© 2013 All rights reserved. New York Real Estate for Salespersons, 5 th e Chapter 19 Property Management1 By Marcia Darvin Spada Cengage Learning

© 2013 All rights reserved. Chapter 19 Property Management Chapter 19 Property Management2

© 2013 All rights reserved. Chapter 19 Key Terms  Capital expense  Capital reserve budget  Corrective/preventive maintenance  Management agreement  Management proposal  Operating budget  Planned unit development  Property management/Manager  Property management report  Resident manager  Risk management  Stabilized budget  Variable expense Chapter 19 Property Management3

© 2013 All rights reserved. Functions of the Property Manager Greatest possible return for owner Agent and fiduciary Protect and increase value of investment Managing, leasing, renting, and selling Chapter 19 Property Management4

© 2013 All rights reserved. When is a license required?  A company or an individual who works for more than one owner should have a real estate license Chapter 19 Property Management5

© 2013 All rights reserved. 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 Chapter 19 Property Management6

© 2013 All rights reserved. Duties of the Property Manager Reporting Marketing Operating Statement Budget Rental Schedule Chapter 19 Property Management7

© 2013 All rights reserved. Differences Between the Markets  Office building management  Retail property management  Residential property management  Condominium, Cooperative, Townhouse, and PUD management Chapter 19 Property Management8

© 2013 All rights reserved. Operation of a Property Management Office  New property acquisition  Servicing existing clients  Negotiating agreements  Owner-tenant relations  Public relations Chapter 19 Property Management9

© 2013 All rights reserved. Obligations to the Owner Goals of property manager Create a budget Define maintenance criteria Track Income and expense Create a Marketing plan Report to owner Chapter 19 Property Management10

© 2013 All rights reserved. Budget Stabilized budgetCapital reserve budget Operating budgetVariable expenseCapital expenses Chapter 19 Property Management11

© 2013 All rights reserved. Maintenance Criteria Preventive maintenance Periodic check of mechanical systems Corrective maintenance Fix a nonfunctioning item One of the most important functions is to supervise physical maintenance Chapter 19 Property Management12

© 2013 All rights reserved. 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 Chapter 19 Property Management13

© 2013 All rights reserved. Reporting Property Management Report The property manager should provide a periodic (usually monthly) accounting of all funds received and disbursed Chapter 19 Property Management14

© 2013 All rights reserved. How does one become a Property Manager? Education and certification for Property Managers The Institute of Real Estate Management Chapter 19 Property Management15