Who Does A Property Manager Represent?

Did you know professional property managers must have a real estate license?

As a result, just like real estate sales professionals, they have a fiduciary duty to their clients. Of course, in this case, their clients would not be buyers and sellers, but rather, Minneapolis and St Paul multifamily property owners.

Fiduciary duties include:

Loyalty– Acting only in the property owner’s best interests.

Obedience – The property manager must carry out the owner’s lawful instructions.

Disclosure – A property manager will share any material facts with the building owner that may impact them negatively. For example, if a tenant gives notice they intend to move out, it should be communicated to the landlord, as it may impact cash flow.

Confidentiality – The property manager may not disclose anything the housing provider shared in confidence, unless the law requires them to do so.

Reasonable Care – The agent must use reasonable care in performing their duties. This one is a bit tougher to understand. It basically means the property manager is required to use a level of care, skill and diligence that a competent agent would use under those circumstances.

Accounting – The property manager will account to the housing provider for all of the money received on their behalf.

Property managers do not have fiduciary duties to perform for tenants. Therefore, ifyou have property managers and feel as if your interests aren’t being looked after, it’s good to remember an agent acts as your fiduciary, and must treat your business as they would their own.