© 2013 all rights reserved. chapter 8 property management new york real estate for brokers, 5 th e...
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© 2013 All rights reserved.Chapter 8 Property Management
New York Real Estate for Brokers, 5th e
By Marcia Darvin SpadaCengage Learning
© 2013 All rights reserved.
Chapter 8 Property
Management
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Chapter 8 Key termsActual evictionAnchor storesCapital expenseCapital reserve budgetConstructive evictionCorrective
maintenanceEvictionFixed expenseLessee
LessorManagement
agreementManagement proposalOperating budget Planned unit
development (PUD)Preventative
maintenance
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Chapter 8 Key Terms (continued)
Property managementProperty management
reportProperty managerResident managerRisk managementStabilized budgetTenancy for yearsVariable expense
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Leasehold Estates Possession of Leased Property
Estate for Years a fixed term
Periodic Estaterenews after
a period of time
Estate at Will terminated by informal agreement
Estate at Sufferancepossession after agreement has terminated
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Definition of a LeaseA lease is a contract
For a consideration (usually rent), a landlord transfers to the tenant a property interest, or possession, for a prescribed time
The landlord is the lessor
The tenant is the lessee
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Standard Residential Lease Provisions
The Lease
Capacity to contract
Demising clause
Description of premises
Competent, sane adults
Transfer ofpossession
Term of lease
No requiredlimit
Specification of
rent/paymentIn writing
Statute ofFrauds
Quietenjoyment
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Lease Requirements
Apartment Sharing
Assignment and Subletting
Improvement
Possession and Habitability
Security Deposit
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Termination of a LeaseReason Explanation
Abandonment Tenant leaves
Death of property owner
Lease stays in effect
Actual eviction(Self-help)
Illegal forced eviction
Constructiveeviction
Withholding of rent if services not provided
Eviction Legal proceedingto evict
Lease Expiration
Periodic or estate for years
Mutual agreement
Both parties agree
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Death of Landlord or Sale of Property Death or Sale by the
Landlord A lease agreement
does not terminate upon the death of the landlord or the tenant
Death of the Tenant Succession Rights
to an Apartment
Succession Rights for Other Types of Properties Generally, there is
no “succession” in cooperatives and condominiums
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Functions of the Property ManagerGreatest possible
return for owner
Agent and fiduciary
Protect and
increase value of
investment
Managing, leasing,
renting, and
selling
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When is a license required?
A company or an individual who works for more than one owner should have a real estate license
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Duties of the Property Manager
Rental Schedule
Budget
OperatingStatement
Marketing
Reporting
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Management Proposal and Agreement
Proposal
Sets forth the
commitments of
manager if employed
Property manager
is the agent for the
purposes specified in
the agreement
Agreement
Creates an agency
relationship
between owner
and manager
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Property Insurance Coverage
Prevents financial loss from
Fire, winds,hail, tornado, vandalism, etc.
Theft of personal property
Someone injured onproperty
from negligence
Damage by insured to
someone else’sproperty dueto negligence
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Obligations to the Owner
Report to owner
Create a Marketing
plan
TrackIncome and
expense
Define maintenance
criteria
Create a budget
Goals of property manager
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Maintenance CriteriaPreventive maintenance
Periodic check of mechanical systems
Corrective maintenance
Fix a nonfunctioning item
One of the most important functions is to supervise physical maintenance
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Budget
Capital expenses
Variable expenseOperating budget
Capital reserve budget
Stabilized budget
Budget
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ReportingProperty Management Report
The property manager should
provide a periodic (usually monthly)
accounting of all funds received and
disbursed
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Differences Between the Markets Office building management
Retail property management
Residential property management
Condominium, Cooperative, Townhouse, and PUD management
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Operation of a Property Management OfficeNew property
acquisition
Servicing existing
clients
Negotiating
agreements
Owner-tenant relations
Public relations
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Future of the Project-Business TrendsBuilding types and amenities
availableNumber of occupants per unitTransportation volume Local industrial growthPopulation growthNational economic indicesCommunity growthProperty taxesZoning
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How does one become a Property Manager?
Education and certification for Property Managers
The Institute of Real Estate Managementhttp://www.irem.org
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