Chapter 14Property

Managementand Insurance

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IN THIS CHAPTER

• A property manager is a person who manages properties for others.

• The property manager is a fiduciary and therefore owes all the obligations imposed by the law of agency.

• Property Management.• Property Insurance.

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THE BASICS

• A property manager strives to produce the greatest net return possible for the owner.

• Acts as the owner’s agent in managing, renting, leasing, and selling the property.

• Agent must have a real estate license.

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TYPES

• Residential Property Management• Industrial Property Management• Management by Homeowners’ Associations

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OWNER–MANAGER RELATIONSHIP

• Authority• Duties• Fee

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PRINCIPAL FUNCTIONS

• Rental Schedule• Budget• Marketing• Handling Funds• Legal Actions• Maintenance• Records

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INSURANCE & TERMINOLOGY

• Property Insurance• Liability Insurance• Flood Insurance• Package Policy

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HOMEOWNER’SINSURANCE POLICIES

• HO-1 “Named perils.” • HO-2 “Broad form.” • HO-3 A special “all risk” policy. • HO-4 “Tenant’s broad form.”• HO-5 A special “all risk” policy offering

automatic replacement cost for contents and dwelling.

• HO-6 Applies to condominium owners and cooperative owners covering their contents.

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LEGAL ISSUES

• Insurable Interest• Coinsurance• Unoccupied Building Exclusion• Homeowner’s Warranty Policies

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anchor storescapital reserve budgetcoinsurance clausecorrective maintenanceendorsementextended coverageface amountfire insurance policyhomeowner’s policyhomeowner’s warranty policyinsurable interestmanagement agreementmanagement proposal

CHAPTER TERMINOLOGY REVIEW

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operating budgetpackage policypreventative maintenanceproperty managementproperty management reportproperty managerresident managerrisk managementstabilized budgetstandard fire policystrip center

more CHAPTER TERMINOLOGY REVIEW

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