BOVAEP Property Manager TPC flashcards
BOVAEP Property Manager TPC · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Fiduciary duty
- A legal obligation of a property manager to act in the owner's best interest, including loyalty, confidentiality, disclosure, accounting, and obedience to lawful instructions.
- Management agreement
- A contract between owner and property manager specifying scope, fees, term, termination, authority limits, and reporting obligations.
- Net operating income
- Effective gross income minus operating expenses; it excludes debt service, capital expenditure, and income tax and measures property-level profitability.
- Operating expense ratio
- Operating expenses divided by effective gross income, expressed as a percentage; a lower ratio generally indicates more efficient property operation.
- Service charge reconciliation
- Comparison of actual service charge expenditure with budgeted amounts; any surplus or deficit is adjusted in the following service charge period.
- Sinking fund
- A reserve account accumulated through periodic contributions to fund future major repairs or replacements, based on lifecycle cost forecasts.
- Latent defect
- A building defect not apparent at practical completion that emerges later; it may be covered by a defects liability period or warranty.
- Planned preventive maintenance
- Scheduled maintenance based on manufacturer recommendations, statutory inspections, and asset criticality to prevent failures and extend asset life.
- Defects liability period
- A period after practical completion, often 6–24 months, during which the contractor must rectify notified defects at no cost.
- Condition survey
- A systematic assessment of building fabric and services that identifies defects and informs maintenance and capital expenditure planning.
- Quiet enjoyment
- A tenant's right to possess and use the premises without substantial interference from the landlord or persons claiming under the landlord.
- Assignment vs subletting
- Assignment transfers the entire leasehold interest; subletting transfers part of the term or premises, leaving the original tenant liable unless released.
- Forfeiture
- A landlord's right to terminate a lease for breach, such as non-payment of rent, subject to statutory notice and court procedures.
- Security deposit
- A sum held by the landlord as security for tenant obligations; often subject to caps, separate accounting, and return timelines by statute.
- Break clause
- A lease provision allowing early termination on specified conditions; strict compliance with notice and conditions is required to be effective.
- Rent review
- A mechanism in a lease to adjust rent, typically by fixed increase, indexation, or market rent, as specified in the agreement.
- Check-in inventory
- A documented record of the property's condition and contents at the start of a tenancy, signed by the parties to reduce deposit disputes.
- Vacant possession
- The state in which the tenant has removed all persons and goods from the premises, allowing the landlord to re-let or redevelop.
- Risk assessment
- A process identifying hazards, evaluating likelihood and severity, and recording control measures, subject to regular review.
- Hierarchy of controls
- A risk management sequence: eliminate, substitute, engineering controls, administrative controls, and personal protective equipment, in descending effectiveness.
- Legionella risk assessment
- An evaluation of water systems to identify and control Legionella bacteria risks, including temperature monitoring and management plans.
- Permit to work
- A formal authorization for high-risk activities such as hot works, specifying precautions, duration, and responsible persons before work begins.
- Conflict of interest
- A situation where personal or financial interests could influence professional judgment; it must be disclosed and managed transparently.
- Client money
- Funds held on behalf of clients, such as rents and deposits, which must be kept in a separate designated account and accurately accounted for.
- Confidentiality
- The ethical and legal duty not to disclose client or tenant information except as authorized or required by law, continuing after the agreement ends.
- Complaints handling
- A documented process for receiving, investigating, and responding to complaints fairly and within published timeframes, with escalation routes.
- Key performance indicator
- A measurable metric such as occupancy rate, arrears ratio, or maintenance completion time used to evaluate property management performance.
- Agency relationship
- A legal relationship in which the property manager acts on behalf of the owner, creating duties of care, good faith, and disclosure.
- Cash flow
- Net operating income minus debt service and capital expenditure; positive cash flow supports distributions and reserve contributions.
- Arrears ageing report
- A report categorizing outstanding rent by days overdue to prioritize collection actions and identify persistent late payers.
- Deferred maintenance
- Repairs or replacements postponed to a future period; it increases lifecycle costs and should be quantified and prioritized by risk.
- Statutory inspection
- A legally required examination of equipment such as lifts, electrical installations, or fire systems, with certificates retained as evidence.