Every builder, bank, developer, REIT (and many private owners) hold title to their property in a Corporation. It’s your job to get the paperwork right or you’ll pay a price if you skip over this because you don’t know what to do. Require the one claiming to be in charge to complete and execute a corporate resolution. People working out of a corporation know this is expected so don’t disappoint them. They had to execute one of these to open a bank account, get an EIN number and take title of the property. These documents will protect you when things go wrong and they are simple to fill out. Get the person ‘claiming ownership’ (or signing authority) to complete it, execute it, get a witness and notary for your protection and stick it in your file for safe-keeping. You’ll sleep better knowing you have crossed all the t’s and dotted all the i’s.
“The longer you’re in property management the more you realize that it’s sticky, often hostile, sometimes even litigious. Over 35 years I’ve been burned many times by owners, tenants, vendors, staff and third parties and after the second or third time (I’m a slow learner) I would go back to the attorney and have her draft a document that prevents it from ever happening again. Blaming property managers has reached an all-time high and isn’t going away anytime soon. So, understanding this reality, smart managers need to spend extra time, money and effort building/crafting documents designed to protect themselves, even from the folks they are trying to serve. We’ve pulled these documents from our archives and have listed them here for your review and downloading individually (or in packages by topic). We’ve laid this material out in the Property Management Life Cycle categories for purposes of giving the discussion some order.
Protecting yourself from Owners is what these documents are all about.
Download (PDF, 417KB)
The Property Management Lifecycle by Crown Investor Institute LLC