2013 All rights reserved. New York Real Estate for
Salespersons, 5 th e Chapter 19 Property Management1 By Marcia
Darvin Spada Cengage Learning
Slide 2
2013 All rights reserved. Chapter 19 Property Management
Chapter 19 Property Management2
Slide 3
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
Slide 4
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
Slide 5
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
Slide 6
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
Slide 7
2013 All rights reserved. Duties of the Property Manager
Reporting Marketing Operating Statement Budget Rental Schedule
Chapter 19 Property Management7
Slide 8
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
Slide 9
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
Slide 10
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
Slide 11
2013 All rights reserved. Budget Stabilized budgetCapital
reserve budget Operating budgetVariable expenseCapital expenses
Chapter 19 Property Management11
Slide 12
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
Slide 13
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
Slide 14
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
Slide 15
2013 All rights reserved. How does one become a Property
Manager? Education and certification for Property Managers The
Institute of Real Estate Management http://www.irem.org Chapter 19
Property Management15