presented by: gail a. moncla, cpm, mpm property management university, inc. ...
TRANSCRIPT
Presented by:Gail A. Moncla, CPM, MPM
Property Management University, Inc.
www.propertymanagementuniversity.netinfo@propertymanagementuniversity.net 407-571-0757
Presented by:Gail A. Moncla
CPM (Certified Property Manager) – IREM Institute of Real Estate ManagementMPM (Master Property Manager) - NARPM National Association of Residential Property Managers
Broker – owner - Rental Home Management Services, Inc.Owner - Property Management University, Inc.Co-owner - Property Genie, Inc. (software)
Florida licensed Real Estate BrokerFlorida licensed Real Estate Instructor
Disclosure
1. Although every effort has been made to ensure that the information in this course was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. The author is not a lawyer and is not seeking to provide legal advice. To ensure compliance with all rules and laws the student is advised to seek legal counsel.2. Throughout this course I will refer to a company named Magical Management. Magical Management is a fictional company. All fees, costs and processes discussed throughout this course are hypothetical and for illustration purposes only. Actual fees charged in the residential property management business may vary by geographical area and differ from company to company. The students and/or instructor will not discuss fees of their own companies inside or outside the classroom. Any hypothetical fees and illustrations used in this course are not intended to direct the students to use the fees as illustrated. Nothing in this course is to be construed as attempting to set any fees to be charged for services by residential property management companies.
Residential property management is a lucrative and fulfilling career if planned and executed correctly. However, without property planning you
can find yourself in trouble fast if you make a misstep.
Which direction are you headed?
Today’s information is designed to provide you with the requirements and guidelines required of residential property
managers in Florida.
My goal today is to provide you with the knowledge to stayHeaded in “RIGHT” direction!
Limit your Liability!
DEFINITION:“A residential property manager is a person who specializes in and is responsible for a dwelling unit rented for use as a home or residence for one person or for two or more persons who maintain a common household for others; to administer and enforce leases, rental agreements and other tenancies. To maintain and protect the property value for the investor, the resident and the general public.”
A RESIDENTIAL PROPERTY MANAGER:1. Administers leases, rental agreements and other tenancies. 2. Maintain the property to preserve value.3. Reports to the IRS and other governmental agencies as required4. Escrows funds for residents and property owners.5. Engages & supervises repair and maintenance vendors to perform services
In Florida a real estate broker must follow:
Florida Statutes Chapter 455: Business and Professional Regulations – General Provisions
Florida Statutes Chapter 475: Real Estate Brokers, Sales Associates, Schools and Appraisers
Florida Administrative Code Chapter 61J2
Florida Statute 83.40 – 83.682: Residential Tenancies Landlord Tenant Law
Brokers must also adhere to federal laws including Fair Housing, EPA Renovate Repair & Paint (properties built prior to 1978) just to name a couple.
Today I will introduce you to the following:
License requirementsResponsibility of the DBPR and FRECLiability for brokers of the firmSecurity Deposit claims and disputesTrust Liability – more than just balancing the bank statementManagement agreement – important clausesTop ten questions property owners ask when interviewing for a property managerSigning up a property owner (client) and his/her propertyCondo and Homeowner’s associationsWorking with vendorsLead based paint requirements
Rental application ApprovalDenial
Lease agreement – important clausesMaintenance – responsibility/liabilityAccess to the propertyHandling problems during tenancyNon payment of rent – evictionsTenant renewal or move outPolicies and procedures for consistency
Develop a “Yes I can!” attitude
License requirements:
Advertising and renting residential properties are services of real estate and you must have a valid Florida license to provide these services for others for compensation. Further if you have a sales associates license you must place your license with a Florida licensed broker and work with that broker’s permission.
DBPR and FREC:
As real estate licensees we are governed by Florida Statutes and Rules in many aspects of our business. These statutes and rules apply to our day-to-day processes and interactions with the public. The stated purpose of the Florida Real Estate Commission from its inception is to protect the public.
This power for the FREC to govern our day to day processes is granted in Florida Statutes Chapter 475.05
Florida Statutes 83.49 Landlord Tenant Law is the basis for our policies in regard to residential landlords and tenants.
Liability for brokers of the real estate firm:
You are responsible for all actions for all licensees working under your supervision.
This includes actions you know about and those you don’t. FREC believes you know or should know the actions your licensees take to provide services.
The agreement signed between the broker and sales or broker -associate licensees to work under the broker’s license should include:
Residential management services Yes or NO
If yes:What education is required in order for the licensee to handle rental accounts?What policies and procedures are required to meet the office guidelines?
As a broker, leaving these decisions to licensees with no training leaves you open for severe disciplinary action when things go wrong.
Security Deposits
Security deposit money must be held in a Florida banking institution. These funds must be held separate and cannot be comingled with the broker’s company funds.
The security deposit belongs to the tenant:
Unless or until they do not fulfill the terms of their lease They do not pay all funds due They do not return the property in good condition (normal wear and tear excepted) A proper claim has been made and time has been given for the tenant’s response
This money does not belong to the property owner and should not show on his financial journal unless the journal specifically labels it the tenant’s security deposit.
The landlord must within thirty days of receipt of the security deposit notify the tenant in person or by mail where the money is held and what type of account is being used.
When the property is vacated, the release of the security deposit back to the tenant or to the property owner is determined by several factors. No part of the security deposit should be released or used during the lease term or occupancy of the tenant.
There are several factors to consider when deciding on making a claim against a tenant’s security deposit:
Review the condition of the property when the tenant was granted possessionReview all maintenance done to the property during the tenant’s occupancyRecord the condition of the property when the tenant vacated itDecide what work must be completed to rent the propertyDecide what work should be charged to the tenant because of their use
normal wear and tear accepted.How long have the tenant’s lived in the propertyVerify all of your facts to be placed on the security deposit claimCheck and recheck your math
You received the tenant’s notification the tenant is leaving at the end of their lease term which is July 31st, 2013.
How long do you have:
To return the deposit in full? ________ To make a claim against the deposit?________
For the tenant to respond to the claim? ________
To send the tenant any unclaimed portion of the security deposit?30 daysfrom the date you made the initial claim
Your security deposit claim must have the following minimum language:
This is notice of my intention to impose a claim for damages in the amount of $_________ upon your security deposit due to ___________________________(list reasons).
It is sent to you as required by F.S. 83.49(3), Florida Statutes. You are hereby notified that you must object in writing to this deduction from your security deposit within fifteen (15) days from the time you receive this notice or I will be authorized to deduct my claim from your deposit.
Your objection must be sent to: _________________________ . (claimant’s - property manager’s or property owner’s address)
You can say more but you must have this exact language as a minimum in the document
Security deposit claims must be mailed by certified mail to the tenant’s last known mailing address. F.S. 83.49(3)(a)
Once you have mailed the claim by certified mail how long does the tenant have to respond to the claim? 15 days
Does the tenant’s written response have to be made by certified mail?
This is notice of my intention to impose a claim for damages in the amount of $_________ upon your security deposit due to ___________________________(list reasons).
It is sent to you as required by F.S. 83.49(3), Florida Statutes. You are hereby notified that you must object in writing to this deduction from your security deposit within fifteen (15) days from the time you receive this notice or I will be authorized to deduct my claim from your deposit.
Your objection must be sent to: _________________________ . (claimant’s - property manager’s or property owner’s address)
MAGICAL MANAGEMENT SETTLEMENT STATEMENTTo: Tenant Name Tenant Name CC: Tenant Name Tenant Name
123 Old Address Lane 456 New Address LaneOrlando, Florida 56789 Orlando, Florida 56789
Certified Mail#: 123 0001 2223 4566 CC- Certified Mail#: 123 0001 2223 4567
RE: Property located at: 123 Old Address Lane, Orlando, Florida 32323 This is a notice of our intention to impose a claim upon your Security Deposit for damages and/or unpaid rent as outlined in the following statement. It is sent to you as required by Section 83.49(2) Florida Statutes. You are hereby notified that unless you object in writing to these deductions from your security deposit, within 15 days from the date you receive this notice, our deductions have been authorized. Your objection must be sent to: Magical Management, 123 Any Other Street, Orlando, Florida 56789. A check for any amount due you is enclosed. If you choose to object to the claim, return the enclosed check along with your written objections to this office. No further action with respect to your objection will be taken at that time unless initiated by you. Should you initiate legal action as a result of your objection and you are unsuccessful, you will be charged for court costs plus a reasonable fee for our attorneys. Management apologizes for the harsh nature of this form, which is required by Florida Statues. We hope that you enjoyed your stay with us. Residence vacated: 1/31/2011 Rent paid through: 1/31/2011Rental expiration: 2/28/2011 Residence re-rented: NOWritten notice given: NO Keys returned: 2/1/2011 Credits due the resident for:
Security Deposit $ 1,000.00Less Charges due for:
Unpaid rent from 2/1/2011 through 2/28/2011 $ 1,000.00Cleaning:
Appliances $Carpet $ 100.00General $ 125.00
Repairs: Drywall $ 150.00Yard-edging and service $ 150.00
Certified Mail Charges $ 11.00Total Charges $ 1536.00Difference:
Total Credits $ 1,000.00Less Total Charges $ 536.00Difference $Amount due the residents . . . . . . . check enclosedAmount due the lessor …. . $ 536.00
Date: February 5th, 2011 by: ________________________________ Your name here, Property Manager If not paid within 15 days this may be turned over for collection. If it is reported to the Credit Bureau, it will remain on your credit history for seven years as a delinquency even if you later pay it off. Note: This notice does not waive or limit any of landlord’s rights to damages or amounts due which may exceed security deposit or amounts listed on this form.
What do you do when the tenant disputes the claim in writing?
The broker has choices:
1.Settle the dispute through negotiation
Sign an agreement between the partiesConsider a general release
2.Continue holding the funds until the statute of limitations has expired.
What is the statute of limitations for a tenant to sue in court for
the return of their security deposit?
3.Have an attorney file a “bill of interpleader” with the courtDocument asking the court to decide who should receive the
security deposit
F.S. 83.49 (3) (d) reads as follows:
) Compliance with this section by an individual or business entity authorized to conduct business in this state, including Florida-licensed real estate brokers and sales associates, shall constitute compliance with all other relevant Florida Statutes pertaining to security deposits held pursuant to a rental agreement or other landlord-tenant relationship. Enforcement personnel shall look solely to this section to determine compliance. This section prevails over any conflicting provisions in chapter 475 and in other sections of the Florida Statutes, and shall operate to permit licensed real estate brokers to disburse security deposits and deposit money without having to comply with the notice and settlement procedures contained in F.S. 475.25(1)(d).
Note: This allows the broker to decide to disburse the security deposit as claimed. However, the broker still has civil liability if the tenant files a lawsuit. In other words, you may disburse the funds as claimed and the tenant’s only recourse is to file a lawsuit. You would have to defend your claim.
DANGER!
If either party institutes an action in a court of competent jurisdiction to adjudicate the party’s right to the security deposit, the prevailing party is entitled to receive his or her court costs plus a reasonable fee for his or her attorney. The court shall advance the cause on the calendar. F.S. 83.49 (3)(c)
Over the years, I have found with good documentation and good communication a settlement amount can be reached by all parties. Once a settlement amount has been agreed to, it is my recommendation that the parties sign a release of rental security deposit like the example on the following slide.
If you are closing out the property management account you may also want a general release signed by all parties.
Release of Rental Security Deposit THIS RELEASE is entered into between the undersigned Tenants, the undersigned Property
Owners (or their agent) Magical Management, who were parties to a lease, covering the following property located at: 123 Any Street, Orlando, Florida, 56789WITNESSETH:
That each of the parties hereto in consideration of each of the parties releasing all of the other parties from the aforesaid rental security deposit receipt, do hereby release each of the other parties to said rental security deposit receipt from any and all claims, actions or demands whatsoever which each of the parties hereto may have up to the date of this agreement against any of the other parties hereto by reason of said rental security deposit receipt.
It is the intention of this agreement that any responsibility or obligation or rights arising by virtue of said security deposit receipt are by this release declared null and void and of no further effect when signed by all of the above named parties.
The escrow agent, (Magical Management) holding the rental security deposit is hereby directed and instructed forthwith to disburse said deposit held of $1,000.00 in escrow in the following manner:
$ 500.00 TO: Magical Management- (Agent for the property owner)$ 500.00 TO: Tenant names (former tenants) IN WITNESS WHEREOF the parties have hereunto set their hands and seals that year and date
below written.
Date signed by tenants: ________________,20_______.
_________________________ X____________________________Witness Tenant- Tenant Name_________________________ X____________________________Witness Tenant- Tenant name-----------------------------------------------------------------------------------------------------Date signed Property Owner (or Agent):_______________20________.________________________ X____________________________Witness Magical Management ________________________ X____________________________Witness Property Owner (or Agent)
MAGICAL MANAGEMENT GENERAL RELEASE BY TENANTS or PROPERTY OWNERS
KNOW ALL MEN by these presents that Tenant or Property Owner’s names, first party, for and in consideration of the sum of $10.00 Dollars, or other valuable consideration (list consideration/payment arrangements/rebates) received from or on behalf of Magical Management, and Your name here, second party, the receipt whereof is hereby acknowledged. HEREBY remise, release, acquit, satisfy, and forever discharge the said second party, of and from all and all manner of actions and actions, cause and cause of action, suits, debts, dues, sums of money, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, which said party first party ever had, now has, or which personal representative, successor, heir or assign of said first party, hereafter can, shall or may have, against said second party, for upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world to the day of these presents, arising out of any claim the party of the first part has or may have against party of the second party of the second part, in connection with that certain real estate property lease or property management service agreement dated the October 1, 20 , including specifically any action undertaken by party of the second part pursuant to that real estate agreement, whether as designated manager or assignee thereof, including specifically although not by way of limitation any charges made by the party of the second part to the party of the first part. Each party acknowledges that none shall make any complaint with any regulatory agency (including specifically, although not by way of limitation, the Florida Real Estate Commission, the Department of Business and Professional Regulation, the Better Business Bureau, and the Orlando Association of Realtors) regarding the conduct of the other and in the event that any such complaint is presently pending the complainant shall cause the same to be withdrawn. IN WITNESS WHEREOF the parties hereunto have set their hands and seals this __________________ day of______________20___. ________________________________ ____________________________ Signature- Signature-your name here for Magical Management ________________________________ ____________________________ Printed Name Witness Signature ____________________________ Witness Signature NOTE: Signature lines for all former Tenants or Property Owners
(Over)
Must beNotarized
Trust Liability – Balancing your bank statement is not enough
A trust/escrow account is an account in a bank, trust company, title company having trust powers, credit union, or a savings and loan association within the state of Florida.
What is in a name? . . .
Make sure the name of your account includes the word trust or escrow in it.
Magical Management Security Deposit Escrow AccountMagical Management Rent Management Escrow Account
NOTE: The word trust or escrow is the institutions notification
that the funds in this account do not belong to you.
How many accounts must you have? One (two recommended)Remember you must balance your trust liability on each
trust/escrowaccount.
What does it mean?
Escrow To place in escrow, to hold; the tenant agrees to escrow the sum
of $2000.00 with his property management real estate broker as a security deposit.
Trust The reliance on the integrity, strength, etc., of a person or thing;
confidence.
Liability The state of being liable (responsible by law), a financial obligation
Deposit A sum of money or its equivalent, delivered to a real estate
licensee as earnest money, or a payment, or a partial payment
in connection with any real estate transaction, or such sum
delivered in escrow, trust or on condition in any transaction
conducted by such licensee. (Chapter 475, F.S. Rule 61J2-14.008
What money has to be deposited into a trust/escrow account?
Property owner funds: Tenant funds:Reserves for maintenance Security deposit & Pet depositsRent proceeds prior to disbursement Advance RentsAll holds you place on funds for any reason Prepaid items
Prospect Funds: Vendor Funds:Holding deposit Funds for suppliesFirst month’s rents prior to move inFunds for security deposit
In other words, if you accept money that does not immediatelybelong to you, the money must be held in a trust/escrow account for the benefit of the proper person.
The total trust liability then must be determined monthly. The bank statement must be balanced and the reconciled balance must reflect exactly the total trust liability.
What records must be available for audit?
All of them . . .
Deposit slips ( How long do you have to deposit funds into the trust account) 3 business daysBank statements for each bank accountAgreement between the partiesAll documents that substantiate the requirement to account and
deliver funds
What has to be on the report?
Everything . . .Date reconciliation completed May 20th, 2013Date used to reconcile balances April 30th, 2013Name of bank Bank of Property Management, N. A.Account Name Magical Management Escrow AccountAccount Number 555777888Account balanceDeposits in transitOutstanding checks identified at least by date and numberItemized list of broker’s trust liability
Name of person, amount, type of funds security deposit advanced rent
Records showing date, receipt and source of fundsMonthly signed broker reconciliation signifying the broker has reviewed the documents
By virtue of have a real estate broker’s license and accepting money for others, we have agreed to abide by and fulfill these requirements.
Daunting? No, not if you have a system and stick to it.Step 1: Balance your bank statementStep 2: Balance your trust liability
Comingling of fundsNo No don’t do it except . . . . .How much business funds can a broker keep in each
escrow/trust account?Sales trust account $1000.00Property management trust account $5000.00
Never place rents in your business operating account
The qualifying broker Is not required to complete this work.
Must be a signatory on the trust/escrow account with the bank. Must sign the monthly trust liability reconciliation. Signing the report signifies that he/she (broker) has reviewed the documents and believe them to be correct.
Real estate brokers in the property management business accept a tremendous amount of money on behalf of others. it is understandable that there are rules to try and protect the public from disappearing funds.
The broker must also protect his/her company with methods and practices that attempt to protect the money held to the best of his/her ability.
Embezzlement is a problem and one protection for your business is to have a separate bookkeeper balance your bank statements and trust liability.
In other words, the person that makes the deposits, compiles ACH files, write checks, etc. should not be the same person that balances the bank statements and trust liability.
Check to see if the ACH file that is compiled from your software to be uploaded to the bank can be edited once compiled. Also check with your bank to see if the file can be accessed after uploaded and can changes be made to the file
Property Management Service Agreement
Protect your company with your Property Management Service Agreement. It is one of the two most important documents in your business. The other is your lease agreement.
You must have the authority to:Manage and be in control of the propertyPrepare, negotiate, execute and terminate leasesAdvertiseServe legal notices, prosecute in the name of the property owner or
manager at the property owner’s expenseCollect money such as application fees without accounting to the
property ownerKeep interest (if any) earned on trust accountsEnter the premises when manager deems necessaryPay Homeowners or condo association fees (if property owner’s funds are available
Property Management Service Agreement
Define the property owner’s responsibility to:
Provide information to you in a timely mannerPay for expenses that exceed rental proceeds for items that are or may become due upon request of the managerAllow you to:
Require general releases from all parties to a controversy
Employ a collection agency for outstanding tenant debtsUse your sole discretionary judgment to withhold or
reservefunds to meet the owner’s expenses includingyour income and assign all rent proceeds as
securityfor these obligations
Accelerate all fees if:Owner breaches your agreementOwner allows property to go into foreclosure
Property Management Service Agreement
The property owner must warrant:
He/she is the sole owner of the property with the authority to enter into
this contractThe property has no encumbrance that would inhibit delivery of your servicesThe owner has no knowledge of environmental hazards and takes full
responsibility if any are found
Further protections needed:
If the banking institution holding your trust funds fails, the manager is not held liable.Property owner holds harmless, all involved from all damage suits and claims
from liability for injuries to persons and property in connection with the management of the premisesWaiver of jury trialPower of attorney (evictions)Protection against lawsuits and complaint made to various agencies
Property Management Service AgreementHere are 5 sample clauses:
To prepare and negotiate new leases and renewals and TERMINATIONS of existing leases as deemed appropriate by MANAGER. Manager is authorized, for and on behalf of the property owner, to execute leases and lease renewals.
Provide for authorized individuals to inspect the property as deemed necessary by manager and to provide security deposit evaluations at the expiration of a tenancy. Should a dispute over the claimed amount of the security deposit arise, manager shall in their sole discretion determine the settlement of the claim.
If the property owner feels he/she has not been treated fairly and files a lawsuit or complaint with the court, Board of Realtors, Better Business Bureau, mediation or any other administrative agency arising out of this agreement and if the manager successfully defends same, the property owner is responsible to reimburse manager for costs including attorney’s fees and manager’s time spent defending the action.
Severability: If any provision of this agreement becomes unenforceable all other provisions of this agreement remain in force and enforceable.
Waiver of jury trial: The parties hereby waive their right to a jury trial on any issue arising from the subject matter of the agreement regardless of whether or not the cause of action is a tort or contract action. The parties specifically agree that all issues arising out of their relationship shall be resolved by Judge sitting without jury.
(this clause should also be in your lease)
Top ten questions property owners ask when interviewing a property manager
1.Please give me some background on your business and your qualifications
2.Do you have knowledge of the area?
3.Will you explain your experience level to me?
4.How do you find tenants?
5.How do you handle the responsibilities of management?
6. How will you communicate with us?
7. If a problem crops up, how do you deal with it?
8. What sets you apart from your competition?
9. How do you handle the finances? When will I receive my rental proceeds?
10. What are your fees?
Seriously folks, the last question a property owner should ask is about the costs. The reason is this: if the property owner asks the cost question first and based on that answer decides to interview additional property management companies, he or she may have missed a very qualified company that delivers the very best services. The property owner must listen to what the property management company provides to determine if the services warrant the cost.
We have just written your outline for the information you will include in your presentations to clients. Did you realize what we were doing? Wasn’t it painless? To make your use of this information most effective, your plan will need to be formalized, in written form, as a formal "marketing plan." The essence of the process is that it moves from the general to the specific, from the vision to the mission, to the goals, to the business objectives of the organization.
1. New Account Set Up Form 2. Property Management Service Agreements
(extras) 3. Blank Property Management Addendums 4. Property Owner’s Data Sheet5. ACH Request Form and IRS W-9 6. Property Appraiser Information on property
address7. Comparative Rental Market Analysis (completed
if possible)8. Property Owner’s Handbook or your own
marketing materials 9. Landlord Tenant Law for your state 10. Sample Marketing Flyer 11. Sample lease (Yes? No?)12. New Property Start Up Maintenance Form
Signing up a new property owner and his/her property
PROPERTY DATA SHEET1) Property Address: 2) Primary Owner’s Name: 3) Secondary Owner’s Name: 4) Primary Owner’s Tax ID#: _______ ― _____ ― _______5) Home Phone: (________)
Work Phone: (________) Fax Number: (________) Email Address: Postal Address:
6) Preferred Method of Communication:__ Phone ___ Fax ___ Email __ Mail __ Other:
7) Property Zip Code: Heated Sq. Ft.: Map Grid: Total Sq. Ft.: Subdivision Name: HOA Approval Required:Y or NHOA Phone #: Gated Community: Y or NEntrance Gate Code: Year Built:
8) Type of Property:A) House B) Condo C) Town HomeD) Duplex E) Triplex F) Quad
9) Floor Plan:A) Single Story B) Split-Level C) Two StoryD) Split-Planned E) Other:________________________
10) Exterior Appearance:A) Wood Siding B) Aluminum Siding C) BrickD) Cinder Block E) Stucco F) Corner LotG) Waterfront Lot H) Water view Lot I) Other: ____________
11) Area Location:A) Northwest B) Northeast C) SouthwestE) Southeast F) Seminole Co. G) Volusia Co.
12) Number of Bedrooms:A) 1 B) 2 C) 3 D) 4 E) 5F) _____: Extra room/den/loft/office/enclosed garage/guest quarters; may be used asadditional bedroom.
13) Number of Bathrooms:A) 1 B) 1 ½ C) 2 D) 2 ½ E) 3 F) ______
14) Bathroom Extras:A) Roman Tub B) Jacuzzi Tub C) Double Vanity D) Glass ShowerE) Water Closet F) _____ Other:__________________________
15) Living Room:A) Living Room B) Formal Living Room C) Living / Family Room Combo
16) Dining Room:A) Dining Area B) Formal Dining Room C) Kitchen Dining AreaE) Breakfast Bar F) _____ Other:__________________________
17) Kitchen:A) Efficiency Kitchen B) Kitchen C) Large Kitchen D) Country
KitchenE) Kitchen w/Island F) ____: Other:___________________________
18) Appliances Included:A) _____ Stove: Electric or Gas (circle one)B) _____ Refrigerator: With Icemaker or Icemaker & Water (circle one)C) _____ Dishwasher: Built In or Portable (circle one)D) _____ Microwave : Built In or Portable (circle one)E) _____ WasherF) _____ Dryer: Electric or Gas (circle one)
19) Laundry Facilities:A) Laundry Room B) Kitchen Laundry Area C) Garage LaundryD) Closet Laundry E) Stackable Laundry Area F) Other;____________
20) Flooring:A) Carpet & Vinyl Combo B) Carpet and Tile ComboC) All Carpet D) All TileE) Hardwood F) Other:________________________
21) Carpet Color:A) Beige B) Blue C) Brown D) Gold E) GreenF) Rust G) Mauve H) Other:_______________________
22) Parking Facilities:A) Double Car Garage B) Single Car Garage C) CarportD) Assigned Parking E) 3 Car Garage F) Street ParkingG) Electric Garage Door Opener: YES or NO(circle one)H) Assigned Parking – # of Spaces ______ / Parking Space #’s Assigned _______
23) Heating & A/C:A) Central Electric B) Central Gas C) Oil Heat/Central A/CD) Gas Heat & Cent Air E) Window A/C Units
24) Paddle Fans:A) 0-3 Fans B) 4-6 Fans C)Attic Fan D) Remote
Controlled Fans25) Window Coverings:
A) Mini Blinds w/Verticals at Sliding Glass Door B) Mini Blinds OnlyC) Verticals Only D) Wooden Slat Blinds E) DrapesF) Combination: _______________________________________________G) Other: _____________________________________________________
26) Fencing:A) Wood Privacy B) Chain Link C) PVC Fencing D) Screen
Enclosed Area
27) Special FeaturesA) Swimming Pool K) Public WaterB) Swimming Pool & Hot Tub L) Well WaterC) Hot Tub Only M) Public SewerD) Community Pool N) Septic Tank SystemE) Community Tennis O) Home Security
SystemF) Gated Community/Gate Code:__________G) Screen Enclosed Patio P)Security
Code:_____________H) Vaulted Ceilings Q) Walk-In Closets
___________I) Sky Lights R) Sprinkler System
___________J) Additional Storage S) Other ____________________
28) Special Instructions:A). Yard & Lawn:
1. The property owner hereby agrees that they will provide OR ask Magical Management to provide a professional lawn service company to cut, mow and edge the lawn at the property owners expense._________YES or _________ NO2. The property owner hereby agrees that they will provide OR ask Magical Management to provide a professional lawn service to fertilize and chemically treat the lawn at the property owners expense._________YES or _________NO
B.) Swimming Pool/Hot Tub Service:1. The property owner hereby agrees that they will provide OR ask Magical Management to provide a professional pool service to maintain the swimming pool/hot tub, (including chemicals, cleaning and repairs) at the property owners expense._________YES or _________NO
C.) Pets:1. The property owner hereby agrees that pets may be accepted, provided additional pet fees are collected in addition to the security deposit. The security deposit and pet fees (if necessary), will be used to correct any pet damage._________YES or _________NO2. The property owner hereby request that no pets be considered._________YES or _________NO
Note: Property owner acknowledges they understand that restriction of pets greatly reduces the number of possible renters for their property.
D) Pest Control:1) The property owner hereby agrees that they will provide OR ask Magical Management to provide a professional pest control service company to treat the “Exterior”, the lawn at regular intervals, at the property owners expense._________YES or _________ NO2) The property owner hereby agrees that they will provide OR ask Magical Management to provide a professional pest control company to treat the “Interior” of the property at regular intervals, at the property owners expense._________YES or _________ NO
E) Keys & Remotes:
1) Number of Keys turned over to Manager:_______2) Number of Garage Remotes given to Manager: ______3) Number of Mail Box Keys given to Manager: ______
F) Warranty Information:1) Property Owners have no appliance or fixture warranties, (other than home owners insurance policy).2) Property Owners have a “New Home Warrantee” from Builder:
Name of Builder:Policy #:Phone #:
Appliances or items covered: 3) Property Owners have purchased an appliance or fixture warranty:
Name of Warrantee Company:Policy #:Phone #:
Appliances or items covered: 4) Manager was provided a copy of warrantee referenced in B) or C) above?
_____ YES or _____ NO5) Any other special instructions: 29) Rental Proceeds Payments:
1) Property owners desire rental proceeds to be direct deposited onto their bank account.
2) Property owners desire mortgage payments to be made from rental proceeds. This is subject to adequate funds available in property owners account, (see property owners handbook for further information)
3)_____ Property owners desire HOA payments to be made from rental proceeds. This is subject to adequate funds available in property owners account, (see property owners handbook for further information)
4) Other; Property owner desires the following items be paid from rental proceeds:
30) Insurance Information:Name & Phone Number of Homeowners Insurance
Company______________________________________________________Policy #:____________________________ Phone:
_____________
31) Market Survey: The property owners found our company through which of the following:
A) Yellow PagesB) Internet C) Friend D) Other Property Owners
E) Sign F) Other:_________________________________________
G) Realtor Referral If Realtor Referral, please provide name of referring agent so that we can thank them for referring our firm:
_________________________________________________________
32) Rental Range: Magical Management will use its best efforts to lease or rent the property at a rental rate of $_________ per month. Manager is given the right to lease or rent as low as $_________per month. Manager will present all other offers for Property Owner’s consideration.I/We the property owners do hereby acknowledge the information in the Property Data Sheets to be accurate:Date: ____/____/_______
Property Owner:___________________________
Property Owner:___________________________
AUTHORIZATION AGREEMENT FOR AUTOMATIC DEPOSITS (ACH CREDTS)COMPANY NAME ID: Magical Management Co. COMPANY NUMBER: 59-00000001
I (we) hereby authorize Magical Management Co., hereinafter called COMPANY, to initiate credit entries and to initiate, if necessary, debit entries and adjustments for any credit entries in error and to my (our) Checking/Savings Account (select one) indicated below, hereinafter called DEPOSITORY, and to credit and/or debit the same such account.Depository Name: Branch: City: State: _________ Zip: Transit/ABA No.: Account No.: This authority is to remain in full force and effect until COMPANY has received written notification from me (or either of us) of its termination in such time and in such manner as to afford COMPANY and DEPOSITORY a reasonable opportunity to act on it.Please Print:NAME(S): ID NUMBER: SIGNED: DATE: SIGNED: DATE: Please write “VOID” across one of your bank account checks as a sample check and return to us with the this Authorization Agreement for Automatic Deposits.
W-8ECI(Rev. February 2006)Department of the TreasuryInternal Revenue Service
Certificate of Foreign Person’s Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States
Section references are to the Internal Revenue Code. See separate instructions. Give this form to the withholding agent or payer. Do not send to the IRS.OMB No. 1545-1621Part IPart IIIdentification of Beneficial Owner (See instructions.)
NOTE: This is an application for the foreign owner to be able to report income from his rental property as a business. Without this approved application you are required to withhold 30% of the gross income and property report it to the IRS. If you do not, you may become liable.
COMPARATIVE RENTAL MARKET ANALYSISDate:Prepared for:Address:Phone:Prepared By:
Leased: For Lease:
Show recently rented properties Show property for leaseAverage Price/Sq. Ft. Average Price/Sq. Ft.
Considered Asking Price $Lowest Asking Price $
Property owners hereby acknowledge they have reviewed this document and the property manager’s suggested market rents for their property. Property owner further agrees that manager will lower the asking price 5% every two weeks until property rents.
_____________________ _____________________Property Owner Property Owner
PROPERTY OWNER’S HANDBOOKHandbooks are designed to provide information about your company. Your property owner’s handbook will introduce them to you and your business philosophy. It enables them to become familiar with your processes.
The handbook itself promotes trust in the relationship by providing knowledge and setting expectations. It is one of the most successful tools you will use to promote understanding and loyalty from your customers.
When you deliver your handbook to each prospective property owner you are outlining your services for them. The Property Management Service Agreement is the legal contractual agreement between you and the property owner. The Property Owner’s Handbook is the pleasant “here’s how we do business” agreement.
Include the following in your handbook:Why choose usMarketing planStaff introductionFees—what is included (not necessarily the amount)Frequently asked questionsReferences
The property owner will refer to the information in the handbook from time to time. The information included in the handbook is compiled from your company policies and your property management service agreement.
This same handbook serves as your property manager’s guideline for services promised. It is also an excellent training tool for new employees or as a refresher course for experienced ones.
It is required reading in my office.
Ownership challengesDo your homeworkPull deed records - tax records Get their document showing ownershipLimited liability companiesLand trusts - estatesCorporation - limited partnerships
Get the right signatures (all of them)
Who owns the property?
Signing up a new property owner (client) and his/her property
Property Documents
Home owner’s or condo associations documents and rulesHome warranty policyMortgage condition affidavitCopy of payment couponLead paint disclosureInsurance declaration page with additional insured listedMold disclosuresFlood disclosuresPersonal property disclosureAppliance manualsFeatures /date pageAvailable amenities Access to everythingMailbox keysHouse keysAccess codesGarage openers
Working with vendors
Independent contractor?You decide!
Maintenance employees?
It is essential that you have a list of approved qualified vendors available to your company. They may be willing to work at reduced costs in exchange for the volume of business your provide to them.
These contractors (vendors) are licensed properly, bonded and insured and must be verified regularly.
You want complete information from them and they will need to sign a Vendor/Broker agreement with your company.
If you cannot get all of this information do not use them!
VENDOR INFORMATION FORMVENDOR NAME ___________________________ADDRESS ___________________________PHONE ___________________________FAX ___________________________
LEGAL COMPANY NAME ________________________________FEDERAL TAX I.D. NUMBER ________________________________
BUSINESS LICENSE NUMBER(S) ________________________________
TYPE OF ENTITY: CORP____ PSHIP____ SOLE PROP________LIABILITY INSURANCE CARRIER ________________________________POLICY NUMBER(S) ________________________________WORKERS’ COMPENSATION (or exemptions) ______________________________
POLICY NUMBERS ______________________________
EXECUTED this ______________ day of _________ 20____
I CERTIFY THAT THE ABOVE IS TRUE AND CORRECT AND THAT I AM AN AUTHORIZED COMPANY REPRESENTATIVE.I AGREE THAT I WILL NOT HOLD THE PROPERTY MANAGEMENT COMPANY, ITS AGENTS, EMPLOYEES OR ASSIGNS LIABLE FOR THE PAYMENT FOR ANY WORK PERFORMED OR MATERIALS PROVIDED FOR THE PROPERTIES WHICH ARE OR WERE MANAGED BY THE PROPERTY MANAGEMENT COMPANY.
VENDOR:_______________________________ (signature)
VENDOR BROKER AGREEMENTThis agreement is made this __________ day of _________ 20__ by and between _____________________, hereinafter BROKER and ______________________, hereinafter VENDOR.VENDOR agrees that BROKER has no ownership interest in the properties managed by BROKER. VENDOR agrees that BROKER is an agent of the respective owners of the managed properties. VENDOR agrees to hold BROKER, its employees, agents and assigns harmless for any failure of any property owner to pay for services, supplies, parts, material and/or labor ordered by owner and/or BROKER on behalf of or at the request of owner. VENDOR agrees that they shall do no other work on the property other than that specifically ordered and approved by owners and/or BROKER. VENDOR understands and agrees that the Tenant(s) have no authority whatsoever to order any work to be done on the rental premises.VENDOR agrees and affirms that it carries the proper insurance, licenses, and permits necessary to legally carry out the requested services and agrees to hold BROKER, its employees, agents and assigns harmless for any injuries suffered by or damages suffered by VENDOR, its employees, agents and/or assigns arising out of performance of the requested services. VENDOR agrees to look solely to the owner of the premises where services are performed in the event of any disputes. Owner's name and address will be provided upon request.
EXECUTED this ______________ day of _________ 20__
VENDOR:____________________ BROKER:_______________________
Form provided byLAW OFFICES OF
HEIST, WEISSE & WOLK, P.A.1 800 253 8428
I have personally completed the EPA Certified Lead Based Paint Renovator course.
My graduating class:
I may not know how to complete certain renovations but I do know how to protect people and contain dust created while the work is being done. The recordkeeping is substantial.
What if the property was built prior to 1978?
The following addendum to your property management service agreement and your vendor broker agreement would go a long way in protecting you and your management company if a situation arises.
ADDENDUM TO PROPERTY MANAGEMENT SERVICES AGREEMENT
In reference to the Property Management Service Agreement entered into this ____ day of ____________, _____, by and between__________________________, hereinafter referred to as “OWNER” and Magical Management Co., a Florida corporation, hereinafter referred to as “MANAGER” for the property described as: _________________________________________. The undersigned agree to the following: 1. The above referenced property was built prior to 1978. 2. Property Owner acknowledges and agrees that Manager will follow the EPA Regulations in regard Renovate, Repair and Paint Rules for properties built prior to 1978. 3. Only EPA Certified Lead Based Paint Renovators will be allowed to fulfill the maintenance and repair requirements and recording keeping rules. This agreement upon its execution by both parties is herewith made an integral part of the aforementioned property management service agreement. Executed this ____ day of _________________, 20___
Witness:______________________ Owner:________________________
Witness:______________________ Owner:________________________
ADDENDUM TO VENDOR/BROKER AGREEMENT
In reference to the Vendor/Broker Agreement entered into this ____ day of ____________, 20___, by and between__________________________, hereinafter referred to as “VENDOR” and Magical Management., a Florida corporation, hereinafter referred to as “MANAGER,” the undersigned agree to the following : 1. VENDOR is an EPA Certified firm for repairs necessary in properties built prior to 1978. 2. VENDOR acknowledges and agrees to follow the EPA Regulations in regard to Renovate, Repair and Paint Rules for properties built prior to 1978.3. Only EPA Certified Lead Based Paint Renovators will be allowed to fulfill the maintenance and repair work requested in/on subject properties and record keeping rules. Copies of the records as required (by EPA) will be provided to MANAGER upon request.This agreement upon its execution by both parties is herewith made an integral part of the aforementioned Vendor/Broker Agreement. Executed this ____ day of _________________, 20___
Vendor:_______________________________
Manager:_____________________________
The Rental Application
It is a very good idea to publish the application on you website. This gives each and every prospective tenant an opportunity to
review and apply for your available properties.
Make applications available:
In your office by faxOn your website by emailIn the properties
Your application should provide:
Disclosures CostsApproval procedures Selection Criteria
Credit historyCriminal backgroundLandlord verificationIncome verification
Disclosure
The Fair Housing Statement should be in your application.
It is illegal to discriminate against any person because of race, color, religion, sex, handicap, familial status or national origin.
Your local governments may have additional protections. Find out!
You must post the 11” x 14” poster furnished by the U.S. Department of Housing and Urban Development. It is the law. Failure to display a Fair Housing poster properly shall be deemed prima facie evidence of a discriminatory housing practice.
Webster Dictionary:
legally sufficient to establish a fact or a case unless disproved <prima facie evidence>
This small sign with the words Equal Housing Opportunity and logo is not enough.
Costs
State the following: (if any)
Amount of application feesHolding depositLease closing costCondo or Homeowner Association feesPet application fees
Outline how and when all moneys are collected during the rental process and to move into the property.
If you require negotiable funds state that in your application paperwork.
Approval procedures
Upon receipt of the rental application and fees we will:
Complete a credit history checkCheck public recordsVerify your incomeVerify your previous landlord referenceComplete a criminal background check
We may contact you for additional information.
NOTE: If in checking your records you do not meet our selection criteria manager may request additional funds or a lease guarantor.
Once notified of approval:You must sign the lease within 48 hours of our notice to
youPay an amount of moneyAll initial funds must be paid by cashier’s check or money
order madepayable to the company
Resident selection criteria
How much income must the household generate?Incomes must be verified in writing, will you accept pay stubs?
Self employed persons will be required to provide tax returns
Unemployed applicants must provide proof of incomeMust provide a minimum of 2 years rental historyRental history must be rated satisfactory or better. Do you use credit scores?Policy on:
EvictionsForeclosuresShort SalesFelonies
Guarantors must meet all approval requirements and live in Florida
Other issues to include in your application paperwork
When are keys released to the new tenantWhen are rents due and what fees are incurred when lateReporting condition defects at move inMultiple applicationsLeasing consultantsLead based paint disclosure for houses built before 1978
As you process the written applications you receive do not write or make any notes on that paperwork. Have a separate form for your notes.
Once you have completed your verifications and have made your approval or denial decision you must notify the applicants.
Approval process or denialPick up the phone and call with “ Congratulations your rental application for 123 Any Street has been approved”. Follow up with a letter or email. Use consistent forms.
NOTICE OF RENTAL APPLICATION APPROVAL
To: Rental ApplicantsFrom: Your name here –
Magical Management
Re: 123 Any Street, Orlando, FL 56789
Dear (applicants’ names):Your rental application for the above referenced property has been approved on the __________ day of _______________, 20___. Your lease must be signed on or before the _____________ day of ______________, 20____.Please contact our company immediately to arrange for the lease closing.
Warmest Regards,
YOUR NAME HEREMagical Management
When denying a tenant I recommend you do not engage in lengthy conversation.
Try this statement:
Based on our verifications of the information you provided to us, we are unable to rent to you at this time. You will receive an adverse action notice explaining the reason and how you can obtain additional information. Thank you.
The more you talk, the more likely it is you may say something that the denied applicant will use against you.
ADVERSE ACTION NOTICEDATE: ____ / ____ / _____TO: FROM:ADDRESS: ADDRESS:
We regret to inform you that your application for our rental unit at _____________________ __________________ has not been unconditionally approved and we are taking the following adverse actions:
APPLICATION IS DENIED
WE ARE REQUESTING A HIGHER SECURITY DEPOSIT THAN NORMALLY REQUIRED
WE ARE REQUESTING A QUALIFIED GUARANTOR
We are hereby informing you of certain information pursuant to the Fair Credit Reporting Act, 15 U.S.C. Section 1681, et seq. as amended by the Consumer Credit Reporting Reform Act of 1996 (Public Law 104-208, the Omnibus Consolidated Appropriations Act for the Fiscal Year 1997, Title II, Subtitle D, Chapter 1).1. We have not unconditionally approved your application or we have taken an adverse action or we have denied your application based on the following:
Information contained in a consumer credit report obtained from the consumer credit reporting agency named in paragraph 2 of this letter.
This is not the entire form
Tenant is denied
The Lease Agreement
There is no specific lease in Florida that must be used by landlords or property managers when leasing a residential property. Each company may have their own lease.
Many property management companies develop their own lease. Be careful!
Real estate licensees in Florida may only fill in the blanks in the lease approved by the Florida State Supreme Court. It is considered the unlicensed practice of law for a licensees to fill in the blanks on any other lease. Even if you had a lawyer compile the lease for your use.
It is a simple process to send a form to the law office and have them prepare the lease and send it back to you. The law firm will place their name at the end of the lease:
Prepared by the law firm of Heist, Weiss and Wolk, P.A.
This lends credibility to your lease for both the property owner and the tenant.
After reviewing the lease agreement itself, you realize that when you grant occupancy of a home to another they inherit rights to the premises.
When you own a property you have four rights to that property:1. Possession2. Use3. Exclusion4. DispositionWhen the property owner grants a lease agreement to a tenant that tenant receives the following rights:1. Possession2. Use3. Exclusion
The only real property right that is not granted in the lease agreement is the right of disposition. The tenant cannot dispose of (sell) or in any way transfer the property to anyone, even through a sublet, without the property owner’s written consent.
Our state statutes and rules provide guidelines to determine who is responsible for maintenance. For instance, in Florida according to statute, the tenant must:
A. Comply with all building , housing and health codes.B. Keep the premises clean and sanitary.C. Remove the garbage in a sanitary manner.D. Keep all plumbing fixtures clean, sanitary and in repair.E. Operate in a reasonable manner all electrical, plumbing , sanitary , heating , ventilating , air conditioning and other facilities.F. Not destroy , deface, damage or impair or remove any of the premises or property belonging to the property owner and cannot allow their guests to do so.G. Conduct themselves and require others on the premises to conduct themselves in a manner that does not unreasonably disturb their neighbors
These statements may seem clear on their face, however, in practice they are broad, general and vague. Therefore, it is very important that the lease or rental agreement describe the tenant’s responsibilities.
There are generally six requirements of a valid contract: (lease)
1. Agreement- which requires offer and acceptance.
2. Considerations- money.
3. Capacity to contract- Must not be minor, insane or intoxicated.
4. Genuineness of Assent- intention of both parties when contract was entered into.
5. Lawful purpose- must be for legal use in order to be a valid contract or enforceable contract.
6. Lawful Form- if the law requires it to be in writing it must be.. Only after all these requirements have been met can a contract be deemed valid and legally enforceable. A meeting of the minds is the most important aspect.
A lease describes the agreement between the parties: Identifies the parties Dates Amount of rent (consideration) Outlines the intent of the agreement (meeting of the minds) Sets the terms and conditions as agreed to by the parties involved All signors must be of legal age
In addition to the lease agreement addendums may be necessary or that your company requires:
Lease Addendum for roommatesPet AddendumNon-Sex Offender addendumMold addendum (right to terminate lease)Guaranty of lease addendumDrug Free Crime Free Addendum
Lease clauses
Maintenance:In the event a major repair must be made to the premises which will necessitate the LESSEES vacating the premises, LESSOR, may at its option terminate this agreement and LESSEE agrees to vacate the premises holding LESSOR harmless for any damages suffered, if any.
Condemnation and Acts of God:If for any reason the premises are condemned by any governmental authority, or damaged through fire, act of God, nature or accident this lease shall, AT LESSOR’s OPTION cease and shall terminate as of the date of such condemnation, damage or destruction and LESSEE hereby waives all claims against LESSOR for any damages suffered by such. Tenant agrees that in the event there are hurricane or storm shutters on the premises, TENANT will install same if there is a hurricane or tropical storm watch or warning in effect and/or at the request of the property manager or property owner.
TERMINATION OF TENANCY:Property owner or agent or property manager reserves the right to terminate the tenancy and TENANT(s) agrees to vacate the premises in the event Property owner or agent or property manager in their sole judgment feels that either there is mold or mildew present in the dwelling unit which may pose a safety or health hazard to TENANT(s) or other persons and/or TENANT(s) actions or inactions are causing a condition which is conducive to mold.
Maintenance – whose responsible – whose liable?
If you have the responsibility for maintenance and repairs then you must also have the authority in your management agreement to perform the work needed.
You must also have the authority to perform emergency maintenance and code violations even if the tenant is responsible for it as outlined in the lease.
Receipt of a code violation is one of the best examples of transference of a tenant responsibility to a property owner. Government agencies apply code violations and their penalties to the owner of record.
7 Day Right to CurePerform the work timelyBill the tenant
Liability for safety and security issues might also transfer responsibility to the property owner.
Access to the property
Florida Statute states that you may enter the property:
With the consent of the tenantIn case of emergencyWhen the tenant unreasonably withholds consentIf the tenant is absent from the premises for a period of time (defined in statute)
The question is always who decides if the event is an emergency, who decides what is unreasonable and how will you absolutely know if the tenant has been absent from the premises for the stated time?
If the tenant does not consent for you to enter the home, Florida defines reasonable notice as 12 hours prior to the entry time. Entry must be between the hours of 7:30 AM and 8 PM. Deliver a 12 hour notice. Please make this a written notice with proof of delivery.
I highly recommend you negotiate an entry time. Americans are heavily armed and if the tenant mistakes you for a burglar and shoots you even if you are in the right you will still be shot.
My point is even if your lease gives you right of entry be careful. There are remedies in court for a tenant that refuses you access.
Handling problems during tenancy
Here are some possible lease violations by tenants (other than non payment of rent)
HOA and Condominium Association violationsUnauthorized occupantsUnauthorized petsUnauthorized vehiclesFailure to maintain the lawnStorage on the exterior of the propertyConstant excessive traffic to and from the propertyExcessive noiseCode enforcementIntentional damage to the propertyDrug violations
Residential property managers have a number of choices as to how to best deal with lease violations. These choices fall within the following categories:
1. Practical ActionsA. Phone callB. LetterC. Certified Letter
2. Legal ActionA. 7-Day Notice (may be with or without the right to
cure)
3. All of the above
The property manager may weigh the degree of the violation and in some cases the property owner’s directives. Most violation notices are sent to the property owner and he/she notifies you. Always ask for a copy of the written notice.
Communicate with all concerned. Without communication people feel ignored. You may be diligently working the issue but if you don’t communicate that fact people will feel ignored.
It is imperative that we work from facts and not he said/she said situations.
When you receive a violation call always ask for verification by written letter. Have form letters that you send to associations, neighbors or any complaining person to ask for verification.
It can be very hard to evict for reasons other than non payment of rent in Florida. You will need witnesses who will testify. Most courts will not use affidavits. The person has to physically be in court.
You would also need photos, paperwork, police reports and documentation of the violations, when they occurred and proof they are ongoing when you get to court.
One the question a judge frequently asks is “is the property owner being damaged?”
Also, if you serve a 7 Day Notice to Cure (or not to cure) you cannot accept rent during that time.
You will want to know:
1. Is it your responsibility or could it become your liability2. Get all the details (Incident Log)3. Ask the who, what, when, where and why questions4. Keep a communication log 5. Consult with a corporate attorney, if necessary
Emergencies may include:
Destruction of the property by fire, flood or storms
Death or murder of a tenantDiscovery of an illegal drug lab
Get all the information you can . . . .
If your property owner gives you any of the following directives don’t do them.
In Florida we are prohibited from retaliatory actions:Drastically raising rent at renewal with the intent of moving the
tenantReducing services the landlord provides that is included in the rentBringing an action against the tenant when they have acted in
good faith
We also have prohibited practices:
Disconnecting utilities or interrupting serviceBlocking access to the propertyRemove outside doors, locksRemove tenant’s personal belongings without gaining legal
possession
The costs of violating these actions can be very high.
Non payment of rent - EvictionIf the tenant does not pay the rent on time and you plan to file an eviction you must properly post a 3 Day Notice
May 11, 2011
Tenant Name123 Any StreetOrlando, FL 56789 3-Day Notice County of: ORANGE
HAND DELIVEREDNOTICE TO PAY RENT OR VACATEYou are hereby notified that you are in default of the payment of rent for your use and occupancy of the above referenced premises. You are presently delinquent in having failed to make the following payment(s): Date
Charge Amount5/1/2011 Rent $625.00
TOTAL DUE: $625.00Your total delinquencies as of May 11, 2011 are $625.00. You are hereby required on or before three (3) days from and after the service of this notice upon you (exclusive of weekends and holidays), to make payment of said total sum of $625,00 by Monday, May 23, 2011 to the undersigned agent of the above referenced owner(s); or, if said sum is not so paid, demand is hereby made that you vacate said premises and surrender possession thereof to the undersigned agent for the above referenced owner(s):Within said three (3) day period.UNLESS YOU BRING THIS ACCOUNT CURRENT WITHIN THE ABOVE REFERENCED 3 DAYS, WE WILL PROCEED TO FILE AN EVICTION. WE WILL ONLY ACCEPT CASH, CASHIERS CHECK OR MONEY ORDERS FOR THE ABOVE PAYMENT DUE. NO PARTIAL PAYMENTS WILL BE ACCEPTED! YOU WILL GOVERN YOURSELF ACCORDINGLY. PLEASE CONTACT YOUR PROPERTY MANAGER IF YOU HAVE ANY QUESTIONS.
Your name here, Bookkeeper
The number one reason evictions are thrown out of court is because the 3 Day notice is incorrect.
Make sure you have allowed enough days.Make sure all names are correct.Make sure you have not included any money on the notice that is not allowed
(late fees)Make sure your math is correctMake sure you can prove the notice was delivered
use a delivery service that will show up in court if necessaryhave a signed affidavit from the person who delivered it with
photo
Learn what the judges in your area are ruling when it comes to security deposits.
Non payment of rent – Eviction
Tenant renewal or move out procedures
Letter of renewal with new lease or statement regarding renewable leaseLetter of non-renewal
There are three methods of regaining rental possession of a property:
1.All tenants on the lease surrender possession back to us2.A judge grants possession (eviction)3.Tenants are deemed to have abandoned the property (state law defines this)
You may have situations calling for the following:
Tenant Vacating Agreement (other tenants remaining)Tenant Vacating Agreement (and assignment of lease)
Once you receive a notice from the tenants they are moving:
Send a letter acknowledging you received their notice timelySend move out proceduresNotify the property owner of the upcoming vacancyDecide when you will begin the marketing of the property for rent
What if the tenant is breaking their lease?
Florida Landlord Tenant Law states that the tenant is:Rent responsible until the property is rerentedOwes fees and costs as defined in the leaseOwes additional costs in full or prorated:
AdvertisingLeasing FeesAttorney’s fee (if any)Maintenance and repair expense (if any)
Do you have a lease buyout plan in place to tenants that must move?
Members of the military may break their lease:
if they are transferred or stationed 35 miles or more from the property
If they are discharged or released from active duty, eitherprematurely or involuntarily
They must provide written notice and provide proof the their statements.
If the armed services member dies during active duty, the remaining family members may terminate their tenancy with the same terms listed above.
If the transfer is received more than 14 days prior to taking possession of the property the no rent would be due and the lease would be void with no penalty.
Once you have properly regained possession by any method, you must inspect the property immediately. Plan the work necessary to rent it and begin the process of getting the property ready for rent.
Policies and procedures for consistency
As evidenced by all we’ve seen today it is necessary to have a policy and procedures manual for our residential property management company.
Policies and procedures are a vital part of business management because they prevent each employee from having to reinvent the wheel and they provide a standard against which individual performance can be judged.
Policies and procedures are critical governance tools. Where policies dictate the rules, procedures explain how these same rules are practically applied in real life. Taken as a collective, policies and procedures set expectations for behaviors and activities, as well as provide mechanisms to enforce these expectations.
For instance:Policy: When we receive a notice to vacate from a tenant we will contact that tenant within 48 hours to determine if they might stay in the rental unit.
Procedure: Email the tenant form letter 17 AND call the tenant to inquire if they might stay.
Time for completion: 48 hours from receipt of notice to vacate
A good way start working on a policy and procedures manual is to accumulate every letter and form you use throughout your business.
Begin by placing these forms and letters by department:
New BusinessLeasing the propertyClosing on the lease and moving the new tenant into the propertyProblems during tenancyRenewal of leaseMove-out of tenantClosing out business with the property owner.
Add:Communication policy
Others?
Develop a “Yes I Can” attitude
I believe the answer to most questions is “Yes I can help with that”. Keeping a calm demeanor and planning what to say in repetitive situations is key to controlling how tenants and property owners respond to us.
Communication with people takes patience and skill!
Patience: The bearing of provocation, annoyance misfortune or pain without complaint, loss of temper or irritation
An ability or willingness to suppress annoyance when confronted with controversy or delay
Quiet perseverance, even tempered care
Skill:
The ability to do something well, as the result of long practical experience
A particular technique to manage a person with skill, skillfully
Once we have learned and practice this skill regularly we appear to others as competent, able, capable, proficient and expert.
Without this skill we appear to others as awkward, blundering, clumsy, inept and inexperienced.
Thank you for your time today.
I hope you are leaving today with more information you can use
in your business.
Gail Moncla