Question

The owner and a property manager sign a property management agreement. The property manager advertises the property, shows the rental units, collects the rent and deposits the money in the proper account. He fails to maintain the units in proper working order and the property declines in value. The owner is an absentee owner who arrives to find his property in disrepair. The property manager:______

Answer 1

Answer:

Has failed his fiduciary duties and is responsible for any losses in value the owner has suffered.

Explanation:

In the above case, the manager has failed to maintain the units in proper working order and the property declines in value which is of a negative effect to the property owner.

In this case, the tenant has the option of hiring an outside party to make the necessary repairs. The tenant should do that in good faith and should be reasonable in choosing who to make the repairs. This cost will probably be deducted from their next rent check.

Also, if the problem violates state or local building or health codes, a tenant may decide to contact the local authorities regarding the issue. If inspectors come out and find the problem, the landlord may face an order to fix the problem, plus possible fines and/or penalties.