenancy at Will

Back 58

Indefinite period of time which exists as long as both parties agree beyond the original lease tenancy at will is the only tenancy that is broken by death

Front 59

Tenancy at Sufferance

Back 59

Tenant obtains possession of the premises legally but remains on the property after the expiration without consent of the landlord, this is the weakest tenancy in SC

Front 60

Proper Notice

Back 60

Residential tenants can be approached 90 days before the lease expires, commercial and industrial six months to one year before expiration date

Front 61

Purchasing insurance is one way to

Back 61

Transfer risk