CRLS Property Management Operations Flashcards

Which document outlines the scope of services a property manager will provide to an owner?

Answer: Property management agreement

The property management agreement defines the duties, fees, and authority granted by the owner to the property manager.

A property manager discovers a roof leak causing interior damage. What is the FIRST action they should take?

Answer: Notify the owner and arrange emergency repairs

The property manager must promptly notify the owner and arrange emergency repairs to prevent further damage and protect habitability.

What is the primary purpose of a move-in inspection report?

Answer: To document the property's condition before the tenant takes possession

A move-in inspection report creates a baseline record of property condition to resolve disputes over damages at move-out.

Which metric is most commonly used to evaluate a property manager's leasing performance?

Answer: Vacancy rate

Vacancy rate measures the percentage of unoccupied units, directly reflecting how effectively a property manager is leasing available space.

Under a typical property management agreement, who is responsible for paying property taxes?

Answer: The property owner

Property taxes are the financial obligation of the property owner, though the manager may arrange payment from the owner's operating account.

What does 'net operating income' (NOI) represent in residential property management?

Answer: Gross rental income minus operating expenses, before debt service

NOI equals gross rental income less operating expenses (maintenance, management fees, insurance, taxes) but excludes mortgage payments.