Casualty Insurance
Policy usually written to cover specifically stated risks such as burglary, theft, vandalism, equipment damage, accidents and health.
Multiperil Policy
Commonly bundled package of insurance typical in apartment complexes and commercial buildings.
Corrective Maintenance
Actual repairs, part of a property manager's job.
Preventive Maintenance
Maintenance efforts to prevent actual damage or need for corrective maintenance.
Life Cycle Costing
Comparative analysis of the total life time cost of two alternative capital expenditures. (i.e. A property manager may compare two different air conditioning systems, considering the initial capital investment, operating expenses, as well as the expected useful life of each, then make a recommendation to the owner).
Property Manager
Party hired by a property owner to manage all or various aspects of the property. Considered an agent or fiduciary of the owner. (Responsibilities could include leasing, repairs, maintenance, risk management, budgeting and record keeping).
Management Agreement
Employment agreement between owner and property manager. Sets forth the responsibilities of each party as well as compensation. Typically creates an agency relationship.
Risk Management
Typical fiduciary obligation of a property manager to assess, minimize and avoid risks to the property owner.
Rent
Payments from lessee to lessor as consideration for the right to occupy the space.
Tenant Improvement
Construction of improvements or alterations to the leased space to accommodate the tenant's specific needs.
Surety Bond
Policy or bond intended to protect the landlord from an employee's criminal acts or negligence while on the job.
Worker's Compensation
Body of laws, or actual insurance policy, protecting employees injured on the job. (Most states have worker's compensation acts that require workman's comp insurance policies).
Operating Budget
Detailed statement of a property's operating income and expenses. Used by property managers and landlords to determine the net operating income (NOI) and cash flow.