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Question
We have a small building that I will be manging once it is completed. Where can I find lease agreements and what criteria should an owner worry about in the lease. Is there somewhere I can purchase property management manual in CA to ensure following correct procedures, etc. As owners, I need to make sure that we are protected from rising costs, etc.
Trang-
The Institute of Real Estate Management (IREM) on Michigan Avenue in Chicago has many publications that would tell you exactly what you need to know. Also, BOMA International (Building Owners and Managers Association) in New York and Washington DC has similar materials. Both are set up to get such materials out to you the same day. Simply look on the Internet under "IREM" or "BOMA", yes, just those 4 letters, and you should see both pop up first.
There are usually many books in the large commercial bookstores on the subject that are also very good. I find however, that many of those books go very detailed into some areas of property management but are weak in other areas.
If you are worried about provisions that protect an owner from "rising costs" over the lease term, you need to focus on what is referred to in leasing as "escalation provisions", which usually include one or all of the following: operating expense or CAM reimbursement, consumer price index increases, or simply "stepped" rent increases. Increases in Real Estate Tax reimbursement can be handled as a separate escalation provision, or tax can be made a part of the operating expense reimbursement provision.
Be sure to check with the regulatory agencies in your area for whether or not you need to be licensed to be a property manager. Since one of your most important tasks is collecting the rent and maintaining security deposits, many areas require property managers be licensed since it involves escrow of deposit accounts and avoiding co-mingling of funds.
IREM probably has a local chapter of property management if you live near a major city in California. A local chapter may not have the books at their local office.
Best of luck.
-Jim
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Answers by Expert:
Jim Avancena, CPM
Expertise
Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.
Experience
Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.
Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.
Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".
Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.
Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.
Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.
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