"Business property management" refers to the overseeing, control, and operation of various business properties. Some businesses may own a considerable amount of property, and thus may have an entire department dedicated solely to business property management.
On the other hand, even smaller businesses would also benefit from property management efforts.
The term business property management usually refers to the management of commercial property, real estate, land, and buildings. It may also include business “personal property” such as machines, furniture, equipment, mechanical fixtures, vehicles, and other non-real estate items.
The business will usually appoint a property manager who is in charge of managing the company’s physical assets. This person is usually entrusted with various tasks related to issues like:
- Sales and purchases of business property
- Acquisitions of loans to be used towards the purchase of business property
- Leases, rent, and subleases
- Property contracts
- Business property taxes
As mentioned, property management may sometimes be handled by several people in a department. In other cases, the business may hire an outside professional to assist with property management issues. In most cases, the property manager and the business have an agency relationship (i.e., principal/agent authorization).
Business property management disputes can often become a source of major legal issues. For instance, disputes can arise between the property manager and the business owner(s). This may be the case if there has been a gross mismanagement of company properties, or if the manager has attempted to use the property for their own gain. Property managers generally have a duty to manage the property in a way that reflects sound business judgment.
Other legal issues may include property debt issues, tax debt issues, breaches of property sales contracts, and violations of city zoning ordinances. Business property disputes may often result in a damages award to reimburse a plaintiff for their losses.
Business property management can often be helpful for a company, but it can also present many different challenges. You may need to hire a real estate lawyer if you need help with any business property matters. Your attorney can provide you advice on how to organize your management efforts, and can help you file any claims if needed. Also, if you have any legal disputes over business matters, your business lawyer can help you file a lawsuit, and can represent you during the trial.