Property Management
What is 'budget variance analysis' in Rhode Island property management?
AThe DBR's review of the property manager's budget
BComparing actual income and expenses to the budgeted amounts to identify discrepancies and take corrective action✓ Correct
CCalculating property tax variances
DAnalyzing the difference between market rent and contract rent
Explanation
Budget variance analysis compares actual financial performance (income collected, expenses paid) to the projected budget, highlighting variances (over/under budget). This helps property managers identify problems and communicate with property owners about financial performance.
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Key Terms to Know
Variance
Official permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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.
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