If you are a landlord using the services of a professional property manager, do you know whose name the lease is in? You should, because it could cost you in court!
Many professional property managers have chosen to put the owner’s name on the lease, such as “owner” instead of the name of the management company. They do this to avoid service of process in the event of a claim. They want the tenant’s attorney to go after the landlord, not themselves. Actually, in most cases, if there is going to be a lawsuit, everyone associated with the case will be notified. So this really isn’t an effective strategy.
But the problem for the land owner is not about who can be served, because this is a rare case in the first place, and as already mentioned, it doesn’t really matter, because ultimately both the manager and the owner you will receive service regardless of the name on the lease. A more likely scenario would be a case where the tenant is being evicted and, in the process, chooses to respond to the eviction order. In such a case, the case will be heard by a judge, usually a magistrate. In most Georgia courts, the judge will not allow the property manager to act as the plaintiff if the property management company is not listed as the owner on the lease. This is true even if the property management company filed the court order, on behalf of the land owner and on behalf of the property management company under the agreement. Most judges would consider this to be practicing law without a license and disregard the terms of the management agreement.
When the land owner’s name is stated as landlord on the lease, the court will only allow the landlord, or an attorney for the landlord, to address the court. If the owner resides out of state, as many do, the owner would incur the cost of a trip into town or attorney fees. And if the management company tries to represent the landlord, hoping the judge won’t catch it, the court will most likely throw out the case, leaving the landowner having to start over with a new land order. dispossession
The bottom line is that if the lease is written between the management company and the tenant, then the court cannot deny the property manager the right to defend his position as principal in the lease, saving the landlord expense and inconvenience. . So if you own land, it’s important to know whose name the lease is on, especially if the property is professionally managed.
