Property ManagementIntermediateAlabama Exam

A property manager notices the roof is leaking and needs repair. Without specific authorization for this expense, the manager should:

AIgnore it until the next owner inspection, which most practitioners would generally accept
BMake the repair if it is within the budget/authority limits of the management agreementCorrect
CRequire the tenant to pay for the repair
DReport it to AREC

Why Make the repair if it is within the budget/authority limits of the management agreement Is Correct

Answer B: Make the repair if it is within the budget/authority limits of the management agreement

Property managers are typically authorized by the management agreement to approve ordinary repairs up to a specified dollar amount without additional owner approval.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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