PROPERTY MANAGEMENT - RISK MANAGEMENT BY OLIVER OVERTON-MORGAN (ABSOLUT REALTY)
Risk management is an essential part of the professional Property Manager's daily operations. Knowing how to analyze, manage and document risks can help minimize them, and being consistent with the policies and procedures you put in place can help reduce your liability for damages or injuries.
There are numerous important issues within this field which require risk management. For example, be sure to provide all legally required paperwork, such as the EPA's Residential Lead-based Paint Disclosure Program for properties built before 1978. Lease agreements should specify all liabilities and other provisions that could present hazards, and who is responsible for them. When you impose a claim on the Tenant's security deposit you must provide them with the claim notice required by s. 83.49(3) Florida Statutes.
Does the Landlord's homeowners insurance cover the Tenant's personal property? If not, they should be advised to purchase Renters Insurance before they move in. Many property managers also have problems with the smaller issues, such as returning a security deposit and documenting the condition of the property in a timely manner.
Another way to limit your risk is to make the Tenant call you for repairs or maintenance requests. This is effective for both for multi-tenant dwellings and single-family rental homes. Make sure you have trusted licensed contractors and vendors working for you, and get all the information you can from these Companies, including the type of insurance they carry and if they have workers' compensation insurance.
Many Realtors are simply unaware of the legalities of Property Management. A Sales Associate may not collect rent or deposits in their personal name or bank account.
As a Sales Associates or Broker looking to get involved in Property Management, you should fully educate yourself on the subject and laws to help minimize risk to yourself and your Company.
NPMA - National Property Management Association http://www.narpm.org
EPA Lead Real Estate Disclosure http://www.epa.gov/lead/pubs/leadbase.htm
Florida Landlord Tenant Law Information http://www.evict.com/
Tenant Screening, Criminal and Eviction Search http://www.amerusa.net/
FDLE Florida Sexual Offenders Search http://offender.fdle.state.fl.us/offender/Search.jsp
by:
Oliver Overton-Morgan, Broker GRI
Devinee Peraza, Realtor/Owner
Absolut Realty Inc
www.absolutrealty4u.com
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