Final answer:
A property manager's risk minimization strategies exclude implementing a tenant rewards program but should include carrying adequate insurance and maintaining security systems. Regularly reviewing lease agreements and understanding the implications of price ceilings on property maintenance and quality are also essential.
Step-by-step explanation:
The strategies a property manager can implement to remove or minimize risks on the property do not include implementing a tenant rewards program. While offering rewards may improve tenant satisfaction and retention, it does not directly mitigate property risks. In contrast, carrying adequate insurance coverage is a fundamental risk management strategy, as it ensures financial protection against potential claims and losses. It's essential for the property manager to review lease agreements regularly, ensuring they include clauses that protect the property owner's interests and manage risks effectively.
Additionally, minimizing risk through maintaining a minimum level of security and fire sprinkler systems safeguards against damage and reduces potential insurance claims. The installation of these systems, combined with regular inspections, may lead to reduced premium costs and mitigate the effects of moral hazard.
Furthermore, understanding economic principles, such as opportunity cost, is essential in property management. For instance, price ceilings can lead to reduced housing quality as maintenance and essential services decrease in response to limited revenue from rent, impacting both the renters and the property's condition.