Monday, June 26, 2017

Standard Policies And Procedures Manual And Management Guides For Real Estate

By Lisa Snyder


Property management is dynamic from one state to the other and changes on regular basis. Getting unified rules, procedures or policies is therefore almost impossible. However, there exist overriding policies and procedures manual and management guides for real estate that cover the basics regardless of the property, landlord or state. These policies are meant to keep you within the boundaries of the law by protecting you from penalties.

Screening tenants is mandatory for legal and personal reasons. It helps you keep away unwanted characters and incidences from your property including terrorists or rent defaulters. There are professional agents that will help you with vetting so that your tenants are safe and of high quality. Screening is not a license to discriminate since it will land you in trouble with the law.

Tenancy and contracts with managers should be in writing. Many landlords have ended up in trouble because of verbal agreements that lack evidence. Agree on the amounts to be paid, the deadlines, penalties, rent increments, modes of payment, etc and put all that in writing. Have the contract scrutinized by a lawyer to ensure that it meets the required threshold.

You should inspect the property as often as possible. This allows you to identify areas that need repair attention to avoid injuries on tenants or people within the area. The law allows you to inspect the property after providing a notice to the occupant. The reasons may be repair or for security purposes. Should a tenant raise an issue, it must be addressed immediately. This provides protection in case you are sued.

The security deposit from tenants should be handled with care. The contract should capture the deposit comprehensively including how it should be handled and refunded depending on circumstances. Have a clear mechanism of setting the deposit and have it available to a tenant whenever he or she is required to move out. Be guided by the contract to avoid conflicts and unnecessary lawsuits.

Security within the premises is your responsibility. Tenants will sue you for lost items especially if you have not provided the infrastructure to safeguard the premises. Whether it means the availability of CCTV or a perimeter fence, you will be off trouble if the premise is secured.

Be wary of hazards that tenants will be exposed to within your premises. The most common environmental hazards include lead poisoning and mold. They should be notified of the existence of such so that necessary precautions are taken. The law is usually very tough whenever such disclosure is not made. You will have to pay hefty fines for failing to disclose them and thus harming the health of tenants.

You retain the overall responsibility of the property despite managers taking control of daily oversight. Sign a detailed contract and supervise its execution. In case a problem arises, the responsible persons will be easier to identify and ensure that they take responsibility.




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