|A management and security control room in a large Commercial Property|
Every commercial property under management will have some distinct issues relating to legal controls and restrictions. The property manager for the asset needs to understand the things to look for and control.
Here are some tips from our Newsletter for Top Agents.
The leases, the tenants, and the tenancy mix will have relevancy to the way in which the property operates. The legal factors should be identified said that any special considerations or actions do not threaten the intentions, the activities of the landlord, the tenants, or the customers to the property.
So here are some factors that can apply to the legal aspects of a commercial property under management. The list is not finite given that every property is unique. Having a keen eye and questioning mind will allow you to find the right issues to address, contain, or monitor as part of the property management process.
1. Check out the building approvals and permits that were issued to the property at time of construction and or those that apply today given the existing tenancy mix and occupancy. Make sure that the property complies with these orders and notices.
2. The leases for the property and the tenant mix will have direct relationship to the existing income and cash flow. The leases should be individually reviewed for currency and accuracy. The leases will also contain critical dates that require responses on the part of the landlord or the tenants. These dates should be entered into some form of diary capture system.
3. There can be particular covenants and restrictions that apply to the property and its use. They may be in the form of rights of way, easements, and encumbrances. Many of them should be noted on the title for the property although you should not assume that this is the case. Ask questions of the property owner, the tenants, and check out the neighboring properties with their relationship to the subject property.
4. Today we find that there are ever increasing pressures on the managed property from the angles of culture, native title, environment, and heritage matters. From a property perspective, there will be particular laws and guidelines that apply to properties that fall within these categories. When in doubt, visit the local building authority to understand the property usage restrictions and zonings that apply in your area. They will have direct impact on your property currently and in any future plans and activities that you may be considering.
5. Ask about any orders or notices that have been issued on your property that have not as yet been discharged. The local building authority should have this information.
6. There may be particular contract relationships that apply to maintenance contractors, and the plant and machinery within the premises. Get copies of this documentation so you can understand the processes of maintenance property management.
7. Legal issues and threats may exist within the property currently and involve tenants, customers, or contractors. Get copies of any correspondence involved in these matters and seek an update from the involved solicitors and or insurance companies.
When it comes to property management, leasing, and function, it pays to have a complete understanding of these matters and all other physical activities on a daily basis. Search out the title for the property and any associated lease documentation that can give you more information. You may also need copies of the surveys that apply to the property and the local area.
Need some more ideas in Commercial Property Management? Get our Newsletter right here.