If you are a landlord using the services of a professional property manager, do you know whose name is on the lease? 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 process service in the event of a lawsuit. 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 owner of the land 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 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 dispossession 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 a plaintiff if the property management company is not listed as the owner on the lease. This is true even if the court order was filed by the property management company, on behalf of the landowner and on behalf of the property management company under the agreement. Most judges would consider this to be practicing law without a license and would disregard the terms of the administration agreement.
When the name of the owner of the land is stated as lessor in the lease, the court will only allow the owner, or an attorney for the owner, to address the court. If the owner resides out of state, as many do, the owner would bear the cost of a trip to the city or the costs of an attorney. And if the management company tries to represent the owner, hoping the judge won’t catch it, the court will most likely dismiss the case, leaving the landowner to start over with a new land order. dispossession
The bottom line is that if the lease is drawn up 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 in, especially if the property is professionally managed.