If you’re like most property managers, you already know that one of the toughest challenges you face is maintaining compliance among tenants regarding federal, state, and local real estate laws and regulations. However, successfully navigating the often confusing maze of property compliance often feels like an uphill battle that’s filled with shapeshifting regulations and complicated legal requirements. Fortunately, strategies exist that are designed to streamline the compliance process and minimize the risk to property managers. The following are four ways that you and other property management can help ensure real estate compliance:
Table of Contents
1- Stay Updated on All Regulations
Real estate laws are constantly changing, so be sure to keep current on all applicable changes. Ways to do this include subscribing to industry newsletters, joining local property management and real estate associations, and participating in continuing education courses. Keeping updated means you’ll be equipped to anticipate upcoming changes so that you can adjust your practices accordingly. Professional property brokers can also benefit from establishing a relationship with a local legal expert who specializes in real estate law. Regular consultations with a real estate expert can help you become aware of new laws and understand the implications for your properties. By taking this proactive approach, you’ll always be a step ahead of emerging legislation concerning regulations.
2- Implement Robust Recording-Keeping Practices
Record keeping is often among the first things to fall by the wayside when schedules become busy, with property managers telling themselves they’ll catch up later when things slow down. However, this often leads to confusion at a later date. Instead of putting off comprehensive record keeping to an unspecified date in the future, utilize property management software designed to thoroughly document all transactions, communications, and maintenance activities. Keep detailed records of applications from prospective tenants, lease agreements, maintenance requests, and financial transactions. Review these records on a regular basis to ensure that they’re in compliance with all current laws. Thorough and accurate documentation not only helps in compliance but also provides invaluable evidence in the event of a dispute with a tenant or an audit by state and federal taxing agencies.
3- Conduct Regular Property Inspections
Routine inspections are an important component in maintaining property standards and ensuring compliance with health and safety regulations. Scheduling regular inspections helps identify and address minor issues before they escalate to costly repairs, potentially dangerous living environments, and possible legal issues. During inspections, pay particular attention to critical areas such as electrical systems and structural integrity. Be sure to document any findings and take immediate action to repair any problems that you find.
4- Foster Open Communication With Tenants
Clear and honest communication with tenants is an essential part of promoting compliance as well as overall property management success. Tenants need to be aware of their rights and responsibilities as they have been outlined in the lease agreement. These should include cohesive guidelines on the timely reporting of maintenance issues, making payments, and adhering to property rules.
Maintain open lines of communication through various channels such as email, phone, online portals, and in-person visits. Tenant concerns should be addressed promptly, and you should keep them informed of any upcoming changes in policies and/or regulations. By cultivating a transparent relationship with tenants, you’ll build trust and reduce the likelihood of compliance issues.