Table of Contents

Preface

Acknowledgments

CHAPTER 1:

AN OVERVIEW OF REAL ESTATE MANAGEMENT

The Profession of Real Estate Management

What Is Real Estate?

The Role of Real Estate Managers

The Cycles of Real Estate Management

From 1920 to the Stock Market Crash of 1929

Recovery Period After the Great Depression, 1934 to 1939

Post–World War II, 1940 to 1950

From 1960 to 1970

From 1980 to 1990

From 1990 to 2000

Effects of 9/11 on Real Estate Management

The Enron Scandal

From 2003 to 2010

From 2010 to 2017: Short Sales and the New Shareconomy

The Economic Future for Real Estate Management

Types of Real Estate Assets

Residential

Condominium Associations

Commercial Properties

Summary

CHAPTER 2:

TYPES OF REAL ESTATE MANAGERS AND THEIR RESPONSIBILITIES

Types of Real Estate Managers

Site Management

Property Manager

Regional Manager

Asset Manager

Defining the Corporate Supervisory Team

Portfolio Manager

Executive Property Manager

Primary Responsibilities of a Real Estate Manager

Other Real Estate Management Professions

Leasing Agent

Marketing Director

Accounting and Financial Services

Building Engineers, Mall Managers, and Construction Managers

Facility Management

The Real Estate Executive

Brokerage Services

Administrative Personnel

Summary

CHAPTER 3:

REAL ESTATE AND ECONOMICS

Basic Economics

The Marketplace

The Role of Government

The Business Cycle

Real Estate Economics

The Real Estate Market

Government and Real Estate

Real Estate Cycles

Summary

CHAPTER 4:

THE LOGISTICS OF REAL ESTATE OWNERSHIP

Means and Reasons for Investing in Real Estate

Means of Investing

Reasons for Investment

Principal Forms of Income-Property Ownership

Sole Proprietorship

Partnerships

Corporations

Real Estate Investment Trusts

Joint Venture

Summary

CHAPTER 5:

THE MANAGEMENT AGREEMENT AND PLAN

The Management Agreement

Basic Components of an Agreement

Responsibilities of the Real Estate Manager

The Owner’s Obligations

Compensation for Management Services

The Management Plan

National Analysis

Regional Analysis

Neighborhood Analysis

Property Analysis

Market Analysis

Data Evaluation

Analysis of Alternatives

Cost-Benefit Analysis

Conclusions and Recommendations

Summary

CHAPTER 6:

FINANCIAL MANAGEMENT

Evaluation of Operating Funds

The Cash Flow Chart

Gross Potential Rental Income

Operating Expenses

Other Operating Fund Considerations

Accounting for Income and Expenses

Accounting Systems

Income Categories

Expense Categories

Management Fee and Administrative Costs

Payroll and Related Expenses

Insurance

Real-Time Data and Reporting

Financial Reporting Requirements

External Reporting

Internal Reporting

Operating Budget

Capital Budget

Long-Range Budget

Summary

CHAPTER 7:

STAFF MANAGEMENT

Staff Requirements

On-site Staff

Employees of the Management Firm

Contractors

Determining Adequate Staff Size

Hiring Qualified Personnel

Selecting Employees

Employee Onboarding

Retaining Valuable Employees

Performance Appraisal Methods

Compensation

Federal Programs

Communication

Promoting Morale

Continual Training

Developing Talents

Employee Discipline

Employment Policies

Progressive Discipline

Employee Termination

Facing a Layoff

Dismissing an Employee

Employer Liability

Summary

CHAPTER 8:

MARKETING AND TENANT RETENTION

Understanding the Market

Developing a Marketing Program

Marketing and Branding

Offering Marketing Incentives

Measuring Marketing Effectiveness

Using Sales Techniques

Approving a Prospect for Tenancy

Retaining Tenants

Welcoming New Tenants

Handling Requests

Building Goodwill with Tenants

Summary

CHAPTER 9:

UNDERSTANDING THE LEASE

Fundamental Elements of Leases

Types of Leases

Lease Negotiation

Standard Clauses

Concessions

Tenant Options

Lease Renewal Techniques

Other Lease Issues

Rental Collection

Rent Due Date

Late Fee and Delinquency

Collection System

Eviction

Security Deposits

Successful Leasing

Summary

CHAPTER 10:

MANAGING THE PHYSICAL ASSET

Property Systems Identification

Schedules, Inspections, And Maintenance Tasks

Schedules and Inspections

Custodial Maintenance

Corrective Maintenance

Preventive Maintenance

Deferred Maintenance

Other Aspects of Maintenance

Safety

Protecting the Environment

Controlling Energy Consumption

Maintaining Property Security

Managing Maintenance Work

Staffing Choices

Record Keeping

Summary

CHAPTER 11:

RESIDENTIAL PROPERTIES

Rental Housing

Multifamily Housing (Apartments)

Government-Assisted Housing

Military Housing

Senior Housing

Student Housing

Selecting Qualified Residents

Rental Agreement

Resident Retention

Common Interest Realty Associations

Managing Condominiums

Managing Cooperatives

Planned Unit Developments

The Role of Real Estate Managers Working with CIRAs

Other Residential Properties

Managing Single-Family Homes

Managing Manufactured Housing Communities

Maintenance Issues for Residential Properties

Unit Preparation

Maintenance for Common Area Amenities

Insurance Issues

Types of Insurance

Choice of Insurance Packages

Summary

CHAPTER 12:

OFFICE BUILDINGS

Property Analysis

Class of Structure

Criteria for Classification

Tenant Selection and Criteria

Financial Stability

Long-Term Profitability

Service Requirements

Office Rent

Measuring Rentable and Usable Space

Establishing Rates

Space Planning

Tenant Improvements

Office Condominiums

Medical Office Buildings

Summary

CHAPTER 13:

SHOPPING CENTERS

Property Analysis

Malls

Open-Air Malls

Trade Area Analysis

Managing Shopping Centers

Tenant Selection

Retail Rent

The Retail Lease

Other Commercial Property Types

Industrial Properties

Warehouses

Lease Considerations

Marketing Commercial Space

Prospecting for Tenants

Marketing on Value

Insuring Commercial Properties

Owner’s Insurance

Tenant’s Insurance

Summary

Glossary