Property managers are an essential component of the real estate industry. As their knowledge and support are often relied upon, Property Manager Professional Liability should be included in each of their business insurance portfolios. While practice makes perfect, mistakes can happen. Therefore, here are some common mistakes that these professionals make and how these mishaps can be avoided.
Failing to Sign Written Agreements
Property managers are required to provide written agreements with their tenants and clients. Even if the property manager is doing a favor for a friend or colleague, all job duties and tenant agreements must be signed in writing.
Makeshift Leases
While there is no shortage of lease agreements that can be found online, it is important to construct one that is tailored to meet the tenants’ and property’s specific needs. The National Association of Realtors says that if the agreement isn’t thorough or if it doesn’t include sections that are required by state law, the property managers are leaving themselves exposed.
Not Obtaining Signatures
Move-in and move-out documents need to be agreed upon and signed by each tenant. The condition of the property, fees, application process, etc. must be included to avoid legal discrepancies in the future.
Combining Accounts
There must be a designated account to store tenant deposits in so as not to confuse the property management account with tenant funds. Most companies require the separation of accounts and must be strictly followed.
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