Published — July 7, 2021
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: FUND MANAGER UNDER THE REAL ESTATE INVESTMENT TRUST (REIT) ACT OF 2009
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Property Manager refers to a professional administrator of real properties who is engaged by the Real Estate Investment Trust (REIT) to provide the property management services.
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REIT shall appoint a Property Manager who shall be independent of the REIT, its promoter/s or sponsor/s.
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The Property Manager shall be responsible for managing all aspects of the real estate owned by the REIT.
Property Manager refers to a professional administrator of real properties who is engaged by the REIT to provide the property management services.
Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of2009 (R.A. No. 9856) provides:
REIT shall appoint a Property Manager who shall be independent of the REIT, its promoter/s or sponsor/s. To ensure independence of the property manager from the REIT, the following shall be complied with:
- Majority of the members of the board of the REIT property manager must be independent directors, at least two (2) of whom must have working knowledge of the real estate industry; and
- The directors (including the independent directors) of the REIT and its Sponsors/Promoters cannot occupy more than 49% of the board of directors of the property manager.
A REIT Property Manager must comply with the requirements on the number of independent directors:
- The qualifications and disqualifications of the directors of the Property Manager must comply with the provisions of the Revised Code of Corporate Governance and the fit and proper rule prescribed in this Implementing Rules and Regulations (IRR).
- Must comply with the additional requirements or qualifications for a Property Manager in accordance with the Fit and Proper Rule, the Revised Code of Corporate Governance, and such relevant regulations, which the Commission may prescribe from time to time.
A REIT Property Manager shall comply with the following minimum qualifications:
- It must employ either a real estate consultant, real estate appraiser, or a real estate assessor, who must be subject to compliance with relevant laws.
- It shall possess sufficient human, organizational and technical resources for the proper performance of its duties, including two (2) responsible officers each of whom shall have at least three (3) years track record in property portfolio management, and at least one (1) of the responsible officers shall be available at all times to supervise the business of the Property Manager, including asset and property management.
- It shall maintain satisfactory internal controls and written compliance procedures.
- It shall have sufficient financial resources at its disposal to enable it to conduct its business effectively and meet its liabilities.
The Property Manager shall be responsible for managing all aspects of the real estate owned by the REIT. The Property Manager shall perform the following functions in accordance with the REIT Plan and the investment strategy of the REIT including the following:
- plan the tenant mix and identify potential tenants;
- formulate and implement leasing strategies;
- enforce tenancy conditions;
- ensure compliance with government regulations in respect of the real estate under management;
- perform tenancy administration work, such as managing tenant occupancy and ancillary amenities, and negotiating with tenants on grant, surrender and renewal of lease, rent review, termination and re-letting of premises;
- conduct rental assessment, formulating tenancy terms, preparing tenancy agreements, rent collection and accounting recovery of arrears and possession;
- secure and administer routine management services, including security control, fire precautions, communication systems and emergency management;
- maintain and manage the physical structures/real properties;
- formulate and implement policies and programs in respect of building management, maintenance and improvement;
- initiating refurbishment and monitoring such activity; and
- all such functions necessary and incidental to property management.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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