More than just leases and rents – Update from 2013 NAR RPM Forum

NAR 2013 – RPM Forum

Property Management. Did you think it was just taking finding a tenant, taking a lease, collecting rent? Turns out there’s a lot more to it. And the 2013 NAR Convention and Trade Show RPM Forum meeting showed just how much.

The NAR RPM Forum enlightened a packed large room of several issues that are being seen by property managers across the country. Some of the topics discussed include the Landlord/Tenant Act, how disparate impact can affect property managers and owners, and the importance of management agreements.

Beth Wanless, Senior Manager, Government Affairs for IREM (International Real Estate Managers), gave a legislative update. Four main areas of concern were identified related to the Landlord/Tenant Act: security deposits, domestic violence, disposition of personal property, and failure to pay rent. Right now the Act includes language that puts a heavier burden on the property manager or owner to almost take uncomfortable action when certain things are seen in rental homes.

For example, if signs of domestic violence are seen during annual inspections, the agent is under pressure to take steps.  Or if a tenant appears to have abandoned a property, and left belongings behind, the property may have to sit empty for months before anything can be done. IREM is working on the current act to add more reasonable language.

Also discussed was how the Disparate Impact Act can affect property managers. Some of the key things to keep in mind are that you can be found guilty of violating this act based on completely unintentional or accidental behaviors. The burden of proof shifts to the defendant in these cases. It can also lean towards eliminating good business practices, such as minimum income requirements or criminal background checks.

Richard Muhleback, CPM, CRE presented information about the importance of having good management agreements, whether for residential or commercial lease property. As important as having good leases with renters is, even more important is having good agreements between the property managers and owners or vendors.

These agreements need to clearly state things like management fees, maintenance fees, maximum allowed expenditures, leasing or brokerage fees. Also important is arrangements on financial reports/budgets, meetings, and indemnification. He recommended a book call Managing Your Maintenance Programs. It includes two disks with over 60 forms, check lists, and agreement.

The last topic of the meeting came from Chris Mellen, CPM, Vice President of the Simon Companies in Braintree MA, who gave an interesting presentation on Domestic Violence and Hoarding. He explained how each of these issues can affect a property manager on many levels, from home safety to legal requirements.

For example, hoarding is considered a disability, so Fair Housing protection must be considered if an eviction is desired. He also talked about the rights of a victim of domestic violence if they are not the person named on public housing or Section 8 documents. Check out the changes to VAWA (Violence Against Women Act) in 2013.

If you would like a copy of the presentations given by either Richard or Chris, please let me know.

Susan Beck, I.S. Director
Emerald Coast Association of Realtors®
Fort Walton Beach, FL