If you own a property management company or are thinking of starting on then you absolutely need to check out our perfect guide for Property Management companies in Houston. We’ve listed the top things you need to know for making the most of your venture in property management.
Collecting Rent and Security Deposits
It’s vital that every property management company understand their role and responsibilities when it comes to the collection of rent and security deposits. For example, under State law there are no caps on the size of the security deposit for rental properties in Houston. However, under Texas state law security deposits must be returned within 30 days of the tenant vacating the property.
If a tenant has not paid rent and you wish to file an eviction notice then they must be notified at least three days prior to the eviction notice being filed.
Knowing your rights as responsibilities towards renters is a must for a professional property management company, as a significant part of your duties involves managing renters and rental agreements.
Property Managers in Houston must have a Real Estate Brokers Licence
That’s right. Under Texas law, Property Management is considered to include duties defined as Real Estate Brokerage. That means all Property Managers in Houston must pass the Real Estate Brokers Licensure Exam to run a Property Management Company.
Is there any exceptions to this rule?
Yes. Not everyone in your Property Management company needs to be certified as a Real Estate Broker. Salespeople, assistants and other staff are allowed to work under under a certified broker, providing the broker can bring their expertise to bear in the negotiation of rent, acquisition, sale and other elements of real estate.
Set up shop somewhere accessible
While it might be tempting to build a business solely on the internet, Property Management companies should project an aura of confidence and credibility, and nothing says that like an office. Bricks and mortar also allows you to coordinate your staff all in one location, conduct business meetings, and drive foot traffic. When dealing with highly localised customer bases in your local area, a physical presence will become a mark of authority for your Property Management Company.
Understand how anti-discrimination laws work
Your property management company is responsible for thoroughly vetting all potential renters. While you can reject an applicant for issues like bad credit history, previously unpaid rent or negative references, but you can’t reject an applicant based on religion, sex, disability status or ethnicity.
Ensure you have a written lease with legal disclosures
Under no circumstances should a property management company take on renters without a written lease or rental agreement. Not only is it unprofessional, it exposes your company to risk, and the property owners you represent. Always have renters sign a written lease, and comply with state law by ensuring all legal disclosures are contained within the lease, including tenant rights.
With so many rules and regulations to consider, you may want to keep our perfect guide for Property Management Companies in Houston on hand for future reference.