Working in the rental industry involves a strong knowledge of laws and requirements. There are many housing laws that must be followed, and when real estate asset management Daytona Beach companies fail to comply, they leave themselves open to lawsuits and penalties. Here are some important things property managers should know when renting properties to tenants.
Rent vs. Lease
Rent and lease are not interchangeable terms. There is a huge difference between the two, and understanding this is an important part of real estate management. Daytona Beach property managers must be aware that a rental agreement is for a short time, while a lease is typically for one year. A rental agreement can be used on a month-to-month basis. During this time, the terms, conditions, and rent payments can change. When a lease agreement is used, property managers cannot increase the rent or change the terms during the time period, which gives them less flexibility. However, if the tenants do not abide by the terms, then the lease can be terminated.
Real estate asset management companies are not allowed to charge whatever they want for security deposits – unless state law allows it. Each state makes its own rules, and they vary dramatically. Some states have no restrictions, while others charge one, two, or three months’ rent. After tenants leave the property, make sure the deposit gets sent back to them within the time limits. If there are damages, be sure to send an itemized statement along with receipts.
Title X requires property managers to inform tenants of rentals that contain lead-based paint, particularly ones built before 1978. This is a strict requirement. The tenant should sign the notice, and the manager should ensure this notice is kept with other paperwork. Otherwise, property managers could be hit with a hefty fine – up to $10,000.
There are many tenant-landlord laws that must be followed, and they vary by state. Do not let your rental become a hassle. Real Property Management Solutions of Volusia-Flagler offers many services to property owners. To konw more about their real estate management services visit website.