2. Definition of Commercial Letting Management

Letting Management can be defined as a responsibility on agencies to create mechanisms to promote the provision of adequate Commercial Properties and for the leasing of such properties, thus representing both the lessor and lessee.  

A lessor is an individual who owns real estate (property) that he or she leases to a lessee. In this case, Lessors own Commercial or Industrial Properties. They lease the properties to individuals or companies in return for monthly rent. As the owning party, a lessor's obligations include structural maintenance and repairs as well as non-recoverable property tax payments and any other obligations stipulated in the Lease Agreement.

A lessee is a person who leases land or property from a lessor (owner). The lessee is also known as the "tenant" and must uphold specific obligations as defined in the lease agreement. The lease is usually a written and legally binding document, and if the lessee violates its terms, he or she could be evicted.

Letting management is the oversight of real estate property by a third party. This entails the process of finding a willing lessee to occupy and rent available commercial space from a willing lessor, collecting the rentals, and paying over to the lessor. 

Letting Management is also about taking on all day-to-day tasks focused on the real estate/rental property in question. Property managers are involved in acquiring lessees to fill a vacancy, collecting monthly rental payments, and facilitating the required maintenance.  The managing agent is, therefore, an asset manager of sorts, as part of the responsibilities include financial management.  This is explained fully in the Learning Unit about Financial Management.