A Checklist for a Property Newly in Receivership

Communication Property Management Career

Managing a Property in Receivership
What you should do
If you’ve been in the real estate industry for any length of time, you have probably, at one time or another, ended up owning a property you did not intend to own.
A unique part of the commercial real estate business is receivership, i.e., the management of a business or property that is involved in a legal process such as bankruptcy.
When a building enters foreclosure, the courts often appoint lawyers as trustees of the building. Or in some instances, they’ll recommend a particular company, instead of a law firm, for Managing a Property in Receivership.
Hiring a specialist to manage a foreclosed building is a great benefit to all parties. A specialist in this sector will go into a building, quickly identify all of the problems, whether they are structural or operational, and work quickly to turn them around and ready the building for a sale to a new owner.
Managing a Property in Receivership: 5 Things Your Property Manager Should Do
To ensure proper conduct of the receivership role, the manager Managing a Property in Receivership should:

  1. Fully disclose all negotiations and obtain the necessary approvals, in writing, before taking any action.
  2. Maintain detailed records of each and every financial transaction during the receivership period.
  3. Document any differences between the records of account and leases, invoices, etc.
  4. Make all reports to all parties on a timely basis and in as complete detail as is practical.
  5. Not let one side or the other sway him or her into making decisions that are not favorable to the property

Finding the right property manager for Managing a Property in Receivership can be the difference between lots of unforeseen headaches that won’t go away, and turning a bad sitution into a good one quickly and painlessly.
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