Real property management, also commonly referred to as property maintenance, refers to the action of maintaining and the overall upkeep of a real property. Real property refers to fixed property, otherwise referred to as immovable property.
Examples of real property include buildings, crops, fences, land, and machinery. Although the exact definition of real property varies by state, in general, real property refers to any interest in land, including anything permanently affixed to the land in question. Real property can further be broken down into residential and commercial real estate.
Residential real estate refers to an area that has been developed for individuals or families to live in. It is important to note that residential real estate cannot be used for commercial or industrial purposes. Examples of residential real estate may include single-family homes, apartment complexes, or duplex homes.
Commercial real estate is property that is to be solely utilized for business or commercial purposes. Examples of commercial real estate property may include gas stations, strip malls, hotels, and restaurants.
Once again, real property management deals with the action of maintaining and the overall upkeep of a piece of real property. Real property management may also include making specific repairs on real property, property cleaning, and cosmetic changes. The parties that are responsible for the upkeep and maintenance of real property can include:
- Property owner(s);
- Homeowner(s);
- Businesses that are hired for the purpose of property management;
- Renter(s);
- Joint tenants;
- Joint property owners;
- Business or commercial property renters.
It is important to note that real property management also includes ensuring that all taxes are paid on the property in a timely manner. In many states, real property is taxed on an annual or quarterly basis. The real property taxes an individual or business must pay depends on their state.
Each state has a different tax rate for real property. However, real estate taxes are generally based on a percentage of the appraisal of the property in question or the property’s assessed value.
Examples of common real properties that are subject to real property tax include, but are not limited to:
- An individual’s home;
- The land attached to farms and ranches, including the house or buildings attached to it;
- Businesses such as restaurants or shopping centers;
- Apartment or other multi-unit living structures.
Once again, the amount of property taxes will be dependent on the appraised fair market value of the property that is subject to the real property tax. Additionally, the party that owes the taxes on the real property will depend on the property’s ownership.
What Is Business Property Management?
Business property is generally defined as all items of personal property, including fixtures, that are owned, controlled, managed, and/or possessed by a business. Depending on the type of business formation that controls the property and state laws, business property may be categorized differently.
Additionally, some forms of personal property can be converted to business property through the transfer of ownership or by use. For instance, if an individual donates their personal property to be used by the business, it may be considered business property at that point.
Although the term “business property” generally refers to non-real estate property (personal property), business property may sometimes include commercial real estate. The legal definition of personal property is anything besides land that may be subject to ownership. As such, the defining characteristic of personal property is that it is movable, which is unlike real property or real estate, which are both defined by being immovable.
Examples of common types of business property may include, but not be limited to:
- Production equipment and machinery, such as factory equipment and cash registers;
- Company vehicles;
- Signs or displays;
- Installed fixtures, such as pipes, hoses, and electric gear;
- Maintenance equipment that is owned by the company;
- Company furniture, such as desks.
Once again, business property may also include commercial real estate, which often requires professional business property management. Examples of common business real property may include:
- Warehouses;
- Factories;
- Offices;
- Other buildings that are owned by the business;
- Land purchased for commercial purposes;
- Whatever lies beneath the surface of the land, such as minerals, natural gas, and oil;
- Rights to the use of real property; and
- Leasehold improvements, which are improvements made to the property, as these improvements cannot be removed.
Business property management involves the supervision, operation, and control of commercial real estate properties such as:
- Business parks;
- Office buildings;
- Shopping malls;
- Any other piece of commercial real estate.
What Are the Duties of a Property Management Company?
As mentioned above, there are many businesses that operate in order to serve business or commercial real estate owners by managing their portfolio of commercial real estate. In general, a property management company is a business that works directly with tenants and other companies that are connected to a property.
A property management company may serve to maintain a variety of different properties. For example, a property management company is often hired to maintain apartments or other similar residential dwelling units that have a number of tenants. Property management companies may also be employed to maintain a private owner’s real property, such as maintaining their portfolio of Airbnb or other rental properties.
In general, property management companies will advertise the availability of a real estate space that is available for leasing or rent and will also be the party who:
- Responds to tenant(s) complaints;
- Handle any repair and maintenance issues or requests;
- Handle the process of evictions;
- Hire independent contractors as necessary to make improvements to the property in which they manage;
- Handle legal issues related to the properties that they manage; and/or
- Ensure that taxes are paid and managed in a timely manner.
Can a Property Owner Be Sued if Someone Is Injured on Their Property?
In short, yes, a property owner may be sued if someone is injured on their property. This is commonly known as premises liability. Premises liability is what holds property owners, whether residential or commercial, responsible for accidents and injuries that occur on their property.
Premises liability law is the set of laws that require property owners to ensure the safety of any person who enters their property. Property owners must take all reasonable measures to accomplish this. As a legal concept, premises liability generally occurs in tandem with personal injury cases in which a person’s injury was caused by unsafe or defective conditions on someone else’s property.
Premises liability personal injury claims are commonly based on the legal concept of negligence. The legal term “negligence” refers to a person failing to exercise reasonable care, with that failure resulting in the damage or injury of another person. In other words, negligence focuses on a person’s failure to take certain precautions and actions instead of the person’s direct actions.
In order to prove negligence and, therefore, premises liability, the party that was injured (i.e., the “plaintiff”) generally must prove the following elements:
- That the owner owed a duty of care to the visitor or person injured on their property;
- That there was a dangerous, unsafe, or defective condition on the owner’s property;
- That the owner knew of the dangerous, unsafe, or dangerous condition but failed to remedy the situation; and
- That the injury occurred due to the owner’s failure to exercise their duty of care to prevent the accident and resulting injury.
If all of the above elements of premises liability are proved, then the plaintiff may then move to recover any damages that they suffered as a result of the property.
Are There Any Defenses to Premises Liability?
Yes, there are some legal defenses available to property owners facing a premises liability claim. The most important defense to premises liability will be to prove that the property owner was not actually negligent. Additionally, other common defenses to premises liability include:
- Assumption of Risk: This legal defense can arise when the plaintiff is aware of the risk, and disregards the risk which causes them to assume the risk of being injured.
- A plaintiff cannot recover any damages if they knowingly and voluntarily assumed a risk of harm in connection with the negligence of the defendant;
- Contributory Negligence: Contributory negligence occurs when the plaintiff contributed to their own injury.
- It is important to note that contributory negligence is not available as a legal defense in every jurisdiction;
- Comparative Negligence: Comparative negligence is when the plaintiff’s own negligence contributed to their injury, and they are partially negligent in their own injury.
Should I Contact an Attorney About Property Management?
Because of the various tasks and liabilities that a piece of property is exposed to, there are a variety of different property lawyers who may assist a residential or commercial real estate owner in regard to property management.
The following is a list of terms that a property owner may search in order to find an experienced property lawyer in their area, dependent on the situation they find themselves in:
- Lawyers property management;
- Lawyers for property management;
- Property management attorney;
- Lawyer for property management;
- Property management attorneys;
- Attorney property management;
- Attorney for property management; and/or
- Attorney to sue property management company.
Of course, LegalMatch.com offers the ability for a commercial or residential property owner to connect with an experienced attorney in their area who is familiar with the particular laws of their state and jurisdiction.
An experienced property attorney can assist commercial or residential property owners in understanding their local state laws and represent them in court should there be a property dispute. An attorney will also be able to educate property owners on their legal rights and help you protect their property interests.
