February 2015 — Property Management Quarterly —
Page 9
liability. And again, many
buildings have many differ-
ent lease forms in place. In
these situations, there can
be one instance in which
the landlord is responsible,
and in another, the tenant
is responsible and account-
able for the maintenance and
repairs of the HVAC.
You know it’s the last
Thursday of the month when
you receive written notice
from your largest tenant’s
attorney claiming “con-
structive eviction,” and that
the tenant is in process of
vacating the premises, with
four years and six months
remaining on his lease. Can
there possibly be a worse
scenario? I don’t think so.
The doctrine of constructive
eviction strikes fear in every
great property manager.
I willingly share this wise
counsel received many years
ago from a trusted attorney:
He who reads the lease wins.
It is such a short phrase, but
such wise counsel. I have
been running on this for the
past 25 years. And I have
never forgotten it. In fact, I
am contemplating having
the following words carved
on my tombstone: “SSS Read
the Lease[s]!”
There are no shortcuts nor
an alternative path around
reading every lease, and rais-
ing and noting “red flags”
regarding any provision that
is unclear or subject to vari-
ous interpretations.
Great property managers
will readily seek compe-
tent assistance from other
real estate professionals to
identify and determine the
correct interpretation. And
when there is a misunder-
standing, it is wise to encour-
age the owner to have his
legal counsel draft a lease
amendment to clear up any
misunderstanding between
the parties. This is a great
business practice to which
all great property managers
should adhere.
And now the final ques-
tion that all great property
managers need to ask them-
selves: Now that I have read
the lease[s], do I really under-
stand what each lease provi-
sion means and conveys? I
will answer for myself that
often I do not know what
certain provisions are trying
to articulate and set forth.
Therefore, I seek competent
legal and accounting assis-
tance to instruct me, which
adds to my knowledge base.
Then I can proceed with the
tenant and owner to recon-
cile any lease issue so that
both parties are satisfied
and happy, feeling that they
are being treated fairly and
competently, pursuant to
the lease. Now that’s livin’
the dream!
s
Universal Protection Service provides the best security
solutions, personalized customer service and unmatched
value available. We now also offer our clients Safety Act
protection from the Department of Homeland Security.
Universal offers an expansive range of security solutions,
consultations and investigations for properties of
every type, including:
Airports
Corporate Campuses
Distribution/Manufacturing
Facilities
Government Facilities
Healthcare Facilities
Office Buildings
Petrochemical Facilities
Residential Communities
Retail Centers
Educational Facilities
For more information call
Lorie Libby at 303-901-9037
