TABLE OF CONTENTS

CHAPTER 1
AN OVERVIEW OF REAL ESTATE MANAGEMENT 19
The Profession of Real Estate Management 19
What is Real Estate? 21
The Role of Real Estate Managers 22
The Evolution of Real Estate Management 23
From 1920 to the Stock Market Crash of 1929 23
Recovery Period after the Great Depression, 1934 to 1939 24
Post-World War II, The 1940s and 1950s 25
The 1960s and 1970s 25
The 1980s to 1990s 26
The 1990s 28
The Year 2000 28
Effects of 9/11 on Real Estate Management 29
The Enron Scandal 30
From 2003 to 2010 30
The Economic Future for Real Estate Management 33
Types of Real Estate Assets 33
Residential Properties 34
Commercial Properties 35
Shopping Centers 36
Industrial Properties 37
Warehouses 37
Summary 37

CHAPTER 2
THE REAL ESTATE MANAGEMENT PROFESSION:
POSITIONS AND RESPONSIBILITIES 39
Primary Responsibilities within Real Estate Management 39
Positions in Real Estate 42
Site Manager 42
Property Manager 43
Regional Manager 44
Portfolio Manager 44
Executive Property Manager 44
Asset Manager 44
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Other Real Estate Management Professions 46

Leasing Agent 46
Marketing Director 47
Accounting and Financial Services 47
Building Engineers, Facilities, and Construction Managers 48
Facility Management 49
The Real Estate Executive 49
Brokerage Services 50
Administrative Personnel 50
Summary 51

CHAPTER 3
REAL ESTATE AND ECONOMICS 52
Basic Economics 52
The Marketplace 53
The Role of Government 58
The Business Cycle 65
Real Estate Economics 71
The Real Estate Market 72
Government and Real Estate 75
Real Estate Cycles 77
Summary 82

CHAPTER 4
TYPES OF OWNERSHIP IN REAL ESTATE 84
Means and Reasons for Investing in Real Estate 84
Means of Investing 84
Reasons for Investment 89
Principal Forms of Income-Property Ownership 94
Sole Proprietorship 95
Partnerships 95
Corporations 99
Real Estate Investment Trusts 101
Joint Venture 101
Summary 102
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CHAPTER 5
THE MANAGEMENT AGREEMENT AND PLAN 103
Management Agreement 104
Basic Components of an Agreement 105
Responsibilities of the Manager 106
The Owner’s Obligations 111
Compensation for Management Services 111
Management Plan 112
National Analysis 113
Regional Analysis 114
Neighborhood Analysis 116
Property Analysis 118
Market Analysis 121
Data Evaluation 131
Analysis of Alternatives 133
Cost-Benefit Analysis 136
Conclusions and Recommendations 137
Summary 139

CHAPTER 6
FINANCIAL MANAGEMENT 140
Evaluation of Operating Funds 140
The Cash Flow Chart 141
Other Considerations 148
Accounting for Income and Expenses 153
Accounting Systems 153
Income Categories 155
Expense Categories 156
Management Fee and Administrative Costs 156
Payroll and Related Expenses 157
Insurance 158
Reporting on Income and Expenses 160
Accounting Software 160
Management Reports 161
Budgeting 165
Operating Budget 165
Capital Budget 169
Long-Range Budget 170
Summary 170
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CHAPTER 7
STAFF MANAGEMENT 172
Staff Requirements 173
On-Site Staff 173
Employees of the Management Firm 175
Contractors 179
Determining Adequate Staff Size 180
Hiring Qualified Personnel 181
Recruiting Applicants 181
Selecting Employees 185
Employee Onboarding 189
Retaining Valuable Employees 191
Performance Appraisal Methods 191
Compensation 192
Federal Programs 194
Communication 194
Promoting Morale 195
Continual Training 196
Developing Talents 197
Employee Discipline 197
Employment Policies 198
Progressive Discipline 198
Employee Termination 200
Facing a Layoff 200
Dismissing an Employee 201
Employer Liability 203
Summary 205

CHAPTER 8
MARKETING THE PROPERTY 206
Marketing Properties 206
Understanding the Market 207
Developing a Marketing Program 208
Offering Marketing Incentives 218
Measuring Marketing Effectiveness 219
Using Sales Techniques 222
Approving a Prospect for Tenancy 226
Rental Collection 228
Rent Due Date 228
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Late Fee and Delinquency 229

Collection System 229
Eviction 230
Security Deposits 232
Retaining Tenants 233
Welcoming New Tenants 234
Handling Requests 234
Building Goodwill with Tenants 235
Lease Renewal Techniques 235
Summary 237

CHAPTER 9
UNDERSTANDING THE LEASE 238
Fundamental Elements of Leases 239
Types of Leases 240
Lease Negotiation 240
Standard Clauses 241
Concessions 244
Tenant Options 245
Other Lease Issues 247
Successful Leasing 248
Summary 248

CHAPTER 10
MANAGING THE PHYSICAL ASSET 250
Property Systems Identification 251
Schedules, Inspections, and Maintenance Tasks 253
IREM Code of Professional Ethics 255
Schedules and Inspections 255
Custodial Maintenance 259
Corrective Maintenance 262
Preventative Maintenance 262
Deferred Maintenance 272
Other Aspects of Maintenance 273
Safety 273
Protecting the Environment 274
Controlling Energy Consumption 277
Maintaining Property Security 279
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Managing Maintenance Work 281

Staffing Choices 281
Record Keeping 283
Summary 286

CHAPTER 11
PROPERTY TYPES: RESIDENTIAL 288
Rental Housing 289
Rental Apartments 289
Government Assisted Housing 292
Senior Housing 295
Student Housing 297
Selecting Qualified Residents 297
Rental Agreement 306
Common Interest Realty Associations 315
Condominiums 315
Cooperatives 318
Planned Unit Developments 319
The Role of Management 320
Other Residential Property 323
Single-Family Homes 323
Manufactured Housing Communities 324
Maintenance Issues 325
Unit Preparation 325
Residential Amenities 326
Insurance Issues 328
Types of Insurance 328
Choice of Insurance Packages 330
Summary 331

CHAPTER 12
PROPERTY TYPES: COMMERCIAL OFFICE BUILDINGS 333
Property Analysis 334
Class of Structure 334
Criterion for Classification 335
Tenant Selection and Criteria 343
Business Reputation and Financial Status 343
Space Requirements 344
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Service Requirements 346

Office Rent 347
Measuring Rentable and Usable Space 347
Establishing Rates 350
Space Planning 351
Tenant Improvements 352
Office Condominiums 353
Medical Office Buildings (MOBs) 354
Summary 354

CHAPTER 13
PROPERTY TYPES: COMMERCIAL SHOPPING CENTERS 356
Property Analysis 357
Malls 358
Open-air Malls 259
Trade Area Analysis 363
Managing Shopping Centers 365
Tenant Selection 366
Retail Rent 370
The Retail Lease 374
Other Commercial Property Types 380
Industrial Properties 380
Warehouses 381
Lease Considerations 381
Marketing Commercial Space 382
Prospecting for Tenants 382
Marketing on Value 384
Insuring Commercial Properties 385
Owner’s Insurance 386
Tenant’s Insurance 387
Summary 388

GLOSSARY 390
INDEX 439