REE-3043 Lecture Notes - Lecture 7: Nnn Lease, Very Low Frequency, Fiduciary

• School: FSU
• Department: Risk Management/Insurance, Real Estate and Legal Studies
• Course: REE-3043
• Professor: William M Woodyard

Document Summary

Management responsibilities: portfolio managers, assets managers, property managers. The value perspective of management: creating cash flow, maintaining cash flow, managing cash flow risk. Management contracts: management contracts establish agency relationships, managers have fiduciary responsibilities to the owners, the management contract should contain incentives for management fees, based on % of rent collected, based on noi to control expenses. The nature of leases: leases specify the rights and obligations of owners and tenants, leases divide the bundle of rights in real estate into two interests, leased fee interests and leasehold interests, vo= vlf + vlh. Primary lease provisions: name of lessors and lessees, property description, consideration, legality of objective, offer and acceptance, written form. Residential leases: additional provisions typically found in residential leases include, possession and use of property, maintenance and repairs, lesso(cid:396)s" (cid:396)ight of e(cid:374)t(cid:396)y, a(cid:374)d, lessees" (cid:396)ight to assig(cid:374) a(cid:374)d su(cid:271)let.