Property Management

An Oklahoma apartment complex property manager has a unit that needs $8,000 in repairs. The management agreement authorizes the manager to approve repairs up to $1,500 without owner consent. The manager must:

AProceed with all repairs since tenant health and safety are at risk
BObtain owner authorization before proceeding with the $8,000 repair, as it exceeds the management agreement's authorization limit✓ Correct
CReduce the repair to fit within the $1,500 limit
DCharge the cost to the tenant's security deposit

Explanation

Property managers must operate within the scope of authority granted by the management agreement. For expenditures exceeding the authorized limit, the manager must get owner approval before proceeding, unless there is a genuine emergency threatening life or safety.

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