Maryland Real Estate - Chapter 19

what is a property manager

market analyst, salesperson, accountant, advertising, and maintenance person

what are the 3 main responsibilties of a property manager

achieve property owners goals

generate income for the owners

preserve investment of the property

who typically hires a property manager

corporate owners

HOA’s

Investors

trusts

apartment complexes

residential owners

and office building owners

what is a community assoication management

they are referred to by a board and make sure HOA and building codes are met

what might a CAM be in charge of in a senior home

housekeeping

meal services

social events

medical emergency plans

what is an asset manager

manage a portfolio and analyze what properties their clients should invest in

what is a corporate property manager

help invest in real estate for capital and could be an employee of that corporationw

what is a leasing agent

an independent contractor who works for a commission or a flat rate

what is a management agreement

a general agent between an owner and a property manager

what is included in a management agreement

fiduiciary responsibility

care

obedience

accounting

loyalty

confidentiality

disclosure

what is a management plan

outlines what owner wants from property, what manager will do and the financial goals

what are 3 managment factors

owners goals

regional/neighborhood market

the property maintenance itself

when should a manager go over reports with a property owner

once a yearwh

what is an operating budget

1 year period of projected income and expenses, should show probable performance

what is a cash flow report

monthly report of property financial status including the income expenses, operating income and net cash flow

what is the most important document in a management performance

the cash flow report

what is considered income in a rental property

gross rent, delinquent rent, utilities, vending machines, contracts, late fees, and storage fees

what are fixed expenses

employee wages, admin expenses, utilities and operating costsw

what is a variable expense

recurring or non recurring of capital improvements, building repairs or landscaping

wha tis total income

rental income and other incomes minuses losses

what is net operating

total income minus operating costsw

what is cash flow

net operating minuses debt services minus reserves

what is a profit and loss statement

determines if cost and income has made a sufferance or made money

what is net profit

gross receipts minus operating costs minus mortgage plus mortgage principal

what is a budget comparison statement

compares results with an OG budget vs projected income and expenses

what is the price of a lot of rentals determined by

the economy

how is commercial rates determined

by the square footage, per sq ft

what is the equal credit opportunity act

cannot discriminate based on race, color, religion, origin, sex, marital status, age or public assistance

what is something a manager should always be prepared for

risk management

what is tenant insurance

HO-4 renters insurance that protects against their belongings

what is commercial insurance

audit required and it states what is at a great risk

what is fire/hazard insurance

direct loss or damage protection from fire, windstorm, hail, smoke and civil insurrectionwh

what is flood insurance

given to a property in NFIP and protects against heavy rain, melted snow, inadequate draining and failed levees/dams

what is consequential loss/use/occupancy

covers a disaster of rent/revenue loss

what is a general libaility

risk for when public enters buildings and can cover their medical expenses

what is a casualty

theft, burgarly, vandalism, and machinery damage

what is a surety bond

a financial loss from employees criminal acts

what is a multiperil policy

insurance package for fire, hazard, liability, and casualty

what is a depreciated payout

insurance pays for actual damage on original property worth

what is a current replacement cost payout

insured for what it would cost to replace the structure today

what must a commercial property include

a coinsurance clause that would replacee 80% of the value in a fire