The Dos and Don’ts of Property Management Presented by The Texas Association of REALTORS®

Outline  The Dos  Do stay informed  Do keep records and maintain policies  Do use current forms  Do establish sound relationships  Do seek advice

Outline  The Don’ts  Don’t commingle funds  Don’t delay  Don’t charge for normal wear and tear  Don’t discriminate  Don’t manage if you don’t know what you’re doing

The Dos 1.Do stay informed Become familiar with the laws governing property management related issues. Laws don’t change often, but when they do, the effect is significant.

The Dos 1.Do stay informed The following are laws that property managers should become familiar with: state licensing laws; state laws that govern the relationship between landlords and tenants; and federal laws that affect property management activities.

The Dos 2.Do keep records and maintain policies Keeping records is imperative for the following reasons: your state requires you to keep records; keeping records will protect you against fair housing complaints; it will provide ample evidence in an eviction case; and it makes life easier.

The Dos 2.Do keep records and maintain policies It is important to develop and maintain polices. Some states may even require a broker to maintain on a current basis written policies and procedures. Are you required to implement a privacy policy or tenant selection policy?

The Dos 3.Do use current forms Use current forms because forms are updated to reflect statutory changes. Older forms will not reflect these changes.

The Dos 4.Do establish sound relationships Maintaining a sound relationship with both your client and the tenant will help your business run smoother. It will also eliminate the common pitfalls of property management and reduce problems for everyone.

The Dos 5.Do seek advice Seek the advice of experts in the business, such as your broker or other experienced property mangers.

The Don’ts 1.Don’t commingle funds Become familiar with your state’s laws on trust accounts. If you are holding money belonging to another, does your state require you to put that money in a trust account?

The Don’ts 2.Don’t delay State laws governing the relationships between landlords and tenants set forth strict deadlines and time frames. Allowing these important deadlines to pass will increase your liability.

The Don’ts 3.Don’t charge for normal wear and tear You are prohibited from retaining any portion of a security deposit to cover normal wear and tear. Determining whether a condition or repair constitutes normal wear and tear depends on the facts.

The Don’ts 4.Don’t discriminate The Fair Housing Act prohibits discrimination in the sale and rental of housing based on race, color, national origin, religion, sex, familial status or handicap.

The Don’ts 5.Don’t manage if you don’t know what you’re doing You have an obligation to competently manage a property for your client. If you don’t know what you’re doing, don’t do it. Don’t be afraid to seek advice or ask questions.

Questions

Contact: Kinski Leuffer Associate Counsel Texas Association of REALTORS® Phone: 512/ Contact