© 2011 Cengage Learning

Alternate Real Estate Careers Chapter 16 © 2011 Cengage Learning

RATIONALE FOR CHAPTER There are many different real estate careers that can be pursued by licensees. This chapter identifies alternate careers in commercial real estate brokerage, property management, and being a licensed assistant.

© 2011 Cengage Learning Focus of Presentation This chapter will teach you some of the major differences between residential and commercial brokerage. You will learn the basics of how commercial properties are valued.

© 2011 Cengage Learning Focus of Presentation A discussion of the various professional designations available will enlighten you about how to increase your abilities and earnings through education.

© 2011 Cengage Learning Focus of Presentation This chapter details about property management as one of the more sought-after alternate careers. The role of the licensed assistant and buyer’s representative is discussed from the employing-agent’s and the licensed assistant’s point of view.

© 2011 Cengage Learning CHAPTER SIXTEEN OUTLINE 16.1 COMMERCIAL REAL ESTATE BROKERAGE 16.2 PROPERTY MANAGEMENT AND LEASING 16.3 LICENSED REAL ESTATE ASSISTANT

© 2011 Cengage Learning COMMERCIAL REAL ESTATE BROKERAGE Residential and commercial brokerage activities differences Property valuation process and how such things as pro-forma rents and current actual rents must be “blended” to arrive at a reasonable value for a property.

© 2011 Cengage Learning COMMERCIAL REAL ESTATE BROKERAGE CCIM designation and its probable effect on your future income. CPM and RLI designations and their probable effect on a career in property management or land brokerage.

© 2011 Cengage Learning COMMERCIAL REAL ESTATE BROKERAGE Discuss the value of specializing in one type of income property brokerage and the advantages to the agents and the clients. Types of commercial investment properties and the unique issues of each one.

© 2011 Cengage Learning COMMERCIAL REAL ESTATE BROKERAGE Two ways to enter commercial real estate strengths weaknesses

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING How do most property management firms tend to specialize in one property type for maximum effectiveness and minimum liability? Requirements for a property management company to be certified as an Accredited Management Organization (AMO).

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Condominium association management Written management agreement Three different types of property managers how each is different

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Discuss the state-defined duties and responsibilities placed on a property manager. Using the form in the text (Figure 16.2), discuss the property management agreement. Discuss what a conscientious property manager’s duties are.

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Current rent schedules what is involved? Importance of maintaining proper accounting records and the legal requirements involved. Trust account ledger

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Requirements of a valid lease various types Residential lease

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Use the Residential Lease to discuss the provisions of a valid lease and the protections afforded the owner and tenant. Importance of using a move in/move out checklist to avoid problems with tenants and leasing agents or owners.

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Right of entry Responsibilities of the tenant and the landlord. Assignment vs. sublease and the legal effects of each on the primary tenant.

© 2011 Cengage Learning PROPERTY MANAGEMENT AND LEASING Terminate a lease what is involved? Evictions and Unlawful Detainer actions. Retaliatory evictions and the protections afforded tenants.

© 2011 Cengage Learning LICENSED REAL ESTATE ASSISTANT Costs of licensed assistants today. Use of incentive bonuses. How to pay a buyer’s representative and a person who works as a combination licensed assistant and buyer’s rep.

© 2011 Cengage Learning LICENSED REAL ESTATE ASSISTANT Discuss the economics of hiring a licensed assistant (rising agent-income vs. hourly cost of the assistant). The right time to hire an assistant? Art of transitioning, and how to delegate authority.

© 2011 Cengage Learning LICENSED REAL ESTATE ASSISTANT Duties of a licensed assistant. Interview and hire a licensed assistant.

© 2011 Cengage Learning LICENSED REAL ESTATE ASSISTANT Discuss the importance of proper training of a licensed assistant as it applies to the employing agent, the broker, and the Department of Real Estate requirements. Benefits of the REPA professional designation from the assistant’s viewpoint and the employing agent’s viewpoint.

© 2011 Cengage Learning LICENSED REAL ESTATE ASSISTANT Effectively work with a licensed assistant. Four deadly sins and how to avoid them. Effectiveness (and potential problems) of the husband/wife team. Vacation coverage.