Unit 1: Introduction to Property Management Questions and Answers Rated A

Unit 1: Introduction to Property Management Questions and Answers Rated A Property Management Administrative operation and maintenance of property according to owners objectives. A property manager must take a long-range view of their responsibilities. The services provided are designed to maximize the benefit the owner receives from the property. Property Management Activities per Real Estate Act 1. leasing or offering to lease real estate or negotiating or approving, or offering to negotiate or approve, a lease or rental of real estate; 2. holding money received in connection to the above; 3. collecting, or offering or attempting to collect, on behalf of the owner or other person in charge of the real estate, rent money; 4. advertising, negotiating or carrying out any other activity, directly or indirectly, for the purpose of furthering an activity referred to above. Associated Organizations Building Owners and Managers Association (BOMA) -developed a standardized measurement method for office, industrial, retail and high-rise residential. Institute of Real Estate Management (IREM) Society of Industrial and Office Realtors (SIOR) International Facility Management Association (IFMA) Types of Properties Single-Family Residential Multi-Family Residential -Low Rise (1-4 stories) -Mid Rise (5-9 stories) -High Rise (6 or more stories) -Row Housing Cooperative Housing Condominium Commercial Industrial Forms of Ownership Individual Investors -Individuals who are looking for a regular and predictable return of capital through scheduled repayment. Also includes foreign citizens and foreign corporations who are ineligible under the Agricultural and Recreational Land Ownership Act to own more than 2 parcels (or no more than 20 acres) of farmland. In these cases the property manager is responsible for registering, reporting, and withholding income tax on those properties. Sole Proprietorship -Business which is owned by one person, owning all the assets, reaps benefit of any profits, but is personally and legally responsible for the company's debts and lawsuits. Partnership -Two or more individuals or entities who pool their personal and financial resources in a joint endeavour. Each partner has some control over day-to-day management of the partnership and is personally responsible for the debt of the partnership. Limited Partnership -Consists of at least one general partner, who may be a corporation, and at least one limited partner. Limited partner has no control over day-to-day management of the partnership and is essentially a passive investor. Limited partner's liability is limited to invested amount. Limited partnerships must be registered. Each partner may receive different reporting. Syndication -Arrangement by which two or more people are assembled to raise equity capital for purchasing real estate or other investments. To purchase some properties, it's common for investors to combine resources and establish some form of multiple ownership arrangement such as a corporation, cooperative, condo, tenancy in common, or partnership. Individuals who sell shares are called syndicators. The syndications are usually classified as securities by law. The Board of Directors or the controlling majority shareholder usually directs the property Types of Property Management Operations Professional Fee Management Companies -Hired by investors to bring operational experience and controls to their