© 2015 OnCourse Learning Chapter 14 Property Management and Insurance

IN THIS CHAPTER A property manager is a person who manages properties for others. The property manager is a fiduciary and therefore owes all the obligations imposed by the law of agency. Property Management. Property Insurance.

THE BASICS A property manager strives to produce the greatest net return possible for the owner. Acts as the owner’s agent in managing, renting, leasing, and selling the property. Agent must have a real estate license under most circumstances.

TYPES Residential Property Management Industrial Property Management Management by Homeowners’ Associations

OWNER–MANAGER RELATIONSHIP Authority Duties Fee

PRINCIPAL FUNCTIONS Rental Schedule Budget Marketing Handling Funds Legal Actions Maintenance Records

INSURANCE & TERMINOLOGY Property Insurance Liability Insurance Flood Insurance Package Policy

LEGAL ISSUES Insurable Interest Coinsurance Unoccupied Building Exclusion Homeowner’s Warranty Policies

 anchor stores  capital reserve budget  coinsurance clause  corrective maintenance  endorsement  extended coverage  face amount  fire insurance policy  homeowner’s policy  homeowner’s warranty policy  insurable interest  management agreement  management proposal CHAPTER TERMINOLOGY REVIEW

 operating budget  package policy  preventative maintenance  property management  property management report  property manager  resident manager  risk management  stabilized budget  standard fire policy  strip center more CHAPTER TERMINOLOGY REVIEW