Renting out a property requires adherence to all kinds of laws and ordinances. Housing is a protected form of business — more so than many others — and without a clear understanding of the regulations involved, you create risks and liabilities.
The average cost of non-compliance for businesses is around $14.82 million, for instance. Then there’s the incalculable damage that comes with a damaged reputation, which you might experience from failing to meet your legal obligations. To ensure you meet all regulations as a property manager, you’ll need to know what applies to you. Then, you need a standardized process for going above and beyond. Here’s how to achieve this.
Know the Regulations that Apply to You
When it comes to managing properties, you’ll have to consider federal, state, and local ordinances. Every location has its own set of laws and regulations. You can easily get lost in all the rules that apply to you, but it helps to start big. This means building a comprehensive understanding of federal regulations. The Fair Housing Act is one of the most important of these regulations, making it illegal to discriminate in the sale or rental of housing based on race, color, national origin, religion, sexual orientation, and gender identity.
Understanding and adhering to this law is extremely important for any property management company. It is the basis of ethical business practices in tenant screening and filling vacancies. From here, explore other requirements mandated by the laws of your area.
Consulting with a lawyer is the best way to do this. A legal professional has the education and resources to evaluate all your practices and ensure they meet regulations. From here, streamline your transparency and efficiency.
Streamline Management Efficiency
Your tenants expect you to do your job. As a property manager, this means collecting rents, conducting inspections, responding to maintenance requests in a timely manner, and so much more. You run the risk of a lawsuit if you let the property lapse into disrepair or fail to meet your own obligations as per lease agreements and owner contracts. That’s why efficiency is the best policy.
Build a smooth operation by considering all the necessary details. Technology will help. An ideal property tech stack automates a workflow, updating maintenance workers and sending financial data to owners. The right technology paired with a legally sound and streamlined approach will help keep you on the right side of any regulations. Develop your own process with the help of legal and tech experts, then enjoy the benefits of efficient management operations.
However, you’ll fail to maintain this efficiency without proper documentation procedures.
Maintain and Secure Records
To keep up with regulations, you need a secure documentation system. These days, you’ve likely gone paperless. A cloud-based information system allows you to store and maintain all the documents you need in the course of the job.
However, there are security measures you need to consider. Lock your documents behind a trusted platform. Encrypt incoming data, especially where payment information is concerned. Then, build a system in which information can be drawn up as needed.
Many tenants and renter portal platforms allow for document storage and easily navigable dashboards. Find the right system for your property management company, and build a method of document storage that makes finding and storing documents transparent and convenient.
Make Transparency a Core Component of Your Operation
Keeping up with regulations requires honesty and clear communication. By making transparency a core component of your operation, you can keep tenants informed of everything they need to know. Most locales have laws in place mandating a 30-60 day notice for things like rent increase, lack of unit availability, and changes in ownership. Additionally, inspections and evictions have their own legally mandated timeframes.
Start by keeping an inventory of all these timeframes. Then, institute policies and procedures for adhering to them, with automated letters, SMS texting, and communication through renter portals. You want your renters to be aware of everything going on with the property. The same is true for your owners. Build transparency into your process and remove the liabilities that come with a lack of communication.
Conclusion
Legal risks can cut into your revenues and budget. This makes it essential to follow any and all ordinances that apply to you. Fortunately, no matter your location, you can better maintain regulations with the tips found here.
From keeping up to date on the ordinances that apply to you to making transparency a top priority, you can streamline efficiency while staying on the right side of regulations. For more property management tips, explore these insights.
