Table of Contents
1. NOT TOO LONG AGO: A brief history of the leasing profession p.2
2. SMILE AT WORK! ENJOY THE PAY: How to get hired as a leasing agent p. 6
3. GOOD LEASING AGENTS MAKE GOOD CITIZENS: Federal and Texas laws p. 11
4. CAN RED SLIPS STOP THOSE WINDOWS FROM BREAKING?: Residential and p. 19 community safety
5. EITHER FAIR, OR FAREWELL: Fair housing p. 28
6. CHOOSE YOUR OWN TYPE, MAKE IT AFFORDABLE: Tax credits and designation p. 33
7. IT IS TIME TO LEARN HOW TO READ- A Texas Apartment Lease Agreement p. 41
8. MY TELEPHONE: Apartment marketing and mystery shopping p. 48
9. WHERE DO I LOOK? WHO DO I CONTACT?: Web-site information p. 52
10. NAME A TERM- A glossary of most important terms for the leasing professional p. 54
NOT TOO LONG AGO A brief history of the leasing profession
HOW IT ALL BEGAN
As you choose to become a lease agent, you make the important decision to enter a relatively young field. The professional rent and lease of real estate established itself as valuable and sought after service in the 20th century as a result of the rapid modernization and urbanization of the United States, and Texas in particular.
This is n 1970s picture of the Mary Apartments located on 4524 Live Oak St. Dallas. The Mary Apartments were constructed of brick and designed as a multifamily residence. It was first leased to Dallas families in 1926. In 1995 the Mary Apartments Building was listed in the National Register of Historic Places. The photography and information are courtesy of the non-profit organization Preservation Dallas (www.preservationdallas.org)
In an article that was published in 1937, in the magazine Texas Law Review, Dale Bennett pointed out that the lease of agricultural land was a common practice in England during the 17th and 18th centuries. During the late 19th and early 20TH century in Texas, however, “the functioning of the lease… underwent complete metamorphosis, keeping pace with our development from an agrarian to an industrial state” (Bennett, 1937)1. Interstate railroads, the urbanization of Texas, and the modernization of the industry created an influx of people who needed a place to live. In response to this need transportation companies and large landowners utilized the vast parcels they owned to build and offer housing. This led to
1 Bennett, D. E. (1937). Modern lease- an estate in land or a contract (damages for anticipatory breach and interdependency of covenants). Texas Law Review, Vol, 16- 47 the emergence of the realty agent and of the leasing profession in their modern form (Weiss, 1987)2.
This old postcard depicts Dallas’ Maple Terrace Apartments, a residence designed by the British architect Alfred Bossom and erected as the city’s first uptown luxury rental building in1924. It is now considered one of Dallas’ historic and architectural landmarks.
STATISTICS
With time the increased mobility, job-market flexibility, and urbanization further contributed to the increasing need for rental property and professional real estate lease agents. This trend continues. In fact, for the last 10 years the percentage of people in the United States who own their dwelling decreased with 3% or from almost 60% in 2000 to a little bit over 57% in 2010. In contrast, the percentage of families who rent the house or apartment they live in remained steady at 28-29%. In 2010 the percentage of renters in Texas was a little bit over 35% of all Texan households (United States Census Bureau, 2010)3. In other words, over 6 million Texans in almost 3 million households lease the houses and apartments they live in. Indeed, according to the Texas Apartment Association (www.taa.org), Texans are more likely than other Americans to rent their housing. They need professionals like you to help them find and enjoy living in the most suitable rental real estate.
2 Weiss, M. A. (1987). The rise of the community builders: the American real estate industry and urban land planning. Columbia University Press
3 You can find more Texas housing statistics at the database web-site of the U.S. Census Bureau: www.factfinder.census.gov
35.6% 30.4% 32.1% 32.5% 31.8%
Texas New Mexico Oklahoma Arkansas Louisiana
housing units rented to tenants (as % of all housing units in the state)
Compared to its neighboring state of New Mexico, Oklahoma, Arkansas, and Louisiana; Texas is significantly more renter-friendly. 35.6% of all housing units in Texas are rented out to tenants. This means that there are almost 3 million Texan households that have chosen to rent rather than own their housing. Data source: The United States Census Bureau at www.factfinder.census.gov
SUMMARY
. The leasing profession established itself in response to the modernization and urbanization of American society during the 20th century. . Texans are more likely than the average American to rent rather than to own their housing. . The nationwide tendency is that more and more financially well-off Americans will become renters-by-choice and decide to rent rather than buy their dwelling.
USEFUL TERMS:
Renter-by-choice: Renters-by-choice is the term for families and single professionals who have the financial means to buy a house or condo, but choose to rent rather than to own. In fact, the fastest growing group of apartment renters is that of households with annual income of over $50,000 per year4. According to the National Apartment Association (NAA) and the National Multi-
4 This information is provided by the Goliath Business Knowledge Data Base: http://goliath.ecnext.com
Housing Council (NMHC), one of the reasons for the increased number of renters-by-choice is “that cities and regions are adopting "smart growth" policies that limit further outward extension and refocus efforts toward high-density housing in key urban locations”.
SMILE AT WORK! ENJOY THE PAY! How to get hired as a leasing agent
THE TYPICAL DAY OF A LEASING AGENT
The typical day of a leasing agent is a day like no other. In other words, when you are a leasing agent every day is different, unique, and interesting. There is never a dull moment. You constantly meet with new people, communicate with tenants, solve problems, sign lease contracts, and show model houses and apartments.
Not only is every day different when it comes to what, it is also different when it comes to where. In contrast to those employed in many other professions, lease agents are not tight to their office desk from 8 a.m. to 5:00 p.m. Rather, they are often out and about the property as they show vacancies to prospective tenants, talk with residents, and inspect the premises and facilities. This does not mean that they do not have office responsibilities. On the contrary! They have to take on telephone calls, perform background checks, prepare and sign lease contracts, and much more. Here is a short overview of the most important lease agent tasks:
. communicate with prospective tenants- both on the phone and in person
. show model apartments and houses and facilities; discuss floor plans, layouts, and room size
. interview applicants, collect and record necessary information
. screen applicants: perform background and credit history checks
. prepare and file rental agreements and lease contracts
. collect safety deposits and track timely rent payment
. inspect conditions of premises and arrange for necessary maintenance
. compile listings of available rental property and generate traffic to it
. communicate with residents and promptly reply to their requests/ forward their maintenance requests
CAREER PROSPECTS
Hopefully, the more you learning about this profession, the more excited you are to be a leasing agent. As you enter the field with so much enthusiasm, you might also wonder what your future career prospects are. In fact, they are quite good. According to the Texas
Apartment Associations, there are over 70,000 professionals employed in the field of rental property leasing and over 6 million Texans who rent their dwelling. Every month between 1,000 and 1,200 Texans are hired on new apartment industry job positions to meet the needs of the rising number of Texans who prefer to rent rather than to own their homes.
In an article titled “Pondering the Talent Puzzle” and published in the February 2011 issue of the National Apartment Association magazine unit, Christopher Lee discussed the urgent need for new leasing professionals and said that there is a “shortage of qualified talent”5. In other words, qualified and dedicated people like you are sought after and very hard to find. Once you enter the field and work hard, you will have great opportunities for advancement and career growth. Many rental property managers and executives have entered the field exactly as leasing agents.
All this sounds great but it is also important to enjoy a competitive salary as an entry level leasing agent. According to PayScale, the average salary in 2010 was between $23,870 and $35,868, with an hourly pay starting at $10.00 and bonuses for every signed lease contract. In addition to that are benefit packages that includes insurance, paid time off, 401(k) retirement plans, Social Security, Medicare, and worker's compensation insurance. This adds almost 30% more on top of your annual salary, so if you get paid $30,000 per year you would receive additional $10,000 in benefits. On top of that many leasing professionals receive special discounts if they live on the property on which they work. Just imagine how much you could save not only on rent/ mortgage, but on your daily commute. With the current sky-high gas prices, that is a lot of money. With the early morning traffic, that is also a lot of time.
5 Lee, C. (February, 2011). Pondering the Talent Puzzle. units Magazin, 35:2 http://www.naahq.org/publications/units/
As a leasing agent you do not only give people the keys to their new home. With hard work and dedication, you also hold the key to your own success and prosperous future. SO, HOW TO LAND THE JOB?
The prospects are good, the pay is competitive, and the schedule is flexible. What you have to do next is to go through the information in this manual and prepare for the job interview. This may sound nerve-wracking but it should not be. Remember that the most important skills for a leasing agent are:
. Good customer service skills;
. Attention to detail and organization;
. Positive attitude and genuine enthusiasm;
. Energy and good sales-skills
. Team work and personable communication style
These are the qualities that managers and HR professionals look for when they interview and hire leasing agents. To make sure they notice them in you when they interview you, prepare in the following ways:
. Learn basic facts about the company and its rental communities. You can easily find this information online on the web-site of the company under “about us”. Look for description of the company’s mission, vision, and values.
. Feel comfortable about the requirements for leasing agents, and be confident that you can do the job. Read through this guide, go to the web-sites of the Texas Apartment Association and the National Apartment Association, talk with friends and family members who already work as leasing agents, complete special courses.
. Dress for the job. Always keep in mind that the first impression is critical when you apply for the job. Make sure you look professional. Whether you took the time to iron your shirt or decided to wear your gym outfit instead can indeed determine your future.
. Be polite and keep a positive attitude. Always be polite and keep a positive attitude. Remember that real estate leasing is a customer-oriented field. Being sales-driven, personable, and courteous guarantees you success.
Remember that getting the job is not only about acing the interview and getting hired. It is also about keeping the job. According to experts with the National Apartment Association, the first 90 days on the job are the most important ones for entry-level leasing agents. According to a study conducted by the leadership training company Leadership IQ (http://www.leadershipiq.com/), only 8 out of every 100 newly hired employees become successful on the job. The reason is that only 8 out of 100 are enthusiastic, hard-working, and dedicated. With positive attitude and smile, there is no doubt that you will be among the 8 to succeed.
WHERE TO START LOOKING?
The job of a leasing agent is great. And if you are the kind of person who enjoys meeting and helping people, it is right for you. With over 1,000 new job openings in the Texas real estate leasing industry, the start of your job search might be overwhelming. Here are some sites that can make it easier:
. www.ApartmentCareer.com
. http://careers.aagdallas.com/
. http://aatcnet.org/jobs.html
. www.careerplanner.com
. www.careerbuilder.com
. www.backpage.com
. www.monster.com
. http://www.craigslist.org
. http://www.taa.org/quick-links/careercenter
Once you feel confident in your skills and abilities as leasing agent, consider the rental communities you know and like. Think about whether and why you would like to work there. Read the information on their web-sites, and ask the rental property managers about career opportunities. Often times managers are interested in talented professionals although they might not have yet posted a job opening. In fact, according to the unit Magazine of the National Apartment Association, rental managers and HR specialists are on a constant lookout for talented leasing agents. Call these managers, meet with them, chances are some of them will be more than happy to have you on their teams.
SUMMARY:
. The work of a leasing agent is always interesting. There is never a dull moment and no need to sit non-stop behind the desk from 9.a.m. to 5 p.m.
. If you are a sales-driven people’s person, the job is right for you.
. Texas rental estates are in dire need of talented leasing professionals. Over 1,000 job positions open every month.
. The career prospects for leasing agents are bright. With hard-work and dedication many leasing agents have become property managers and executives.
GOOD LEASING AGENTS MAKE GOOD CITIZENS Federal and Texas Laws
The job of leasing agents is very interesting and rewarding. Every day is different. Every day you meet with new people, talk with them, and do your best to make their living arrangements comfortable.
As they listen to you, your friends and relatives might think that your work is all about small talk, pleasant conversations, and making people smile as you hand them the key to their new homes. The fact is, however, that besides being personable and cordial, you also have to be very well aware of the landlord-tenant laws, the national rental policies and procedures, the landlord’s obligations, and the tenants’ rights. In other words, you have to know the law.
Below we will look at these parts of the Landlord-Tenant Law that regulate the conditions within the leased property (habitability), the lease contract basics, and the safety deposits. Since it is most beneficial for you to learn as much as possible about how to read Texas Apartment Lease Agreements, Fair Housing regulations, and Eviction regulations and procedures, we will look at these issues in depth in separate chapters.
HABITABILITY LAW
Habitability Law refers to the requirement that the landlord (rental property management) maintains at least minimum habitability standards of the dwellings that is leased to tenants. In Texas it is written into law (codified) in the Texas Property Code Sections 92.001- 92.061.
The habitability law requirements are very important for you as leasing agent. They affect your interactions with the residents and occupants of the apartments and houses in the rental community where you work. If you fail to meet the law’s requirements and lease property that is not fit for living or do not respond to residents’ concerns about damages, you can bring about a court case for your employer.
Habitability laws state that rental property owners and their employees have to make sure that the apartments and houses they lease are fit for leaving. This means that such damages as roof leaks, faulty plumbing, etc. have to be repaired as soon as possible. As a leasing agent, part of your job might be to let the maintenance staff know about such problems when tenants notify you about them.
When it comes to habitability law cases in Texas, the most important one is that of Kammarath v. Bennett that was reviewed by the Texas Court of Civil Appeals in 19786. Here is the story:
In March 1975 WIlford Kammarath entered into an oral lease contract with C.C. Bennett for the month-for-month lease of a one-bedroom apartment in Dallas. The apartment was located on the 2nd floor of a two-story brick residence built in 1900. Although he had looked at the apartment before he rented it, soon after moving in Mr. Kammarath noticed that the plumbing and electric system were damaged, and that the entire building contained numerous structural defects.
Concerned about his health and safety, Kammarath notified the City of Dallas. The city building inspectors inspected the residential building and Kammarath’s leased apartment 10 times between June and November 1975. Each time they concluded that the property did not meet the 1975 Dallas Minimum Housing Standards and served notices to C.C. Bennett to either repair the damages or stop renting out the building. Kammarath stopped paying his rent but remained in the apartment and initiated actions against C.C. Bennett, accusing him of breaching the implied warranty of habitability. As C.C. Bennett decided to close down the property as the required repairs were too costly for him to bear, Kammarath asked the court to grant him $25,000 as compensation for the horrible conditions in his leased apartment and Bennet’s termination of the lease contract. Although the Court did not grant Kammarath any compensation, it set the rules of implied warranty of habitability in Texas.
Warranty of habitability means that the landlord who leases the dwelling guarantees that it is habitable and fit for leaving, without hidden defects in its facilities (the plumbing problems in the Kammarath v. Bennett case were not obvious, they were discovered when the
6 Kammarath v. Bennett, 568 SW, 2nd 658 [Texas 1978] If you want to read more details about the case: Campbell, B. N. (1978). Landlord-Tenant Law: there is an implied warranty in residential lease that the dwelling is habitable and fit for living: Kammarath v. Bennett. Texas Tech Law Review, 10:228 plumbing system was used). The leasing landlord has to maintain the property fit and safe for living for the entire duration of the lease.
According to the Texas Property Code, the landlord and the rental community management have to make diligent efforts to repair the conditions in the rental property when these conditions: . Affect the health and safety of ordinary tenants; . Arise due to the landlord/ rental community management’s failure to provide hot water of a minimum temperature of 120 degrees F.
The repair has to be completed within reasonable time, often understood as 7 days. If the repairs cannot be completed within 7 days, the landlord can file an Affidavit of Delay. If the reason for the delay is lack of parts, the reasonable period is extended to 15 days. If the reason is lack of labor, the period is prolonged to 30 days.
If the landlord does not repair the conditions and damages that threaten the health and safety of the occupants or are related to the lack of hot water, the tenant has the right to terminate the lease. In such cases the Texas Property Code provides the tenant with the right to receive from the landlord the amount of money equal to one month’s rent and plus up to $500.00 in court costs. In addition; if the tenant hires a lawyer, the landlord has to pay the fee for this lawyer. To illustrate this, here is the 1988 case of Davidow v. Inwood North Professional Group- Phase I of Houston7. This case is more popular than Kammarath v. Benneth, because it applies to both residential and commercial real estate leases. Another difference is that while W. Kammarath chose to stay in his leased apartment without paying lease, Dr. Davidow moved out when he considered the conditions no longer tolerable:
In the mid-1980s the family practitioner Dr. Joseph Davidow of Houston signed a lease contract with the Inwood North Professional Group- Phase I. Dr. Davidow leased the premises that he intended to use as his office. The lease term was for 5 years, and the monthly rent was $793.26. While Dr. Davidow was obliged to pay his rent every month, Inwood North Professional Group was obliged to provide the property with air- conditioning, electricity, security, water, and maintenance.
Soon after he moved into his new office, Dr. Davidow started experiencing problems with the rented property. The air-conditioning did not work, the roof leaked, there was no hot water, and the electricity was once shut off for days
7 Davidow v. Inwood North Professional Group, 747 S.W. 2nd 373 [Texas 1988]. If you want to read more details about the case: Martin, T.S. (1988). Landlord-tenant: implied warranty of suitability – landlord implicitly warrants that commercial premises suited for intended use; tenant’s duty to pay rent depends upon landlord honoring implied warranty. Davidow v. Inwood North Professional Group. St. Mary’s Law Journal, 20: 213
because Inwood North Professional Group had forgotten to transfer the money for the electricity bills on its properties to the utility company. Dr. Davidow tried to stick it out, but after several burglaries and cockroach attacks gave up and moved out of the premises.
Inwood North Professional Group sued Dr. Davidow for his failure to pay rent for the 14 months that were left on his contract when he moved out. Dr. Davidow reacted by suing Inwood North Professionals for its failure to sustain the premises habitable. The Texas Supreme Court decided that Dr. Davidow’s decision to leave the rented premises was justified, and granted no compensation to Inwood North Professional Group for the early termination of the lease. Instead, Inwood North Professional Group had to pay $9,300.00 to Dr. Davidow for 1 month rent, court costs, and losses related to the relocation of his medical practice.
The Texas Property Code states that tenants can notify the landlord about damages and problems, and landlords have to take immediate measures to repair them. One of the conditions is that “the tenant has specified the condition in a notice to the person who collects rent or to the place where the rent is normally paid” [Texas Property Code, §92.052 (b)]. Since the person who collects the rent is most often the leasing agent, your responsibility is to relay their concerns and repair requests to the maintenance staff. In addition, keep in mind that “the tenant [has to be] current in rent payments when the notice is given” [Texas Property Code, §92.052 (b)]
As you read this and wonder whether the law requires too much from the landlords, keep in mind that in Accordance with the Texas Property Code the landlord is not obliged to repair damages that are:
. Caused by the negligence and property abuse of the tenants themselves; . Caused by the behavior of tenants’ guests and visitors; . Caused by the behavior of members of the tenants’ families. In other words, if your tenant’s boisterous siblings come into town in January, get drunk, and break the bedroom window, you rental property’s management would most likely require the payment of a fee for the repair of the window, since the damage does not fall under the category of implied warranty of habitability.
CONTRACT LAW
When the leasing agent and the future resident sign a lease contract, they act in accordance with the contract law. The lease contract is defined as a specific type of contract that gives to the tenant(s) the right to use real estate for a limited length of time called lease term, under specific conditions, and for the payment of a specific rent. According to the Texas Property Code §5.021, if a lease contract is rented for a lease term of one year or less, it does not have to be in written form. If the lease contract is for a lease term of over one year, it has to be in written form and signed by the lease agent and the person/persons renting the property.
Lease contracts, also called lease agreements, are legally binding documents that give tenants the right to use real estate and facilities for a limited length of time (lease term) under specific conditions and for a specified amount of rent.
In a following chapter you will read more about how to read Texas Apartment Lease Agreements. For now, please keep in mind the following rules and regulations:
. When they pay their rent, tenants can pay either in cash, with checks, money orders, or other payment methods specified in the lease contract. Since it is the leasing agents who work in the residential community that collect the monthly rent, remember that unless specified otherwise in the contract, tenants have the right to pay their rent in cash. It is then your obligation to provide them with dated written receipt for the exact amount, as well as to record the cash payment in the residential community’s records.
. The lease contract usually states how many residents and how many tenants can live in the leased apartment or house. Section 92.010 of the Texas Property Code states that the maximum number of adults that occupy a rented apartment or house is three times the number of bedrooms available in the rented apartment or house. Keep in mind that the law specifies that the maximum number of occupants refers to adults, not to adults and children. There is an exception: in the case when an adult person searches for sanctuary from domestic violence, and moves into a rental property already occupied by the maximum number of occupants. The exception is that this is not a breach of the maximum occupancy requirements of the law as long as the person running away from domestic
violence does not stay in that dwelling for more than 1 month. This exception is regulated by both the Texas Property Code and the Texas Family Code.
. As the lease contracts are signed for a specific duration called lease term, there are specific requirements for early lease termination. We will discuss the issues of eviction and termination of lease for criminal conviction later in a separate chapter. For now it is important to know that if you as a leasing agent have to prepare the lease termination notice, you have to keep in mind that: