Exam 1 Intro to Property Management - Study Guide Latest Updated 2024

Exam 1 Intro to Property Management - Study Guide Latest Updated 2024 Property Management Definition - Answer ️️ -a professional activity in which someone other than the owner supervises the operation of a property according to the owner's objectives. The operation of income-producing real estate as a business, including leasing, rent collection, maintenance of the property, and general administration (like an owner's agent) Impact of the Great Depression on the Property Management Profession - Answer ️️ -- Numerous apartment building owners defaulted and banks and other lenders had to establish their own in-house management staff or contract for outside management. -This period marked the beginning of modern management as more and more properties came under the same ownership and property management became a necessity. -Creation of the Federal Housing Administration -Caretaker manager Trend in home ownership after world war II - Answer ️️ --urban exodus to the suburbs began - - american dream Evolution of the Property Management Field (Evolution Typology) - Answer ️️ -Owner Manager -- 1930s caretaker -- 1960s Emerging Professional Manager -- 1980s Sales & Marketing Manager -- 1990s Income Maximization Manager 7 goals of ownership - Answer ️️ --specific rate of return -regular cash flow -tax benefits -investment diversification -quick profit from repositioning -increased value over time -pride of ownership Perform a basic Net Operating Income calculation - Answer ️️ -NOI = rental income+other income-vacancy losses-total operating expenses Perform a basic Cap rate calculation - Answer ️️ -NOI/property value = capitalization rate Perform a basic Occupancy Percentage Calculation - Answer ️️ -number of units occupied/number of units total Common trends in property income & expenses (review budget handout) - Answer ️️ - List & describe different types of property ownership - Answer ️️ --individual investors -partnerships -joint ventures -corporate ownership -institutional ownership -REITS -shared interest associations -government -limited dividend & non-profit -foreign List the 7 types of rental properties - Answer ️️ --Suburban garden apar