Surely there will be some "told you so" comments, however: family partnership owns commercial property in Florida and uses a property manager. Property manager (a small real estate company) resides in Florida only part of the year, making actual management difficult, but one-third of family partnership, an elderly gentleman, has been personal friends with the owners of the real estate company for 30+ years and is very reluctant to change. A new generation is now becoming aware of leases/repairs/etc. that are not correct. The new generation is the "general partner" but currently owns only 1% of the partnership. New generation of partnership does not know if there is a contract with property manager or if everything has been a "handshake deal" over the years, and the elderly gentleman offers no information. Is there any legal leg to stand on regarding the obvious flaws to this property and its management or do we just start from scratch and salvage what we can? Thanks for any information.
Why would you be hesitant to ask the old guy to show you a copy of the management contract he has for the business. A partner is partner and this general partner should just expect to be able to review and know what's involved.
Yes it's probably going to raise a eyebrow..
Hard to start from scratch if their may already be a binding contract that you have to honor and find out later. Or you can ask the Property manager for copy of contract that you'd like to review it.. lot's of PM contracts have cancellation clauses, so be prepared to expect the unexpected.
Thanks Deanna. We have a feeling there is no contract with the property manager, and that is why nothing is ever produced when asked. It has taken months of asking to see any current tenant leases - we may be "lucky" enough that the property manager faxed a couple of them to the elderly partner, so possibly we can see them in a few days. The property manager seems unwilling to speak with us before first going to the elderly guy to see if it's okay. Highly annoying, but it is what it is right now.
Have you contacted the Board of Realtors to see if you can get them to get the information from the property management company? If they are required to have a broker's license to be property managers, then they should have copies of any contracts available.
Thank you Marelyn. We have not contacted the Board of Realtors just yet, but it's a great thought moving forward. We have found there has not been any written "property management" contract with the realty company for at least 20 years, so as we are making changes for the better it's being met with resistance since it's just what they've been used to for so long.
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