Property Management
A Florida property manager is responsible for maintaining 'sufficient reserves' for a commercial property. This means:
AHaving enough cash to pay the mortgage for 12 months
BSetting aside funds for anticipated major capital expenditures and replacements✓ Correct
CMaintaining at least 50% of annual rent in a reserve account
DInvesting excess income in stocks
Explanation
Adequate reserves for a commercial property refer to funds set aside for anticipated capital expenditures (roof replacement, HVAC systems, parking lot resurfacing) so that major expenses can be handled without disrupting operations or requiring large special assessments.
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