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?
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 56P: Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters,...
Related questions
Question
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT