Property Management

Americans with Disabilities Act (ADA)

Federal law that prohibits discrimination against individuals with disabilities in employment, public services, and public accommodations. Requires reasonable accommodations in property management.

An apartment complex must install a ramp and accessible parking spaces to comply with the ADA for tenants with mobility impairments.

Management Agreement

A written contract between the property owner and the property manager that outlines the manager's duties, authority, compensation, and term of the agreement.

The owner signs a management agreement authorizing the property manager to collect rent, handle maintenance, and screen tenants for a 10% fee.

Management Plan

A written plan prepared by the property manager that outlines goals, strategies, and budgets for operating the property effectively.

The property manager creates a management plan that includes projected income, expense budgets, marketing strategies, and maintenance schedules for the coming year.

Multiperil Policy

An insurance policy that covers multiple risks (fire, theft, liability, etc.) in a single package. Common for property owners.

The apartment building is insured under a multiperil policy that covers fire, wind damage, liability, and loss of rents.

Property Manager

A person or company hired by the owner to manage real estate. Duties include leasing, rent collection, maintenance, tenant relations, and financial reporting.

The property manager oversees 120 apartments, handles all leasing, maintenance requests, and sends monthly financial reports to the owner.

Risk Management

The process of identifying, evaluating, and controlling potential losses or liabilities in property management. Includes insurance, safety programs, and legal compliance.

The property manager implements risk management by installing security cameras, requiring renters insurance, and conducting regular safety inspections.

Surety Bonds

A bond that guarantees performance or honesty. In property management, often used to protect the owner against employee dishonesty or contractor performance.

The property management company requires maintenance staff to be bonded so the owner is protected if an employee steals from tenants.

Tenant Improvements

Alterations or improvements made to leased space to meet the specific needs of a tenant. Often negotiated in commercial leases.

The landlord agrees to build out new office space with custom walls, lighting, and HVAC as tenant improvements for a new corporate tenant.

Workers' Compensation Acts

State laws that provide benefits to employees injured on the job. Employers (including property managers) must carry this insurance.

When a maintenance worker is injured on the job, workers' compensation covers medical bills and lost wages as required by state law.