Fiduciary Property Management - spell check me

[Joe Podwats]

Good evening BP community!

Besides the fiduciary responsibility of an agent or perhaps a financial advisor, is there a similar fiduciary responsibility of a property manager? If so, where might this be written? I fully expect some opinions on this question and I welcome any and all feedback to this open ended question. 

And, did I spell fiduciary right? I know I can usespell check or AI, but where’s the fun in that?!?!?

Thank you for everyone’s contributions to the community.

~Joe

[Richard F.]

Aloha,

No need for spellchecker, you got it!

In general, this is the highest level of legal or ethical trust you can place in another person. Honesty, looking out for the Client's best interest rather than their own, confidentiality, loyalty, obedience (within the law), exercising reasonable care and diligence, acting in good faith, no conflict of interest, proper accounting, etc. For PM's, typically your Management Agreement will spell out some details that establish and/or limit that relationship.

In most states, PM's that perform real estate activities for others, as defined by that state, are required to be licensed by the Real Estate Board, and as such they become RE Agents with an implicit, and higher level, of fiduciary responsibility than non-licensed property managers.

Bear in mind, specifically as an Agent, the PM also has an obligation to be honest and fair in ALL relationships. As a PM, we deal with Tenants that want to, or do, rent your property. Based on fiduciary relationship, we are limited what we can say to the Tenant in regard to your details/motivations/financial status etc., but we must still, legally and ethically, be fair and honest with them. The same goes for dealing with contractors on your behalf.