Unit 19 Property Management

budget comparison statement

Compares actual results with the original budget, often providing percentages or a numerical variance of actual vs. projected income and expenses

cash flow report

a monthly financial statement that summarizes cash inflows and outflows, showing the net cash position over a specific period

corrective maintenance

Repairs made to fix equipment or systems that are malfunctioning or out of order. It is typically performed after identifying a problem to restore functionality.

management agreement

A contract between a property owner and a management company that outlines the responsibilities and terms for managing the property, including fees and duration

management plan

a document that outlines the details of the owner’s objectives for the property, as well as what the property manager expects to accomplish and how, including financial objectives

multiperil policies

insurance package that includes standard types of commercial coverage

operating budget

projection of income and expense for the operation of a property over a one-year period

preventive maintenance

regularly scheduled activities such as painting and seasonal servicing of appliances and systems that preserve the long-range value of the and physical integrity of the building

profit and loss statement

financial report of revenues and expenses to determine whether a business has made money or suffered a loss over a specific period, such as a month, quarter or a year

property manager

person or company hired to maintain and manage property on behalf of the property owner

risk management

the structured process of identifying, assessing, and controlling financial, operational, legal, and physical hazards that can threaten property values, safety, or investment returns

routine maintenance

day to day duties, working with tenants problems

surety bonds

agreements designed to protect a property owner from financial losses caused by a tenant, such as property damage or unpaid rent

tenant improvements

interior modifications made to a rental property to customize the space for a tenant’s specific business or residential needs

workers’ compensation acts

state laws that cover claims for medical or hospital payments for injuries sustained by employees hurt in the course of their employment