Page 244 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

manager, and to reimburse them for expenses incurred. It is also
your obligation to keep the property fully insured. The manage-
ment company may require that they be put on the insurance

policy, so that they will be notified of any lapses.
The management company is responsible for many func-
tions, including marketing, leasing, reporting, maintenance, and
so on. They must also abide by equal housing laws and other reg-
ulations, and keep the owner ’ s information private.
Performance. If the manager does not perform to certain stand-
ards, it can be grounds for termination. For instance, they are
required to keep the property leased up to a certain occupancy
level.
Accounting. The manager must perform accurate and timely
reporting and keep the books in proper order.
Rent. The company must collect and deposit rents daily. Do not
let rents hang around the office. The manager also must perform

all necessary actions to collect rents and perform evictions if
necessary.
Term. The management company will want you to agree to a
one - year term. That ’ s okay, as long as there is also a clause that
allows either party to terminate the agreement for any reason
with a 30 - day written notice. This will protect you from poor
performance or from a management company that is simply not
the right fit for you. It is also an incentive for that company to

continue to perform.

Key Information That You Need and
How Often You Need It

Definitely get agreement up front about the exact nature of the reports
you expect from the management company, in terms of both content
and frequency.

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