A property manager helps protect the owner’s investment and pursue the owner’s financial objectives within the management agreement and the law. The manager’s authority comes from the assignment; it is not unlimited simply because the manager handles day-to-day operations.
What work can a property manager handle?
| Area | Typical authorized work |
|---|---|
| Leasing and occupancy | Market the rental, apply lawful screening criteria, and arrange leases within the authority granted. |
| Money and records | Collect rent, keep accurate records, handle funds properly, and report to the owner. |
| Maintenance | Arrange repairs, monitor condition, and plan preventive work. |
| Budgeting | Estimate income and expenses, monitor performance, and recommend adjustments. |
| Owner communication | Explain significant issues, obtain required approvals, and document decisions. |
The FREC Course I syllabus, Section 1, connects property management with absentee owners, services defined by the management agreement, and protecting the owner’s investment while maximizing returns.
Read the management agreement before choosing an action
Look for spending limits, leasing authority, reporting duties, compensation, handling of funds, and emergency procedures. A manager should not assume authority to sell the property, sign any lease, or approve any repair simply because those actions might benefit the owner.
Example: An agreement allows nonemergency repairs up to $500 without prior approval. A proposed $2,000 cosmetic improvement exceeds that authority. The manager should obtain the required approval. An emergency must be handled under the agreement’s emergency provisions and applicable law; do not invent an exception absent from the facts.
Maximizing return does not mean ignoring duties
Postponing essential maintenance can damage the property, increase later costs, and violate legal obligations. Rejecting applicants for an unlawful discriminatory reason is not justified by an owner’s instruction. Apply the agreement together with fair-housing requirements and applicable landlord-tenant law.
Does the title “property manager” determine licensing?
No. Examine the activities, compensation, employment arrangement, and any exemption. Renting or leasing real estate for another for compensation can be brokerage activity under sections 475.01 and 475.011, Florida Statutes. Community association management is a separate regulatory subject; do not assume a real estate license automatically resolves every association-management requirement.
A useful question checklist
- Whose property and objectives are involved?
- What authority did the owner grant?
- Does the action comply with the law and the agreement?
- What approval, record, or report is needed?
Try three practice questions
- Under the $500 nonemergency spending limit above, may the manager approve the $2,000 cosmetic project without the required owner approval?
- Does an owner’s instruction justify unlawful discrimination when selecting a tenant?
- Does calling a person a property manager, by itself, prove that the person is exempt from real estate licensing?
Answers and explanations
- No. The proposal exceeds the stated authority.
- No. The manager must comply with applicable law.
- No. Look at actual activities and the applicable exemption, if any.
Need help applying the concept?
Submit a support request with your course, lesson or question number, and the part of the explanation you want clarified. For a possible answer-key problem, see how to report a content error. These are original practice exercises, not recalled state-exam questions.
Return to the exam-prep guide.
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