1. Real Estate Principles, 11th Edition
By Charles F. Floyd
and Marcus T. Allen

2. Property and Asset Management
Chapter 10
Property and
Asset Management

3. Property Management
The role of the property manager is to manage the property with the objective of securing the highest net return for the property owner over the property’s useful life

4. Management Agreement
Establishes the relationship between the owner and the manager. The agreement should address the powers of the manager relating to
Rent setting
Lease signings
Rent collections
Power to spend money on behalf of the property
Authority to hire, fire, and supervise personnel

5. Management Agreement, cont.
The agreement should specify the compensation to the manager
Percentage of gross income
Fixed amount
Fee schedule for certain tasks
Hourly rate

6. Functions of a Property Manager
Administration
Marketing and advertising
Signs on the property
Neighborhood flyers
Bulletin boards
Internet sites
Listing with leasing companies
Newspaper advertisements
“Open house” days or weekends

7. Functions of a Property Manager, cont.
Tenant selection
Compliance with fair housing laws
Put more emphasis on tenant’s prior, instead of current, landlord

8. Functions of a Property Manager, cont.
Lease negotiations
Amount of security deposit
Day rent is due
Day rent is considered late
Nature of tenancy (stated period, period-to-period, etc.)
Is the lease renewable?

9. Functions of a Property Manager, cont.
Lease negotiations, cont.
Tenant maintenance responsibilities
How many people may occupy the premises?
Who is responsible for insurance?
Assigning and subletting
Local disclosure laws
Are pets allowed?

10. Functions of a Property Manager, cont.
Move-in inspections
Documentation of condition of property at start of lease
Critical for claims against security deposit
Property maintenance
Maintenance to conserve the property
Rehabilitation and renovation to compete in changing market

11. Functions of a Property Manager, cont.
Rent Collection
Handle eviction process if rent is unpaid
Move-out Inspection
Will go smoothly if there is a well documented move-in inspection

12. Functions of a Property Manager, cont.
Security deposit returns
Compliance with local laws
See Close-Up “Green Acres Shopping Center – A Property Management Success Story”

13. The Role & Functions of an Asset Manager
The functions of an asset manager include:
Facilities management
Acquisition of additional space for the firm’s operations
Financing decisions relating to needed space
Disposition of corporate real estate assets