Question

There are eight key components to an agreement between a professional property management company and a building owner, including "allocation of costs." What does that refer to?

a) Distributing costs among tenants.

b) Identifying the most expensive property features.

c) Allocating expenses between the property manager and owner.

d) Calculating the total cost of property ownership.

Answer 1

Allocation of costs refers to dividing expenses related to the property between the property manager and the owner, as outlined in their agreement.

Step-by-step explanation:

The term allocation of costs in the context of an agreement between a professional property management company and a building owner refers to how expenses related to the property are divided between the two parties. Specifically, it means option c) Allocating expenses between the property manager and owner. This can involve various costs associated with the operation, maintenance, and management of the property. It is important to outline how these costs are shared in the agreement to prevent misunderstandings and ensure both parties are clear about their financial responsibilities.