The Wise Investment Standard

Many states have adopted some version of the Prudent Investment Rule (Law /Standard). This rule says that the trustee will be judged by how the investments were managed as a whole. This means that if one investment is not preforming well but the others keep the portfolio continues to grow in worth then as a trustee you have fulfilled your legal duty. There are many similarities between a trustee and a property manager, it is the wise investor who holds their managers to a wise investment standard.

I have gone over some of the obligations which a manager owes the landlord:

• Having or being under one who holds a real estate broker’s license
• Diligence in the performance in their duties as an employee
• Handling and accounting for all incomes created by the property
• Taking supervision of brokers employees acting in the behalf of the landlord
•  Contacting for needed repairs and maintenance of the property as authorized
• Monitoring utilities services
• Advertising for tenants
• Negotiating and executing new lease agreements
• Responding asap to needs of tenants and landlords
• Re- evaluating the lease agreements regularly to keep them current
• Serving the need notices (Unlawful Detainers) and taking needed actions
• Performing regular inspection
• Keeping the property and its personal property secure

However, a wise investor also demands that their property managers also:

• Commits the landlord to those agreement authorized by the landlord
• Confirms the in placement of or obtains the general liability insurance and workers compensation insurance that adequately protect the landlord and the property and name them (the property manager) as an additional insured
• Maintains or improves the landlords and properties good will
• Employees and manages all on site employees as need be
• Keeps within all applicable codes
• Keep the landlord aware of any and all potential hazards and conditions which may in any manor affect the property and or landlord.

Note: Images on this blog site are from a free source or taken by the author. No image or group of photos is intended to represent the people the author serves. The author does not care about Race (that is a politically correct term that he does not like because we are all of the same Race, the Human Race. He prefers the term ethnicity, color, religion, sex, gender, marital status, disability, genetic information, national origin, source of income, Veteran or military status, ancestry, citizenship, primary language or immigration status.) He is a service provider for all people. We will all rise together when we band together and help one another. Joseph Erwin is a Real Estate Broker, DRE # O2131799, and a CA general contractor # B 696662. He’s a member of the CRMLS and The East Valley Association of Realtors located in the Inland Empire region of Southern California. This writing is not to be used as legal counsel the author is not a lawyer and does not give legal advice other than consult a lawyer before acting.