Transcript New York Real Estate for Salespersons, 4th e

New York Real Estate for
th
Brokers, 5 e
By Marcia Darvin Spada
Cengage Learning
© 2013 All rights reserved.
Chapter 8 Property Management
Chapter 8
Property
Management
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Chapter 8 Property Management
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Chapter 8 Key terms
 Actual eviction
 Anchor stores
 Lessor
 Capital expense
 Management agreement
 Capital reserve budget
 Management proposal
 Constructive eviction
 Operating budget
 Corrective maintenance
 Planned unit development
 Eviction
(PUD)
 Preventative maintenance
 Fixed expense
 Lessee
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Chapter 8 Key Terms (continued)
 Property management
 Property management






report
Property manager
Resident manager
Risk management
Stabilized budget
Tenancy for years
Variable expense
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Leasehold Estates
Possession of Leased Property
Estate for Years
a fixed term
Periodic Estate
renews after a
period of time
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Estate at Will
terminated by
informal agreement
Estate at Sufferance
possession after
agreement has
terminated
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Definition of a Lease
A lease is a contract
For a consideration
(usually rent), a
landlord transfers to
the tenant a property
interest, or
possession, for a
prescribed time
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Chapter 8 Property Management
The landlord is the
lessor
The tenant is the
lessee
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Standard Residential
Lease Provisions
The Lease
Capacity to
contract
Competent,
sane
adults
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Demising
clause
Transfer of
possession
Description of
premises
Term of
lease
No required
limit
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Specification
of
rent/payment
In writing
Quiet
enjoyment
Statute of
Frauds
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Lease Requirements
Security Deposit
Possession and Habitability
Improvement
Assignment and Subletting
Apartment Sharing
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Termination of a Lease
Reason
Explanation
Abandonment
Tenant leaves
Death of
property
owner
Lease stays in effect
Actual eviction
(Self-help)
Illegal forced eviction
Constructive
eviction
Withholding of rent if services not
provided
EvictionExpiration Periodic
Legal proceeding
Lease
or estate for years
to evict
Mutual
Both
parties agree
agreement
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Death of Landlord or Sale of
Property
 Death or Sale by the
 Succession Rights for
Landlord
 A lease agreement
does not terminate
upon the death of the
landlord or the tenant
 Death of the Tenant
Other Types of
Properties
 Generally, there is no
“succession” in
cooperatives and
condominiums
 Succession Rights to
an Apartment
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Functions of the Property Manager
Greatest possible
Managing, leasing,
return for owner
renting, and selling
Agent and fiduciary
Protect and increase
value of investment
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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
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Management Proposal and
Agreement
Proposal
Agreement
Sets forth the
Creates an agency
commitments of
relationship between
manager if employed
owner and manager
Property manager
is the agent for the
purposes specified in
the agreement
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Property Insurance Coverage
Prevents
financial
loss from
Fire, winds,
hail, tornado,
vandalism, etc.
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Theft of
personal
property
Someone
injured on
property
from
negligence
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Damage by
insured to
someone else’s
property due
to negligence
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Obligations to the Owner
Create a
budget
Report to
owner
Goals of
property
manager
Create a
Marketing
plan
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Define
maintenance
criteria
Track
Income and
expense
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Maintenance Criteria
Preventive
maintenance
Periodic check of
mechanical systems
One of the most
important functions
is to supervise
physical
maintenance
Corrective
maintenance
Fix a nonfunctioning
item
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Budget
Stabilized budget
Capital expenses
Capital reserve budget
Budget
Variable expense
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Operating budget
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Reporting
 Property 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 Office
New property acquisition
Servicing existing clients
Negotiating agreements
Owner-tenant relations
 Public relations
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Future of the Project-Business Trends
 Building types and amenities available
 Number of occupants per unit
 Transportation volume
 Local industrial growth
 Population growth
 National economic indices
 Community growth
 Property taxes
 Zoning
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How does one become a Property
Manager?
Education and certification for
Property Managers
The Institute of Real Estate
Management
http://www.irem.org
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