The Dos and Don

1
The Dos and Donts of Property
ManagementPresented byThe Texas Association of
REALTORS
2
Outline

• The Dos
• Do stay informed
• Do keep records and maintain policies
• Do use current forms
• Do establish sound relationships
• Do seek advice

3
Outline

• The Donts
• Dont commingle funds
• Dont delay
• Dont charge for normal wear and tear
• Dont discriminate
• Dont manage if you dont know what youre doing

4
The Dos

• Do stay informed
• Become familiar with the laws governing property
  management related issues. Laws dont change
  often, but when they do, the effect is
  significant.

5
The Dos

• 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.

6
The Dos

• 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.

7
The Dos

• 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?

8
The Dos

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

9
The Dos

• 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.

10
The Dos

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

11
The Donts

• Dont commingle funds
• Become familiar with your states 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?

12
The Donts

• Dont 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.

13
The Donts

• Dont 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.

14
The Donts

• Dont 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.

15
The Donts

• Dont manage if you dont know what youre doing
• You have an obligation to competently manage a
  property for your client.
• If you dont know what youre doing, dont do it.
  Dont be afraid to seek advice or ask questions.

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Questions
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Contact

• Contact
• Kinski Leuffer
• Associate Counsel
• Texas Association of REALTORS
• Phone [phone]
• Email kleuffer_at_texasrealtors.com