Dismantling the MYTHS of Property Management
There are lots of things property managers THINK ARE TRUE but when examined carefully, are really MYTHS. This part of our site examines myths managers should examine more carefully because believing them has consequences.
Myth # 1
Two adults can sign a lease and expect it to be enforceable. RIGHT?
Question: Why do judges ignore language that is clear in the lease when ruling on landlord tenant disputes?
Let’s examine the issues of the Adhesion Contract.
Myth # 2
A professional property manager must apply their qualifying guidelines the same way, to all applicants, every time. RIGHT?
Question: Can a professional manager have multiple sets of qualifying guidelines?
Myth # 3
My family lived with those defects, so can the tenant. RIGHT?
Question: Does the owner need to repair things that were present before the move in?
Myth # 4
My management agreement and lease should be drafted/reviewed by a lawyer. RIGHT?
Question: When should managers rely on lawyers for their issues?
Myth # 5
As a licensed agent, I should use our state association forms to manage my rentals. Right?
Question: When should I (or shouldn’t I) use my state association of realtors management forms?
Myth # 6
There is no safe way to pass the tenant’s personal information on to the owner. RIGHT?
Question: Under what conditions can I pass the tenant's personal information over to outside parties like owners and HOA’s?
Myth # 7
Having a Scope of Service really isn’t that important. RIGHT?
Question: What are the real benefits to having a Scope of Service?
Myth # 8
Large investors must use YOUR Qualifying Guidelines to qualify applicants. Right?
Question: Can a Large investors adopt their own Qualifying Guidelines for you to use on their applications … or must they use yours?
Myth # 9
If the owner violates fair housing law when approving or denying an applicant, the agent is not liable. Right?
Question: When owners make bad (discriminatory) decisions about applicants, can you be held liable?
Myth # 11
Once the PMA is executed you can't change it. Right?
Question: How do managers set up the PMA to be modified over time.
Myth # 12
Generating more revenue means being deceptive or tricky. Right?
Question: Can I really make BIG MONEY in this nickel-dime business and be fully transparent with my owner?
Myth # 13
All the referral fees, commissions, rebates and profit centers my might participate in must be detailed in the PMA and be agreed to by the owner in advance. Right?
Question: Are license managers required to list all potential revenue streams in the PMA?
Myth # 14
If my volume of business generates a discount price from my vendors, I should pass it on to my clients. Right?
Question: If my company volume of maintenance, rekeying, painting, repairs generated a discounted price do I have to pass it on to the owner?
Myth # 15
A smart property manager would approve an application to rent from their real estate commissioner. Right?
Question: Who in their right mind would deny the real estate commissioner's application to rent?
Myth # 17
I should require Renters Insurance for every tenant. RIGHT?
Question: Is it really worth requiring every tenant to have renters insurance?
Myth # 18
Making big money in property management has a negative side (loose clients, putting license at risk, risk getting sued). Right?
Question: Are there risks to earning Big Money in property management?
Myth # 19
Ethical property managers never make undisclosed profits. Right?
Question: Do professional managers ever take spreads and profits without telling the owner in advance? We think the answer is … Absolutely. Most do.
Myth # 22
If I follow my client’s directive (follow agency law) I am not liable for their bad decisions. RIGHT?
Question: As the owner's agent, If I do what I’m told, follow the owners directives, and I’m safe. Right?
Question: Under what conditions can I be held liable for following the owner’s bad decisions?
Myth # 24
If Property Managers Charge a Pet Fee it Belongs to the Manager! RIGHT?
Question: Is a Pet Fee a legitimate revenue stream for your company or must you give it to the property owner?
Myth # 26
As an agent of the owner, a professional property manager should defer to the owner to approve or deny an application for rent. Right?
Question: Under what conditions should a manager defer to an owner for decisions regarding an application?
Myth # 28
You should identify your monthly management fee as a percentage of the rent received. RIGHT?
Myth # 33
Myth # 33 Property Managers Don't Deserve a BIG Renewal Fee RIGHT?
Question: We Didn't really Do Anything. So Where is the Justification for a BIG Fee?
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