Agent Training Resources

What are some of the basic laws of Property Management?

So we're gonna go over a little bit of residential management training. This is not in-depth. We have a branch manager liaison whose job is to help you and go into the details. We'll have classes at the office on the same thing. We'll have more videos. But it's kind of generally to touch upon how we do business here at Progressive because it's not like everybody else. So the first thing we are going to talk about is the management contract. In California, you can charge anything you want to the seller as long as it's in the management contract. So when we get a call, when we get a lead, we spend a lot of time on that management contract because there are few things you need to be aware of. Of course, the contract says, what are we charging them? It tells them, what do we charge for the tenant acquisition fee? It talks about some of our fees we are going to charge the owner in certain circumstances. So this is the money part of it. But it also goes into great detail about insurance. We want to be and we demand that we're additionally insured on the owner's property, and that's because if a tenant sues us for doing the owner's bidding, we're covered by the owner's insurance. Or if the owner is sued and we're sued, which is very common, we're both protected by the same insurance company. We don't want to fight with our owners because a tenant claims something happened and whether the owners are to blame or we're to blame. So the first thing we do require is additional insurance. The other thing we require is liability insurance. When a tenant moves in, they either have to have renter's insurance or we're going to force insure liability insurance. Why this is important -  that way, if they have a grease fire, they do fifty thousand dollars of damage to the property and they're liable, well there's insurance there and there's no deductible and it gets taken care of and it doesn't affect the owner's insurance because if the tenant doesn't have liability insurance, the owner has to use their insurance. Well, first of all, there's a deductible anywhere between five and ten thousand dollars. Two, then there's a black mark on the property. If you have more than two claims on a property, it's uninsurable. So their insurance might double or triple because they had a couple of claims on the property and that was damage caused by the tenant. So we want liability insurance. We also make sure the owner understands what our scope of responsibilities is. That here's what we do, and anything beyond that, you're paying extra. And so it's very clear in the contract that we need to protect our interests. And here's what we're gonna do for you, owner, and here's what you have to do. We work with our owners. We have a fiduciary responsibility to our owners to protect their asset and to minimize their expenses, maximize their income. I always say our job here is to be a wall. We want to be a wall between the owner and the tenant because if the owner goes around us, goes around the wall, and they want to pick the tenant or they want to pick the vendor or they want to decide how much money should be retained from the security deposit, the tenant's going to sue the owner because they're the ones making the decisions. But if the owner allows us to make those decisions and treat us as a passive asset, we still may get sued, that's fine, but we know we've done the right thing. We abide by fair housing. We don't discriminate. We don't debit more of the security deposit than what's necessary. We do pick vendors that are licensed and insured and an owner will pick the cheapest vendor who is not licensed or insured. So we want to be the wall between the owner and the tenant. And that's what the management contract's all about.