Check Your Understanding-Answers
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What is goodwill as it relates to a business?
Goodwill is an intangible asset that results from the reputation of the business. It is defined as the expectation that the public will continue to do business at the establishment.
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List the three Institute of Real Estate Management property management designations.
Certified Property Manager© (CPM©) for individuals meeting a certain level of education and experience.
Accredited Residential Manager© (ARM©) for resident managers.
Accredited Management Organization© (AMO©) for companies that employ at least one CPM.
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What are the three general responsibilities of a property manager?
Renting the units promptly at the highest market rent possible.
Keeping operational and other costs within budget.
Preserving and enhancing the physical value and prestige of the property.
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Describe how a property manager can receive his or her fees.
A property manager's fees can be a flat monthly amount, a percentage of the gross rents collected or a combination of the two. In addition to the fees collected on rentals, a property manager can receive additional compensation for renewing leases and for supervising major repairs or alterations.
