Over the past several years, I have reviewed dozens of expert witness cases involving commercial real estate  - slip and falls, life safety failures, water damage, equipment failures, security incidents, and other operational breakdowns.

A troubling pattern appears in far too many of these cases.

Unfortunately, in most of the cases I review, the property management company had no defined operational infrastructure to support their teams.

In many cases, there are:

• No formal Standard Practices or operating procedures
• No structured training program for property managers or engineers
• No expectation that managers obtain professional education such as the Building Owners and Managers Association RPA (Real Property Administrator) or the Institute of Real Estate Management CPM (Certified Property Manager) designatio
• No performance measurement program confirming that employees are actually following established practices
• No documentation demonstrating training on specific policies
• No audit or accountability systems to ensure compliance

Instead, many operations rely on a simple assumption:

"Hire experienced people and trust them to do the right thing."

Unfortunately, that assumption does not hold up under legal scrutiny.

What Happens When There Are No Systems

In litigation, opposing counsel almost always asks the same foundational questions:

• What policies governed this activity?
• What training did the employee receive?
• How did the company verify the policy was followed?
• Where is the documentation showing compliance?

When those answers do not exist, the discussion shifts quickly from “Was the incident unavoidable?” to “Was the management company negligent in its operations?”

Without defined systems, it becomes extremely difficult to demonstrate that the company met the industry standard of care.

 Four Safeguards Every Property Management Company Needs

From an expert witness perspective, well-run organizations consistently have four structural safeguards in place.
 
1. Systems (Defined Standard Practices

Professional property management companies operate with clear, written operational standards, including:

• Routine property inspections
• Life safety system testing
• Contractor oversight
• Incident response procedures
• Snow and ice management
• Water intrusion response
• Security protocols
• Vendor management and insurance verification

These systems reduce operational variability and ensure that critical tasks are not dependent on individual memory or experience.

2. Training (Competence and Professional Development)

Policies alone do nothing if employees are not trained. Best-in-class organizations:

• Train managers on company standard practices
• Encourage professional education such as RPA or CPM designations
• Provide engineering and life safety training
• Conduct incident-response drills
• Provide risk management education

Training transforms policies from documents into operational behavior.

3. Leadership (Setting Expectations)

Leadership defines whether standards matter. Strong organizations make it clear that:

• Following standard practices is non-negotiable
• Safety and risk management are leadership priorities
• Documentation is expected and reviewed
• Managers are supported with resources and training

Without leadership reinforcement, even well-written policies quickly become shelf documents.

4. Accountability (Verification and Measurement)

The final safeguard is accountability. Organizations must verify that systems are actually being followed. Examples include:

• Property inspection audits
• Maintenance documentation reviews
• Vendor compliance checks
• Safety program verification
• Incident reporting systems
• Portfolio-level performance metrics

In litigation, these accountability systems often become the strongest evidence that a company exercised reasonable care.

The Moment the Lights Turn On

What I often see in expert witness work is that a major incident becomes the first real audit of a company’s operational systems.

A serious insurance claim or lawsuit exposes questions like:

• Who was responsible for this task?
• What policy governed the activity?
• How was compliance verified?
• Where is the training record?

When the answers are unclear, the legal and financial consequences can escalate quickly.

 Risk Management in Property Management Is Operational Discipline

Property management is not simply about leasing space or responding to work orders.It is a risk management profession.Buildings contain:

• Complex mechanical systems
• Life safety infrastructure
• Thousands of occupants and visitors
• Significant financial exposure

Managing that risk requires structured operational discipline.

• Systems
• Training
• Leadership
• Accountability

Those four pillars separate defensible operations from avoidable liability.

A Question for Property Management Leaders

If an attorney asked your organization tomorrow:

• Show me your operating standards.
• Show me how you train your employees.
• Show me how you verify compliance.

Would you be comfortable with the answer?

Commercial real estate litigation rarely hinges solely on points of law. More often, cases involve intricate operational details, complex financial calculations, nuanced market conditions, and established industry standards of care that fall outside the typical expertise of judges and juries.

Effectively presenting these technical CRE issues in a legal setting requires a specialized bridge between the worlds of law and real estate – the credible Commercial Real Estate Expert Witness.

INSPIRE, led by Marc Fischer, provides highly specialized expert witness services designed to equip attorneys with the objective analysis, clear explanations, and authoritative testimony needed to navigate complex CRE disputes successfully.

Our goal is to help uncover the truth on behalf of CRE litigants.

The Challenge: Complexity in CRE Disputes

Attorneys handling CRE cases face the challenge of explaining multifaceted issues to triers of fact who may lack industry background. Consider the technical nature of common disputes:

• Valuation Disputes: Requiring understanding of various methodologies (income, sales comparison, cost) and market adjustments.
• Property Management Standard of Care: Assessing whether a manager acted prudently regarding maintenance, safety, tenant relations, or financial handling.
• Lease Interpretation: Analyzing complex clauses related to operating expenses, renewals, or use restrictions.
• Market Conditions: Evaluating the impact of market trends on property value or leasing potential.
• Construction Defects: Assessing management oversight, project management practices, and resulting damages.
• Damage Calculations: Quantifying financial losses resulting from breaches or negligence.

Presenting these concepts clearly and persuasively requires more than just legal argument; it requires specialized industry knowledge.