TX 122 Real Estate Principles II-Lesson 8 Flashcards
What are some complexities in property management related to tenant relations?
• Observation of all fair housing laws
• Numerous rules about tenant and guest safety
• Regulations of environmental and energy conservation matters
• Stricter rules governing evictions
• Public relations concerns
What additional concerns does a commercial property manager face?
• Competitive marketplace
• Decline in demand for commercial property
• Impact of internet shopping on brick-and-mortar stores
What is a pro tip for property managers when dealing with tenants?
A property manager should be fair and honest in dealings with tenants, treating them as they would like to be treated.
What are key characteristics of a good property manager?
• Ability to work with a variety of people
• Trustworthiness
• Accuracy
• Mental endurance
• Ability to prioritize tasks
• Composure
• Organization
• Ability to delegate
• Proactivity
• Accountability
True or False: A property manager should become emotionally involved with tenants’ problems.
False
What is the primary responsibility of a property manager in marketing?
Maximizing occupancy to increase the property owner’s profits
What are the three main advertising mediums for property managers?
• Telecommunication
• Print media and signs
• Tenant referral
Fill in the blank: Good print advertising generally uses _____ and striking lettering.
[bold colors]
What should property managers ensure when distributing print media advertisements?
They must ensure that advertisements are strategically distributed.
What is a tenant referral?
Recommendations made by satisfied tenants to their friends and family regarding a property.
What are property managers responsible for in terms of property maintenance?
• Maintaining the physical condition of the property
• Ensuring compliance with local codes
• Timely completion of necessary repairs
• Routine maintenance and repair of systems
What is the fiduciary duty of a property manager?
To secure quality services and supplies for the property at a low price.
What is the screening process in property management?
Evaluating both the prospective tenant and the suitability of the property.
What is the purpose of a security deposit?
To serve as insurance against property damage during the tenant’s occupancy.
What should be clearly defined in the lease agreement regarding the security deposit?
‘Proper condition’ for the return of the deposit.
What must a property manager be familiar with regarding security deposits?
State laws regulating aspects of handling security deposits.
What are tenants’ rights regarding security deposits?
• Landlord can only deduct for damages the tenant is responsible for
• Normal wear and tear cannot be deducted
Within how many days must a landlord refund a security deposit?
30 days after the tenant moves out, if a forwarding address is provided.
What can a landlord deduct from a security deposit?
Large, permanent stains on the carpet and pen marks on the walls
Landlords cannot replace all of the carpet or paint the entire house at the tenant’s expense.
How long does a landlord have to refund a security deposit?
30 days after the tenant moves out or provides a written forwarding address
The landlord must also provide a written description and itemized list of deductions if applicable.
What is presumed if a landlord mails the security deposit refund or itemization by the thirtieth day?
The landlord is presumed to have refunded the security deposit or provided an itemized description
This applies if the mailing is postmarked on or before the thirtieth day.
What can a tenant do if a landlord retains a security deposit in bad faith?
Sue the landlord for $100 plus three times the amount wrongfully withheld, plus attorney’s fees
The landlord forfeits rights to withhold any portion of the deposit if they fail to provide a written description.
Is a landlord required to keep security deposit funds in a separate account?
No
Landlords are not obligated to pay interest on the security deposit either.
What happens if a tenant does not provide advance notice of termination as required by the lease?
The landlord may need to show how they were damaged to withhold the deposit
The requirement must be clearly stated in bold print to be enforceable.
Who is responsible for returning the security deposit if the property is sold?
The new owner, unless purchased at a foreclosure sale
The old owner remains responsible unless the new owner provides written notice of responsibility.
What happens to a security deposit if a tenant dies?
The designated contact person can receive the refunded security deposit
The landlord can request contact information for this purpose.
What is a hold deposit?
A deposit that guarantees a person can rent a unit, not a security deposit unless specified
It ensures the landlord can keep the money if the depositor decides not to sign a lease.
What is the consequence of using a security deposit as the last month’s rent?
Liable to the landlord for three times the amount of the rent wrongfully withheld
Exceptions exist if the lease was lawfully terminated due to landlord’s failure to repair.
Can a landlord penalize a tenant for summoning emergency assistance in cases of family violence?
No
Any lease provisions modifying this right are void.
What must a tenant provide to terminate a lease due to family violence?
A protective order or temporary injunction signed by a judge
This allows the tenant to vacate without further obligation for future rent.
What rights does a servicemember have regarding lease termination?
Can terminate the lease without obligation if ordered to change station or deploy for more than 90 days
Must provide written notice and government documents to the landlord.
What is eviction?
The process of forcibly removing a tenant and their belongings from leased premises
Requires specific legal paperwork and notifications as determined by state laws.
What are common reasons for eviction?
- Non-payment of rent
- Unlawful use of premises
- Retaining possession after lease end
- Violations of health and safety codes
What must property managers do regarding record keeping?
Keep accurate records of all changes in the property, including tenant changes and expenditures
This includes documenting routine maintenance tasks.
What should be included in the annual report compiled by a property manager?
Changes in the property and its annual expenditures
This report helps in assessing productivity and financial condition.
How do economic trends affect the real estate market?
They influence rental rates and tenant behaviors
Higher rents can hurt income during a recession, while economic expansion allows for higher rents.
What factors determine the condition of the real estate market?
- Supply and demand
- Occupancy rate trends
- Market rental rates
- Employment rate
What is a local market analysis?
An evaluation of the supply of and demand for comparable properties
It helps in determining a realistic rental rate for the property.
What is the role of a property manager?
To oversee the management of a property on behalf of the owner.
How should market analysis data be presented to property owners?
Using graphs and charts that clearly show relationships among various statistics.
What factors should residential property managers focus on in market analyses?
- Typical family size
- Median income
- General employment trends
- Demographic makeup
- Cultural amenities
What key factors should industrial property managers evaluate?
- Convenient sources of raw materials
- Special utility services
- Flexible expansion policies
- Nearby resident base of potential workers
What knowledge must property managers have regarding safety and environmental compliance?
Knowledge of hazardous substances and understanding of environmental laws.
Define hazardous waste according to the Environmental Protection Agency.
The byproduct of a manufactured item or manufacturing process.
What are hazardous substances?
Everyday items such as household cleaning products and paint.
What must industrial property managers ensure regarding waste?
That problematic wastes produced on the property are handled correctly.
What do fair housing laws prohibit property managers from using in tenant decisions?
Criteria based on the seven classes protected by the federal Fair Housing Act.
List the seven classes protected by the federal Fair Housing Act.
- Race
- Color
- National origin
- Sex
- Familial status
- Religion
- Disability
What should property managers ensure in their advertising illustrations?
To depict a diverse range of ages, genders, ethnic identities, and lifestyles.
What is the benefit of standardized procedures in tenant screening?
Helps fulfill fair housing obligations and protects against discrimination claims.
What does Title III of the Americans with Disabilities Act require?
Facilities to accommodate individuals with physical disabilities.
What are ‘readily achievable modifications’ required by the ADA?
- Ramps
- Lowering items for wheelchair access
- Braille or raised lettering on signs
- Audio signals in elevators
Who enforces the federal fair housing laws?
The Department of Housing & Urban Development (HUD) and state attorneys general.
What is one method of enforcement used by state attorneys general for fair housing laws?
Training undercover buyers, sellers, landlords, and tenants.
What is a property manager’s fiduciary relationship?
An obligation to act in the best interest of the property owner.
What is the role of an asset manager?
To manage the use, refinancing, or sale of multiple properties for a single owner.
What is a resident manager responsible for?
The management of an apartment building or structure in which they reside.
What are some examples of independent management firms?
- Apartment complex owners
- Shopping center owners
- Real estate investment trusts (REITs)
What unique management challenges do timeshares present?
High tenant turnover and the need for intensive upkeep and attention.
What responsibilities does a hotel/motel property manager have?
- Manage the property
- Supervise staff
- Ensure smooth operations during short visits
What are the responsibilities of a storage facility manager?
- Maintain and clean facilities
- Track rent payments
- Monitor conditions of units
- Handle turnover in renters
What does managing a golf course entail?
- Dealing with golfers
- Hiring staff
- Managing tournaments
- Handling emergencies
What is required of franchise owners in terms of property management?
Need an overall manager to care for the buildings.
What types of properties require management from government agencies?
- Bureaucratic buildings
- National Parks
- Low-Income Housing Projects
- National Monuments
What is the purpose of professional associations in property management?
To foster community and provide resources and networking opportunities.
What does BOMA stand for?
Building Owners and Managers Association International.
What is the primary goal of property management associations?
To foster community and provide resources and networking opportunities for property management professionals.
Associations can be local, regional, national, or international.
What does BOMA stand for?
Building Owners and Managers Association International.
BOMA International is an international federation of local associations dedicated to commercial real estate practitioners.
What is the primary objective of the International Real Estate Institute (IREI)?
To provide professional recognition and facilitate networking among real estate professionals.
IREI also offers current international real estate information through publications and conferences.
What is the mission of the Urban Land Institute (ULI)?
To provide responsible leadership in the use of land to enhance the total environment.
What does IREM stand for?
Institute of Real Estate Management.
IREM offers educational and certification programs for property managers.
What is the principal aim of the International Council of Shopping Centers (ICSC)?
To advance the development of the shopping center industry and establish shopping centers as major community institutions.
What is the role of the International Facility Management Association (IFMA)?
To support facility management professionals through certification, research, and educational programs.
IFMA is the largest professional association for facility management.
What does NARPM stand for?
National Association of Residential Property Managers.
NARPM promotes high standards of ethics and professionalism in residential property management.
What is the mission of the Property Management Association (PMA)?
To promote knowledge and education in the property management industry.
What is a license in the context of property management?
A license is permission to use a property for a predetermined time without ownership.
It is usually for a shorter term than a lease.
What right is being violated when Tenant Betty complains about Tenant Amy’s guests?
Amy’s right to quiet enjoyment.
This right allows tenants to be left alone in their rented premises.
What should a property manager do if a tenant’s right to quiet enjoyment is threatened?
The property manager should explain the right to quiet enjoyment and mediate the situation.
What law is violated if a property owner conceals environmental hazards?
It is against the law to willfully conceal environmental hazards.
This includes failing to disclose asbestos to tenants.
What are potential legal remedies for Tenant A if maintenance requests are not addressed?
Tenant A may seek to:
* Require repairs at the property owner’s expense
* Arrange repairs and deduct costs from rent
* Withhold rent until repairs are made.
Who should Owner P sue for unpaid rent if Tenant A subleases to Sublessee X without formal assignment?
Owner P should sue Tenant A.
An informal sublease does not create a direct legal relationship between Owner P and Sublessee X.
What type of insurance should Owner A and Manager R consider for risks beyond fire?
They should obtain an extended coverage endorsement in addition to fire insurance.
What marketing strategies can Manager D use to attract new tenants in a depressed market?
- Vibrant marketing campaign
- Advertisements in various media
- Competitive pricing
- Incentives for referrals.
What should Property Manager G do in response to Company Z’s strike?
Act as a liaison and encourage Company Z to negotiate with their workers.
The manager should consider alternatives for cleaning services.
What must a property management agreement contain?
- Specific time period
- Legal description of the property
- Duties and responsibilities of the manager
- Owner’s responsibilities
- Rate and schedule of compensation
- Accounting and reporting requirements.
What is the primary duty of a property manager?
To protect the owner’s capital investment and ensure the property generates profit.
