Modern Real Estate Practice in Illinois Eighth Edition Chapter 18: Property Management ©2014 Kaplan, Inc.

The Property Manager Principal responsibilities –Achieve the objectives of the property owners –Generate income for the owners –Preserve and/or increase the value of the investment property Management Agreement –Creates an agency agreement relationship between the owner and the property manager

Securing Management Business ■ corporate owners ■ apartment buildings ■ owners of small rental residential properties ■ homeowners’ associations ■ investment syndicates ■ trusts ■ owners of office buildings

New Opportunities Community association management Housing for the near-elderly and elderly Manufactured homes Resort housing Concierge services Asset management Corporate property managers Leasing agents

PROPERTY MANAGER’S RESPONSIBILITIES Budgeting Expenses –Capital expenditures Renting the Property –Setting rental rates Selecting Tenants –Collecting rents Maintaining Good Relations with Tenants

Management Functions Maintaining the Property –Preventive maintenance –Repair or corrective maintenance –Routine maintenance –Construction Handling environmental concerns The Americans with Disabilities Act

Risk Management Security of Tenants Types of Insurance Claims –Depreciated our actual cash value –Current replacement cost The Management Profession