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Management
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PRESENTED BY:
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LIMITS OF LIABILITY AND DISCLAIMER OF WARRANTY
© 2014 by the National Apartment Association, 4300 Wilson Boulevard Suite 400
Arlington, VA 22203. All rights reserved. The course materials or any part thereof
may not be reproduced, stored in a retrieval system, or transmitted, in any form
or by any means—graphic, electronic, or mechanical, including photocopying,
recording, or otherwise, without the prior written permission of the National
Apartment Association Education Institute (NAAEI).
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NAA retains copyright to the original materials and to any translation to other
languages and any audio or video reproduction, or other electronic means,
including reproductions authorized to accommodate individual requests based on
religious or medical deferments from classroom participation.
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DISCLAIMERS
Although NAAEI programs provide general information on apartment
management practices, NAAEI does not guarantee the information offered in its
programs is applicable in all jurisdictions or that programs contain a complete
statement of all information essential to proper apartment management in a given
area. NAAEI, therefore, encourages attendees to seek competent professional
advice with respect to specific problems that may arise. NAAEI, their instructors,
agents, and employees assume no responsibility or liability for the consequences
of an attendee’s reliance on and application of program contents or materials in
specific situations. Though some of the information used in scenarios and
examples may resemble true circumstances, the details are fictitious. Any
similarity to real properties is purely coincidental. Forms, documents, and other
exhibits in the course books are samples only; NAAEI does not necessarily
endorse their use. Because of varying state and local laws and company policies,
competent advice should be sought in the use of any form, document, or exhibit.
POLICY STATEMENT REGARDING THE USE OF RECORDING DEVICES,
AUDIO VISUAL EQUIPMENT, AND OTHER MEANS OF REPRODUCTION OR
RECORDING OF THE “CERTIFIED APARTMENT MANAGER” MATERIALS
All program contents and materials are the property of the National Apartment
Association Education Institute, which strictly prohibits reproduction of program
contents or materials in any form without the prior written consent. Except as
expressly authorized in writing in advance, no video or audio recording of NAAEI
programs or photocopying of “Certified Apartment Manager” materials is
permitted. Authorized recording of programs or duplication of materials may be
done only by the instructor on site.
© 2014 National Apartment Association
ACKNOWLEDGMENTS
SUBJECT MATTER EXPERTS
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The NAA Education Institute wishes to thank the following
apartment industry professionals for contributing their time and
expertise to the rewrite of the Certified Apartment Manager
Research, Analysis and Evaluation program:
Lead Subject Matter Expert
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Susan E. Weston, CAM CAPS, NAAEI Faculty
Licensed Texas Broker
Professor, University of North Texas School of Business
The Susan Weston Company
2655 Mount View Drive
Dallas, TX 75234-6239
972.308.6092 Office
972.415.6299 Cell
[email protected]
www.susanweston.com
KEY CONTRIBUTORS
•
•
•
•
•
David Jolley, CAMT
Howard L. Campbell, Ph.D.
Fisher & Phillips, LLP
Kimball, Tirey, and St. John, LLP
Sue Weston, CAM, CAPS
© 2014 National Apartment Association
Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
Management of Residential Issues
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Table of Contents
5B
Chapter 1: Customer Service
1-1
Chapter Overview ............................................................................................................... 1-1
The Importance of Good Customer Service ....................................................................... 1-2
Communication ................................................................................................................... 1-3
Attitude ................................................................................................................................ 1-6
Building Relationships with Residents ................................................................................ 1-7
Management in the Multicultural Marketplace .................................................................... 1-9
Customer Service Opportunities ....................................................................................... 1-12
Chapter 2: Occupancy Management: From Applicant to Resident
2-1
Chapter Overview ............................................................................................................... 2-1
Rental Application ............................................................................................................... 2-2
Laws That Govern Applicant Screening.............................................................................. 2-4
Applicant Screening ............................................................................................................ 2-6
Processing Applications for Applicants without a Social Security Number ....................... 2-17
Identity Theft ..................................................................................................................... 2-20
Information About Co-Signers........................................................................................... 2-21
Deposits ............................................................................................................................ 2-22
Lease Paperwork .............................................................................................................. 2-24
Occupant Changes ........................................................................................................... 2-28
Community Policies .......................................................................................................... 2-30
Major Lease Addenda ....................................................................................................... 2-35
Move-In Procedures.......................................................................................................... 2-36
Resident Orientation ......................................................................................................... 2-38
Maintenance Follow-up Orientation .................................................................................. 2-39
Maintenance and Service Requests ................................................................................. 2-41
Key Policy ......................................................................................................................... 2-45
Resident Newsletter .......................................................................................................... 2-47
Resident Activities............................................................................................................. 2-48
Criminal Activity ................................................................................................................ 2-50
Responding to Crime ........................................................................................................ 2-53
Community Files and Record Keeping ............................................................................. 2-55
Rent Collection.................................................................................................................. 2-57
Rent Increases .................................................................................................................. 2-62
Move-Out Notice ............................................................................................................... 2-64
Move-Out Inspection ......................................................................................................... 2-66
Security Deposit Disposition ............................................................................................. 2-70
Lease Renewal ................................................................................................................. 2-75
2H
3H
4H
5H
6H
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35H
36H
37H
38H
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Table of Contents, Continued
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Lease Termination ............................................................................................................ 2-78
Evictions............................................................................................................................ 2-79
39H
40H
Chapter 3: Property Management Systems
3-1
Chapter Overview ............................................................................................................... 3-1
Advantages ......................................................................................................................... 3-2
Types of Property Management Systems ........................................................................... 3-3
Types of Technology for Residents .................................................................................. 3-11
Property Management Software Support.......................................................................... 3-12
Toolbox
Activities
Activities
Skill Checks
Skill Checks
Slides
Slides
41H
42H
43H
4H
45H
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© 2014 National Apartment Association
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Chapter 1: Customer Service
1B
Chapter Overview
7B
In this chapter
64B
The table below lists the topics in this chapter.
See Page
1-2
1-3
1-6
1-7
1-9
1-12
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Topic
The Importance of Good Customer Service
Communication
Attitude
Building Relationships with Residents
Management in the Multicultural Marketplace
Customer Service Opportunities
© 2014 National Apartment Association
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Management of Residential Issues
The Importance of Good Customer Service
8B
Every effective manager understands the importance of high-quality
customer service. Satisfied residents will more likely pay rent on time and
take better care of their apartment homes and the property in general.
Satisfied residents provide resident referrals and are more likely to renew
their lease.
Your
responsibility
One of the primary responsibilities of an onsite manager is to impart this
same understanding to the community’s staff. You can do this through
modeling with your own behavior and through the training your staff receives.
Three (3) keys
to good
customer
service
For the multifamily housing professional, there are three (3) keys to good
customer service:
• communication
• attitude, and
• relationships.
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Introduction
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Communication
9B
Importance of
good
communication
Effective communication is the key to your success. As the leader of your
community, your good communication skills will set the example for your
staff.
First step:
Listening
The first step in good communication is listening.
Effective
listening
techniques
There are several techniques that will help you listen more effectively.
Be ready to
listen
Before the first word is spoken you must make yourself ready to listen. To
do this you must:
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• Be ready to listen.
• Pay attention to verbal and non-verbal language.
• Use active listening skills.
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68B
Pay attention
to verbal and
non-verbal
language
People send messages with the words that they speak, or verbal language,
and the actions of their bodies, known as non-verbal language. Research
has shown that words alone represent a small portion of the message
actually being sent. It is important to listen with your eyes, ears and even
your instincts to obtain the complete message.
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• decide that you want to hear what the speaker has to say
• put aside your ego, expectations and prejudices
• greet the conversation as an opportunity to gain valuable information,
and
• be willing to accept the information with an open mind.
Watch a person’s body language. Does it appear open or closed, friendly
or aggressive? Watch how a person moves while talking. Consider if these
movements match the spoken words. If not, ask open-ended questions
such as “Can you tell me more about your concerns?” to ensure that the
person’s hidden messages are addressed.
Make sure your own body language is receptive, open and attentive.
Maintain eye contact and avoid crossing your arms.
Continued on next page
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Communication, Continued
Use active
listening
skills
73B
Active listening requires the listener to participate. This means focusing on
the speaker and letting him or her know that you are paying attention and
understand what they are saying. Active listening skills include:
making eye contact
ignoring everything else
continually processing the message
encouraging the speaker, and
making sure you understand.
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When dealing with a resident, you must make that person feel important.
Looking anywhere but at your resident tells them that something else is
important. Looking someone in the eye helps you focus on them and shows
them they have your full attention.
Ignore
everything
else
Listening is a full-time activity. If you think about something else while the
resident is talking, you will miss information and messages being sent to you.
This includes thinking about what you want to say in response!
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Make eye
contact
74B
Put aside everything else including:
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• ringing phones
• people walking by, and
• papers on your desk.
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If the atmosphere is very distracting, consider relocating the conversation to
a quiet space.
Continually
process the
messages
76B
While the resident is talking, sort through the message looking for key words.
Take notes while he or she is talking so that you can check back with him or
her that you understand.
© 2014 National Apartment Association
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Communication, Continued
Encourage
the speaker
Encourage the speaker to talk more about his or her message. Respond to
what he or she is saying by nodding, making verbal responses or even
making appropriate sounds. This shows the resident that you are paying
attention, allows you to get all the information you need and helps to keep
you focused.
Make sure
you
understand
Once the resident has finished speaking, restate the major concerns in your
own words. This is a technique called paraphrasing. Start your response
with something such as, “I want to make certain that I understand your
concerns correctly, may I review them with you?” This helps to avoid
miscommunication and shows that you care about them. After you’ve
identified the major concerns ask, “Is there anything else?” Use this
opportunity to address any and all concerns a resident has.
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This technique is particularly important if the speaker is angry or hostile. One
of the most fundamental needs of human beings is to be understood. A clear
effort to understand the message goes a long way to diffuse a confrontational
situation.
© 2014 National Apartment Association
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Attitude
10B
Attitude is the emotional base of good communication and good customer
service. If you and your staff have a good attitude, it will improve your
communication and your dealings with others.
Where
attitude
comes from
People’s perceptions and judgments of a situation combine to form their
attitudes. If a situation is perceived as pleasant, it has a positive effect on
the person’s attitude. If a situation is seen as unpleasant, it has a negative
effect on attitude. Further, if a person has previously heard positive or
negative information about another person, this can have a direct effect on
his or her attitude toward that person.
Effect of staff
attitude on
residents
When staff demonstrates positive attitudes toward their work and the
community, that attitude is displayed through good customer service. When
residents receive good customer service, they
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Importance of
attitude
79B
• respect the staff and the property, and
• take an interest in the community.
Evaluate your
attitude
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Resident retention starts at move-in with good customer service. When
residents consistently receive good customer service, they are confident
about their decision to renew their residency.
Evaluate your attitude toward residents by answering the following questions:
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• Do you make eye contact when speaking with a resident?
• Do you greet residents with a smile both in person and on the phone?
• Do you admit when you have made a mistake and apologize for it?
OR
• Do you enjoy saying “No”?
• Do your sentences begin with a sigh?
Your
responsibility
83B
As the onsite manager, it is your responsibility to ensure your staff has the
right kind of attitude and provides residents with high-quality customer
service.
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Building Relationships with Residents
1B
Build and
maintain
ongoing
relationships
84B
You don’t want residents to think that the office staff was great before move
in, but that service and attention stopped afterwards. Ongoing relationships
with the residents need the same attention and level of effort as they do
during the initial leasing process.
Residents must know management cares and be treated accordingly if
property owners are to realize their ownership objective of maximizing the
value of the property.
The bottom line of building relationships with residents is higher occupancy
rates! When residents feel connected to the community, they are less likely
to choose to move. By encouraging your staff to build relationships with the
residents, and the residents to develop relationships among themselves, you
are ensuring that your community is full as possible.
The cost of
turnover
When a resident decides to move out of the community, the costs are high.
In fact, reducing turnover may have a greater financial impact than new
rentals. Turnover costs are $2,000 to $3,000 per move out when factoring in
the following in the leasing and turnover process:
vacancy loss
possible concessions
refurbishing costs (painting, cleaning, shampooing carpets)
leasing commissions
potential referral fees, and
staff time.
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Outcome of
building
relationships
85B
What
residents
want
87B
Today, customers are more sophisticated and educated than ever before.
Your residents want to do business with site personnel who are
knowledgeable, professional, enthusiastic and genuinely care. You must
realize the importance of getting to know your residents and establishing a
rapport that allows the resident to feel comfortable enough to want to share
information.
© 2014 National Apartment Association
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Building Relationships with Residents, Continued
Create
rapport
8B
Creating rapport is the key to relationship building. The five (5) most
effective ways to create instant and lasting rapport are:
1. Express a genuine interest in the other person.
Find out what is important to him or her. Ask questions in order to find things
in common. Use his or her first name. When you show interest, not only will
the person be more likely to open up, but he or she is more likely to listen to
and trust you.
a sincere smile
a warm handshake
good manners
strong eye contact, and
the tone of your voice.
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2. Be genuinely friendly.
A smile and pleasant disposition can diffuse any level of tension. It doesn’t
mean that you have to be bubbly. The following go a long way to show
friendliness:
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3. Create physical rapport.
This is sometimes called matching, mirroring or parroting. Try to match body
language, vocabulary and tone of voice of the resident. As different as we
are, we tend to have the same body language for what we are feeling. This
shows respect for the other person and adds validity to what he or she is
saying. However, if a resident is angry, we don’t want to mirror their actions,
we must create a more soothing approach via our own body language and
voice.
4. Be an active listener.
When you are actively listening, you encourage the speaker and paraphrase
to show and ensure understanding.
5. Seek agreement.
Search for a way to reach similarities. Look for beliefs and opinions that you
can share. If there are none, agree to disagree. This can sometimes build
enough respect to open up the relationship. Agreement may require an
adjustment on your part, but even the slightest detail of agreement is a base
for establishing a relationship.
© 2014 National Apartment Association
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Management in the Multicultural Marketplace
12B
Awareness of
other cultures
Today more than ever before, community employees must be sensitive to the
increasing number of prospects and residents from different countries and
cultures. Even if language is not a barrier, you need to understand that one
culture may accept that a woman may shake a man’s hand, and another may
not.
Numbers are
increasing
The Joint Center for Housing Studies at Harvard University reports that 45%
of today’s renters are minority and 20% were born outside the United States.
As immigration grows in the United States, community management must
ensure all prospects and residents are treated with respect for their cultural
backgrounds - yet maintain such treatment in a fair, consistent, and nondiscriminatory manner.
Techniques
for dealing
with people
from different
cultures
Understanding some basic principles can help you when dealing with
prospects and residents from various cultures.
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Ten (10) techniques for helping to minimize misunderstandings are offered
by Dr. Sondra Thiederman in an article written several years ago.. She holds
a doctorate from UCLA and is a speaker and author on diversity, bias
reduction and cross-cultural issues.
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1. It is all right to notice the cultural differences between people.
In fact, it’s a good thing to note an individual’s cultural uniqueness. If we
don’t we are being disrespectful and diminishing the person’s value. When
you notice that your Asian residents look away from you when making a
request or voicing a complaint, it is important to know that the avoidance of
eye contact is an expression of respect in the Asian culture. It does not
mean the person isn’t sincere or is hiding something.
2. Resist the temptation to stereotype.
This is a common problem for all of us as we group so many things, much
less people. The truth is that there are often more differences within an
ethnic or immigrant group than there are between groups themselves. It is
important to take the time to get to know the individual.
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Management in the Multicultural Marketplace, Continued
Techniques
for dealing
with people
from different
cultures,
(continued)
3. Do not lump groups together.
A Laotian is not a Cambodian and a Cambodian is not a Vietnamese,
anymore than a Frenchman is an Englishman or a German is a Swede. Not
only can lumping together lead to misunderstandings, it is disrespectful to
that individual’s heritage and national origin.
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4. A heavy foreign accent does not automatically indicate the speaker is
uneducated or that he or she cannot understand what you are saying.
In truth, an accent just tells you where someone is from. The roots of many
languages are considerably different than those of English and an accent is
difficult to lose. Do not assume someone is new to the country because of
the accent. Be patient and make no assumptions about education,
socioeconomic status and birthplace.
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5. Non-native speakers of English may sound rude and demanding
when they do not intend to.
If you have ever taken a foreign language in high school or college, you
might recall how it feels to speak slowly and try to say the correct word.
English is filled with phrases such as “Would you mind?”, “When you have a
chance,” and “I hate to bother you but…” all of which are ways we soften or
explain ourselves a bit better. Many immigrants are unaware of these
nuances and may speak quite directly.
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6. Communicate better by choosing your vocabulary carefully.
Use simple terms and avoid jargon, acronyms and slang. If you have said
something one way and it is not understood, do not continue to repeat the
same thing and make sure you are not raising your voice. Often, we tend to
raise our voices in an effort to be understood. Try to find a different and
clearer way to express yourself. Avoid using vague modifiers like “barely”,
“scarcely” and “almost”. These are very difficult terms to define.
7. Avoid using negative phrasing.
Try to avoid telling someone “not” to do something or say you will “not” be
able to do something. It is too easy for the “not” to get lost as the person is
working on translating what you are saying. There is a big difference
between “You will be able to paint the bedroom that color” and “You will not
be able to paint the bedroom that color.” An alternative approach is to say
what can be done.
Continued on next page
© 2014 National Apartment Association
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Management in the Multicultural Marketplace, Continued
Techniques
for dealing
with people
from different
cultures,
(continued)
8. Watch for signs that you have not been understood.
In the Asian culture, it is particularly important not to “lose face”. An
individual may be embarrassed to admit that he or she has not understood
what you have just said. He or she may also not want to cause YOU loss of
face by implying you have not been clear. After asking “Do you understand?”
watch for the following: perpetual smiling and nodding at inappropriate
places; embarrassed laughter; lack of questions; lack of interruptions; or
statements like “I think I understand.”
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9. Participate in the communication process.
A person is much less likely to remember English words and pronunciations
when he or she is upset, frightened or self-conscious. Help the prospect to
relax by slowing yourself down, lowering your voice and accepting some of
the responsibility for the fact that the person does not understand. This takes
a lot off the back of the listener!
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10. Take time to build relationships slowly.
In the U.S., we have a tendency to build relationships quickly and just as
quickly leave them. This works for us but may not work for an immigrant who
is used to order, formality and hierarchy in relationships. We get familiar
quickly but others may not. It doesn’t mean that immigrants are cold and
uncaring; it just takes them longer to adjust sometimes. Follow their lead.
Use last names and respectful titles, address the elderly with respect, avoid
physical contact, accept offerings of shared food and get to know all of the
family members as you build acceptance.
© 2014 National Apartment Association
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Customer Service Opportunities
13B
Customer
service is a
process
92B
Outstanding customer service is a process that begins the day the future
resident comes in to the office looking for information to find an apartment
and continues throughout the residency.
Communication with the residents is the leading requirement for a superior
service plan. Once a prospect leases, we want to build a service rapport
through communication, orientation and identification of
resident/management responsibilities.
The following table shows the opportunities for communication that you
may have with a resident from the time they are a prospect until the end of
their residency, and the suggested timeframes within which to make this
contact.
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Communication
opportunities
and timeframes
93B
Type of communication/contact
Personal phone call and written follow up
Applicant approval/denial notification
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Interim communication with resident to be sure
they are moving into the apartment
Lease paperwork completion and explanation
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Move-in orientation and Personal Apartment
Inspection (contact at least 48 hours prior to movein to confirm the appointment)
Follow up call or visit to the resident in their new
apartment
Follow up call after service request completion to
determine satisfaction
Informal resident survey by mail to assess their
living experience to date
Lease renewal invitation by mail and notification of
lease expiration
Follow up calls and contact
Communication with resident via newsletter and
information notices
© 2014 National Apartment Association
Timeframe
within 24 hours of
initial visit
Within 24- 72 hours
of application for
residency
prior to move-in day
prior to move-in day
on move-in day
5-10 days after
move-in day
48 hours
3-4 months prior to
lease expiration
60-90 days prior to
lease expiration
throughout lease
renewal process
ongoing
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Chapter 2: Occupancy Management: From Applicant to
Resident
2B
Chapter Overview
14B
In this chapter
94B
The table below lists the topics in this chapter.
Topic
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Rental Application
Laws That Govern Applicant Screening
Applicant Screening
Processing Applications for Applicants without a Social
Security Number
Identity Theft
Information About Co-Signers
Deposits
Lease Paperwork
Occupant Changes
Community Policies
Major Lease Addenda
Move-In Procedures
Resident Orientation
Maintenance Follow-up Orientation
Maintenance and Service Requests
Key Policy
Resident Newsletter
Resident Activities
Criminal Activity
Responding to Crime
Community Files and Record Keeping
Rent Collection
Rent Increases
Move-Out Notice
Move-Out Inspection
Security Deposit Disposition
Lease Renewal
Lease Termination
Evictions
See Page
2-2
2-4
2-6
2-16
© 2014 National Apartment Association
2-18
2-19
2-20
2-22
2-26
2-28
2-33
2-34
2-36
2-37
2-39
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2-45
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2-53
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Rental Application
15B
Who
completes the
application
95B
The application is completed by the prospective resident(s). This may be
done onsite in the office, online, via e-mail, mail, or fax.
Applicants should be instructed to take time to complete the application
accurately and to be sure that all sections are filled out. It is important that
they understand why all this information is being gathered- because it is
being used to qualify the applicant for this apartment community. This
information will help to ensure that the applicant can move in on time.
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Importance of
completing
the
application
96B
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It is best for applicants to complete the rental application and for you to
review it afterwards. This means that any mistakes made on the application
were made by the applicant and you will not be held accountable for any
misinformation provided by the applicant. The applicant has the ultimate
responsibility for the accuracy of the information. The leasing professional
should never fill in information that is missed on the application or sign for the
applicant.
You must acknowledge the additional anxiety of applicants who have not yet
mastered English. Communicate clearly and explain slowly what information
is needed.
Most companies require that each person over the age of 18 must complete
a separate rental application and pay the appropriate fees prior to approval of
move-in. People who have joint credit may complete one (1) rental
application and pay one (1) application fee, depending on company policy.
Some states may require a separate application from all adults because
favoring married couples over single people may be a fair housing issue.
Check with local counsel in developing policy and practice.
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Number of
applications
required
97B
Fees and
security
deposits
98B
All appropriate fees and security deposits should be collected at the time that
the applicant completes the application. Many companies require two (2)
checks (or money orders) from the applicant; one for the Application Fee and
one for the Administrative Fee and/or Security Deposit.
Note: Florida communities must collect a separate check for the Security
Deposit per Florida Landlord/Tenant laws. States vary greatly with respect to
how a security deposit should be handled. Check with your local counsel.
© 2014 National Apartment Association
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When to
deposit
checks
9B
Management of Residential Issues
The Application Fee check should be deposited in the bank as soon as
possible since it is often non- refundable. The Administrative Fee and
Security Deposit check should be deposited in the bank after three (3)
business days. Do not hold checks in the office for any longer period of time.
The applicant’s driver’s license must be checked to verify the identity of the
applicant. The driver’s license number is often documented on the back of
the application. Photo identification such as state IDs, passports, visas, or
other government-issued photo IDs should be accepted as substitutes when
the applicant has no driver’s license.
Screening
process
Once the application is complete, it must go through a screening process to
determine whether the applicant would make a good resident. Criteria are
established that all applicants must meet in order to be approved. This
process is typically done using an online screening service, and an answer
may be obtained in as little as 20 minutes.
SA
M
PL
10B
E
Driver’s
license or
other photo ID
10B
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Laws That Govern Applicant Screening
16B
Introduction
102B
There are several laws that govern applicant screening. They include the:
• Equal Credit Opportunity Act
• Fair Credit Reporting Act (FCRA), and
• Fair and Accurate Credit Transaction Act (FACTA).
Equal Credit
Opportunity
Act
Description
This act makes it unlawful to discriminate against someone with respect to
any aspect of the credit application on the basis of race, color, religion,
national origin, sex, marital status, age and gender. State and local laws
often provide even broader coverage and prohibit discrimination based on
additional protected classes not covered under this Federal Act.
E
103B
Fair Credit
Reporting Act
(FCRA)
Description
The Fair Credit Reporting Act (FCRA) is designed to protect the privacy and
insure the accuracy of consumer report information and to guarantee that the
information supplied by consumer reporting agencies (CRAs) is as accurate
as possible. It also requires owners who deny a lease based on information
in the applicant’s consumer report to provide the applicant with an “adverse
action notice”.
SA
104B
M
PL
How to comply
When a prospective resident is asked to complete a rental application it could
seem like an invasion of privacy and viewed as a complicated process. The
application process should be fully explained to all applicants to reduce
anxiety and misunderstanding of the process. If an application (and not the
person) must be denied because the applicant did not meet the rental
qualification criteria, this should be done with compassion and
understanding.
The three (3) most significant CRAs, or providers of credit information, are
Equifax, Experian and TransUnion. Other companies who provide credit
screening services are also covered by the FCRA.
How to comply
As a part of the applicant screening procedure, the Leasing Professional may
use a third party screening firm or make multiple calls and inquiries. A
consumer report (also called a credit report) contains information about a
person’s credit characteristics and debt payment history.
Continued on next page
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Laws That Govern Applicant Screening, Continued
Fair Credit
Reporting Act
(FCRA),
(continued)
It may also include information about someone’s rental history, such as
information from previous owners or from public records like housing court or
eviction files.
If the contents of the consumer report require that the application be denied
or that additional deposits or rent are required, the FCRA governs how to
respond. Carefully follow company policy and consult with your supervisor
before relaying the CRAs findings to the applicant.
Fair And
Accurate
Credit
Transaction
Act (FACTA)
Description
Late in 2003, and responding to the dramatic increase in identity theft and
fraud, the Fair and Accurate Credit Transaction Act (FACTA) was signed into
law. The Act substantially changes FCRA’s impact on property owners. In
addition to reauthorizing the FCRA, the Act addresses consumer concerns
about identity theft and inaccuracies in consumer reports and gives
consumers the right to limit how businesses can use their non-public
personal information.
M
105B
PL
E
If a rental application is denied, or if the acceptance is conditional upon
higher rent, higher security deposit, or a co-signer, the applicant must be
given a proper written notice of the reason for the denial or conditional
acceptance and contact information for the CRA that provides the adverse
credit information. Site personnel should never discuss with the applicant the
details of their credit report. They must be referred to the CRA for more
specific information.
SA
How to comply
Consumer reports may now appear with fraud alerts and file blocks when
consumers claim identity theft or fraud. Similarly, if the community provides
data to consumer reporting agencies such as collection agencies, there are
new requirements to respond to notices of alleged identity theft. Always
confirm these reports with the property manager and respond according to
company policy and screening criteria.
The Act also impacts:
• the types of records that will be submitted to collection agencies
• new procedures for verifying collection account accuracy and reinvestigating if the account is disputed, and
• limitations on a corporate entity to “share” information between its sister
properties for the purposes of marketing.
All of these factors impact applicant screening at the community.
© 2014 National Apartment Association
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Applicant Screening
17B
The application process helps screen out unqualified applicants who may be
less likely to follow the terms of the lease or pay the rent. The process should
be neutral and not discriminate against an applicant’s membership in a
protected class. It should also be consistent for every applicant. This
guarantees that every application is reviewed against the same criteria and
receives equal consideration. The application should give the owner the right
to check references, employment, credit history and criminal record, if that is
company policy.
Management
responsibility
It cannot be emphasized enough that it is a manager’s responsibility to
investigate, understand and uphold the laws that apply in his/her state as
well as applicable federal laws and regulations. Consistently applying
leasing policies and practices will minimize the risk of discrimination..
Application
screening
process
Applicant screening begins with an application that gathers as much
information about an applicant as possible. A fee is frequently charged to
cover the cost of screening applications.
108B
PL
107B
E
Purpose
106B
The table below shows the typical applicant screening process.
Description
Either an outside screening service or the Leasing Professional
M
Stage
1
SA
2
• screens the application, and
• investigates the information provided on the application.
The Apartment Manager
3
• reviews the application for compliance with all community
guidelines, and
• approves or denies the application.
The Leasing Professional notifies the prospect of his or her
approval or denial.
© 2014 National Apartment Association
Continued on next page
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Applicant Screening, Continued
The following criteria are checked and, in the event of a negative report or
adverse information, can result in the denial of an application:
• credit history
• income
• rental history from previous owners
• eviction records
• criminal background (if part of the company screening policy) Many
states limit criminal history checks to felony convictions or violent
misdemeanors. Know your state law in this regard.
• social security number (SSN) or individual tax identification number
(ITIN), and
• check writing history.
How criteria
are
established
Criteria have limits determined by company policy and you are responsible
for complying with company policy. It is recommended that company criteria
for credit, income and employment be printed and posted where all can see
them in the leasing office. Many companies give signed copies of the criteria
to every applicant in order to avoid any misunderstanding about the
screening process. The following table contains some suggestions.
PL
10B
E
Criteria
examined
during
screening
109B
M
Criteria
What credit history will be allowed?
SA
What income to rent ratio will be
used?
How much rental history is required?
How much work history will be
required?
Will late rent payment history be
allowed?
Will NSF check history be allowed?
Will owner debt disqualify an
applicant?
What happens if just one category is
poor?
Will guarantors be allowed and at
what income level will they be
required?
Will a personal bankruptcy disqualify
an applicant?
Possible Levels
less than 50% with a 3 or higher;
less than 40%
33%, 30%, 35%, 40%
12 months; 24 months
12 months; 24 months
3 in 12 months; 2 in 12 months
1 in 12 months; 2 in 12 months
Yes; No
Extra deposit; Guarantor Required
Yes; No.
Yes; No
Continued on next page
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Applicant Screening, Continued
SSN or ITIN
required
1B
A Social Security number is often used to perform a credit check on an
individual and the credit check is required as part of the apartment rental
application procedure. People who have a right to work in the U.S. are
required to have a SSN. However, a person who does not have the right to
work in the U.S. (or who does not intend to work) may have an Individual Tax
Identification Number (ITIN).
Some applicants may not have a SSN, but you need to process their
applications in a fair manner to be in compliance with the Fair Housing Act.
Credit report
Credit reports contain the following information about the person’s
creditworthiness:
PL
12B
E
Reference: See the topic “Processing Applications for Applicants without a
Social Security Number” in this chapter for additional information.
M
Acceptable accounts ratio
Based on information from the applicant’s credit report calculated as:
Positive trade lines divided by Positive trade lines + Negative trade lines.
When scoring this part of the background check, No tradelines (meaning no
credit history) may display on the report and it will be interpreted as approved
with conditions. A report of No Record is interpreted as bad credit history
and the application will be denied.
SA
Debt to income ratio
Based on information from the applicant’s credit report and information
entered into the screening program, this is determined as Debt divided by
income.
Rent to income ratio
Based on information entered into the screening program this is calculated
as rent divided by income.
FICO score
A numerical score calculated by the credit bureau. FICO scores provide the
best guide to future risk based solely on credit report data. The higher the
score, the lower the risk. The score reflects a mathematical calculation which
evaluates a person’s payment history, amounts owed, length of credit history,
new credit and types of credit used. The range of possible scores is 300 to
850.
Continued on next page
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Applicant Screening, Continued
Additional
items
included on
the credit
report
In addition to the credit information, rental history information and court
records such as eviction notices may also be included in the credit report.
Exposure to
personal
information
Some screening companies provide the applicant’s credit report with the
score while others only provide the score. If you receive the credit report,
there is a risk of exposure to personal information where applicant
information is being seen by the office staff of the management company.
You must be careful to handle this information carefully and in accordance
with the law.
13B
E
14B
Criminal
history
screening
15B
PL
Reference: See the topic “Identity Theft” in this chapter for more information.
This business practice involves the review of the criminal activity or criminal
background of all rental applicants, and sometimes even for lease renewals.
An owner or management company representative determines the scope of
the checks.
M
Before any review or check is conducted, the Leasing Professional must:
• inform the applicant that the criminal background check will be done, and
• obtain an appropriate written authorization to check the applicant’s
criminal history.
SA
Note: Conduct criminal history screening only if your property has a criminal
history screening policy. Some properties do not.
Criteria used
in criminal
background
checks
16B
All applications must be checked using the same consistent process with the
same criteria to avoid discriminatory treatment. Typically, the owner or the
designated management company’s policies and procedures determine
when an application or renewal will be denied due to the results of the
criminal background check. The denial could be based on
• any felony within a designated amount of years, or
• designated felonies (e.g., murder, assault, rape, sexual abuse) within a
designated number of years.
Records must often be checked in multiple states or jurisdictions going back
at least two (2) years in time. This is particularly important if the applicant
lived in other cities or states before moving to the current area.
Continued on next page
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Applicant Screening, Continued
HUD
guidelines on
terrorism
17B
Since the terrorist attacks of September 11, 2001, the housing industry has
had many concerns about ensuring the security of its residents and property.
Many housing providers are reviewing their screening and operating policies
and weighing the benefit of increased scrutiny and the potential for claims of
fair housing violations.
E
In January 2003, the Department of Housing and Urban Development (HUD)
issued a memo that helps to clarify the rules regarding screening and other
operating policies. In a nutshell: It is acceptable to refuse to rent to
applicants as long as your decision is based solely on the applicant’s
citizenship or immigration status and it is acceptable to ask applicants to give
documentation of citizenship or immigration status while screening.
PL
Below are additional highlights from the HUD memo.
SA
M
• Managers cannot refuse to rent to applicants because of their race,
religion or national origin, but the applicant can be refused if the decision
is based solely on his or her immigration status. A non-U.S. citizen who
cannot prove legal residency in the country can be refused.
• HUD has long required proof of citizenship and immigration status in its
federally-funded housing sites. Private managers may do so as well as
long as they do it for all applicants.
• If a prospect cannot produce the proper documents, the manager may
legally reject the application.
• It is important to enforce these rules in a non-discriminatory manner. No
greater emphasis should be placed on one nationality over another.
• Owners and managers should give all residents the same privileges,
such as ability to reserve a community clubroom.
• Owners and managers may punish and even evict unruly residents so
long as all residents are held to the same standards of conduct.
• Owners and managers do not have to rent to someone who does not
meet financial criteria.
© 2014 National Apartment Association
Continued on next page
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Applicant Screening, Continued
Identity
documentation
1
Identity documents such as a valid governmentally issued photo ID are
generally required to show an apartment, but they are also an important
factor in approval or denial of an application to lease.
The following are proof of legal residence:
Identity
documents
and ID theft
A property manager’s focus on identity documents cannot be understated.
Identity theft is the number one consumer fraud according to the Federal
Trade Commission (FTC). It represented 26% of the more than 1.2 million
consumer fraud complaints in 2010. For further information see the following
Web sites www.justice.gov/criminal and www.ftc.gov
SA
1
M
PL
E
• U.S. Citizen by birth – birth certificate or U.S. passport
• U.S. Citizen by naturalization – naturalization certificate
• Immigrant – Permanent Resident Card (formerly Alien Registration
Card) or a green card. If he/she has a right to work in the U.S., he/she
will have a social security card as well.
• Nonimmigrant – a passport from the native country and/or a visa. A I-94
form should be attached to the passport or visa that explains how long
the individual will be in the country. Ask for a social security number or
individual taxpayer identification number (ITIN). If the nonimmigrant is
a student, ask for a DS-2019 form (Certificate of Eligibility for Exchange
Visitor (J-1) Status) or an I-20 form for vocational students (Certificate
of Eligibility for Nonimmigrant Student (F-1) Status).
• Refugee – the same papers as a nonimmigrant. The I-94 form should
be stamped “Admitted as a Refugee.”
• Asylee – An I-94 form. The I-94 form should be stamped “Subject
granted Asylee Status.”
0H
1H
Improper or invalid identification can be a reason to reject an application.
Even if you don’t know how to determine a real document, you may be able
to spot inconsistencies that point to fraud or you may be able to document
important information for later legal action.
© 2014 National Apartment Association
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Applicant Screening, Continued
Manager
approval
Once the screening of the credit and background are complete, the manager
reviews the application and results to determine whether to approve or deny
the application.
•
•
•
•
Applicants must be employed or provide proof of income. Combined
household income must be satisfactory to the community’s scoring criteria.
PL
Income
verification
income
occupancy
vehicles, and
pets.
E
There are additional community guidelines that must be met. The
community-based items that the manager reviews are:
Company policy will establish the source documents that are acceptable for
verification. Examples include:
All federal, state and local occupancy guidelines must be followed. Generally
the following limits apply when determining the acceptable number of people
for an apartment:
SA
Requested
occupancy
employment offer letters
most recent year’s tax record
three (3) most recent bank statements, or
most recent pay stubs.
M
•
•
•
•
•
•
•
•
one (1) person for an efficiency/studio
two (2) people for a one (1) bedroom
four (4) people a two (2) bedroom, and
six (6) people for a three (3) bedroom.
When determining the acceptable number of people for an apartment, dens
are considered to be bedrooms, although some codes require a window in a
room if it is considered a bedroom or sleeping area. Check your state and
local building codes.
Continued on next page
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Applicant Screening, Continued
Number of
vehicles
Depending on the property and company policy, vehicles may be restricted.
For example, some properties limit vehicles to a maximum of two (2) cars per
apartment or one (1) car per bedroom, whichever is greater.
Number and
type(s) of pets
Pet policies vary from company to company and/or property to property. The
manager should review the application to ensure adherence to the policy.
Questions to consider include:
The outcomes of the screening process may be:
• approved (will be accepted as a resident)
• approved with conditions (may be accepted as a resident if other
conditions are met), or
• denied (will not be accepted as a resident.)
M
Possible
outcomes of
screening
PL
E
• Should a photo be taken of the pet in the office to ensure compliance with
breed or size restrictions?
• Is there a pet addendum covering pet fees and policies of pet ownership
on the property?
• Are pets required to be neutered/spayed?
• If so, are you getting documentation of such?
Approved with conditions means that you will need to:
SA
• ask for a larger security deposit, or
• have another responsible party (e.g., parent) co-sign for the applicant.
Reference: See the topic “Information About Co-Signers” in this chapter
for additional information.
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Applicant Screening, Continued
Notification of
application
status
The following notifications should be provided to the applicant within 72
hours of the application date.
IF the applicant’s
application is…
approved
THEN…
SA
M
PL
E
approved with conditions
• send an approval letter, and
• notify the person by telephone.
• Send an adverse action letter explaining
the conditions of the approval, and
including the contact information (name,
address and phone number) for the
credit reporting agency (CRA) that
provided the adverse credit information.
• The letter must also include a statement
that the agency that provided the report
did not make the decision to take the
adverse action, and a notice of the
applicant’s right to dispute the accuracy
of the information furnished to the
agency.
• If the adverse action is based on a credit
score, the letter must include the
numerical credit score, range of possible
scores, the key factors that adversely
affected the score, the date on which the
credit score was created, and the name
of the person.
• Immediately telephone the person to
explain the status of his or her
application.
denied
© 2014 National Apartment Association
Note: Give the person one (1) week within
which to make the decision regarding the
additional payment or required co-signer,
after which the application will be denied.
• Call the applicant to let him or her know
the status of the application.
• Immediately send an adverse action letter
that includes the contact information
(name, address and phone number) for
the credit reporting agency (CRA) that
provided the adverse credit information.
• It must also include a statement that the
agency that provided the report did not
make the decision to take the adverse
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action, and a notice of the applicant’s
right to dispute the accuracy of the
information furnished to the agency.
• If the adverse action is based on a credit
score, the letter must include the
numerical credit score, range of possible
scores, the key factors that adversely
affected the score, the date on which the
credit score was created, and the name
of the person or entity that provided the
score.
Notes:
Continued on next page
SA
M
PL
E
• Refrain from using the word “rejected.”
Use words like “denied,” “not accepted”
or “declined.” The word “rejected” sends
an inappropriate message and can be
received more emotionally by the
applicant.
• You cannot disclose specific information
from the applicant’s credit report to him
or her. The applicant must deal with the
credit reporting agency to get this
information.
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Applicant Screening, Continued
Follow these rules when notifying an applicant.
• All applicants must be advised in the same manner of their application
acceptance or denial.
• Follow exacting rules on timing, format (in writing, phone, e-mail) and
acknowledgement by the applicant.
• Do not leave a voice message that an application is accepted or denied.
• Include a clearly stated policy on the application of what will happen if the
applicant cannot be found to advise them of the acceptance or denial of
the application.
• If an application is denied, the Fair Credit Reporting Act (FCRA) requires
that an adverse action letter be written to the applicant advising him or
her of the application denial with the reasons clearly stated. A standard
letter or note is the best insurance against fair housing discrimination
claims.
PL
E
Rules for
acceptance or
denial
notification
When an application is approved, a Welcome letter may also be provided.
This letter would include the address of the apartment and explain utility
connection service requirements.
SA
Welcome
letter
M
Note: If the rejection is due to a report provided by a consumer reporting
agency (CRA), the manager must identify by name address and phone
number, the agency that provided the information. If a third party screening
firm is used, the adverse action letter will generally be issued by them and
will apply to all of the areas that firm screens (credit, criminal, owner history,
employer, etc.). The applicant generally is referred back to the screening
firm for further details about the reports.
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Processing Applications for Applicants without a Social
Security Number
18B
Background
129B
In January 2003, HUD issued a memo stating that under the Fair Housing
Act (FHA) it is unlawful to screen applications on the basis of race, color,
religion, sex, national origin, disability, or familial status. The Act does not
create a protected class based on a person’s citizenship status.
E
The memo does provide that asking housing applicants to provide
documentation of their citizenship or immigration status during the screening
process does not violate the Act. The Act requires that the same processes
be applied to all people.
What you can
do
You may:
SA
130B
M
PL
It is also important to remember that there is no law requiring a person to
have a social security number in order to live in the U.S. Therefore, an
application procedure and rental criteria must be applied fairly to all
applicants, even those without a Social Security Number (SSN). Failing to do
so can be considered to have a disparate impact (discriminatory effect) on
persons from other countries (national origin discrimination.) It is
recommended that landlords ask if their screening companies has other
methods for checking credit on persons without SSNs, such as by using the
person’s name, date of birth and last known address (or find a secondary
screening company that has such capability). This way, all applicants are
treated fairly and have the same equal opportunity to have their credit run. If
a report comes back showing no record found or with insufficient credit
history, then an applicant who otherwise qualifies could be offered an
opportunity to rent with conditions
• require applicants to provide documentation of their citizenship or
immigration status during the screening process
• set a policy of denying the application of any applicant who is not a U.S.
citizen and does not have the legal right to be in the U.S.
• set a policy denying the application of any applicant who is legally in the
U.S. but who can’t prove that they will have the legal right to be in the
U.S. during the term of the lease (i.e., the visa has an expiration date
prior to the lease termination date), and/or
• set a policy of not renting to any applicant who does not financially
qualify.
What you
cannot do
13B
You may not treat someone differently because he or she does not have a
social security number.
You may not set a policy of not renting to anyone who:
© 2014 National Apartment Association
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• isn’t a U.S. citizen, or
• falls within certain categories of non-U.S. citizens (i.e., non-immigrants or
refugees).
SA
M
PL
E
Continued on next page
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Processing Applications for Applicants without a Social
Security Number, Continued
Documentation
required
132B
Applicants must provide documentation to prove that they have the right to
be in the U.S. within 72 hours of the date of application.
Proof of citizenship
Ask to see the person’s passport, birth certificate, or other proof of
citizenship. Be sure that the photograph on the passport is that of the
person. Make a copy of the documentation if there is no photograph.
E
Valid visa
Ask to see the person’s visa paperwork. This should state:
SA
M
PL
• the reason that he or she is in the U.S.
• the type of visa, and
• the expiration date.
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Identity Theft
19B
Legal
provisions
that affect
apartment
firms
134B
As previously mentioned, amendments were made to the Fair Credit
Reporting Act (FCRA) to protect against violations of consumer privacy.
These amendments are called the Fair and Accurate Credit Transactions Act
(FACTA). This act contains the following provisions that affect apartment
owners and their residents, employees and applicants.
Data destruction rules were also enacted as part of FACTA. Specifically,
these rules require firms that use consumer reports or information derived
from such reports to take reasonable measures to protect against
unauthorized access to such data during disposal. This includes credit
reports and scores, employment background checks, and residential records.
SA
M
Data
destruction
rules
135B
PL
E
• Every consumer is entitled to see, for free, the credit and/or other
information that is the basis for a decision about their rental, mortgage,
insurance or employment application. Apartment owners are
experiencing more consumer questions about how information from
reports is used to set rent and deposit fees and accept or reject
applicants.
• Identity theft alerts, file blocks, and file freezes give consumers new ways
to show they were victims of identity theft. Apartment firms will see these
indicators in consumer reports and decision pages.
• Consumers can go directly to an apartment firm and ask to see file
information related to a fraudulent transaction committed in the identity
of the consumer. Apartment firms should establish procedures to
escalate such requests to the appropriate management representatives
to ensure that data actually is provided to victims and their
representatives and not to identity thieves.
Federal law requires papers that include personal, sensitive consumer
information to be destroyed in a reasonable manner. Electronic media (e.g.,
e-mail and computer files) must be destroyed or erased so that such
information cannot be read or reconstructed. Access to applicant files can be
limited and files can be reviewed to ensure that the company’s record
retention policy has been followed.
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Information About Co-Signers
20B
• Some communities accept co-signers. Check your company’s policy as
to verification requirements and when co-signers should not be allowed.
When co-signers are allowed, the person must often sign the lease
agreement..
Note: On the lease agreement, the co-signer is usually listed as a party
to the agreement, but not as an occupant. If not a party to the lease, a
guarantee agreement can be used and should be notarized. A new
agreement should be executed in the event of lease renewal or other
material change in lease terms.
Verification
required
The co-signer agreement must be verified to ensure that the person meets all
rental criteria and has sufficient income to also include the applicant’s rental
obligation.
PL
137B
E
When cosigners are
allowed
136B
When the lease expires and the resident wants to renew, re-verify the
resident’s application to determine if the co-signer is still required. If so, the
co-signer must sign the lease renewal and be re-verified. If not, the cosigner may be removed from the lease agreement.
Co-signers should not be permitted if the applicant fails to qualify because he
or she has unacceptable rent history which may include:
M
When cosigners
should not be
allowed
138B
• judgments from other apartment communities
• a late payment history
• eviction from a prior owner,
SA
Consult your company policy and screening criteria when dealing with
recent mortgage foreclosure actions.
© 2014 National Apartment Association
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Management of Residential Issues
Deposits
21B
Types and
purposes of
deposits
139B
There are several reasons for a community manager to collect a deposit.
Some types of deposits must be refunded and others do not. Always collect
deposits before providing keys for move in.
The table below shows the different types of deposits and whether or not
they need to be refunded.
Type
Description
PL
Holding deposit/
Application deposit/
Administrative fee
This fee covers the cost of
generating a credit report and a
criminal background check.
This deposit can be collected by
community managers to ensure
that the prospective resident is
serious about leasing the
residence. It may be in addition to
or instead of a security deposit.
Note: The community manager
should not collect a deposit from
more than one applicant for the
same residence. When more than
one applicant wants the same
residence, the manager may
accept other applications in case
the first applicant falls through.
Ensures management that the
resident will be responsible for
costs associated with cleaning,
damage and unpaid rent upon
vacating the property.
When pets are permitted, pet
deposits are often required. This
deposit is usually non-refundable.
This ensures the community
manager that the pet owner will be
responsible for any damage the
pet may cause. A monthly fee
may be charged for the pet in
addition to the deposit.
M
SA
Security deposit
Pet deposit
No
E
Application fee
Refund
required
Refer to
company policy.
The deposits
noted here
and/or the
administrative
fee are often
non-refundable.
Yes, if the costs
do not exceed
the total of the
deposit.
Refer to
company policy.
Some
communities do
refund pet
deposits in their
entirety or
partially.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Deposits, Continued
Laws
regarding
deposits
140B
Ordinances have been enacted by local and state governments that regulate
the amount that can be charged for the deposit, what it is used for, or both.
SA
M
PL
E
Reference: See the topic “State Security Deposit Laws” in the Resource
Materials for additional information.
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Lease Paperwork
2B
After leasing a specific apartment and receiving the application fee to hold
the apartment, the lease should be completed, the deposits or fees paid and
the lease signed prior to move-in day. This avoids making the moving day
more hectic and ensures that the resident understands what is expected in
the lease agreement.
Definition:
Lease
A lease is a legally enforceable contract that grants a resident the rights and
responsibilities of possession and use of an apartment for a specified period
of time. It is often referred to as a rental agreement.
Basic
elements of a
lease
A written lease should contain the following basic elements:
•
•
•
•
•
•
•
identity of all parties involved, using correct legal names
name of community and/or managing agent
complete description of premises to be leased
apartment number, street address, city and state
duration of lease term, including start and end dates
rent amount
recommended methods of payment (check, certified check or money
order)
Note: Cash payments are not recommended but cannot be denied, since
cash is legal tender.
terms of payment
o when rent is due and late fees are assessed
o where payment is to be made
o late fees, amounts and charges for returned checks
causes for legal action
community guidelines/rules and regulations
acceptable use of premises
termination process and how notice to vacate is to be accepted
holdover
terms of rent increase, and
rights and responsibilities of each party.
M
143B
PL
142B
E
When to
complete
14B
•
SA
•
•
•
•
•
•
•
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Lease Paperwork, Continued
Additional
clauses that
may be
included
Clauses may be added to a lease to assign certain responsibilities and
discourage undesirable actions by lessees. These may include:
Lease
preparation
In some areas, the state or local apartment association has developed
leases that members may adopt. In general, the basic principles of
Landlord/Tenant law apply widely throughout the country. However, each
state will have a lease agreement that complies with the laws of that state.
E
maintenance
pets
utilities
security deposit
subletting
concessions
terms of payment
default
alterations
condition of premises
noise
Owner’s right of access
damage by natural disaster, and/or
renter insurance.
M
145B
•
•
•
•
•
•
•
•
•
•
•
•
•
•
PL
14B
SA
The National Apartment Association (NAA) has developed a national lease
template that has already been accepted for use in 41 states. The format
offers a complete and detailed description of the relationship between
residents and owners. The template contains a software package that
includes additional lease addenda forms.
Your community will likely have its own lease template. The leasing
professional takes this template and fills in the specific information required
such as address of the apartment home, rent, term of lease, and deposits
and fees collected. Required lease addenda such as those for parking
structures (garages or carports), pets, and utility responsibilities are also
prepared by the leasing professional or other person in the office assigned
these duties. This employee is responsible for getting the lease signed.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Lease Paperwork, Continued
Lease review
Set up a time to review the lease with the resident prior to move-in.
Important clauses should be explained and an opportunity to thoroughly read
through the document should be offered to the resident. Many companies
require particular clauses initialed and all pages to the lease also be initialed.
Signatures
required
The lease should be initialed on each page by the resident and then signed
by all occupants of legal age. The community manager should review and
sign the completed lease, and a copy of the fully executed lease should be
provided to the resident on move-in day. Each party must have an original
signed copy of the lease.
146B
E
147B
Lease file
148B
PL
If a co-signer is involved, he or she must sign the lease paperwork with the
new resident. .
A lease file should be created for each new apartment being leased. All
documentation should be included in the file. This includes communication,
checklists, the rental application and the lease. The lease file paperwork
should be set up in a logical order. A suggestion is:
One side of the folder:
conversation log
move-in checklist
resident letters/notices
resident profile
M
•
•
•
•
SA
Other side of the folder:
•
•
•
•
•
•
Lease agreement
any applicable addendums
rental application
electronic payment activation form
move-in/move-out inspection form
copy of renter’s insurance (if company policy requires for move in)
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Lease Paperwork, Continued
Move-In
date/walkthrough
149B
At the time the lease is completed, schedule a move-in date with the
resident. A complete list of special instructions prior to move in should be
given to the resident. This should include utility connection information and
address change requirements.
Checklist
150B
E
At least 48 hours prior to move-in, contact the resident to confirm the move-in
walk-through appointment. The leasing professional and/or the community
manager should walk the unit prior to this appointment to verify work
completed and keys in working order. First impressions are important.
A move-in checklist can be a helpful tool to be sure that all the necessary
details have been taken care of prior to and including the day of the move.
SA
M
PL
Reference: See the Toolbox for a sample Move-In/Move-Out Checklist.
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Occupant Changes
23B
Collecting rent and managing occupancy are two of the most important
responsibilities for a community manager. Therefore, preparing for and
managing changes in resident occupancy is essential for maximizing income.
This topic will discuss what you can do to effectively manage and enforce
lease obligations when the occupants of an apartment home change.
Change
affects the
bottom line
Despite having carefully qualified and approved applicants and executed
signed leases, you will find that it is not uncommon for situations and lives to
change. Roommates can change. Managing these changes is necessary to
protect the revenue sources for your community.
Legal clauses
One way to prepare for change is to use reasonable and legal clauses in the
lease that will protect your interests.
152B
PL
153B
E
Prepare for
changes in
resident
occupancy
15B
SA
M
• Use lease clauses that limit occupants and require the company’s
permission for subleasing or assigning. Most companies don’t allow
subletting.
• Use a “joint and several” clause in the lease. This clause states that
when two or more people sign the lease, each person is liable for paying
rent and adhering to the terms of the agreement. If one resident cannot
pay their share of the rent, or simply moves out, the other resident must
still pay the full rent due. Also, each resident is responsible for any
occupant’s action that violates any of the terms of the lease.
• Have all occupants of legal age sign the lease as lease holders and not
simply permitted occupants.
• Check company policy for how payments from roommates are handled.
Is one payment for all occupants required or are individual payments
accepted from each occupant for the combined rent and fees due.
New
occupants
154B
If adding a new occupant is allowed by the community manager:
• at least one original occupant should remain in the apartment.
• the new occupant must meet all the qualifying guidelines for an occupant
• the rental application should be completed and approved prior to the
new occupant moving into the apartment, and
• an application fee should be paid by the new occupant.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Occupant Changes, Continued
Removing
occupants
15B
If removing an occupant is allowed by the community manager:
SA
M
PL
E
• at least one original occupant should remain in the apartment
• all occupants should complete and sign an addendum to the lease stating
that:
o the security deposit will not be refunded until all occupants move out
o the remaining occupants will be responsible for the apartment and all
damages
o the moving occupant will have no further claim to the security deposit,
and any concerns regarding the security deposit must be handled
between the occupants, and
o all keys must be returned by the moving resident, and
• all lease terms should remain the same.
© 2014 National Apartment Association
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Management of Residential Issues
Community Policies
24B
Example of
policies
156B
The table below shows examples of community policies that may be
incorporated within the lease agreement or part of an addendum of
community policies attached to and incorporated by reference.
Issue
Emergencies
M
PL
E
Parking/Vehicles
Policy
• Call 911 first, and then notify the office.
• Maintenance emergencies handled 24 hours a
day. After hours, call the answering service.
• Vehicles cannot park in unauthorized areas.
• Vehicles must have current license plates.
• Vehicles not permitted without manager’s
approval include:
o motorcycles
o RVs
o trailers
o boats
o jet skis, and
o commercial vehicles.
• Vehicles not permitted on the property include
inoperable, unlicensed or abandoned vehicles.
• Repair or washing of vehicles is not allowed
without manager’s approval.
• Towing policies
• Hanging of objects from any balcony, windows or
in front of any apartment unit is not permitted.
• Residents cannot put anything on windowsills or
balcony railings, and shall not permit anything to
be thrown from the windows.
• Mini blinds may not be removed without
manager’s approval.
• Window treatments must have white backing to
provide a uniform look.
• Residents may use nails and non-adhesive
picture hangers on the walls.
SA
Walls/Windows
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Community Policies, Continued
Example of policies, (continued)
•
•
•
•
Noise
Trash
PL
•
Policy
Equipment in bathroom and kitchen may only be
used for the purposes they were intended for.
No throwing of glass, corn cobs, nut shells, fruit
pits, bones or non-food in the disposal.
Portable washers, dryers or dishwashers not
allowed without prior manager’s approval.
Residents and guests are required to control the
volume of stereos, radios, television or other
musical devices within the apartment and the
community. Disturbance of residents in other
apartments will not be permitted.
Residents are responsible for their guests at all
times.
Large parties are forbidden.
Trash must be deposited in trash containers
located in the community. A fine may be
charged to a resident if trash is left in hallways
or other common areas.
Residents must abide by all local and state
regulations regarding the sorting, separation and
recycling of waste products, garbage and trash.
Charcoal and gas grills on the balconies or patios
is not allowed where prohibited by local
ordinance, and only allowed elsewhere when
approved by management.
Lockout service will be performed during office
hours only, upon resident’s presentation or
proper identification.
Residents may not place or store anything within
two (2) feet of heating or air-conditioning closets
or units. Local ordinances/codes must be
checked and followed.
Many communities/cities do not allow storage of
any kind in these closets.
Flammable materials may not be stored
anywhere within these closets. Management
reserves the right to inspect these areas.
E
Issue
Appliances/Fixtures
•
•
M
•
•
Lockouts
•
HVAC Closets
•
SA
Grilling
•
•
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Community Policies, Continued
Example of policies, (continued)
Solicitations/Notices
•
Amenities
•
Trails/Paths
•
•
M
Packages
E
•
Policy
Residents must maintain and provide the
manager with evidence of current renter’s
insurance for waterbeds and other liquid filled
furniture prior to the installation of such items.
The insurance policy must cover the apartment
community for damages.
Solicitations/Notices by residents or posting of
any notices is prohibited without permission from
management.
Residents must adhere to the operating hours
and policies of the amenity areas. Guests must
be accompanied by a resident.
Any resident using any jogging or walking trail on
or abutting the property after dark does so at his
or her own risk.
Residents will allow management to accept
packages from the post office and other carriers
on behalf of the resident. The resident must
show valid identification to claim the package.
Packages not claimed after 7 days will be
returned to the sender at the resident’s expense.
The sidewalks, entryways, halls and stairways of
the community will not be obstructed or used for
any purpose other than ingress and egress to
and from the apartment. This includes storage
of personal property of any kind.
PL
Issue
Liquid Filled
Furniture
SA
Common Areas
© 2014 National Apartment Association
•
Continued on next page
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Community Policies, Continued
Example of policies, (continued)
•
•
•
•
•
•
PL
•
Policy
Lifeguards are not provided by management.
Residents and guests swim at their own risk.
Management is not responsible for accidents or
injuries.
Children under [age] must be supervised by an
adult when using the pool/spa.
The pool is for the exclusive use of residents.
No more than two (2) guests are allowed at the
pool with any one resident.
Only unbreakable containers allowed in the pool
area.
All trash must be deposited in the trash
receptacle in the pool area.
No pets allowed in the pool area.
No diving allowed.
No alcohol is permitted in the pool area.
Regulation bathing suits must be worn at all
times.
Gates must remain closed and latched at all
times.
No radios or other musical devices may be
played at volumes that would disturb others.
No pets may be kept for breeding purposes.
Pets must be kept on a leash when outside.
Pets must be walked in natural or wooded areas.
Pet houses or crates are not permitted on patios,
balconies or in common areas.
Pets are not permitted to be staked or chained
outside the apartment.
All pet waste must be disposed of immediately
and properly by residents.
Pets that cause noise complaints or display
aggressive behavior will not be permitted to
remain at the apartment community.
Pets (other than assistive animals) are not
permitted in the club house, office, pool area,
laundry room, or fitness center.
E
Issue
Swimming Pool
•
•
•
•
M
•
•
SA
Pets
•
•
•
•
•
•
•
•
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Community Policies, Continued
Example of policies, (continued)
•
•
•
•
PL
•
Policy
The size of the satellite dish may not exceed one
meter.
No satellite dish or antenna may be affixed on
any common areas including, but not limited to,
outside walls, windowsills, roofs, common area
balconies, or stairwells.
No holes may be drilled through outside walls,
roofs, balcony or patio railings, or exterior
windows.
The satellite dish should be installed by a
professional installer.
The satellite dish or antenna system must be a
stand-alone system.
Garages and carports are intended for
automobile storage only.
No garage or carport is intended for storage of
personal belongings.
Resident assumes responsibility for costs and
expenses due to damage or theft of personal
belongings stored in any garage or carport.
No smoke detectors or fire extinguishers are
provided by management for garages or
carports.
May also include information about:
o garage rent
o garage security deposit
o access
o insurance, and
o vacating garages and carports.
E
Issue
Satellite Dishes and
Antennae
Garages and
Carports
•
•
M
•
•
SA
•
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Major Lease Addenda
25B
Examples of
addenda
157B
Some examples of the major lease addenda are:
•
•
•
•
Garage/Carport addendum
Pet addendum
Utility addendum, and
Concession addendum.
SA
M
PL
E
Reference: See the Resource Materials for additional information about lease
addenda.
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Move-In Procedures
26B
Prepare in
advance
Resident retention begins the day the resident moves into the community.
Therefore, it is important to provide a problem-free move in day by preparing
in advance.
Prior to the
walk through
Make an appointment with the resident for a move-in walk through of the
apartment one or two days prior to the moving day. This should be
scheduled on a weekday if possible. (For residents relocating from out of
town, exceptions may need to be made.) Advise the resident to allow 45
minutes to complete the walk through with you.
158B
E
159B
Note the date and time of this appointment on the community calendar. It is
helpful to maintain a calendar to record all move-in orientation appointments.
PL
Call the resident 48 hours prior to the appointment to confirm the date and
time.
Freshen up the apartment if it has been vacant for more than 10 days. A
move-in gift, current resident newsletter and comment cards can be placed
inside the apartment with a handwritten welcome note.
Provide a
move-in
packet
Have a move-in packet ready prior to the scheduled move-in date for the
resident that includes:
SA
16B
Have all lease paperwork completed, signed, and copied for insertion into a
Move-In packet.
M
Prepare
copies of
lease
160B
•
•
•
•
•
•
the lease paperwork
community policies
a community convenience list
keys
welcome letter, and
any other items that would be useful to a new resident.
Reference: See example of a Resident Processing Checklist in the
Toolbox.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Move-In Procedures, Continued
Walk through
and
orientation
session
162B
Take the resident to the apartment for the walk through and conduct an
orientation session.
Reference: See the topic “Resident Orientation” in this chapter for additional
information.
E
A move-in inspection form should be completed at this time as well, to note
any permanent damages prior to move-in. The resident should review this
form and add anything else noted upon move-in within 48 hours of the move.
Don’t forget to get the rent check! Although this sounds basic, the moving-in
process can be so hectic that many times a check has been forgotten!
Provide keys
Each apartment will be issued one apartment key and one mailbox key for
each adult occupant on the lease. Keys shall not be released until the lease
agreement has been fully executed and payment for rent and fees has been
received.
Place a
follow-up call
The Leasing Professional who leased to the resident is responsible for calling
the new resident within five (5) days of the move-in to answer questions and
ensure that the new resident is satisfied.
164B
SA
M
165B
PL
Collect rent
163B
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Resident Orientation
27B
Who
conducts the
resident
orientation
16B
The resident orientation should ideally be conducted by the same person
who either signed the lease or rented the apartment, in order to provide
continuity of customer service and to continue rapport-building with the
resident. In some states only an owner or broker can sign a lease. If that is
the case, the orientation will need to be conducted by someone from the
leasing staff or the community manager.
E
If the person who leased the apartment is not scheduled to work the day of
the move-in walk through and orientation, it may be done by another person.
The resident should be notified who will be handling the walk through if such
a change takes place.
The Orientation Team may include the:
Orientation
agenda
167B
Community Manager
Assistant Manager
Leasing Professional
Service Manager or Maintenance Supervisor, and/or
Service Technician.
PL
•
•
•
•
•
The agenda for this new resident orientation should include:
SA
M
• explaining when and where to pay rent (also include location of the after
hours drop box)
• reviewing of the location of the amenities (pool, tennis, laundry, fitness
center)
• explaining controlled access gate operation if applicable
• providing access codes to amenity areas if applicable
• providing the resident with a copy of the current resident newsletter and
invite him or her to an upcoming event
• explaining the Resident Referral Program, if one exists
• providing a list of community services (banks, shopping areas, schools,
dry cleaners, etc.)
• setting up an appointment to meet the Maintenance Supervisor/Service
Manager for a complete review of all systems and appliances within the
first week after move-in, and
• explaining the service request procedures and provide the number to call
and/or the online procedure for requesting routine and emergency
service. Emergency service should not be requested online. Explain the
requirements of a move-out inspection at the end of residency.
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Maintenance Follow-up Orientation
28B
Who handles
the
maintenance
follow-up
orientation
The maintenance follow-up orientation is handled by the Maintenance
Supervisor/Service Manager or may be assigned to a Service Technician.
Prior to the
meeting
The Leasing Professional should schedule this orientation meeting between
the resident and someone from the maintenance department during the
move-in inspection. A calendar should be maintained to log all
appointments, with available appointment times pre-determined by the
Maintenance Supervisor and Community Manager. These visits should not
be scheduled for after daylight hours if possible.
168B
E
169B
Maintenance
orientation
agenda
The agenda for the maintenance orientation meeting should include:
•
•
•
•
•
the location of the circuit breaker box
how to use the stove, including how to clean it and how the clock works
how to use the refrigerator (and icemaker, if applicable)
how to operate the dishwasher
how to operate the garbage disposal (including where the reset button is
located)
• an overview of the HVAC (heating and air conditioning) system,
including:
o operation of the thermostat, and
o energy efficiency tips
• how the window and door locks work (opening and closing)
• how to operate the washer and dryer (if provided) including:
o cleaning lint traps
o detergents to use
o overloading, and
o maintenance of hoses
SA
17B
Make a copy of the move-in inspection form that was completed during the
walk-through to follow up on any items that were noted as needing
maintenance or repair. Ensure that the resident is satisfied with the way
these items were completed.
M
Move-in form
170B
PL
Explain to the resident that this orientation meeting should take between 15
and 20 minutes.
Continued on next page
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Maintenance Follow-up Orientation, Continued
• how light switches and wall outlets work, including resetting Ground Fault
Interrupters (GFIs) in the kitchen and bath
• explain the light bulb policy, including:
o which bulbs are provided and which ones are not provided, and
o where to purchase replacement bulbs
• how to operate the toilet, including:
o what not to put into the toilet
o water saving features, and
o where the emergency water cut-off is located
• how the showerhead works, including water saving features and the
effect on consumption
• how to operate garage door openers (if applicable), and
• how to operate alarm system.
Missed
appointments
If the resident is not home at the arranged meeting time, leave a note or
letter acknowledging the attempted meeting and asking him or her to
reschedule at a future date.
SA
M
172B
PL
E
Maintenance
orientation
agenda,
(continued)
© 2014 National Apartment Association
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Management of Residential Issues
Maintenance and Service Requests
29B
Importance of
good
maintenance
An attractive and well-maintained property will attract and retain residents.
As occupancy rates increase and turnover costs decrease, value is added to
the property.
How
maintenance
effects the
company’s
financial
health
Managers can make a major contribution to the company’s financial health
when they:
Resident
retention
Some residents move for reasons out of our control- buying a house or
transferring for work. However, much potential turnover is related to
controllable reasons. According to a survey done by SatisFacts, a resident
satisfaction research company, some of the most important of those
controllable reasons are:
175B
•
•
•
•
staff performance (ranked number one!)
maintenance response time
office responsiveness
maintenance work quality, and
office staff work quality.
M
•
•
•
•
•
increase maintenance efficiency
control or reduce costs
extend the life of equipment, and
reduce unexpected problems.
E
174B
PL
173B
SA
Managers need to minimize the controllable reasons in order to maintain or
increase resident satisfaction levels and retain residents.
Importance of
completing
service
requests
176B
Resident satisfaction
Failure to adequately complete service orders has a huge impact on resident
attitudes toward the community and their home. Satisfaction levels are
greatly impacted by the quality and efficiency of servicing residents’ work
order requests. If residents are not happy, they will not choose to renew.
© 2014 National Apartment Association
Continued on next page
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Maintenance and Service Requests, Continued
Team
approach to
maintenance
and service
Everyone – you, the maintenance staff, leasing professionals, housekeepers,
office administrators and residents – can take responsibility for the
maintenance and safety of the property. A manager, through leadership and
example, can create an atmosphere in which everyone on the team
contributes to the maintenance program and is proud of their participation.
Staff
education
One possible cause for long maintenance response times may be job-related
knowledge. Less than half of the leasing staff time is spent leasing - most is
in customer service. But how many and what types of resources are
dedicated to educating the staff on maintenance? What resources are
dedicated to educating the staff on the effect of customer service on the
property’s financial performance? Does the office staff know what questions
to ask for the most frequent service requests to help prepare complete work
orders? Do maintenance technicians get customer service training?
17B
PL
E
178B
Studies have shown that service technicians waste up to two (2) hours each
day deciphering incomplete work orders. Being able to take a service order
accurately will increase customer satisfaction and enable more work orders
to be processed each day.
Staff training should focus on:
• how to take work orders, including better information gathering
• fully utilizing property management software service request functionality
• the importance of maintaining current, correct resident contact
information (home phone number, e-mail address), and
• the financial implications of turnover.
SA
M
Staff training
focus
179B
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Maintenance and Service Requests, Continued
Resident
education
180B
Anything that can be done to lessen the burden of work orders on the service
team is valuable. Residents have a responsibility for maintenance too. One
easy way to reduce work loads and help residents is to provide “do-ityourself” solutions for simple maintenance needs. Include this information in
move-in folders and on the community Web portal.
E
Arm the office staff with:
• instructions to give residents when they call in service requests, and
• information on how to give the “do-it-yourself” concept a positive spin.
Talk to residents and maintenance technicians about specific problems both
in their homes and on the grounds. Listen, discuss the situation and seek
input on possible decisions for handling the problem. Since not every
problem is urgent, also discuss timeframes and prioritize which issues will be
handled first.
Taking
service
requests
It is important that the staff members provide excellent customer service to
residents when they are taking a service request in person or on the phone.
They are the first point of contact, and need to be empathetic, responsive
and efficient. Getting the right information from the resident on the first call
allows the work to be completed in a timely manner and done right the first
time. Incomplete or unsatisfactory service requests are long remembered by
the resident.
M
182B
PL
Seek input
18B
A Service Request Form should be used to gather the necessary information.
SA
Reference: See the Toolbox for a sample Service Request Form.
Many companies also provide for service requests online using property
management software and resident portals. Communities are better able to
manage the service process, including:
•
•
•
•
new ways for residents and staff to submit requests
more complete work order preparation
scheduling and control systems, and
financial controls/reporting functions.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Maintenance and Service Requests, Continued
Emergency service requests should be made by calling the office. If the
request is being made after business hours, either the answering service will
call a service technician for the resident or the number to call will be provided
on the recording. Emergency service requests should not be placed online.
Examples of emergency requests include:
Service
request follow
up
184B
no electricity
no plumbing or water throughout the apartment home
major water infiltration
no heat in temperatures below 55-60°F
no air conditioning in temperatures over 86-90°F
smoke alarms and/or Carbon Dioxide detectors sounding, and
apartment access problems such as broken
o doors
o windows, or
o locks.
PL
•
•
•
•
•
•
•
E
Emergency
requests
183B
After maintenance has solved the problem, be sure to follow up with the
resident to ensure that no other work needs to be done. This is best done
with a personal phone call but can also be handled with a letter or note.
SA
M
The Service Request Form should have a space for notes from the follow up
contact.
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Management of Residential Issues
Key Policy
30B
Key systems should be unmastered systems. In other words, there should
be no master key that unlocks all doors. Each apartment unit should have a
separate key which can be controlled.
Key control
All keys should be locked in a key closet or key box that can only be
accessed by designated employees. Key closets and key boxes are to
remain locked at all times, including normal business hours.
Vacant units
All apartments should be placed on a “vacant lock” during the turnkey/make
ready process. At move-out, all vacant apartment locks are to be keyed
alike, allowing easy access by vendors and employees showing the
apartment to prospective residents. Prior to the new resident’s move-in day,
the lock needs to be changed to an unmastered key.
Model units
All model units should be keyed alike and one “model” key issued to each
Leasing Professional for the convenience of showing the models to
prospective residents.
Move-ins
Each apartment shall have the locks rekeyed prior to the move-in of a new
resident.
18B
189B
Move-outs
Upon move-out, all keys must be returned by the resident. A charge
(typically $50) should be deducted from the resident’s security deposit if all
keys are not returned upon move-out, as specified in the lease agreement.
SA
190B
PL
187B
M
186B
E
Key systems
185B
Key release
form
19B
A written authorization from the resident must be on file prior to releasing a
key to an occupied unit. This would be done for maintenance service and
showings. The resident should complete a key release form which should be
retained in the resident’s lease file.
© 2014 National Apartment Association
Continued on next page
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Key Policy, Continued
Key release
log
192B
All keys checked out should be noted on a Key Release log which should be
kept in the key closet or key box. The key release log should be reviewed at
the end of each business day to ensure that all keys checked out during the
day have been returned and accounted for. The staff member that checks
the log at the end of the day can place his or her initials and date on a line in
the log showing that the log has been inspected.
The key release log should be stored onsite for one (1) year.
During normal business hours
If a resident is locked out of their apartment during normal business hours, a
spare key may be checked out by the resident provided that she or he can
provide proper identification. This would include a driver’s license or other
photo ID. This information should be verified against the information in the
lease file.
PL
E
Lost keys
193B
If the resident does not have a photo ID, obtain information that can be
verified against the lease file and compare the signature against that on the
lease agreement.
Lock changes
Residents requesting a lock change should be charged a set fee. Managers
may waive the fee depending on the circumstances regarding the lock
change.
SA
194B
M
After hours
When a resident is locked out of his/her residence after hours, the on-call
maintenance technician should assist the resident. The resident’s
occupancy must be verified with a photo ID before the resident enters the
apartment home.
Prior to changing the lock, you must have written permission from all
individuals whose names are on the lease.
Lock change requests should be considered as a priority service request and
should be completed quickly.
© 2014 National Apartment Association
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Management of Residential Issues
Resident Newsletter
31B
What is a
resident
newsletter
A resident newsletter is a publication that is put out by the management
company to provide helpful information to all residents in the community.
What the
newsletter
should
include
The newsletter should include:
Hints to
ensure a
professional
publication
Resident newsletters and notices are a reflection of management. Some
hints to ensure a professional publication are provided below.
Advertising in
newsletters
• Keep the newsletter fun and informative so that residents look forward to
receiving it.
• Address problems on a positive note. Don’t use the newsletter to
reprimand residents. If there are serious problems with residents
adhering to community policies, send a business letter from the
Community Manager rather than including it in the newsletter.
• Include a calendar of events. It does not have to be just the events within
the apartment community, but can include upcoming events in the local
community (i.e., concerts, craft shows, sporting events).
You may consider allowing advertising in the newsletter to help offset the
production costs. Some communities sell ads to local merchants. Local
merchants who do not want to purchase advertising space may consider
stuffing the newsletter with a company flyer for a predetermined fee.
SA
198B
a list of the staff members (names, positions and contact information)
a calendar of events
helpful tips (i.e., safety issues) , and
information about community issues.
E
197B
•
•
•
•
PL
196B
M
195B
© 2014 National Apartment Association
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Management of Residential Issues
Resident Activities
32B
The purpose of resident activities is to provide social functions for the
residents that will help residents get to know one another and to promote a
sense of community. Hopefully, another outcome of these activities is to
encourage people to renew their leases.
Types of
activities
These activities may range in scope from theme parties to trips to ball games
or cultural events.
Pre-plan the
activities
Pre-plan the activities so that they fit into your budgeted guidelines. Check
with the property insurance carrier if you plan an event, particularly if you are
serving alcohol during any event. They may require “Event Insurance”.
Promotion of
activities
The activities should be advertised in the Resident Newsletter and through
notices. This will promote attendance at the events.
Alcohol policy
Some companies do not allow alcohol to be served at resident social
functions. Others allow it, provided it is served by licensed personnel or by a
catering company.
20B
203B
Resident
activity ideas
204B
PL
201B
M
20B
E
Purpose of
resident
activities
19B
The following is a list of resident activity ideas that you may use to plan
events at your community.
Safety seminars (Fire, Self Defense)
Superbowl party
Morning Coffee “To Go”
Nutrition and Exercise Seminars
Tax Tips
Neighborhood Crime Watch
Makeovers
Valentines for the kids
Mardi Gras Masquerade party
Sporting Events
Blood Drive
SA
•
•
•
•
•
•
•
•
•
•
•
Continued on next page
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Management of Residential Issues
Resident Activities, Continued
•
•
•
•
•
•
•
•
•
Cooking Class
Coloring Contest
Spring BBQ
TGIF (Thank Goodness it’s Friday)
Egg Decorating Party
Car Wash
Bingo and Ice Cream
Wine tastings
Community Walk
SA
M
PL
E
Resident
activity ideas,
(continued)
© 2014 National Apartment Association
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Management of Residential Issues
Criminal Activity
3B
Policy on
crime
Most properties will experience some kind of criminal activity, usually
involving vandalism or noise complaints. All disturbances or incidents of
crime must be dealt with immediately. Send the message to residents and
guests that there is zero-tolerance for this behavior.
ResidentResident
disputes
Your responsibility
A resident’s disruptive behavior should not be tolerated. A community
manager may not know how to handle every situation and should never
hesitate to ask for guidance from supervisory staff, legal counsel or the local
law enforcement officials.
205B
E
206B
PL
What you can do
Address and arbitrate (if possible) disputes among residents without delay. If
management is aware of a potential danger to a resident or has been warned
about disturbing behavior, any of the following actions may be appropriate:
• Initiate eviction proceedings against the resident involved in criminal
activity. (Follow the policy in the lease if one exists for criminal activity.)
• Warn other residents. (The warning must be factual and as noninflammatory as possible.)
• Call the police.
SA
M
Respond quickly
Respond to complaints and concerns about residents quickly to manage
inappropriate behavior. If management has been made aware of potential
danger or discovered past criminal history and fails to react in a reasonable
and timely manner, a victim may have legal recourse for recovering
damages.
Domestic
violence
207B
Your responsibility
Noise complaints may be the first sign of domestic violence. Do not ignore
these incidents of family arguments that can be heard outside the residence.
Domestic violence is just as much a criminal activity as violence between
unrelated individuals. It can be just as dangerous as well.
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Criminal Activity, Continued
What you can do
Do not attempt to arbitrate in a domestic dispute. Call the police when there
is the threat of physical violence to anyone involved in the dispute. Enforce
the policies restricting noise and criminal activity and take appropriate
actions, including eviction. Consult local counsel for compliance with
applicable domestic violence victim protection laws and potential fair housing
implications in domestic violence cases.
Drug dealing
Your responsibility
Drug dealing is another area managers need to monitor within the residential
area. If drug dealing is not acted upon, it could cause many legal and
practical problems.
E
208B
Domestic
violence,
(continued)
PL
Managing resident activity carefully and preventing criminal activities are
among the top priorities of a manager. Make sure you include a clause in the
lease agreement that prohibits the use of and dealing of drugs or other illegal
activities. Promptly evict residents who do not adhere to this lease
requirement.
M
What you can do
Managers should know the warning signs of drug use and drug activity, and
train employees to spot drug activity and to identify drug paraphernalia when
in a resident’s home.
Warning signs for drug dealing activities include:
SA
• Increased traffic at a resident’s home, especially at night and on
weekends.
• Frequent traffic at very late hours.
• Frequent visitors with short or brief stays.
• Visitors who leave one person waiting in the car.
• Visitors who arrive with valuable objects, but leave without them.
• Residents and guests sitting in their cars for extended periods of time.
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Criminal Activity, Continued
Drug dealing,
(continued)
Warning signs of drug use or manufacture in a residence include:
If you or your staff suspects a resident or a guest is involved in criminal
activity, do not confront them. Contact local law enforcement officials and
explain the situation. They will instruct you on how to proceed. Consider
yourself a partner with the local police department; you have a responsibility
to report any suspicious behavior. However, do not confront the individuals
yourself.
PL
Seek help
from the
authorities
209B
E
• smoking paraphernalia including rolling papers, rolling tray, “roach clip,”
glass pipes
• syringes
• bags of white powder
• unusual amount of plastic baggies
• unusual number of baking soda boxes
• sophisticated weight scales or pocket-sized scale
• overwhelming scent of ammonia
• appearance of a laboratory including glass vials, bottles, jugs, flasks, and
• extremely bright or high-wattage light bulbs on all night.
M
Never hesitate to call 911 in an emergency. When calling be prepared to
explain:
the type of incident
whether it is still in progress
location of the incident, and
description of people and vehicles involved.
SA
•
•
•
•
© 2014 National Apartment Association
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Management of Residential Issues
Responding to Crime
34B
Document the
incident
210B
All criminal acts reported or witnessed by you, the staff or a resident should
be documented and kept on file. It is best to write all the details of the
incident as soon as possible while memories are still fresh. This would
identify vehicles, people (if known), location, witnesses, if any, etc. This
information can be critical to solving a crime or apprehending a criminal.
Follow company policies regarding incident reporting. See Risk Management
module for a sample Incident Report.
Step
1
2
3
4
Action
Contact the police (911) immediately.
Give the police as much information as possible and indicate if the
crime is currently in progress.
Go to the crime scene to await the police.
Determine whether the crime is serious and if the police need to
call for emergency medical attention.
If the resident is able, ask a staff member to complete an incident
report with the resident.
M
5
E
Follow the steps in the table below to respond to a crime when a resident
reports a crime to you or a staff member.
PL
Procedure
21B
SA
6
7
8
Note: If the resident is not able to complete the incident report at
the time, be sure to have a staff member go back and complete it
as soon as possible.
Keep onlookers away from the scene.
Determine the type of crime that was committed.
Use the table below to complete this step.
IF…
you see anyone tampering
with the crime scene
you do not see anyone
tampering with the crime
scene
9
10
THEN…
write a description of that
person and what he/she did.
go to the next step.
Try to find witnesses.
Cooperate with the police once they arrive.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Responding to Crime, Continued
Procedure, (continued)
Step
11
12
Company policies often require notice to all residents of criminal incidents at
the property. Consult your supervisor, company counsel, or Risk
Management department for the appropriateness of the notice and the
content of the letter to residents.
PL
E
Notifying
other
residents
21B
Action
Inspect the residence for damage and repairs after the police have
released control. Take photographs of all windows, doors and
property damage.
Suggest the resident make temporary living arrangements until
damage can be repaired.
SA
M
Reference: See the Toolbox for a sample of a Notice of Crime Incident letter.
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Community Files and Record Keeping
35B
Files to be
retained
Each community determines what files to hold and for how long. This topic
outlines some suggestions for record keeping.
File and
retention
guidelines
The table below shows the types of files you may maintain at the community
and the length of time to retain each file.
214B
Type of file
Active Lease files
Vendor files
Lock in a cabinet at night.
Five (5) years
Maintain a separate file for each
apartment for the life of the community.
PL
Inactive Lease files (“dead files”)
Service Request files
Retention guidelines
Ongoing
E
213B
Periodically clean out insignificant work
orders (loose drawers, doorknobs, etc.)
and return all major items and safety
items to the file.
Two (2) years
Incident report file
Year-End: All year-end reports
Five (5) years
M
Month-end reports
Financial statements
Also keep insurance certificates for two
(2) years.
Current year
Send old employee files or files for
terminated employees to Payroll. If
you have no corporate office, you must
hold files according to State and
Federal requirements.
Current and previous year
Monthly: Past 12 months
SA
Payroll files
Personnel files
Maintain a notebook of records by
month and year. Keep copies of all
resident notices of activity (criminal
activity, policy rule changes) in a
separate section of the notebook.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Community Files and Record Keeping, Continued
File and retention guidelines, (continued)
Type of file
Detailed Unit Status Report/Guest
cards
Data Backup Diskettes
Retention guidelines
A minimum of three (3), preferably four
(4) years
Daily Backup: One (1) week
Month-end financial reports: Current
year
Data
destruction
rules
E
After a resident has moved and the security deposit has been refunded, the
resident file should be placed in “dead files”. These files should be arranged
in a logical order (typically alphabetically, by year) and kept separate from
active files.
There are rules regarding data destruction that apply to resident files. These
guidelines describe the ways in which the files may be destroyed.
SA
216B
A minimum of three (3), preferably four
(4) years
M
Dead files
215B
Keep in a fire-safe storage area.
A minimum of three (3), preferably four
(4) years from date of request
PL
Fair Housing/ADA
Modifications/Accommodation
Request file
Denied applications
© 2014 National Apartment Association
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Management of Residential Issues
Rent Collection
36B
Rent
collection
policies and
procedures
Rent is the largest source of income for an apartment community so
collection is one of the most important tasks of a community manager.
Due dates
Timely rent payment must be enforced in order to cover the operating costs
of the community. The rent is considered paid if it is received in any form in
the appropriate office by the designated date. For most communities, the
total monthly rent is due on the first day of each month. After the first day,
rent is late.
Discounts
Some apartment communities choose to use a discount program as an
incentive to encourage residents to pay early. Residents who pay their rent
early receive a discount. In reality, however, discounted rent paid early
reduces your total rent collection.
Late fees
Late fees are not typically charged until the morning of the 4th, 5th or 6th,
depending on company policy and the late fee provision in the lease.
217B
219B
M
20B
PL
E
218B
Most companies have rent collection policies and procedures written in the
company Operations Manuals. The terms and conditions of rent collection
are also written into the lease agreement.
Current software programs can automatically charge daily late fees.
SA
Late fees should be written into the lease agreement. Make sure your late
fee policy complies with all state and local regulations. Exorbitant fees may
be challenged in court and could be found unreasonable.
Delinquency
report
21B
As a manager, you will be held responsible for the delinquency report
submitted each month. In addition, the amount and frequency of rent
delinquencies is likely to be reflected in your performance evaluation.
The delinquency report lists residents who are in arrears, the amount each
resident owes and the action taken to collect outstanding rents. It is common
practice to prepare a delinquency report several times each month.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Rent Collection, Continued
Rent roll
2B
A rent roll is a comprehensive record of occupancy and rent collection
activity. For the current period, it should include:
•
•
•
•
•
the apartment number
move-in date
lease expiration date
rental rate, and
amount collected.
In order to keep delinquencies to a minimum, aggressive measures are
necessary. These may include:
PL
Ways to
combat
delinquency
23B
E
It is important to maintain an accurate rent roll as it can be used to prepare
other reports.
SA
M
• Late rent notices. Late rent notices can be sent to every delinquent
account on a particular day of each month. This should be specified in
the lease. Many current software programs can calculate the late fees
and generate these letters.
• No concession. If there was a rent concession, do not allow the
concession for the month in which the payment was late. This should be
specified in the lease.
• Eviction notices. Eviction notices can be filed on a particular day of the
month. Acting promptly ensures that the balance does not continue to
grow. It often takes 30-60 days, if not longer, to get the delinquent
resident out. A promise to pay should not stop the process. When
payment as promised is received, the eviction proceedings can be
stopped. This procedure will minimize the amount of time a delinquent
resident may remain in residency. Accept only money orders or
cashier’s checks once the eviction has been filed.
• Payment in full. Require that rent and all other balances be paid in full. If
the resident fails to do so, post the payment first to other charges and
balances, then to the rent. This should hopefully create a sense of
urgency in the resident to avoid additional late fees which accrue on
unpaid rent balances. Check any state or local laws that impact
compliance.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Rent Collection, Continued
Three (3) keys
to ensuring
rent is paid on
time
Three (3) keys to ensuring that residents pay their rent on time:
Methods of
payment
Most leases specify what forms of payment are accepted. Generally
accepted forms of payment include:
•
•
•
•
•
•
personal checks
money orders
certified checks
cashier checks
electronic payments
credit card
E
25B
• Be persistent – Remind residents that their payment is late.
• Be consistent – Rent collecting is of utmost importance to community
managers. Follow your written policy in the same way month after
month, year after year.
• Be firm – Do not make exceptions.
PL
24B
M
Electronic forms of payment are becoming more widely used and accepted.
With electronic payments, rent is electronically transferred from the resident’s
bank account to the community’s account. This method ensures rent
payments are received when due (if there are sufficient funds in the account)
and involves minimal administrative work.
Some companies are allowing credit card payments as well.
As a safety precaution, most companies do not allow the payment of rent
with cash. Some leases specifically prohibit receipt of cash. Yet some state
and local laws require that cash is legal tender and must be accepted. You
should know the law and the property lease.
SA
Cash
26B
All employees should be aware of such a policy and should be held
accountable for accepting cash. Many communities have signs in the
business/leasing office that say “Please understand, we are unable to accept
cash in the office.”
Continued on next page
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Management of Residential Issues
Rent Collection, Continued
Checks
27B
When residents pay with checks, rent payments may be slightly more difficult
to manage. Checks should be considered conditional payments because the
check may be returned from the bank for any of the following reasons:
insufficient funds
improper endorsement
account closed
drawn against uncollected funds
unauthorized or no signature, or
stop payment.
E
•
•
•
•
•
•
Returned
checks
Fees
If a check for rent is returned for any reason, the resident’s rent is considered
to be unpaid and delinquent. Late charges may be imposed, and the
resident is responsible for any additional bank costs. In most states, you are
permitted by law to charge a returned check fee. Returned check fees
should be stated in your lease agreement.
M
28B
PL
Several national property management software programs have checkscanning programs that will interface directly with the resident’s file and
eliminate the “posting” process. Check scanning programs eliminate some of
the delay of returned checks and can speed collection.
SA
Collection
When a check is returned, it is imperative to take immediate action to collect
the rent and other fees.
• Attempt to contact the resident directly, either in person or by telephone.
• Notify the resident that the check has been returned and what additional
costs the resident now owes.
• Ask the resident to bring in the total amount of the rent and fees in the
form of either a money order or cashier’s check within a specified
amount of time, usually 48 hours.
Notes:
o Some companies do not allow re-depositing the checks.
o Often, residents who write checks with insufficient funds (NSF) are
required to make future payments only with cashier’s checks or
money orders.
Continued on next page
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Management of Residential Issues
Rent Collection, Continued
Returned
checks,
(continued)
Collection
after a moveout
To continue collecting all money owed to the property, most companies
pursue immediate collection efforts against former residents. Money owed
can include unit rent and other fees (pet, garage/carport, late, insufficient
funds, etc.). Some companies use in-house collection departments, while
others use third-party collection agencies. Although previous delinquency
may be “written off” on the computer, continuing to pursue the collection is
normally standard procedure for apartment management companies.
SA
M
PL
E
29B
• Inform the resident that if the total amount is not received in an accepted
form within the specified amount of time then eviction proceedings will
begin.
• Follow up the contact with a letter stating the same information.
© 2014 National Apartment Association
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Management of Residential Issues
Rent Increases
37B
What rent
increases are
used for
230B
Rents and other revenue are intended to produce enough income to cover
operating costs and return a profit to the owner. Rent increases help:
cover rising costs
recover losses
add amenities
make repairs
upgrade the property
increase the value of the property, and
meet owner objectives.
E
•
•
•
•
•
•
•
PL
However, rent increases can create anxious and frustrating experiences with
residents.
Employee
awareness
Make sure that all employees are aware of rent increases, and that they
refrain from negative comments, especially when speaking with residents.
Techniques to
use when
raising rents
Because the issue of rent increases can be a touchy subject with residents, it
is important to handle the situation appropriately. The following techniques
will aid you in the process of raising rent.
231B
M
23B
SA
• Be prepared to justify the rent increase. It is important to show that rent
has increased over the years to:
o maintain the property
o pay increasing costs including wages, supplies, and utilities
o add amenities, and
o keep up with a competitive market.
• Learn to use ways of requesting rent increases from residents. It is
extremely important that you are thoughtful and considerate of residents.
Make sure that you use positive words when changing rent rates for your
residents.
• Inform the residents of the high costs of moving such as:
o security deposits
o utility transfer fees
o truck/van rental, and
o time from work.
Continued on next page
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Rent Increases, Continued
Additional
information
See the Financial Management Reference Guide for a more detailed
discussion of rent change strategies.
SA
M
PL
23B
• Show your appreciation to residents who renew. Consider giving them
incentives to stay. This can mean anything from a free carpet cleaning to
painting a room.
• Always be prepared for angry residents. Be polite, understanding,
positive and persistent.
• Give residents plenty of notice. The number of days’ notice depends on
the terms of the lease, but give enough notice that they do not feel
pressured into making a decision.
E
Techniques to
use when
raising rents,
(continued)
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Management of Residential Issues
Move-Out Notice
38B
When notice
must be
provided
234B
Residents must provide written notice of their intent to terminate their lease
agreement 30-60 days prior to move-out. The Lease Agreement will specify
the time required for the written notice. Some companies require a notice of
intent to vacate be completed on a company document.
Be sure to determine the real reason the resident is moving. Is there
something that can be done to save the lease? The staff should be trained
on counseling with residents who are considering a move. The cost to move
usually far exceeds a small rental increase.
Explain moveout
procedures
Explain the procedures for move-out to the resident. Provide a list of
charges for damages to the premises if the resident does not clean the unit
or repair damages prior to move-out. Make the resident aware of any
outstanding charges or fees that they will be responsible for prior to moveout.
What to do
when notice
is provided
236B
When a resident provides you with notice:
• ensure that everyone on the lease has signed the move-out notice form
• write the time that the notice to vacate was received on the document
• tell the resident that until all keys are returned, they are not considered to
have fully turned the premises back over to management, so rent will be
charged until all keys have been returned, and
• obtain a forwarding address where a statement of their security deposit
account as well as any refund due can be sent
SA
237B
PL
235B
E
Try to save
the lease
M
Reference: See the Toolbox for a sample of a Notice of Resident Intent to
Terminate (Vacate).
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Move-Out Notice
38B
Send a moveout letter
Upon receipt of a notice to vacate, send the resident a letter thanking him/her
for their residency and advising of requirements upon move-out. This letter
explains to the resident how you expect the residence to be vacated. It
explains inspection procedures, lists the legal deductions the community
manager can take and tells the resident when and how any refund due will
be returned.
Points to include in the move-out letter:
SA
M
PL
E
• an explanation of any balances owed such as unpaid rent or late rent
fees
• specific cleaning requirements such as holes left from pictures, drapes,
fleas from pets, etc.
• a reminder that fixtures the resident has permanently attached to the wall
must be left in place
• final inspection details (how and when)
a request for forwarding address information, and
• state law information that allows the owner to keep the deposit if the
resident does not provide a forwarding address within a certain period of
time.
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Move-Out Inspection
39B
Schedule an
appointment
239B
After you receive all keys from the residents, the apartment should be
inspected. A complete walk through will reveal any deductions that should
be taken from the security deposit that is held on the apartment.
A combined move-in/move-out checklist is frequently used to record the
condition of a residence before a resident moves in. Both the community
manager and the resident sign this checklist. It is then filed away until the
resident moves out.
PL
Move-out
checklist
240B
E
Make every effort to schedule an appointment with the resident to complete
the move-out inspection. Some states including Arizona, Maryland, and
Virginia require that the final inspection be performed with the resident
present. This is preferable in all cases, and helps ease any uncertainty
concerning the deductions giving the resident a chance to present his/her
point of view.
During the final inspection, the checklist is used to determine what changes
have occurred in the condition of the residence during the resident’s
occupancy.
When inspecting the apartment, look for the following:
M
What to look
for
241B
SA
• Cleaning. The apartment should be cleaned prior to move-out, including
all:
o floors
o tubs
o sinks
o appliances, and
o fireplaces.
• Carpets should be vacuumed, and trash should be removed.
• Damages. There should be no damages to the vinyl floor, carpet,
sheetrock or wallpaper, other than items noted upon move-in as
preexisting damages on the move-in checklist.
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Move-Out Inspection, Continued
Document the
damage
Photographs or videotape should be taken of the residence before and after
occupancy to make comparisons and for visual proof. Inspection notes,
photos, tapes and other related records should be kept according to state
law. In most states, residents have up to four years to sue over security
deposit issues but rarely do so after a year.
PL
24B
• Equipment. Be sure all equipment provided in the unit is accounted for,
including items such as:
o fireplace key
o fireplace grate
o fire extinguisher
o sink stopper
o broiler pans, and
o shower rods.
E
What to look
for,
(continued)
SA
M
Continued on next page
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Move-Out Inspection, Continued
Handling
items left
behind in an
apartment
243B
When walking an apartment after a resident moves out, do not remove any
items from the apartment that were left behind. Some company policies do
not allow employees to remove items without a resident’s permission.
Follow the steps in the table below to handle items left in an apartment.
Step
1
2
Action
Immediately contact the resident.
Use the table below to complete this step.
THEN…
ask the resident to fax
permission to throw away the
items, and
throw away the items once the
fax has been received.
take photographs of the items
place a tag on the bag so that
the items can quickly be
identified, and
store the items until the resident
can return for them.
take photographs of the items
make an inventory list of each
item
place the item(s) in a bag, and
send the resident a letter to
notify him or her that we are
storing the item(s) and will hold
them up to 30 days.
E
IF…
the resident tells you the
items are trash
•
PL
•
the resident tells you he
or she wants to return for
the items
•
•
•
SA
M
you cannot reach the
resident
© 2014 National Apartment Association
•
•
•
•
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Move-Out Inspection, Continued
Handling items left behind in an apartment, (continued)
Step
3
Action
Use the table below to complete this step.
THEN…
• store the items until the resident
an return for them, or
• throw the item(s) out if the
resident says it is trash and
faxes you permission.
• send another letter 30 days after
the move-out to let the resident
know the item(s) will be thrown
away.
E
IF the resident…
responds to the letter
Notes:
• Allow the resident a week to
contact the office prior to
actually throwing the item(s)
away.
• If the property is not claimed
and attempts to contact the
resident have failed, the items
may be thrown out, donated to
charity or sold.
SA
M
PL
does not respond to the
letter
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Security Deposit Disposition
40B
Applying the
security
deposit to the
last month’s
rent
24B
Applying the security deposit to the last month’s rent can be a problem since
the condition in which the resident will leave the residence is unknown, and
market conditions do not always allow the amount of the security deposit to
be the same as a full month’s rent.
E
If the security deposit is used as payment for the last month’s rent, and the
residence is left damaged, there will be no money to use on repairs or
cleaning. The cost of the repairs will have to be absorbed or the resident will
have to be sued. The best policy is to not allow the security deposit to be
used for the last month’s rent. This should be in the lease agreement.
PL
When a resident wants to use a security deposit for last month’s rent, the
resident’s non-payment or partial payment of the last month’s rent can be
treated as a case of rent non-payment like any other month. When this
occurs, the community manager prepares and serves notice to pay rent or
quit. If the resident doesn’t pay upon receipt of this notice the appropriate
legal steps should follow.
Reference: See the Toolbox for a sample Notice of Resident Intent to
Terminate (Vacate).
SA
M
Continued on next page
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Security Deposit Disposition, Continued
Basic rules
for returning
deposits
246B
The community manager is allowed to deduct from the security deposit
whatever amount is needed to fix damages or restore unpaid rent. Many
states have guidelines concerning this procedure. These guidelines vary
from state to state, but usually give 30 to 45 days after the resident leaves to
return the security deposit.
E
State security deposit statutes require the manager to send the resident’s
entire deposit or a written itemized account describing how the deposit was
used for back rent, cleaning or damage repair. This is sent to the resident’s
last known forwarding address.
Deductions
for cleaning
and damage
247B
PL
Promptly returning the security deposit with an itemized list of deductions and
why they are necessary helps avoid future disputes with a resident. If there
is no money to refund, an itemized list must still be sent.
Disputes about the security deposit usually center on the deductions for
cleaning and repairing the residence. Charges may be assessed for any
cleaning or repairs necessary to make the residence available to rent.
However, you should not deduct for the cost of ordinary wear and tear.
M
Reasonable deductions
Cleaning and repairs such as replacing stained or ripped carpets and drapes,
fixing damaged furniture, cleaning excessively dirty kitchens and appliances,
cleaning bathrooms or eliminating flea infestations. The question comes
down to what is wear and tear versus what is the resident’s responsibility.
The general rules to follow are:
SA
• Do not charge for conditions present at move in.
• Do not charge for replacing an item when it can be repaired.
• Consider the length of the resident’s occupancy. It is difficult to collect for
cleaning carpets, drapes and repainting walls when the resident has
lived in the residence for more than one year.
• Do not charge for cleaning if the resident paid a nonrefundable cleaning
fee when he or she moved in.
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Security Deposit Disposition, Continued
• Charge fair prices for repairs and replacements. Security deposits should
not be considered a source of revenue. Remember that much of our
business depends on word-of-mouth referrals, and if the resident is
upset it could potentially affect a positive referral.
• All charges deducted should have proper documentation, such as photos
and repair receipts.
Deductions
for cleaning
and damage,
(continued)
Painting
Painting, carpets and fixtures are also common areas of disagreement
between residents and owners. The general rule is that if a resident has
lived in the residence for less than a year, and the walls were freshly painted
at that time, then the resident may be charged for the cost of cleaning or
painting the walls. If the resident has lived in the residence for more than
one year then the residence should be painted at the community’s expense.
PL
E
301B
Rugs and carpets
If the carpet was new when the resident moved in then becomes stained and
worn within months, it has been subjected to more than normal wear and tear
and the resident may be charged for replacement. If the carpet was already
worn at move in, and looks worse when the resident moves out, then that
may be attributed to normal wear and the resident should not be charged for
its replacement.
SA
M
Fixtures
Furniture, fixtures or equipment that a resident physically attaches to the
apartment are considered the property of the community. Residents are not
allowed to remove these items when they move out. To avoid these
problems, lease and rental agreements usually state that the resident is not
allowed to make any changes to the residence without management consent.
Examples of such fixtures include closet organizers, bookshelves or installed
light fixtures.
Deductions
for unpaid
rent
248B
Unpaid rent and utility charges can be deducted from a residents’ security
deposit. The following are common reasons for deductions from deposit.
Unpaid rent
When resident is behind on rent the community manager can deduct what is
owed from the security deposit at the time the resident moves out. Using the
deposit for unpaid rent during the tenancy is not recommended since there
are other collection methods available while the resident dwells in the
apartment home.
Continued on next page
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Security Deposit Disposition, Continued
Deductions
for unpaid
rent,
(continued)
Extended stay
The resident stays after the move out date. The rent can be prorated for the
number of days the resident stayed and deducted from the security deposit.
E
Inadequate notice
Notice of less than 30 or 60 days, depending on the notice requirements in
the lease, may require the resident to pay the full amount of rent for the
balance of the notice period. If the apartment is re-rented during the notice
period, most states will not allow charging the old resident for the period of
occupancy by the new resident.
PL
Fixed-term lease
If the resident moves before this type of lease has expired, the community
may legally be entitled to the balance of the rent due under the lease, less
any rent received for that period by the new residents. A termination fee
(“buying out the lease”) may be allowed by the lease agreement, but such a
lease agreement should be approved by company counsel and comply with
local and state law.
M
Evictions
In many states, a money judgment will be issued after a court eviction, and
the resident is ordered to pay rent through the date of the judgment. This
allows the community manager to subtract from the security deposit the
amount of the judgment and prorated rent from the date of the judgment to
the time the resident actually leaves.
SA
Deductions for damages and cleaning should be taken out of the security
deposit first before anything else is deducted. The money entitled the
community in the judgment can be collected through garnishing the
resident’s paycheck in some states and other means, but damages and
cleaning costs can sometimes only be received through the security deposit
unless a separate court action is taken to collect them.
Timeframe for
return
249B
Security deposit refunds should be processed in a timely manner – within 5 –
10 days of move-out – so that state law requirements are met.
Most states require security deposit refunds or an explanation of charges
against the deposit within 21 – 45 days. Some states require even earlier
notice if any portion of the security deposit is being held.
Continued on next page
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Security Deposit Disposition, Continued
Interest on
security
deposits
250B
State law will determine if you are required to deposit the security deposit
into an interest bearing account, and refund the resident the deposit (minus
cleaning costs) plus interest.
Also, localities may also require interest if the state does not.
SA
M
•
PL
E
Here is a list of states that, as of 2009, require interest be paid on security
deposits.
• CT
• DC
• IL (to owners with 25 or more units)
• MD
• MA
• MN
• NH
• NJ
• NM
• NY state
• ND
• OH
• PA
• VA
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Management of Residential Issues
Lease Renewal
41B
When to
begin thinking
about
renewals
251B
To retain occupancy levels and reduce administrative, operating and leasing
costs, the manager should take a very pro-active approach to lease
renewals.
Approximately 120 days in advance of the lease expiration, review upcoming
renewal opportunities.
Various software programs will allow the property to see:
what leases are expiring
how long the resident has lived at the property,
what the current market value of the apartment is, and
what the current lease rate is.
PL
•
•
•
•
E
How software
can help
25B
These numbers help a great deal as the manager begins to prepare rental
renewal letters.
Determining
rent increases
Most companies have policies about how rent increases are passed on to
current residents and what types of lease renewal packages can be offered.
In any market, the value of a current resident is significant. The cost in
turnover of losing that resident can make a significant impact on your
property’s performance.
SA
253B
M
Reference: Sample manual reports have been included for you. See the
Toolbox for the sample Lease and Renewal Listing and Apartments Available
to Lease Report.
Rental increases should reflect market conditions and the property budget.
Evaluate the resident’s current rent to determine the net effective rent (the
rent actually being paid after concessions, if any.)
Example: A lease that has an $800 per month rent with one month free is an
effective rent of $733 per month (800 ÷ 12 = $67 per month off the rent).
© 2014 National Apartment Association
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Lease Renewal, Continued
Other factors
to consider
254B
Other factors to consider include:
•
•
•
•
current market rent on the resident’s unit
current occupancy on that unit type
the difference between market rent and effective rent
the size of a potential increase in percentage (3%) and absolute dollar
terms (e.g., $25 per month).
Residents should be reminded of their lease expiration date and invited to
renew their lease in writing at least 90 days in advance of the lease
expiration date.
PL
Send a
renewal
invitation
letter
25B
E
Rents at the property’s closest competitors must also enter into renewal
pricing considerations.
Written notification of a rent increase is in the lease and may be required by
law, so this information needs to be included in the letter as well.
Customer
service
opportunity
While a written letter is provided to the resident, lease renewal time offers an
opportunity to personally contact a resident about renewing a lease,
particularly if there will be a rent increase. This is a good opportunity to
reinforce friendly relationships, resolve problems, and perhaps change a
resident’s mind about moving out.
SA
256B
M
Residents may not be thinking about renewal this far in advance, but due to
the 60-day notice requirement, it is important to work with residents this
early.
Follow up
quickly
257B
Be sure to follow up quickly and actively work at your lease renewals. A
follow-up call should be made within five (5) days of the mailing of the letter
to answer any questions that the resident may have regarding their renewal.
© 2014 National Apartment Association
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Management of Residential Issues
Lease Renewal, Continued
Be prepared
for objections
258B
Be prepared to handle objections. Know the facts on the cost of moving. The
cost of moving can far exceed the cost of an increase in rent. Educate the
resident about moving costs such as:
• new deposits
• moving and/or storage costs, and
• address changes.
65 days prior to lease expiration
Send a lease renewal letter to any residents who have not yet committed to
renewing their lease 65 days prior to the lease expiration date. This letter
should outline the rate and lease term options.
E
Suggestions
for handling
uncommitted
residents
259B
PL
30 – 60 days prior to lease expiration
Call any resident who has not committed to lease renewal, or given notice,
30-60 days before the lease expiration date.
M
30 days prior to lease expiration
If you still have not received a commitment from a resident 30 days prior to
the lease expiration, send a new lease agreement to the resident’s
apartment. Call the resident to follow up and confirm either the renewal or
the notice to move.
SA
5 days prior to lease expiration
Five (5) days prior to the lease expiration, send a Month-to-Month renewal
letter to the resident.
Non-renewals
260B
The resident or the apartment management may determine that the lease will
not be renewed.
Reference: See the topic “Lease Termination” in this chapter for information
about handling non-renewals.
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Lease Termination
42B
Legal reasons
to terminate a
lease
261B
You are not required to renew the lease of every resident. If the resident’s
occupancy has been problematic, you can refuse to renew the lease.
E
• Violation of rental agreement terms such as:
o Non-payment of rent.
o Keeping a pet in violation of a no-pets clause.
o The addition of an unauthorized resident.
o Subleasing or assigning without permission.
o Misuse/illegal use of premises.
• Providing false information on the rental application or lease.
If at any point you do not want to renew a resident’s lease, send a nonrenewal letter stating the reasons for this action although some states do not
require a reason.
Holdovers
Some residents do not move out when their lease has expired. Residents
who do not leave at the expiration of their lease term are called “holdovers.”
263B
PL
When you do
not want to
renew a lease
26B
There are three (3) possible ways you can deal with holdovers:
SA
M
• Renew the resident under the terms of the previous lease.
• File court papers for possession of the apartment.
• Offer the resident a shorter term or month-to-month lease. Some
companies have policies limiting the number of month-to-month leases
as a percentage of the total number of units on the property.
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Evictions
43B
Be aware of
legal
guidelines
264B
It cannot be emphasized enough that it is the responsibility of each
community manager to investigate, understand and uphold the statutes of
law that apply to their individual states as well as applicable federal or local
laws such as rent control or “just cause” ordinances.
Look to your state and local apartment association for valuable resources on
legal guidelines. Many offer a packet of information for your community’s
use. If you are unsure about any actions, confer with legal counsel first.
Regardless of the cause, residents have the legal right to an appropriate
notice of eviction. That means you must provide the resident with the proper
legal of notice and reason for the eviction.
E
Eviction
notices
265B
PL
Reference: See the Toolbox for a sample Eviction Notice.
M
A month-to-month lease may be terminated by simply giving the proper
amount of notice (usually 30 days but this varies by state). In this case, a
reason is typically not required. However, if a resident has violated the lease
agreement and you want them out sooner, you must provide the appropriate
notice depending on the reason you want to terminate the lease. Because
the laws vary by state, be sure you are familiar with the types of notices
required in your state. It is recommended that you consult an attorney in this
case.
The three (3) types of eviction notices that are common among most states
are:
SA
• Pay rent or quit notice
• Cure or quit notice, and
• Unconditional quit notice.
Pay rent or
quit notice
This notice is used when the resident has not paid rent. It gives the resident
a fixed period of time within which to pay rent (usually three to five days but
this varies by state) or move out.
Cure or quit
notice
This notice is used when a resident is in violation of a certain condition of the
lease. For instance, if a resident has a pet when the lease clearly states “no
pets,” then you may issue a cure or quit notice informing the resident that he
has a set period of time in which to correct the violation or face eviction.
26B
267B
Continued on next page
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Evictions, Continued
Unconditional
quit notices
268B
This is used to inform the resident that she/he must vacate the premises
without an opportunity to pay rent or correct any violation. This, the harshest
notice, is only allowed in most states when the resident has repeatedly:
Steps to an
eviction
An eviction can be a difficult process. The first step is to provide the resident
with the appropriate notice. But occasionally, a resident may not comply with
the notice. In this case, there are steps you can take to pursue a legal
eviction.
PL
269B
violated a lease condition
been frequently late with the rent
seriously damaged the premises
engaged in illegal activity, and/or
presents an immediate danger to the property or other residents.
E
•
•
•
•
•
M
• File a complaint with the court, listing the facts justifying the eviction.
• Gather evidence in the form of photographs, letters and documents.
• In some states, the resident then files an Answer document which will
likely either dispute your claims or offer “good legal reasons” for the
violations.
• Many cases are resolved before going to trial. However, if the resident
remains on the premises and you were unable to negotiate a settlement,
the case would then go to a hearing or trial.
• A judge typically decides the eviction lawsuit immediately after hearing a
case.
SA
Even when you win an eviction lawsuit, you still cannot move a resident’s
belongings outside. Instead, you must give the judgment to local law
enforcement officials. They will give the resident notice of physical removal if
he remains on the premises after a given period of time (usually a couple of
days).
Illegal “selfhelp”
evictions
270B
Because legal evictions take time, some owners may be tempted to take
matters into their own hands to encourage a resident to move out more
quickly. For example, you might want to change the locks, have essential
utilities turned off or even threaten the resident in an attempt to get him to
leave.
Continued on next page
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Evictions, Continued
Illegal “selfhelp”
evictions,
(continued)
In some states, these acts are illegal and leave you open to a lawsuit. If a
resident sues you over a “self-help” eviction, the fact that the resident did not
pay rent or damaged your facilities is not an excuse. You will likely lose the
suit and end up spending more on fines than you would have if you had
pursued a legal lawsuit in the first place. In some states, you can even face
criminal prosecution such as Connecticut, where you can be charged with a
misdemeanor.
SA
M
PL
E
Reference: See the Legal Aspects & Responsibilities Reference Guide for
additional information.
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Chapter 3: Property Management Systems
3B
Chapter Overview
4B
In this chapter
271B
The table below lists the topics in this chapter.
See Page
3-2
3-3
3-11
3-12
SA
M
PL
E
Topic
Advantages
Types of Property Management Systems
Types of Technology for Residents
Property Management Software Support
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Advantages
45B
The purpose of computerizing your property operations is to speed up
property management processes so personnel can focus on leasing and
resident service and retention.
Real-time
reporting
Apartment managers have instantaneous access to relevant information
about their properties and markets.
Site level
information
Using technology, property managers have access to site-level information
such as:
273B
274B
E
How can
technology
help CAMs
27B
Portfolio level
(consolidated)
275B
PL
• reports, including accounts receivable, leasing, occupancy,
management, resident retention, and prospect management
• customized views
• customized reports, and
• data history.
Portfolio level information:
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M
• provides instantaneous access to highly relevant information from all the
properties in a portfolio or within the entire company, and
• consolidates data from property management operations with marketing,
accounting, and financial back-office systems.
© 2014 National Apartment Association
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Management of Residential Issues
Types of Property Management Systems
46B
•
•
•
•
•
•
•
Billing
management
services
27B
leasing
occupancy
screening
rent collection
facilities maintenance
accounting, and
purchasing.
E
Web-based, browser-based or Windows-based property management
software provides a centralized location for data where apartment managers,
as well as corporate personnel, can instantly access information on:
Billing management can be handled at the site level. Property management
companies can bill and collect for utility services (for example, water and
trash services) not paid directly to the provider by the resident.
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Property
management
276B
Improving the bottom line
Billing management services can help improve the bottom line by:
recapturing income lost through inefficient billing practices
reducing energy/water consumption
eliminating substandard meters that cost money
reducing billing costs with the simplicity of an “all-in-one” bill, and
getting payments to properties faster.
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•
•
•
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Improving resident service
Billing management services can help improve resident service by:
• combining all resident charges on a single, convergent bill
• recapturing the hours that staff now spends on billing, collections, and
move-outs
• maximizing and accelerating resident utility collections, and
• sending monthly messages to residents.
Built-in utility charge calculations
Billing management services offer built-in utility charge calculations, such as:
• RUBS (Ratio Utility Billing System) water and energy charges
• sub-metered or allocated water and energy meter-reading and charge
calculations
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Types of Property Management Systems, Continued
Billing
management
services,
(continued)
Revenue/Yield
management
Yield/revenue management systems use detailed past and present data to
forecast key variables like supply, demand, and economics to make pricing
decisions based on current and future market conditions. Software can offer
optimal terms for any possible unit, lease term and move-in date allowing
flexible terms that work best for both the community and the resident.
Computers evaluate every data point to make pricing decisions and
calculate ideal rent by managing the weight of each data point rather than
by intuition or perception. Human error and/or possible fair housing
violations are minimized and staff can focus more on customer service.
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E
278B
• other utility fees (for example, trash pickup), and
• vacant unit cost recovery for electric service.
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Factors analyzed:
• unit availability
• competitive influences
• current and historical lease activity
• move in dates
• current market dynamics
• lease duration
• projected demand
• how long units have been available
• likelihood of resident renewal
• possibility of economic strengthening or continued decline
Make ready
and
maintenance
management
279B
Apartment managers have instant access to information, allowing sites to
speed up the process of servicing resident requests, expediting the makeready process, and regularly scheduling routine preventive maintenance to
keep properties running in top form.
Mobile work orders/Pocket PCs
Equipping maintenance staff with Pocket PC devices that store daily service
requests helps them stay in the field more and in the office less. This
equates to higher technician efficiency and utilization, and more importantly,
satisfied residents because issues are responded to in a more timely
manner.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Types of Property Management Systems, Continued
Make ready
and
maintenance
management,
(continued)
Maintenance analysis reports
Instant access to maintenance reports helps management know which
maintenance technicians are performing at the highest efficiency and are the
most utilized. The reports also identify other personnel that may
need additional training in certain maintenance areas, based on their service
request completion times or rework percentages.
The Internet has become the number one resource for marketing and
advertising the community. As more people go online for information about
apartment communities, it’s a necessity for properties to have a presence on
the Web.
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Community
Web pages
280B
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Spanish capability
Providing a Spanish version of mobile service requests allows Spanishspeaking maintenance staff to perform their jobs with comfort and ease. It
allows them to use their primary language to perform their jobs
and minimizes the communication gap of having site management translate
everything or train them in how to use the application.
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Standard components
The Web site should be simple, functional, and easy to use. Not all
computers have the software programs to run the “sizzle” that some Web
designers may want to provide. Avoid trying to provide too much.
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A basic Web site for a community should include:
• templates and color schemes that brand the property
• unit level rents and availability information
• lists of amenities
• photographs
• floor plan images
• site plans
• maps with directions
• guest cards, and
• links to Internet Listing Services.
© 2014 National Apartment Association
Continued on next page
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Management of Residential Issues
Types of Property Management Systems, Continued
Community
Web pages,
(continued)
Advanced features
An increasing number of apartment communities have advanced features
such as:
Resident
portal
A resident portal can make residents feel as if they are truly a part of the
community—a big factor in retaining them. Residents have choices and
these tools can provide improved service satisfaction. Resident portals free
onsite personnel from some cumbersome paperwork, increase resident
retention, and give prospective residents, another avenue to your community.
The resident portal can be used to:
• create an online service request as well as check on its status
• make an online rent payment
• post newsletters
• post announcements
• post policies, and
• allow residents to reserve rooms/facilities.
• Communicate on line
Online leasing
reservations
Using the Internet, potential residents can access the following functions to
reserve apartments online.
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28B
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PL
281B
real time pricing and availability
online leasing
online rent payment, and
online service requests.
Video tours of the community
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•
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•
•
•
• Fill out a guest card online with the prospective resident’s preferences,
such as move-in date, price range, number of occupants, and number of
bedrooms.
• Identify an available unit with the right amenities, price and lease terms
• Complete the lease application.
• View special offers at the point of lease and pay application fees.
• Submit a credit application for processing. When it has been completed,
the electronic information can be processed through a screening vendor.
Once the prospect has passed the screening requirements, all that is left to
do is sign the lease, pay the necessary deposits and fees, and pick up the
keys.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Types of Property Management Systems, Continued
Call center
283B
Calls to the leasing office, whether resident service requests or prospect
inquiries, may be handled by the on-site leasing staff. Surveys indicate that
more than 30% of phone calls are missed because the staff was just too
busy to answer the calls – or the call came in after business hours. Other
survey results indicated that the leasing professional asked for an
appointment with only 61% of qualified callers and only 23% resulted in a
specific appointment.
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A call center, staffed by highly trained apartment leasing professionals who
receive on going training for their job responsibilities, can provide critical
backup to on-site leasing professionals. A call center:
The “Professional Apartment Management” newsletter suggests that you ask
the following questions before hiring a call center.
• What training do call center employees receive and what experience do
they have?
• How are call center employees paid? Do they receive straight salary or
are incentives available?
• What monitoring systems are in place to track employee performance at
the call centers?
• Is the call center able to answer e-mail inquiries and in a timely manner?
• Does the call center have the capability to provide guest card information
to your community’s property management software? Can it send the
information to your leasing office electronically?
• Are all phone calls into the call center recorded and available for review?
• Can various advertising methods used to drive traffic be tracked and
reported using individual toll-free numbers?
• How will the call center go about learning information about your
community so that the same quality of information available onsite is part
of their knowledge?
• Does the call center have the interface capability with your property
management software to get current, real time availability information.
• Do call center employees receive fair housing training?
Continued on next page
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Questions to
ask before
hiring a call
center
284B
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• works as an extension to your existing leasing staff
• creates the impression for a prospect that the call was answered directly
by a leasing professional in the community’s leasing office
• helps capture prospective leads and converts more of those into leases,
and
• schedules appointments for the prospect to visit the community.
© 2014 National Apartment Association
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Management of Residential Issues
Types of Property Management Systems, Continued
Purchasing
285B
Apartment managers can enter purchase orders, manage them against
budget approved invoices at the site, and associate those invoices with
purchase orders. This technology also allows site personnel to automatically
transmit approved invoices to a central accounts payable system.
With a purchasing system, apartment managers can:
E
easily track purchase orders
implement a purchase approval system
automate approver notification
set up online supplier catalogs
control inventory
manage budget limits, and
import vendor lists from the company’s accounts payable system.
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•
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•
•
•
•
•
Online catalogs
Some companies have taken electronic purchasing to the next level by using
an electronic catalog for company-wide purchasing to reduce the amount of
time needed for invoice processing. Smoother invoice processing saves time
and money. It also ends the possibility of purchasing from vendors not
approved by the company.
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The online catalog ties into the company accounting system and allows the
management company to know who is buying what, when, from whom, and
how much. The value of such a system is the ability to track spending trends,
enforce buying policy compliance, and improve strategic decision making
capability.
Electronic
payments
286B
Apartment managers may want to offer alternative ways for residents to pay
rent, and to receive payment more quickly.
ACH
The Automated Clearing House (ACH) network is a processing and delivery
system that provides for the distribution and settlement of electronic credits
and debits among financial institutions. Through a nationwide
telecommunications network, each ACH operator is able to communicate
with other ACH operators to exchange entries quickly and efficiently,
regardless of geographic distances involved.
Continued on next page
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Management of Residential Issues
Types of Property Management Systems, Continued
Electronic
payments,
(continued)
The ACH network is governed by operating rules and guidelines and offers
an assortment of technical formats that can be used for a variety of payment
applications.
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Credit card
Bank cards may be a credit card or debit card and, in some cases, both.
Bank credit cards are generally issued by a financial institution under license
by a national credit card organization. Credit cards are not true payment
instruments because they do not result in a direct transfer of funds from the
payer to the payee.
Practical experience to date indicates that residents are using credit cards
where accepted for one-time events, rather than monthly rent, such as
security deposits and initial fees like application and administrative fees.
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PL
Some owners feel that accepting cards is a competitive advantage even with
a low usage rate. They believe automatic rent payments with credit cards
provide more efficient cost savings in time and manpower spent on check
processing. However, a recent survey by ApartmentGuide.com ranked
acceptance of credit card payments for rent as at the bottom of the list of the
most important amenities for future residents. Reputation of the community,
laundry facilities, proximity to employment, cable or satellite TV, floor plan
variety, high speed Internet, professional landscaping, swimming pool(s), and
pet policies all ranked as more important in the minds of potential residents.
Reward points are more important to the high-end renter.
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The most important detriment to the use of credit cards is that residents are
often charged a transaction fee. Some owners absorb this cost as a
competitive offering in the marketplace.
Check 21
The Check Clearing for the 21st Century Act (Check 21) was signed into law
on October 28, 2004. Check 21 legalizes a new negotiable document that
includes an image of the front and back of the original paper check. This
substitute check also referred to as an Image Replacement Document (IRD)
can be processed in the same manner as the original check and is
considered its legal equivalent.
Continued on next page
© 2014 National Apartment Association
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Management of Residential Issues
Types of Property Management Systems, Continued
Screening
applicants
287B
Apartment managers and prospects no longer have to wait days for a credit
report. With the Internet, instant results are available in most cases, allowing
the leasing process to proceed more quickly.
Instant credit checks
A combination of credit bureau, eviction, rental and check writing history is
scored using a screening company’s empirical scoring system providing an
almost instantaneous rental decision based on the apartment community’s
unique selection criteria.
Additional
information
• The Toolbox section of this manual contains a sample corporate
technology policy which may be helpful.
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28B
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Instant criminal checks
Instant access to criminal data is available. These criminal checks include
both statewide and county-level searches where the applicant has previously
resided. In addition, searches for terrorists and most wanted fugitive names,
aliases, sex offenders and dates of birth can be conducted from several
federal agency databases, including the FBI, the Department of the Treasury,
the U.S. Customs Service, the Secret Service, and the Office of Foreign
Assets Control (OFAC).
© 2014 National Apartment Association
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Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Types of Technology for Residents
47B
Business
centers
289B
As an amenity, a business center is a great marketing tool. Most
communities can equip a vacant apartment home relatively easily and add
the center as a competitive advantage. Some communities have business
centers adjacent to clubhouses or near the front office.
Residents could use a business center in the following ways:
e-mail friends or family
fax or receive documents
conduct research on the Internet
make copies of documents, and
complete small work-related projects.
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•
•
•
Consider offering wireless Internet in the following locations:
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Wireless
Internet
290B
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A business center is akin to a small office for residents and could contain:
• computers
• laser printers
• copy machines
• Internet access
• fax machines, and
• other equipment associated with conducting business.
clubhouse
lobby
pool, and
business center.
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•
•
© 2014 National Apartment Association
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Management of Residential Issues
Property Management Software Support
48B
Migration
291B
Software Support Providers are responsible for assisting property
management companies in converting data from their existing historical
systems to new systems.
Implementation
29B
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• Clients use automation aids that have been developed to facilitate the
conversion process.
• Implementation service representatives collect marketing materials for
each site and coordinate loading data into the system.
• Implementation services are measured by the:
o quantity of sites deployed each month
o the mean time from scheduling until completion, and
o the number of post implementation escalated service requests related
to implementation issues.
Software Support Providers will help property management companies
configure business models to meet their individual needs and provide overall
project management and coordination. They will help:
Support
293B
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• configure software per your business policy decisions
• establish property level settings, and
• convert historical data.
Software Support Providers will provide property management companies
with support during and after the implementation of a new system. Typically,
support will be offered in one of two ways:
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• telephone support, and
• online support.
© 2014 National Apartment Association
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Management of Residential Issues
© 2014 National Apartment Association
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Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
Toolbox
Overview
In this toolbox
The table below shows the items included in this Toolbox.
See Page
Toolbox-2
Toolbox-3
Toolbox-5
Toolbox-6
Toolbox-7
Toolbox-9
Toolbox-10
Toolbox-11
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Topic
Sample Service Request Form
Move-Out/Move-In Checklist
Resident Processing Checklist
Sample Notice of Crime Incident Letter
Sample Notice of Resident Intent to Terminate (Vacate)
Lease and Renewal Listing
Apartments Available to Lease Report
Sample Eviction Notice
© 2014 National Apartment Association
Toolbox-1
Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
Sample Service Request Form
Enclave Buckhorn Crossing – Leasing
[email protected]
Friday, December 6, 2013 11:20 AM
[email protected]
Enclave at Buckhorn Crossing Service Request Form
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Sender’s IP address
[Resident name]
[email protected]
(xxx) xxx-xxxx
211
Phone
Having problems with AC. Has not been working properly the past 2
days. Seems like the AC might be freezing.
76.233.26.117
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Name
Email
Phone
Unit
Contact method
Message
PL
From:
Sent:
To:
Subject:
© 2014 National Apartment Association
Toolbox-2
Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
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Move-Out/Move-In Checklist
Continued on next page
© 2014 National Apartment Association
Toolbox-3
Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
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Move-Out/Move-In Checklist, Continued
© 2014 National Apartment Association
Toolbox-4
Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
Resident Processing Checklist
Sample
checklist
The following is a sample of a Resident Processing checklist.
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Resident’s Name:
Today’s Date:
Apt. #
Bldg. #
Move-in Date:
Leased by:
Additional deposit for pet $
Security deposit $
Amount of Re-letting fee $
Pro-rated rent $
/
I. When the prospect agrees to join the apartment community, the following must occur:
(Initials/Date)
A. Application prepared.
B. Application completed by applicant(s) and signed by all parties. Leasing
Professional verified government issued photo ID information on the
C. $
Nonrefundable application processing fee collected.
Application deposit and/or earnest money collected.
D. $
E. $
“Welcome Card” with move-in instructions given to resident
concerning utilities.
F. If resident was referred by a locator service, “Authorization For Payment
of Locator Service Form” completed and placed in file.
G. Lease recorded on:
Apartments Available to Lease Form
Make Ready Board
Leasing Activity Board
/
II. Application processed and verified.
/
III. Application verification reviewed by Supervisor. The status of the applicant is:
Approved
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Approved with co-signer
Rejected because:
Resident contacted regarding results of application. Appointment was scheduled for
them to sign their lease on:
Lease and all applicable addenda properly and accurately typed.
Lease Contract
Pet Addendum
Lease Addendum
Family Addendum
Alarm Addendum
Rolodex made
Name tag made for mailbox_
_____ Other addendums and agreements
One day prior to move-in:
Apartment walked to verify market-ready.
If not ready, service request submitted to maintenance department concerning
make-ready.
M/I Inventory report typed.
Welcome note and gift placed in apartment.
Day of move-in:
All applicable papers explained, signed and initialed by resident(s) and
professional.
All copies of paperwork given to resident.
Mailbox tag and security numbers given to resident.
Collected full amount of security deposit.
Collected rent.
Resident called the day after move-in to verify everything in the apartment was
satisfactory.
Manager reviewed completed file to verify all of the above was completed prior to filing
in active residents file cabinet.
IV.
/
V.
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/
/
VI.
/
VII.
/
VIII.
/
IX.
© 2014 National Apartment Association
Toolbox-5
Certified Apartment ManagerSM Participant Guide
Management of Residential Issues
Sample Notice of Crime Incident Letter
DATE
To the residents of the xxxxxxxxx Apartments,
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We wanted you to be aware of an increase in criminal activity at our property. Over the last
several weeks we have had several reports of auto break-ins and, more recently, threatened
assaults of drivers exiting their vehicles. These incidents are occurring during both daylight and
evening hours. The police have been notified and affected individuals have filed police reports.
We wanted you to be aware of this criminal activity on our property and remind you to always
take whatever precautions you feel are necessary to ensure the safety of yourself, your family,
friends and possessions.
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We urge you, your family, co-residents, occupants and visitors to be as careful as possible for
your own safety and security. If a crime is suspected or occurring or even if suspicious persons
are spotted on the property, you need to contact the police immediately by calling 911. Failure
to do so could result in crucial delays. After first notifying the local law enforcement authorities,
you should then contact our management office.
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No one can ensure your safety. Please remember that your security is your responsibility
and that of the local law enforcement agencies.
Sincerely,
Ima Cam
Property Manager
Hand delivered on Thursday, DATE
© 2014 National Apartment Association
Toolbox-6
Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Sample Notice of Resident Intent to Terminate (Vacate)
NOTICE OF INTENT TO VACATE
COMMUNITY:
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LEASE EXPIRATION:
Name of Resident(s):
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ADDRESS:
I/we will be vacating the above named premises on
Need Larger Apartment
Renting a House
Need Smaller Apartment
Buying a House
Financial Reasons
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Job Transfer
Rent Increase
for the following reason:
Management/Maintenance Related
Other (please explain below)
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Please Explain
The date given above is the date in which my residency will be terminated. Any and all keys are to be returned to the Business
Office of
Apartments located at
by midnight of the date above.
I further understand that the giving of this notice:
Is A Breach of Lease
Is Not A Breach of Lease
and does not relieve me of any liability that I may have under my present lease. I understand the penalties involved if my present
lease agreement is terminated before it expires.
© 2014 National Apartment Association
Toolbox-7
Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
My security deposit refund (less any charges, if applicable) and/or final statement should be forwarded to:
NAME:
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ADDRESS:
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CITY/STATE/ZIP:
© 2014 National Apartment Association
Toolbox-8
Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Renewal
Date
Apt.
No.
Resident
Name
Unit
Type
Monthly
Rent
MI
Date
Term of
Lease
Application
Status
Bonus
Amount
Date Bonus
Paid
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Lease
Date
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Lease and Renewal Listing
© 2014 National Apartment Association
Toolbox-9
Certified Apartment ManagerSM Reference Guide
Management of Residential Issues
Apartments Available to Lease Report
Community:
Week Beginning:
Floor.
Rent/Mo.
MO
Date
MI Date
App
Status
New Resident Name
Market
Ready
Amenities
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Apt.
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Unit
Type
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For organizational purposes, all units have been listed by floor plan type starting with the smallest floor plan. An
explanation of each column follows:
SA
Unit Type
Floor plan code
Apt. #
Apartment number
Floor
Floor on which unit is located
Monthly Rent
Rental rate for new resident
MO Date
Date current resident is scheduled to move out or date unit was vacated
MI Date
Date new resident is scheduled to move in
App Status
Status of application: A – Approved
R – Rejected
P – Pending
Lease
New Resident’s Name
Name of new resident
Market Ready
Unit ready for move in or showing
Amenities
Special features (fireplace, etc.)
C – Cancelled
Note: This report should be revised every week by updating new activity and deleting completed activity.
© 2014 National Apartment Association
Toolbox-10
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Management of Residential Issues
Sample Eviction Notice
NOTICE OF TERMINATION OF RESIDENCY
DATE:
TO:
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(Address)
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PL
You are advised that your residency is terminated effective immediately. This notice is authorized by
section (Section Number) of (State) statutes. You shall have seven (7) days from delivery of this notice
to vacate the premises. This action is taken because: (List specific lease violation)
SA
We will retake possession for your account in the event you vacate or are evicted. You will be held liable
for past due rent and future rent due under the full term of your rental agreement, any charges due under
the terms of your rental agreement, damages to the premises, attorneys’ fees and court costs minus any
rent received from re-renting the premises.
_______________________________________
Owner/Agent Signature and Printed Name
_______________________________________
Property/Company Name
_______________________________________
Property/Company Address
_______________________________________
Telephone Number
© 2014 National Apartment Association
Toolbox-11
NAAEI thanks you for taking the Certified Apartment Manager (CAM) program.
Supplement/Resource Materials
CAM Skill Checks and Answer Key
Additional Course Handouts
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Following is a list of items that you may find on the NAA Web site that may not be
included in the program text that is to be used for your reference while taking the
courses in this program:
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These files may be downloaded from the NAA Web site by visiting:
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www.naahq.org/education/CandidatesOnly
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PL
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4300 Wilson Blvd., Suite 400
Arlington, VA 22203
703/518-6141 Fax 703/248-8370
[email protected]
www.naahq.org