CASE STUDY THE LEASE MANAGER AND RECORD KEEPER Patti Nielson recently joined the Baker Property Management firm. Within her first week on the job, Patti discovered that the owner of the One-Twenty Building, a property she was to manage, insisted on using a standard lease form dated 1989. She also got a call from Henry Arrow, a tenant in the One Twenty Building, with a maintenance request. After checking the lease form, Patti told Henry Arrow that the maintenance he requested was not the owner's responsibility. Henry disagreed. He said, know what the lease says, but I made a deal with the building's former owner Edgar Sandifur, that he would pay for that part of maintenance. This came up jus before we signed the lease and we did not want to pay the attorneys extrato redraf the lease, so Edgar just gave me a letter telling me he would take care of that. "I have an extra signed copy that I will send to you if you can't find it." Afte checking with the current owner of the property, Patti learned that Arrow was correct about the side agreement. 1. Is it a good idea to agree to lease terms that are not included in the lease document? Why or why not? 2. What should Patti do about the maintenance agreement? 3. Can Patti present the owner of the building with a convincing argu- ment as to why they should use a more current lease form? Wha points would she argue?
CASE STUDY THE LEASE MANAGER AND RECORD KEEPER Patti Nielson recently joined the Baker Property Management firm. Within her first week on the job, Patti discovered that the owner of the One-Twenty Building, a property she was to manage, insisted on using a standard lease form dated 1989. She also got a call from Henry Arrow, a tenant in the One Twenty Building, with a maintenance request. After checking the lease form, Patti told Henry Arrow that the maintenance he requested was not the owner's responsibility. Henry disagreed. He said, know what the lease says, but I made a deal with the building's former owner Edgar Sandifur, that he would pay for that part of maintenance. This came up jus before we signed the lease and we did not want to pay the attorneys extrato redraf the lease, so Edgar just gave me a letter telling me he would take care of that. "I have an extra signed copy that I will send to you if you can't find it." Afte checking with the current owner of the property, Patti learned that Arrow was correct about the side agreement. 1. Is it a good idea to agree to lease terms that are not included in the lease document? Why or why not? 2. What should Patti do about the maintenance agreement? 3. Can Patti present the owner of the building with a convincing argu- ment as to why they should use a more current lease form? Wha points would she argue?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:CASE STUDY
THE LEASE MANAGER AND RECORD KEEPER
Patti Nielson recently joined the Baker Property Management firm. Within
her first week on the job, Patti discovered that the owner of the One-Twenty
Building, a property she was to manage, insisted on using a standard lease
form dated 1989. She also got a call from Henry Arrow, a tenant in the One-
Twenty Building, with a maintenance request.
After checking the lease form, Patti told Henry Arrow that the maintenance
he requested was not the owner's responsibility. Henry disagreed. He said, "I
know what the lease says, but I made a deal with the building's former owner,
Edgar Sandifur, that he would pay for that part of maintenance. This came up just
before we signed the lease and we did not want to pay the attorneys extrato redraft
the lease, so Edgar just gave me a letter telling me he would take care of that."
"I have an extra signed copy that I will send to you if you can't find it." After
checking with the current owner of the property, Patti learned that Arrow was
correct about the side agreement.
1. Is it a good idea to agree to lease terms that are not included in the
lease document? Why or why not?
2.
What should Patti do about the maintenance agreement?
3. Can Patti present the owner of the building with a convincing argu-
ment as to why they should use a more current lease form? What
points would she argue?
4. If the property owner refuses to change standard forms, what types
of standard clauses should Patti suggest that an attorney draft to
include into the standard form?
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