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A Brief History of the Leasing Profession P.2 2. SMILE at WORK!

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A Brief History of the Leasing Profession P.2 2. SMILE at WORK! 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.
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