Property Management Companies & Lease Agreements

March 2, 2012

If you are just getting into the San Diego real estate field as a property owner, you need to know the importance of retaining a good commercial real estate management company. If, on the other hand, you are one of the many property owners who have been in this field for quite some time, you know how the real estate landscape can fluctuate rapidly. In either case, property owners need to be kept current on the critical legalities of lease agreements. 

 Any property management group will tell you that lease agreements are the backbone of owning real estate as they can make or break you from a legal standpoint. This is especially true as you attain more and more properties.  The number of properties you own should come into play when determining how thorough your lease agreement should be. Don’t confuse this with the fact that the same legal aspects should be covered regardless of how long the contract is. 

The most basic requirement of these contractual terms between lessor and lessee is the provision of names of every adult that will be living in each rental unit. The primary reason for this requirement is so that all of the adults in the household can be held legally accountable for any monies owed if the contract is broken. The length of the lease agreement should also be specified for the purpose of determining how long the tenants are legally obligated to pay rent. These terms can range from six months to five years, at the owner’s discretion.   

Every San Diego commercial property management company in business today should know these basics and more. For instance, they should also tell you of the different methods in which tenants can pay rent. The various methods of payment include cash, money order, check, debit and credit cards. Most property management companies today, however, seldom take cash as payment as it is more difficult and time-consuming to trace the payment back to the person or people who paid in cash, should any legal issues arise. For this reason alone you should take care that, of all the property management companies that are out there, you choose one that will know how to specify all of the necessary details on a contract. 

Property owners should also consult commercial real estate management companies about their expertise in the aspects of a contract involving repair and maintenance. This is perhaps the number one reason property owners get into legal hot water with their tenants. Part of the wording concerning this should include what you, the property owner, are responsible for as regards the repair and maintenance of things and to what degree. Keep in mind that virtually every square inch of your property should be covered in this aspect of the contract – from the floor coverings to the ceiling and attic space and all points in between – whether they are functioning parts of the rental unit or not. Property management can be a very meticulous job, depending on the type of units and how many there are.  

For example, the maintenance of a hot water heater should be included in the contract, including the tenants’ responsibility to contact the property owner when a problem arises. Also included should be whether or not an outside party will be performing the maintenance as well as the length of time needed to notify the tenant when a maintenance person will be coming to the unit to do the repairs. These are all important legal considerations that need to be specified in the contract and that property management companies should know about.  

The management portion of owning commercial real estate in San Diego is something that no owner should take lightly. Your units or houses are places that people call home. They pay you every month not only for a place to reside but for a sense of security that comes with having a safe, comfortable and habitable place to live. The management of property is a field of expertise that isessential to both the living conditions of tenants and the legal security of owners.  Finding a competent, reliable commercial real estate management service is essential because of the seriousness of the job and the importance of a comprehensive lease agreement which will protect your rights as the property owner. 

Source: Property Management Direct

 

DISCLAIMER: This blog has been curated from an alternate source and is designed for informational purposes to highlight the commercial real estate market. It solely represents the opinion of the specific blogger and does not necessarily represent the opinion of Pacific Coast Commercial.