Property Management
A property manager operates real estate on behalf of an owner. This topic covers the management relationship, the leasehold estates and lease types, and the rights and duties between landlords and tenants.
The Management Relationship
A property manager is typically a general agent hired under a management agreement to maximize the owner's return while maintaining the property. Duties include marketing and leasing space, collecting rent, maintaining the property, budgeting, keeping records, and handling tenant relations. The manager owes fiduciary duties to the owner and must handle rents and deposits as trust funds. Managers must also comply with fair housing, safety, and habitability requirements.
Leasehold Estates and Lease Types
Leasehold (non-freehold) estates include the estate for years (a fixed term with definite start and end dates), the periodic estate (renews automatically period to period, e.g., month to month), the tenancy at will (continues with both parties' consent, terminable at any time), and the tenancy at sufferance (a holdover tenant who stays without permission after the lease ends). Common lease types are gross leases (landlord pays operating expenses), net leases (tenant pays some expenses), and percentage leases (rent tied to the tenant's sales, common in retail).
Landlord and Tenant Rights
The landlord must generally provide habitable premises (the implied warranty of habitability) and honor the tenant's right to quiet enjoyment, while the tenant must pay rent and avoid damaging the property. A wrongful, forcible removal of a tenant can amount to constructive or actual eviction. Security deposits must be handled and returned according to law. Fair housing rules apply fully to rentals, including the duty to allow reasonable accommodations for tenants with disabilities.