Property Management
A Connecticut property manager prepares an annual operating budget for an owner. This budget should include:
AOnly mortgage payments
BProjected income, operating expenses, reserves, and debt service✓ Correct
COnly maintenance costs
DOnly the manager's fees
Explanation
An annual operating budget projects all income sources and expenses, including management fees, utilities, insurance, taxes, maintenance, reserves for replacement, and debt service (mortgage payments).
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Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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