Introductions

2. 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

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

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

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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

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

14. 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

15. 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

16. 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

17. 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

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

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

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

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

22. 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

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

24. 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

25. 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

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

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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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

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

38. 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

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

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

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

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

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

44. 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

45. 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

46. 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

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

48. 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

49. 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

50. 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