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Introductions

Introductions. Your name Where you work Your job responsibilities How long you have been in the industry What you hope to get from this class. Agenda. Legal Basics Legal Obligations Contractors, Vendors, and Service Agents Requirements of Common Law Federal Regulations.

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Introductions

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  1. Introductions • Your name • Where you work • Your job responsibilities • How long you have been in the industry • What you hope to get from this class Course 2: Legal Aspects & Responsibilities

  2. Agenda • Legal Basics • Legal Obligations • Contractors, Vendors, and Service Agents • Requirements of Common Law • Federal Regulations Course 4: Fair Housing

  3. Phases of the Rental Process • Marketing and advertising • Screening and applications • Leases • Maintenance • Termination Course 2: Legal Aspects & Responsibilities Chapter 1

  4. The Screening Process • Be consistent • Document reasons for denials • Keep detailed denial records Course 2: Legal Aspects & Responsibilities Chapter 1

  5. Leases • Be familiar with each paragraph of lease • Know minimum and maximum lease terms for your state • Understand the NAA lease template Course 2: Legal Aspects & Responsibilities Chapter 1

  6. Suitable Living Conditions • Different parties have different responsibilities • Manager’s responsibilities • Residents responsibilities Course 2: Legal Aspects & Responsibilities Chapter 1

  7. Manager’s Responsibilities for Suitable Living • Perform repairs • Encourage residents to notify you of repairs in a timely manner • Respond promptly to service orders • Follow-up on repair work quality • Record service order requests and actions • Periodic residence inspections Course 2: Legal Aspects & Responsibilities Chapter 1

  8. Resident’s Responsibilities for Suitable Living • Spell out in lease • Repair what they damage • Dispose of trash • Keep residence clean • Not damage the premises beyond ordinary wear and tear • Minor maintenance per lease • Report necessary repairs • Report even minor water leaks Course 2: Legal Aspects & Responsibilities Chapter 1

  9. Termination of a Lease Overview • Friendly termination best • Friendly termination of tenant who vacates at end of lease term optimal • Holdovers can be challenging Course 2: Legal Aspects & Responsibilities Chapter 1

  10. Manager’s Role in Terminations • Represent owner in professional manner • Keep accurate and detailed information • Notify by certified mail or equivalent for evictions • Follow all local and state laws in case of evictions Course 2: Legal Aspects & Responsibilities Chapter 1

  11. Holdovers • Tenants who don’t leave at the end of a lease; you can: • Renew under previous terms • File court papers to evict • Renew for new terms for a shorter fixed-period or month-to-month Course 2: Legal Aspects & Responsibilities Chapter 1

  12. How to Evict a Tenant • Manager’s responsibility • Constructive eviction Course 2: Legal Aspects & Responsibilities Chapter 1

  13. Reasons for Eviction • Non-payment of rent • Unauthorized pet • Unauthorized resident • Unauthorized subleasing • Misuse/illegal use • False rental application • Damage to premises Course 2: Legal Aspects & Responsibilities Chapter 1

  14. Eviction Notices • Tenant has legal right to notice • Must give correct amount of notice with valid reasons • Common types of notice • Pay rent or quit • Cure or quit • Unconditional quit Course 2: Legal Aspects & Responsibilities Chapter 1

  15. Eviction Process • Eviction process stages: • Manager files complaint and gives resident copy • Resident files answer • Judge decides case • Many cases are settled out-of-court • Know state and local laws about removal of tenant belongings when you win an eviction Course 2: Legal Aspects & Responsibilities Chapter 1

  16. Illegal Self-Help Evictions • Legal evictions take time • Don’t resort to illegal self-help like: • Changing the locks • Turning off utilities • Other threats or coercion • Take the legal steps for a legal eviction Course 2: Legal Aspects & Responsibilities Chapter 1

  17. Activity #1: What would you do? Course 2: Legal Aspects & Responsibilities Chapter 1

  18. Skill Check #1: Course 2: Legal Aspects & Responsibilities Chapter 1

  19. Legal Obligations Basics • Manager’s responsibilities • Private agreements or contracts • Common law • Government • Unenforceable agreements Course 2: Legal Aspects & Responsibilities Chapter 2

  20. Elements of a Contract • Offer • Terminating an offer • Acceptance • Consideration • Capacity Course 2: Legal Aspects & Responsibilities Chapter 2

  21. Standard Sections of a Contract • Scope of work • Term or termination • Hold harmless agreement • General waiver or release • Independent contract agreement • Equipment Lease Course 2: Legal Aspects & Responsibilities Chapter 2

  22. Apartment Leases • Guidelines for working leases • Governing laws vary by state • Sample leases • Lease templates Course 2: Legal Aspects & Responsibilities Chapter 2

  23. Right of Entry • Resident and management needs • Establish policy • Limiting liability • Notification for non-emergency entry • Emergencies • Inspections and repairs • Law enforcement and government officials • Denied entry Course 2: Legal Aspects & Responsibilities Chapter 2

  24. Resident’s Right to Privacy • Government officials • Managers liability • Federal trade commission ruling • Fair and Accurate Credit Transactions Act (FACTA) Course 2: Legal Aspects & Responsibilities Chapter 2

  25. Activity #2: What would you do? Course 2: Legal Aspects & Responsibilities Chapter 2

  26. Skill Check #2: Course 2: Legal Aspects & Responsibilities Chapter 2

  27. Contractor Agreements Overview • What is a contractor • When to use a contractor • What does a contract cover • Legal liability • Managers responsibilities • Working with contractors guidelines • Avoiding disputes Course 2: Legal Aspects & Responsibilities Chapter 3

  28. When to Use a Contractor • Shortage of staff due to illness, vacation, termination • Lack of specific skills (parking lot repairs/resurfacing, roofing, landscaping) • Lack of specialized equipment (backhoes and welding equipment) • Need for required licenses and permits for electrical and plumbing work • Cost factor (materials or supplies may be included in contract prices and purchased at wholesale or bulk prices) Course 2: Legal Aspects & Responsibilities Chapter 3

  29. When to Use a Contractor, continued • Need for materials or supplies that may not be available locally • Total cost issue (staff hours in terms of special insurance, licensing fees or payroll taxes may be more cost effective if borne by the contractor), or • Cost and time issue (training staff is more expensive than hiring a contractor). Course 2: Legal Aspects & Responsibilities Chapter 3

  30. What Does a Contract Cover • Frequently covers the work • Largest jobs require full bids • Small jobs may skip the bid process Course 2: Legal Aspects & Responsibilities Chapter 3

  31. Legal Liability and Management Responsibility • Contractors may be viewed as extensions of the property management team itself • Vendor and the management companies are often viewed as one and the same • Contractors should be informed of the non-discriminatory and other operating policies of the property Course 2: Legal Aspects & Responsibilities Chapter 3

  32. Guidelines for Working with Contractors • Get evidence of insurance coverage • Let vendors know they are responsible for damage • Vendors are responsible for employment decisions regarding their staff • Vendors must comply with all fair housing laws Course 2: Legal Aspects & Responsibilities Chapter 3

  33. Avoiding Disputes • Determine specifications and their impact • Set payment guidelines • Verify materials used and work completed • Put it in writing, and • Ensure vendors are aware of your policies and your law compliance Course 2: Legal Aspects & Responsibilities Chapter 3

  34. Bids • Certain contracts require no bids • Often no bids are required for small amounts of goods and services • Check your company policy Course 2: Legal Aspects & Responsibilities Chapter 3

  35. Bid Tips • Put company first • Treat competitors equally • Negotiate reasonably • Know who can sign contracts for the company • Establish response date • Maintain list of vendors Course 2: Legal Aspects & Responsibilities Chapter 3

  36. Bid Process Elements • Performance security • Insurance certificates • Awarding a bid • Bidder disqualification Course 2: Legal Aspects & Responsibilities Chapter 3

  37. Standard Bid Requirements • Vendor responsibility • Bid invitation content • Bid invitation revisions • Substitutions • Bid as contract • Delivery of goods or services Course 2: Legal Aspects & Responsibilities Chapter 3

  38. Standard Bid Requirements, continued • Waiver lien • Inspection • Payment for goods • Failure to replace goods Course 2: Legal Aspects & Responsibilities Chapter 3

  39. Activity #3: What would you do? Course 2: Legal Aspects & Responsibilities Chapter 3

  40. Skill Check #3: Course 2: Legal Aspects & Responsibilities Chapter 3

  41. Requirements of Common Law • Negligence • Implied Warranty of Habitability • Lack of Habitability Course 2: Legal Aspects & Responsibilities Chapter 4

  42. Negligence: Definition Negligence is an unreasonable response to a foreseeable risk. Course 2: Legal Aspects & Responsibilities Chapter 4

  43. Negligence: Management is liable if… • You were legally responsible for the “control area” and failed to repair the system or problem causing injury • An accident was foreseeable • The chances of an accident could have been sharply reduced with reasonable attention Course 2: Legal Aspects & Responsibilities Chapter 4

  44. Negligence: Management is liable if…(cont’d) • A serious injury could result because of your lack of reasonable attention • Your failure to respond to the proper maintenance caused the injury Course 2: Legal Aspects & Responsibilities Chapter 4

  45. Activity #4 Negligence: Case Study A maintenance employee spills a slippery substance on a common area on the property. What are examples of negligence? Course 2: Legal Aspects & Responsibilities Chapter 4

  46. Nuisance: Brief Description The need for managers to respond appropriately to the potential for danger to residents. Course 2: Legal Aspects & Responsibilities Chapter 4

  47. Nuisance: How to prevent potential danger to residents • Know the frequency and nature of crime in your area • Consult with local police • Participate in crime-free training offered by local police • Know and observe city/state laws regarding precautions • Keep residents reasonably informed of current criminal activity in your neighborhood Course 2: Legal Aspects & Responsibilities Chapter 4

  48. Nuisance: How to prevent potential dangers to residents • Encourage residents to understand personal responsibility for safety • Carefully screen applicants • Conduct regular property inspections • Cooperate with law enforcement • Develop a responsive strategy to concerns and complaints Course 2: Legal Aspects & Responsibilities Chapter 1

  49. Nuisance: When a resident is a victim of a criminal act. • Resident can bring a law suit against you, the manager. • Offer support, express regret, and offer assistance without invoking the potential for increased liability – follow company policy • You can be liable if you acted unreasonably in the face of foreseeable risk. Course 2: Legal Aspects & Responsibilities Chapter 4

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