Make Sure Your Property Manager Has Mixed-Use Governing Documents

It is important for owners of mixed-use properties to give their property managers all necessary governing documents they need so the managers will not violate the governing terms. The governing documents spell out the rights and duties of owners, residents, tenants, and users of the development. Below are seven common govern documents that should be passed along to the property manager. This list assumes that the mixed-use development will include residential and non-residential uses.

1. Construction, Operation, and Reciprocal Easement Agreement—which may be known as a Declaration of Covenants, Conditions and Restrictions; Construction, Operation, and Reciprocal Easement Agreement; Reciprocal Easement Agreement; or the Declaration—is the mixed-use development’s master agreement that regulates and controls the entire mixed-use development.

2. Declaration of Condominium, if the mixed-use development includes condominium units.

3. Condominium’s Articles of Incorporation and Bylaws

4. Development Agreement, for developments having more than one owner or developer and are still under construction.

5. Common Area Maintenance Agreement

6. Major tenants’ leases.

7. Additional guidelines, such as owner guidelines and standards for construction and design improvements.

It is also advisable to have the attorney who drafted the governing documents review them with the property manager to make sure that he has a clear understanding about what these documents say and how they affect management responsibilities.