Chapter 17 Definitions
Chapter 17 Definitions
Terms
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- Tenant Improvement
- Alterations to building to meet commercial or industrial tenant's particular space needs; must clarify trade fixtures (tenant's personal property) vs. landlord ownership
- Property Manager
- Property manager (agent) is hired by the owner (principal) to maintain owner's investment and ensure that the property produces income
- Worker's Compensation Act
- Covers claims for medical or hospital payment for injuries sustained by building employees hurt in the course of employment
- Multiperil Policy
- Insurance package for apartment, commercial buildings; standard fire, hazard, public liability and casualty, require special coverage for earthquakes and floods
- Preventative Maintenance
- Regularly scheduled maintenance to prevent costly breakdowns; i.e., paining and seasonal servicing of appliances and system.
- Surety Bond
- Cover an owner against financial losses resulting from employee's criminal acts or negligence while performing assigned duties
- Rent
- Fixed, periodic payment make by tenant to owner for possession and use, usually by prior agreement of the parties
- Casualty Insurance
- Coverage against theft, burglary, vandalism and machinery dames; health and accident insurance; often written for specific risks, i.e., theft, rather than all inclusive
- Corrective Maintenance
- Actual repairs that keep building equipment functioning; i.e., repairing a boiler, fixing a leaky faucet, fixing an air conditioner
- Management Agreement
- Document setting up an agency relationship between owner and property manager who is general agent establishing the rights and duties of each party
- Life Cycle Costing
- Initial and operating costs of equipment over its expected life must be measured to compare total cost of one type of equipment with that of another
- Risk management
- Perils of any risk evaluated in terms of options: avoid, control, transfer or retain (ACTOR); often involves buying insurance to transfer risk to third party