Management agreements for property - Research Paper Example

Management Introduction Business agents ensure business policies, management agreements, and leases are structured in away that reduce business liability and legally manage the properties. There are several business policies that agents decide for businesses to reduce their liability through insurance plans. Management agreements for property are different and they must be managed appropriately by the agents to ensure that the exact course of dealing is understood. Agents also have to carry out lease administration which ensures that all the legal and administrative functions related to property leases are managed efficiently to reduce liability (Perkins, 2006).

An agent of the business must know and consider at all times the policies that a business needs. When the business is deciding its policies, it is very important that all the information about the business is clear and the policies decided are in regard to four areas property, people, liability, or income as business policies cover any of these four areas (Rejda, 2011). The property refers to the structure in which business is done, the vehicle which the business uses, and other lands owned by the business.

In order to ensure these properties are protected, the business ensures property and casualty policies. The property insurance policy must be applied to insure all losses to business properties in order to reduce liability. Through this policy, the business will be protected against theft, fire, lawsuits, etc. This policy can also be applied to fulfill the unique needs of the business (Guise, 2008). Property insurance policy must be applied by the agent to the business as it protects the business property from all possible risks such as theft, damage, fire, or any other harm due to natural climate.

The insurance policies may also be specialized such as flood insurance, home insurance, fire insurance, earthquake insurance, or boiler insurance. There can be two types of insurance policies; open perils and named perils (Baird, 2000). The latter consists of those losses to be covered which are specifically listed in the insurance such as fire or lightening whereas open perils consist of all those losses that are not excluded from the policy such as damage from natural disasters or acts of terrorism.

These insurance policies reduce the liability on the business for property damage (Kyle, 2002). All management agreements are different and in order to make sure that an accurate agreement is prepared, the agent must be aware of the items to be mentioned in the property agreement. The property section of the agreement talks about the things the business is obligated to do and prevented from doing. Two of the most important things to be included in the agreement are setting up and maintain a reserve fund, and obtaining and maintaining proper insurance policies (Beirne, 2006).

In order to structure the agreement to reduce liability, the agent must pay close attention to the part of the contract where the property manager’s liability is limited. This clause in the agreement would protect the business from heavy liabilities for damages other than cases where negligence has been observed. The agreement does not cover the negligence of the business nor the third parties that may have been hired. However, a reasonable care clause must be added to the agreement as this would reduce the liability (Walsh, 2004).

Lease administration is business is a department related to the real estate of an organization. It involves the receiving and paying of rent for the facilities that are owned and leased by the organization. This is a part of administrative, accounting, and legal requirements that are associated with real estate (Lewison, 1996). The agents who are responsible for lease administration ensure the lease review and abstracting, lease audits, accounting, renewal policies and options, CAM charges, management of information and reporting, expense review, and storage of documents.

The agent must manage the rental receiving and payments, coordinate with the tenants, and monitor the amendments if necessary (Dowden, 2006). The agents must ensure that lease administration is structured in the organization to facilitate the property management and accounting. The agent must handle the lease administration in order to reduce the liability of the business towards property risks and damage (Stewart, 2013). Agents of the business use these business policies, management agreements, and lease administrative techniques to deal with the other parties efficiently even if their business is fraught with misconceptions.

These policies and agreements allow the business to deal with other parties and enhance their communication. The agents must communicate the policies and agreement terms effectively to ensure that an understanding is created between the two parties involved. It is the agent’s role to portray the business policies and agreement terms clearly to the other party so that the business goals and objectives are understood before any transaction is made. Moreover, through the agent’s efficiency and administration, the business concepts can be cleared in the industry.

References Baird, F. (2000). Property Management. Dearborn Real Estate Beirne, M. (2006). The Property Management Tool Kit. AMACOM Dowden, M. (2006). Technical Aspects of Business Leases: Overcoming the Practical Difficulties. Spiralbound Guise, P. (2008). Enterprise Systems Backup and Recovery: A Corporate Insurance Policy. Auerbach Publications Kyle, R. (2002). Modern Real Estate Practice. Dearborn Real Estate Lewison, K. (1996). Drafting Business Leases. Sweet & Maxwell Perkins, S. (2006).

Talent is not Enough: Business Secrets for Designers. New Riders Rejda, G. (2011). Principles of Risk Management and Insurance. Pearson Education India Stewart, M. (2013). Leases and Rental Agreements. NOLO Walsh, T. (2004). Professional Liability and Property Transactions. The Federation Press