Potential issues for Property Managers that can easily be avoided…

It is no secret that Property Managers have a lot on their plates.  It’s a tough job to manage the many variables required to keep properties running smoothly.

Below is a list of areas that you can discuss with your clients that commonly result in problems for property managers.

• Documentation/Not keeping proper records – Keeping good records is an important way to avoid any issues in the future.  Documenting interactions and resolutions with tenants, vendors and clients is the best way to minimize the consequences of litigation.
• Avoiding correspondence – Not returning calls and emails may be the biggest complaint about property managers.  You may want to suggest they set aside an hour a day for email and phone correspondence to ensure they are keeping up with all of the demands and issues of their tenants, contractors and landlords.
• Under-estimating the need for preventative maintenance – I.e. not inspecting the property on an annual basis… Inspecting the property on a regular basis can protect your clients and their residents from safety and financial liabilities. It is important to check smoke alarm batteries, air conditioner and heater filters, carbon monoxide detectors, washing machine hoses, etc.   You may want to mention that conducting regular inspections will allow them a chance to address any lease violations and deferred maintenance.
• Not sufficiently screening credit applications, rental references, and proof of income – In order to screen these properly you must have written standards that are both firm and realistic.  Verifying the identity of a potential renter or owner prior to releasing possession is also very important.
• Entering a property without proper reason or notice – Whether performing an inspection, conducting a repair, or arranging for a potential purchaser to see the interior of the unit, you must give proper notice to the current resident.  This will reduce any resentment for any perceived inconvenience or intrusion.  Don’t forget to document the notice in some form. The only time it is acceptable to enter a unit without notice is in the event of an emergency only.
• Not enforcing late rent policies – As soon as it is determined that rent is past due, your property manager clients should begin with confronting the tenant to find out what the problem is.  After speaking with the tenant they should document and then follow the protocols for the municipality they are located in and make sure a 5-day notice is served.
• Trying to evict a non-paying tenant without the guidance of an eviction attorney – If your property manager client has taken the prior steps to enforce their rent policy and has still not received the payment, it is then time to start the eviction process with a procedure developed by an attorney that knows how to handle unlawful detainers.  Mishandling evictions can lead to E&O claims for your property managers.

 

You may want to suggest New Empire Group’s Property Managers E&O Program to your clients at this time.  Our program offers a comprehensive approach to professional liability for property managers.  For more information regarding our Property Managers E&O Program, visit our website.