Course Outline for Real Estate 88
Real Estate Property Management

Effective: Fall 2024
SLO Rev: 05/19/2016
Catalog Description:

REST 88 - Real Estate Property Management

3.00 Units

This course covers real estate property management, which, in a broad sense, is the administration, operation, and maintenance of a piece of real estate. The different types of managed properties explained range from rural single unit residential properties to high rise office skyscrapers in the city center. The federal, state and local laws pertaining to the management of property are reviewed in detail. Each and every property has a property manager and a property management plan with goals and objectives. This class reviews in detail the structure, strategy, implementation, including government and legal aspects of managing properties large and small. The class explores the complexities of emergency procedures, risk management, criminal and security precautions and limiting the risk of all kinds as it relates to managing and owning real estate.
Strongly Recommended: REST 80.
0511.00 - Real Estate*
Optional
Type Units Inside of Class Hours Outside of Class Hours Total Student Learning Hours
Lecture 3.00 54.00 108.00 162.00
Total 3.00 54.00 108.00 162.00
Measurable Objectives:
Upon completion of this course, the student should be able to:
  1. list the four types of managed properties;
  2. state the difference between debt investments and ownership investments in real estate;
  3. list the potential disadvantages to investing in real estate;
  4. name and explain the four business cycles affecting property management (expansion, recession contraction and revival);
  5. describe a management plan for a subject property;
  6. explain risk mitigation methods;
  7. describe accessibility modifications that must be made for housing for the elderly and handicapped persons per (ADA).
  8. explain how government factors can affect real estate supply and demand;
  9. explain the different lease provisions;
  10. state the importance of an emergency preparedness plan;
Course Content:
  1. Professional Property Management
    1. Administration, operation and maintenance of a piece of real estate
      1. Advertising and marketing
      2. Negotiating leases and vendor contracts
      3. Rent collection
      4. Recordkeeping
      5. Physical maintenance
      6. Tenant relations
    2. Property Management Users
      1. Investor-owners
      2. Interim owners
      3. Institutional owners
      4. Government entities
    3. Types of Managed Properties
      1. Residential
      2. Office
      3. Retail
      4. Industrial
    4. Career Possibilities for Property Managers
      1. Employment arrangements
      2. Property management positions
      3. Professional associations (BOMA)
      4. Certifications
  2. The Economics of Real Estate Investment
    1. Investment Basics
      1. Debt investments and ownership investments
      2. Key investment characteristics
      3. Diversification
    2. Investing in Real Estate
      1. Advantages of real estate investment
      2. Disadvantages of real estate investment
      3. Determining how much to pay for a property
    3. Economic Forces and Business Cycles
      1. Markets
      2. Principle of supply and demand
      3. Business cycles
      4. Real estate cycles
    4. Factors Affecting Real Estate Supply and Demand
      1. Social and business trends
      2. Government factors
  3. Working with Management Clients
    1. Types of property owners
    2. Legal relationship between manager and client
      1. Agency relationship
      2. Employment status
      3. Trustees
    3. Working with a new client
      1. Determining client goals
      2. Communication with the client
          1. Reports
      3. Terminating a manager-client relationship
  4. Developing a Management Plan
    1. Regional analysis
    2. Neighborhood analysis
    3. Property analysis
    4. Market analysis
    5. Preparing and presenting a management plan
  5. Financial Aspects of Property Management
    1. Accounting
    2. Trust funds and bank accounts
    3. Gross income and operating expenses
    4. Net operating income and cash flow
    5. Financial reports
    6. Income tax ramifications of real estate ownership
      1. Tax deductions available to rental property owners
  6. Marketing
    1. General marketing principles
    2. Marketing property for lease
    3. Marketing the property management business
      1. Management company’s website
    4. Public relations
      1. Community involvement
    5. Marketing and the law
      1. Antidiscrimination laws
      2. State license laws
  7. Leasing
    1. Selecting tenants
      1. Application process
    2. Leas provisions
      1. Lease term
      2. Rent amount
      3. Security deposit
      4. Rules for tenants
      5. Assignment and subletting                                                                                                                                                                                               
  8. Working with Tenants
    1. Welcoming the tenant
    2. Maintaining communication
    3. Tenant services
    4. Rent collection
    5. Breach of a lease agreement
      1. Breach by landlord
      2. Breach by tenant
    6. Retaining tenants
    7. Termination of tenancy
      1. Lease expiration
      2. Abandonment and surrender
      3. Eviction
  9. Managing Residential Property
    1. Residential management Plan
    2. Operating budget
    3. Marketing residential property
    4. Leasing residential property
    5. Maintenance of residential property
  10. Managing Office Property
    1. Office property Management Plan
    2. Operating budget
    3. Marketing office property
    4. Leasing office property
    5. Maintenance of office property
  11. Managing Retail Property
    1. Retail management Plan
    2. Operating budget
    3. Marketing retail property
    4. Leasing retail property
    5. Maintenance of retail property
  12. Managing Industrial Property
    1. Industrial management Plan
    2. Operating budget
    3. Marketing industrial property
    4. Leasing industrial property
    5. Maintenance of industrial property
  13. Complying with Federal, State, and Local Laws
    1. Antitrust laws
    2. Disclosure Laws
      1. Disclosure of latent defects
      2. Megan’s law
      3. Lead-based paint disclosures
    3. Laws affecting tenant screening
      1. Fair credit reporting act
    4. Antidiscrimination laws
      1. Civil rights laws
      2. Fair housing laws
      3. Americans with disabilities act (ADA)
    5. Federal employment laws
    6. Land use and environmental laws
      1. Endangered species
      2. CERQLA
  14. Risk Management
    1. Reducing risk from employees and contractors
      1. Negligent hiring
      2. Negligent retention
    2. Reducing risk from the property
      1. Inspections
      2. Repairs
    3. Emergency preparedness
      1. Emergency plan importance
      2. Emergency procedures manual
        1. Training
      3. Security issues
        1. Door and lock requirements
        2. Security personnel
        3. Crimes of particular concern
      4. Insurance
        1. Coverage and deductibles
        2. Types of insurance
        3. Insurance claims
Methods of Instruction:
  1. Guest lectures
  2. Lecture/Discussion
  3. Distance Education
Assignments and Methods of Evaluating Student Progress:
  1. Contact 3 different types of property management companies: 1.) Commercial/Retail 2.) Industrial/Manufacturing 3.) Multi Family/Residential Compare and contrast the nature of the different property management functions using information gathered from “real world” situations and the text. Prepare a summary for submittal.
  2. Identify the leading National Property Management Associations and critique their purpose and value to members and member clients. Explain the value added as a result of affiliation with these associations.
  3. Summarize the cost of annual property management contracts and the services this contract would include. Complete three different property type scenarios.
  1. Exams/Tests
  2. Assignments
  3. Final Examination
Upon the completion of this course, the student should be able to:
  1. Describe accessibility modifications necessary for housing to comply with government regulations
  2. Explain the difference between a property manager and an asset manager
  3. Name and explain business cycles affecting property management
  4. Describe how property management industry assists the public and users of of real estate.
  5. Describe ways in which a property manager relates to the construction industry.
  6. Explain how the Property Management field provides a service to property owners.
Textbooks (Typical):
  1. Haupt, K (2021). Property Management (3rd). Rockwell Publishing.
Abbreviated Class Schedule Description:
This course provides an interesting overview of real estate property management and demonstrates how every property has a property manager, seen or unseen. There are extensive career opportunities in property management in many areas and different property types. In this class, the different types of property management areas are explored including: residential multi-family apartments commercial retail shopping center properties office properties industrial properties Special use properties (churches,schools,resorts) If you are interested in learning about real estate property management as a career option or for your own property management purposes, this class is an excellent choice to gain that knowledge.
Strongly Recommended: REST 80.
Discipline:
Real Estate