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

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

. 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

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

www.taa.org

. 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 ( ), 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

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

4 This information is provided by the Goliath Business Knowledge Data Base:

. According to the National Apartment Association (NAA) and the National Multi-

http://goliath.ecnext.com

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)

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

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

. 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.

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

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

. 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.

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:

� If the rent-paying period is at least a month (monthly rent payment is the most common type), the lease can be terminated either on the date specified in the lease termination notice or one month after the notice is given, whichever date is later;

� If the rent-paying period is less than a month (for example rent is due every two weeks), the lease can be terminated either on the date specified in the notice or after a period of time equal to the rent-paying period plus one day, whichever date is later.

SECURITY DEPOSIT RULES

When you and the tenant sign the lease contract, you collect from them the security deposit and provide them with receipt for the payment. The legal definition of security deposit is the amount of money that the landlord/ rental property management collects in order to ensure that the rent is to be paid and expenses for the repair of damages incurred by the tenants are to be covered, even if the tenants fail to pay on time. Keep in mind that before you collect the security deposit, you and the new tenants have to agree on the conditions of the premises. Otherwise you risk misunderstandings and problems.

Just like most other landlord-tenant regulations, security deposits rules are also determined on state level. In Texas they are defined through the Texas Property Code. While in other states the maximum security deposit is determined by the rent amount due every month, in Texas there are no regulations regarding the security deposit amount. If the tenant has paid all rents during the lease term, the rental property management has to refund the security deposit within 30 days of the expiration of the lease contract.

However, the property management can deduct certain charges from the deposit refund if the dwellings conditions have deteriorated significantly due to negligence and abuse. For example, if the tenants have moved out but left all their trash in the apartment, the landlord can charge them a fee for throwing away their trash and deduct the amount from the security deposit. In such a case, it has to provide the tenant with a detailed list of the charges

and deductions. Please note that the dwelling’s normal wear and tear cannot be deducted from the deposit , and the law defines wear and tear as “deterioration that results from the intended use of the dwelling” [Texas Property Code, §92.001 (4)].

The Texas law is very strict in the case when the landlord (and the leasing agent as landlord’s representative fails to return the safety deposit although the tenant had paid all rents on time and had not inflicted any damage beyond the normal wear and tear. In such cases the landlord owes the tenant: $100 three times the amount of the withheld security deposit the tenant’s attorney fees.

Fikes v. McCandless Tull (1978) is another court case, this time from Lubbock, TX. It is a good example of the safety deposit rules in Texas:

As he signed a lease contract with Fikes & Associates of Lubbock, TX in the mid-1970s Christopher McCandless Tull paid a security deposit of $75. When his lease expired on January 1, 1978 McCandless Tull vacated the apartment in good condition, and provided a forward address in Amarillo, TX. Once in Amarillo, McCandless Tull contacted Fikes & Associates several times about his security deposit, and finally received the refund check on February 23, 1978. Once he cashed the check, McCandless Tull sued Fikes & Associates for their failure to return his safety deposit within the 30 days determined by the law. Based on the Texas Property Code and previous court case ruling, the County Court No.1 of Lubbock Country and then the Seventh Court of Civil Appeals in Amarillo ruled that Fikes & Associates should refund to McCandless Tull the total amount of $500. Within this amount were included:

- three times the security deposit amount minus the amount refunded on February 23, 1978 ($150); - the statutory penalty of $100 - McCandless Tull’s attorney fees of $250.00

In other words, because they did not return $75.00 security deposit on time, Fikes & Associates broke the law and had to pay 7 times more than if they had sent the refund on time.

SUMMARY

The law provides both the rental estate management and leasing agents, and the tenants with specific rights and obligations.

Based on the habitability law requirements for implied warranty of habitability, the landlord/ rental estate management that leases the dwelling guarantees that it is habitable and fit for leaving, without hidden defects in its facilities. The leasing landlord has to maintain the property fit and safe for living for the entire duration of the lease.

The lease contract determines the relationship between the landlord and the tenant, as well as the duration of the lease, and the amount that the tenant has to pay as rent.

The security deposit is an amount that the tenant pays upon signing the lease contract. This amount should cover any possible damages of the property, and if there are no damages by the end of the lease term, the landlord has to return the security deposit within 30 days.

USEFUL TERMS

Lease contract/ lease agreement: Legally binding document that gives an individual 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.

Security Deposit: The amount of money that the landlord/ rental property management collects in order to ensure that the rent is to be paid and expenses for the repair of damages incurred by the tenants are to be covered, even if the tenants fail to pay on time

Warranty of habitability: 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 leasing landlord has to maintain the property fit and safe for living for the entire duration of the lease.

CAN RED SLIPS STOP THOSE WINDOWS FROM BREAKING? Residential Community Safety

WHO BROKE WHAT WINDOW AND WHY?

As you advance through this manual, you approach the chapter on reading Texas Apartment Lease Agreements. However, before you and the future tenant sit down to sign the lease agreement, there is one very important step that you, the leasing agent, must take. You have to perform a background check. This is not a mere formality and is not limited only to checking the person’s credit history. If you are asking yourself why, here is the answer: it helps in the prevention of crime in your residential community and ensures its safety.

The safety of a rental residential community, just like the safety of any neighborhood, is an important indicator of the living environment and the quality of life that it offers to its residents. It also reduces the maintenance expenses, which means that there will be more money left in the budget, and possibly, a raise for you.

When a community is safe, people enjoy living there. They do not hide in their homes in fear that somebody might attack them or rob them. Rather, they are out and about, use the common areas and the recreational facilities; and contribute to the positive and pleasant living atmosphere. They even do their share in the further prevention of crime and in the improvement of security and safety.

When a community is not safe, things can get from bad to worse. Minor cases of residents’ misbehavior left unaddressed, green areas and flower beds left to wither, or old cars abandoned on the parking lot can send the message that the community is neglected, that nobody cares . In criminology, the science that studies the causes and effects of crime, there is a theory called Theory of the Broken Windows. It was introduced in 1982 by James Wilson and George Kelling8

8 George Kelling started his career as probation officer in Minnesota, worked with foot-patrol officers in New jersey, researched neighborhood safety with James Wilson at Harvard U, and now teaches at Rutgers University.

in the article “Broken window” that appeared in The Atlantic Monthly. Here is part of what they had to say:

“On a community level, disorder and crime are usually inextricably linked… if a window is broken and left unrepaired, all the rest of the windows will soon be broken. This is true in nice neighborhoods as in run-down ones. Window-breaking does not necessarily occur on a large scale because some areas are inhibited by determined window-breakers, whereas others are populated by window lovers; rather, one unrepaired broken window is a signal that no one cares, and so breaking more windows costs nothing.

[This] behavior leads to the breakdown of community controls… A stable neighborhood of families who care about their homes, mind each other’s children, and confidently flown on unwanted intruders can change, in a few years or even a few months, to an inhospitable and frightening jungle9

The Broken Windows Theory is supported by many case studies of residential areas throughout the United States.

It might sound strange that your work as a leasing agent is important in the prevention of the community decay described in “Broken windows”. Yet, you do. Rental community management and staff are the ones who create the positive atmosphere that discourages crime, fosters trust among residents, and improves the safety of the community. This happens through the screening of future residents and active crime prevention.

ALL THE BACKGROUND CHECKS

.

Let’s look at the background checks. Once you start on your new job as leasing agent, your supervisor will guide you through the particular screening process and application requirements for future tenants used at your new workplace. For now it is important to keep in mind the statement of the International Crime-Free Association (http://www.crime-free-association.org/) that it is landlords, property managers, and leasing agents that “have the power to prevent problems from moving into … property and … have the power to move them off”. You are the one who signs the lease and gives the keys to the new tenants. You can contribute significantly to the creation of a safe, crime-free residential community, because “the key to having a nice apartment community begins with attracting the right residents” (International Crime-Free Association).

9 You can find the full text of the article at http://www.manhattan-institute.org/pdf/_atlantic_monthly-broken_windows.pdf

You might be concerned that to deny leasing an apartment to somebody with criminal record might be an act of discrimination. No, it is not, because “at this time it is not illegal to deny residency to an applicant based on their criminal history” (International Crime-Free Association- ICFA). Indeed, criminal and disruptive behavior is not among the federally protected classes listed under the Fair Housing Act. Many residential communities refuse to rent homes to applicants who have threatened and attacked their previous neighbors, manufactured or sold drugs in apartments or houses they rented, damaged property, committed violent crimes. The International Crime Free Association (ICFA) warns, however, that you should keep in mind that there is a significant difference between arrest and conviction: “you should not deny an application on the basis of an arrest, but only on a conviction, guilty plea, plea bargain, etc.” You should inform prospective residents that there are background check requirements before you collect their application fee (ICFA). If they decide that they do not want to live in your residential community because you check their criminal history, maybe they have something to hide and your community is better off without them “breaking its windows”.

All the regulations regarding background checks, both credit and criminal history, are regulated through the Federal Credit Reporting Act. Your supervisor should explain to you in detail the specific requirements of the residential rental property that is your new work place.

CRIME-FREE MULTIFAMILY HOUSING PROGRAM

It is not enough to rent only to people who have passed your community’s background check requirements. It is also very important to engage in crime prevention through crime-free housing programs. The international definition of crime prevention is ““strategies and measures that seek to reduce the risk of crimes occurring and their potential harmful effect on individuals and society, including fear of crime, by intervening to influence its multiple causes ” 10

10 You can find this definition online at

. The fact that this definition is adopted by the United Nation is to show you that community safety and crime-free residential communities is an issue that concerns people all over the world.

Crime prevention is very important because you would not want that the people you lease to feel scared and hopeless in their new homes. Neither do other leasing agents, property managers, and landlords. In order to ensure safety and good quality of living, many residential rental communities in Texas and throughout the United States become certified through Crime-Free Multi-Family Housing Program, a crime prevention program that aims to “reduce crime, drugs, and gangs in apartment property” (ICFA).

http://www.crime-prevention-intl.org/uploads/media/International_Report_2010.pdf

To be certified through the Crime-Free Multi-Housing Program, residential rental communities have to complete the following three steps:

Phase 1 of 8 hours of management training to go through the details of crime prevention and to discuss the Crime-Free Lease Addendum that residential communities have to add to their lease agreements. According to the ICFA, the Crime-Free Lease Addendum is among the most important elements that make the program successful. As they sign it, future residents vouch that they will not engage in any criminal activity on and near the property of the rental community11

Phase 2 of Crime Prevention through Environmental Design (CPTED) Survey. During this phase a certified police officer visits the community and inspects its premises to make sure that they comply with the state requirements for safety and security. Under the Texas Property Code, all rental dwellings have to be equipped with the following mandatory security devices:

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o A window latch on each exterior window;

o A doorknob lock or keyed dead bolt on each exterior door;

o A sliding door lock on each exterior sliding glass door;

o A sliding door handle latch or a sliding door security bar on each exterior glass door;

o A keyless bolting device and a door viewer on each exterior door of the dwelling12

11 You can find the text of the Addendum online at

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http://www.crime-free-association.org/lease_addendums_az_english.htm 12 You can find more information on the safety devices requirements on the web-site of the Texas Attorney General under https://www.oag.state.tx.us/consumer/tenants.shtml

Texas laws require that landlords install the security devices listed above at their own expense. If the tenant wants additional security devices, the landlord has to install those too, but this time it is the tenant who covers the cost.

Phase 3 of Community Awareness Training. During this phase the staff of the rental residential community has to organize annual crime prevention social events during which residents can both have fun and learn more about the efforts and initiatives to keep their community safe.

According to the International Crime-Free Association, rental properties that are fully certified through the program report 70% decrease in police call for service, improved quality of living, and decreased maintenance costs.

OTHER TECHNIQUES FOR CRIME PREVENTION AND COMMUNITY SAFETY

Here are some more techniques that can help reduce the risk of criminal activity on the property of the rental residential community where you work:

Many residential communities conduct regular maintenance inspections of the apartments and houses they lease out. Maintenance professionals enter into the dwellings to change AC filters, replace fire alarm batteries, spray against insects. Before each maintenance inspection the residential community office has to put up notices and inform its tenants about the upcoming inspections. In this way, it does not violate the covenant (agreement) of quiet enjoyment. These regular inspections allow the community maintenance staff to notice whether illegal activities such as drug production take place on the rented premises. Tenants would be significantly less likely to start a meth lab in the kitchen of their

dwelling, if they know that the maintenance personnel enters into the dwelling for inspection once every 3 months.

Community safety has a lot to do with the level of trust among residents. Many rental residential communities actively encourage their tenants to use the common areas and recreational facilities, as well as to meet and interact with each other in a friendly atmosphere. Therefore they regularly organize social events and gatherings. The ICFA recommends to “plan various activities that are sure to draw as many residents as possible. Food, drinks, door prizes and music are sure to draw large turnouts. By having functions that include all ages, residents begin to put names with faces, and faces with unit numbers. Residents will be less likely to cause problems in an area where they are well known.13

EVICTIONS

Unfortunately, there are times when background checks, crime prevention, strong sense of community, and positive living atmosphere do not stop certain tenants from breaching their lease agreements or breaking the law. As hard as it is, in such cases it is time for eviction. Eviction from rental residential properties is regulated, not surprisingly, through the Texas Property Code, this time sections 24.001 through 24.011.

Eviction is “the legal means by which the tenant may be removed from the premises when they no longer have a right of possession”. According to Judon Fambrough, a leading Texas real estate attorney, the main categories of eviction are:

”

Eviction due to nonpayment of rent;

Eviction due to violation of lease agreement terms;

Eviction due to holding over after the lease term has expired.

13 For the full text of ICFA recommendation for safe and crime-free multifamily housing communities go to http://www.crime-free-association.org/multi-housing.htm

Although it is definitely not a pleasant task, sometimes lease agents have to deal with evictions. If this ever makes you uncomfortable, remember that tenants get evicted because they have not done their part of the deal and have broken the law.

Once the rental community management has taken the decision that a certain tenant is to be evicted, it has to observe a specific procedure. First, it has to notify the tenant in writing that it (the rental property management) demands that the tenant vacate the dwelling. This notice could be either given in person or mailed, and should allow the tenant at least 3 days period, unless the lease agreement has specified a different period. Sometimes the notice of eviction can offer the tenant the possibility to pay the due rent amount prior to the date of eviction.

Eviction can also follow as a result of the tenant’s behavior that violates the clauses of the lease agreement. Here is an interesting case in which the Supreme Court of the United States confirmed the right of landlords to evict tenants for activities that endanger the safety of the community. The case is called Department of Housing and Urban Development (HUD) v. Rucker and is from 200214

14 You can find a detailed description of the case and the Supreme Court ruling at

:

The Oakland Housing Authority (OHA) provides subsidized housing in Oakland, California though a program of the Department of Housing and Urban Development (HUD). In accordance with the Anti-Drug Abuse Act of 1988 and the HUD efforts to provide crime-free housing, OHA leased subsidized housing under the condition that “any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other tenants or any drug-related criminal activity on or off such premises, engaged in by a public housing tenant, any member of the tenant’s household, or any guest or other person under the tenant’s control, shall be cause for termination of tenancy.”

http://www.law.cornell.edu/supct/html/00-1770.ZO.html

In 1997 and 1998 OHA evicted 4 residents from 3 dwellings, because they had breached their lease as their relatives and guests were involved in drug-related criminal activities. William Lee and Barbara Hill were evicted because their grandsons were seen smoking marijuana on the parking lot. Pearlie Rucker was evicted because her daughter, who lived with her, was found with crack cocaine near her residence. Herman Walker was evicted because his caregiver and her friends were caught using cocaine in his apartment (Mr. Walker had been notified several times about the drug habit of his caregiver and the legal requirements for his eviction; he had been issued two written lease violation warnings).

Once OHA started the eviction procedures, Mrs. Pearlie Rucker responded by pressing charges against OHA and HUD. She claimed that William Lee, Barbara Hill, Herman Walker, and herself were “innocent tenants” and unaware of the drug activities of the members of their households. The United States Supreme Court, however, concluded that “ there is an obvious reason why Congress would have permitted local public housing authorities to conduct no-fault evictions”. Regardless of whether they know about it or not, tenant who cannot control drug crimes in the dwellings they occupy, and cannot stop criminal activities by a household member which threaten health or safety of other residents, is a threat to other residents and to the residential community.

A VERY RARE, AND RATHER REVERSE, TYPE OF EVICTION

As a conclusion of this rather grim chapter, here is a rather rare form of eviction called constructive eviction. You definitely remember the covenant of quiet enjoyment mentioned earlier. It is the implied agreement between landlord and tenant that the landlord would not disturb the tenant’s quiet enjoyment of his rented home unless very necessary. It also implies that the landlord would do their best to not let tenants disturb each other’s right of quiet enjoyment. If, however, the tenant cannot enjoy his/her home because of material, substantial interference, he/she can leave the rented property in an act of constructive eviction. He/she may sue the landlord for forcing them out of the dwelling,

A good example of constructive eviction is the 1929 case of Maple Terrace Apt. Co. v. Simpson 22 S.W. 2d 698 (yes, the same Maple Terrace Apartments from the picture in chapter 1). In this case the tenant Mr. Simpson left his rented home in the Maple Terrace building, and sued Maple Terrace Apartments Company because the building management had done nothing to ensure Mr. Simpson his right of quiet enjoyment after he had complained several times about the loud noise from the barking and pungent smell of the urinating of the dog of a tenant from an adjoining apartment. The Court of

Civil Appeals of Texas, Dallas ruled against Maple Terrace and determined that the landlord’s inactivity led to constructive eviction.

SUMMARY

If not repaired immediately, even the smallest sign of disorder and neglect can turn into a big problem for the safety and well-being of the residential community.

It is important to do background checks of applicants before you approve them and sign the lease agreement.

The Crime-Free Multifamily Housing Program is a crime prevention program that includes effective and easy steps to improve the safety within multifamily residential communities.

Regular scheduled maintenance and repair visits, as well as organized social activities are other common and effective crime prevention techniques.

Eviction is the appropriate measures for tenants who fail to pay their rent or breach the terms of the lease agreement.

USEFUL TERMS

Broken Windows Theory: A theory in criminology that states that minor signs of neglect and disorder encourage residents to commit further acts of neglect, disorder, loitering, and vandalism; and can lead to the social decay and raise of grave criminal behavior.

Crime-Free Multifamily Housing Program: A crime prevention program that aims to reduce crime, drugs, and gangs in apartment property.

Crime prevention: Strategies and measures that seek to reduce the risk of crimes occurring and their potential harmful effect on individuals and society, including fear of crime, by intervening to influence its multiple causes.

Covenant of quiet enjoyment: An agreement between the landlord and the tenant that is implied by law and states that the landlord cannot disturb the tenant’s quiet use and enjoyment of the rented property].

Eviction: The legal means by which the tenant may be removed from the premises when they no longer have a right of possession

Security device: A doorknob lock, door viewer, keyed dead bolt, keyless bolting device, sliding door, handle latch, sliding door pin lock, sliding door security bar or window latch in a dwelling.

EITHER FAIR, OR FAREWELL Fair Housing

THE FAIR HOUSING ACT

The Fair Housing Act is a very important piece of legislation that was passed in 1968 as part of the Civil Rights Act. It guarantees that all persons in the United States have equal opportunity to secure the housing they desire and can afford, regardless of their race, gender, color, religion, national origin, disability, or familial status (North Texas Fair Housing Center).

In its initial version the Fair Housing Act prohibited discrimination on the basis of race, color, gender, religion, and national origin. In 1988 it was amended to cover discrimination based on disability and familial status (the presence or anticipated presence of children under the age of 18). The federal authorities that enforce and administer the Fair Housing Act are the United States Department of Justice (DOJ) and the United States Department of Housing and Urban Development (HUD) through its Office of Fair Housing and Equal Opportunity.

The HUD web-site (www.hud.gov) clearly states that the Fair Housing Act prohibits housing providers and leasing agents from taking the following actions based on the client’s race, color, national origin, gender, religion, disability, familial status while renting or selling housing:

refuse to sell or rent housing refuse to negotiate housing options make housing unavailable set different terms, prices, and conditions for renting or selling provide different housing services or amenities falsely deny that housing is available for rent or selling refuse to provide reasonable accommodations to people with disabilities

In addition, under the Fair Housing Act all housing providers and leasing agent, you included, are prohibited from preparing, printing, publishing, and distributing statements and

advertisements for renting housing that indicate any sort of preference, limitation, or restriction based on race, color, national origin, gender, religion, disability, or familial status.

FAIR HOUSING TESTERS

Often discrimination in the rent and sell of housing does not take the form of direct denial and overt bias. It is more subtle than that. Cathy Cloud from the National Fair Housing Alliance likens it to a revolving, rather than a slammed door. Persons are discriminated against through polite excuses, covert price and term changes, and long falsified explanations about how, unfortunately, there is no housing available at that particular moment. For many individuals it may be difficult to assess whether they were sent away or charged more due to discrimination, and whether the leasing agent was prejudiced against them.

Numerous human rights centers and professional organization conduct fair housing tests in order to prevent covert discrimination practices in the renting and selling of housing, and to ensure compliance with the Fair Housing Act. In our state one such organization is the North Texas Fair Housing Center. In April 2011 it revealed that in the lease and sale of housing African Americans are discriminated against 37% of the time (race discrimination), Hispanics are discriminated against 33% of the time (national origin discrimination), and families with children are discriminated against 20% of the time (familial discrimination)15

The organization conducting the Fair Housing tests usually sends several testers whose only difference is the one characteristic that is being tested for discrimination. For example, if it wants to test race discrimination it can send several testers who belong to different races, but share exactly the same traits in terms of familial status, age, income, disability, etc. After all tests are completed and all narratives turned in, professional test coordinators prepare reports and draw conclusions on whether the tested housing providers and leasing agents have broken the laws against discrimination.

. As you ponder these results, consider the fact that the Fair Housing Act was passed almost half a century ago,

In Fair Housing tests highly trained and specially selected testers contact residential communities, express interest in their housing options, and visit them on site. During this process they stick to strict guidelines, maintain polite and neutral demeanor, and keep detailed record of their interaction with the leasing agent. At the end of the test they prepare written narratives that follow a specific format, cover their test experience chronologically, and do not include any subjective perceptions, evaluations, or judgments.

15 The full text of the Rental Audit of the Dallas- Fort Worth Metroplex prepared by the North Texas Fair Housing Center in April 2011 is available online under http://www.northtexasfairhousing.org/b81e243935_sites/www.northtexasfairhousing.org/files/2011_NTFHC_Rental_Audit_Report_FINAL.pdf

Organizations that detect Fair Housing violations and individuals who experience discrimination and denial of equal housing opportunity have the right to file complaints with the Department of Housing and Urban Development. They can do so either online, by phone, or by mail. The complaint forms are available in several languages and are available on the HUD website16

Using this form, in 2008 a young couple filed a complaint against the managers and owners of a residential complex in Albuquerque, New Mexico. They had evicted the couple from their rented apartment solely on the ground that the young woman in the couple was pregnant (Department of Housing and Urban Development Office of Administrative Law Judges, FHEO No. 06-08-0968-8)

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If a person with severe walking impairment wants to lease an apartment, under the Fair Housing Act the leasing agent has to provide an easily accessible reserved parking space even if it is not the rental community’s practice to reserve parking spots for its residents but rather to offer parking spaces on first come-first serve basis.

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FAIR HOUSING FOR PEOPLE WITH DISABILITIES

While discrimination due to race, age, gender, familial status, national origin, and religion may be subtle and hard to detect, discrimination because of physical and mental disabilities often takes the overt form of denial of reasonable accommodation. It is important to note that under the Fair Housing Act housing providers and leasing agents are required to offer reasonable accommodations to people with physical or mental disabilities without altering contract clauses or imposing additional fees and charges. For example:

In one such case In February 2011 HUD ruled against, ordered to pay compensation, and assessed civil penalty of the owner of a housing community in Oyster Bay, New York. He had refused to reserve an easily accessible parking space for a tenant who suffers from a neurological disorder that impedes him from walking and maintaining balance (Department of Housing and Urban Development Office of Administrative Law Judges, FHEO No. 02-10-0481-8)18

If a housing community does not allow pets, it has to make an exception for the service dog of an individual who suffers from chemical imbalance and seizures and is interested in renting in the community.

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16 You can view the complaint form under http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp/online-complaint 17 You can find more information about this case under http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_14496.pdf 18 The full text of the HUD ruling in this case is available under http://portal.hud.gov/hudportal/documents/huddoc?id=11ZayervALOInc.pdf

If a resident suffers from a mental disability that is related to fear of open spaces and public premises and if there is a requirement that all tenants have to come to the office and pay their rent in person, the housing provider and the leasing agent have to either agree for a representative (friend, care-taker, family member) of the resident to pay the rent in person or allow for another payment method such as online transfer, allotment, etc. (These three examples are provided by the Department of Housing and Urban Development. )

Remember that established housing rules, practices, policies, and services that are acceptable to others may in fact discriminate against and endanger the wellbeing of people with disabilities. According to both the DOJ and the HUD, “treating persons with disabilities exactly the same as others will sometimes deny them an equal opportunity to use and enjoy a dwelling” (U.S. Department of Justice and U.S. Department of Housing and Urban Development, 2004).

Since the Fair Housing Act was amended to allow equal housing opportunities for people with disabilities, it requires that all multifamily housing with four or more units that are to be used for the first time after March 31, 1991 offer:

accessible entrance on an accessible route accessible public and common-use area usable doors (ex. doors that are wide enough for wheel chairs) accessible route into and through the unit accessible light switches, electric outlets, thermostats, AC control reinforced bathroom walls useable bathroom and kitchen

If the multifamily housing has elevators, it has to offer these amenities on all floors. If it does not, it has to provide them in all units on the ground floor.

Please take into account the fact that, although the Fair Housing Act ensure equal housing opportunity, it does not protect juvenile offenders, sex offenders, persons who illegally use controlled substances, and persons with disabilities whose behavior poses a direct threat to the health and safety of others (U.S. Department of Justice and U.S. Department of Housing and Urban Development, 2004)19

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19 You can find further clarification of the term reasonable accommodations under the Fair Housing Act in the Joint Statement of the Department of Housing and Urban Development and the Department of Justice from May 17, 2004. This statement is available online under http://www.hud.gov/offices/fheo/library/huddojstatement.pdf

SUMMARY As leasing professional you are legally bound by the requirements of the amended Fair

Housing Act. It is your professional obligation to offer equal housing opportunity without discriminating on the basis of race, national origin, sex and gender, religion, familial status, and disability; as well as to ensure reasonable accommodation to persons with physical and mental disabilities when their impairments substantially limit their performance of major life activities.

Non-profit and professional organizations conduct fair housing tests by sending trained testers to observe and record leasing agents’ behavior to be evaluated for discrimination practices.

When individuals or testing organizations suspect discrimination in renting and selling housing and violations of the Fair Housing Act, they can file complaints with the United States Department of Housing and Urban Development.

USEFUL TERMS

Fair Housing Act: A legislative act enacted in 1967 as part of the Civil Rights Act. As amended, it prohibits discrimination in selling or renting housing based on race, color, gender, religion, disability, familial status, national origin.

Person with disability: Any person who (1) has a physical or mental disability that substantially limits one or more major life activities; (2) has a record of such impairment; or (3) is regarded as having such impairment. Major life activities include walking, talking, hearing, caring for oneself, seeing, breathing, performing manual tasks, etc.

Reasonable accommodation: A change in rules, policies, practices, or services so that a person with a disability will have an equal opportunity to use and enjoy a dwelling unit or common space. An accommodation is not considered reasonable if will cause undue financial cost, administrative burden, or fundamental alteration to the housing provider (U.S. Department of Justice and U.S. Department of Housing and Urban Development, 2004).

CHOOSE YOUR OWN TYPE, MAKE IT AFFORDABLE Tax credit and Designation

In your first job as leasing agent you might work at a multifamily rental community. As

you advance in your career, at one point you might find yourself managing a rental community of single family houses. Therefore, it is important to know the different types of rental property that exist, the possibility for tax credits and expense deductions, and the availability of various leasing designation programs.

EVERYBODY HAS THEIR OWN TYPE

Here is a brief overview of the different types of residential rental property:

Single family houses: These are free-standing rental properties that are habituated by one person, one family, or another group of renters such as several friends or siblings. They provide the most privacy to their tenants. They are also preferred my many landlords, because according to experts, they offer the easiest way to enter into real estate investing and residential renting.

Single family houses offer the highest level of privacy for the tenants.

Multiunit residential property and small apartment buildings- duplexes, triplexes, four-plexes, etc.: These are residential rental units that offer less privacy than single family houses, but usually more amenities than large apartment buildings. They host several tenant households, usually between two and five. They are good investment alternatives, since landlords can finance them in the same as single family houses.

This beautiful townhouse, a multiunit residential property located on 5316 Reiger Ave. in the Dallas neighborhood of Hollywood Heights, was built in 2008 .Its owners and residential rental community management work together with the Dallas Housing Agency, accept Housing Choice Voucher, and provide safe and comfortable housing for people in financial difficulty. Picture and information courtesy of DHA

Large apartment buildings: These buildings are comprised of numerous rental units and host the largest number of residents. In general, rental apartment buildings are not as common as single houses and multifamily communities, because the owner might have difficulty financing them as they cost more than single family houses.

The Mondrian Cityplace in Dallas West Village is an example of a large apartment building that offers 218 residential units for rent. It is property of USAA (United States Automobile Association) and rents out apartments, not condos (condominiums). There is a legal term difference between condos and apartments. Although they are practically one and the same type of living space, we talk about apartments

when all in a building are owned by the same company or person. We talk about condos when each unit is owned by a different company or person.

Low-rent/ government subsidized housing in private rental: The U.S. Department of Housing and Urban Development (HUD) provides low-income families and the elderly with Housing Choice Vouchers that can allow them to secure safe and comfortable housing in private rental communities. In Texas these vouchers are approved by the Texas public housing agencies. In Dallas this agency is the Dallas Housing Authority (http://www.dhadal.com/)20. If you are a leasing agent for a Dallas-based residential rental community that accepts Housing Choice Vouchers, after the Dallas Housing Authorities approves an eligible family's housing unit, you and this family sign a lease and, at the same time, you sing a housing assistance payments contract with the Dallas Housing Authority. This contract runs for the same term as the eligible family’s lease and guarantees you the rent payment. The Housing Choice Vouchers program is part of Section 8 of the United States Housing Act of 193721

Section 8 Housing

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Whether recently or long time ago, it is almost certain that you have heard the expression “Section 8 Housing”. Although low-rent and government-subsidized housing rentals are all part of Section 8, it is useful to know the exact definition and origin of the term. Section 8 stands for Section 8-Lower Income Housing Assistance of the United States Housing Act of 193722

Veterans Housing

. Here is a short description: For the purpose of aiding lower-income families in obtaining a decent place to live and of promoting economically-mixed housing, assistance payments may be made with respect to existing housing in accordance with the provisions of this section. (SEC. 8. [42 U.S.C. 1437f] (a) )

Since the passing of the 2008 Consolidation Appropriation Act, the HUD and the Department of Veterans’ Affairs (VA) administer the HUD-Veterans Affairs Supportive

20 All public housing agencies in Texas are listed under http://www.hud.gov/offices/pih/pha/contacts/states/tx.cfm 21 The HUD factsheet on housing vouchers is available online at http://portal.hud.gov/hudportal/HUD?src=/topics/housing_choice_voucher_program_section_8 22 You can find the most up-to-date revised text of the United States Housing Act of 1937 under http://www.hud.gov/offices/ogc/usha1937.pdf

Housing (HUD-VASH) voucher program. This is a program that offers rent vouchers for homeless American veterans23

Public Housing Public housing is an HUD program that “was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single family houses to high-rise apartments for elderly families”

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TAX DEDUCTIONS AND CREDITS WELL DESERVED

TAX DEDUCTIONS

So far in this guide we talked about tenant rights, safety, and quality of living and quiet enjoyment, fair housing, and the different types of homes tenants can rent. We talked about the government support for low-income families who want to rent homes in privately owned residential communities. We have not talked much about the owners. After all, they are in for the business and want to make profit out of renting residences.

To ensure that rental property owners stay in business, the Internal Revenue Service offers certain types of tax credit and tax deductions. Landlords can take these credits and deductions and use them to raise the profitability of their property. They can deduct the expenses for the upkeep of the property such as insurance, maintenance, taxes, and mortgage interest from the rental income. Here is a list of the most common tax deductable expenses:

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Advertising of available residential property on billboards, brochures, the local newspaper, etc.

Cleaning and maintenance of the premises, building repair;

Commission (this includes the commission paid to you, the leasing agent);

Office upkeep, utilities, equipment maintenance, rent of equipment (for example rent of snowplowing machines after a surprise snowfall);

Insurance, legal, accounting, and tax preparation fees;

23 The full description of HUD-VASH is available under http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/programs/hcv/vash 24 For more information on federal public housing, please visit http://portal.hud.gov/hudportal/HUD?src=/topics/rental_assistance/phprog

Local and long-distance business related travel expenses;

Depreciation of property, as well as repair of the wear-and-tear of the rental units;

Maintenance and upkeep of vacant rental property

HOUSING TAX CREDITS

In addition to the tax deductions to the IRS, Texas real estate owners who rent residential housing can take advantage of the Texas Housing Tax Credits.

The Texas Housing Tax Credits (HTC) is a program administered by the Texas Department of Housing and Community Affairs. It is part of a federal program that encourages private entrepreneurs to invest in affordable multifamily rental residential developments. “The tax credits provide investors of affordable rental housing with a benefit that is used to offset a portion of their federal tax liability in exchange for the production of affordable rental housing” (Texas Department of Housing and Community Affairs).

In order to qualify for HTC rental property developers and owners have to read the Qualified Allocation Plan and Rules (QAP) and apply to the Texas Department of Housing and Community Affairs for housing tax credits before they develop the rental housing community. According to Federal Reserve Bank in Dallas, between 1989 and 2007 the Texas Department of Housing and Community Affairs provided residential rental property entrepreneurs with $750 million in HTC25

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This chart, courtesy of the Texas Department of Housing and Community Affairs(TDHCA) shows the number of rental units built by real estate developers in Texas through Low Income Housing Tax Credits (LIHTC) provided by the TDHCA.

25 You can read the full report of the Federal Reserve Bank of Dallas under http://dallasfed.org/ca/bcp/2009/bcp0902.cfm

According to the Federal Reserve Bank of Texas TDHCA granted over $750 million in tax credit between 1989 and 2007.

The HTC is a dollar-for-dollar reduction in the income tax liability of private entrepreneurs that have invested in affordable rental housing. When we talk about affordable rental housing, keep in mind that most of the tenants who benefit from such housing are outstanding citizens who work as school teachers, police officers, fire fighters, city employees, and single parents who try to balance work, children, and night school. Thus, the Texas HTC benefits both the landlords and the community. Below is an example of the contribution of HTC to the community. This case is courtesy of the Federal Reserve Bank of Dallas26

26 Federal Reserve Bank of Texas (2009). “Low-income housing tax credits in Texas: achievement and challenges.” Banking and Community Perspectives, 2:2009

:

When Venicia Woods and her two children were looking for rental housing near the Fort Worth Alliance Corridor, she sought market-rate units but knew them to be unaffordable in the area. As a loading dock administrator within the corridor, her pay was well below the area median income. To her surprise, she found a home in the corridor that was safe and filled with quality amenities. She found Aventine Apartments in Keller, a 4 percent tax-credit property by longtime developer Granger McDonald of Kerrville, Texas.

“The biggest selling point was its affordability,” Woods said. Rents were 30 to 50 percent below comparable housing found within this expanding pocket of northern Tarrant County. A one-bedroom, 800-square-foot unit rents for $657.

Because the property is subsidized with tax credits, the built-in equity available through the tax credit program allows rents to be below market rate. With an income of less than 60 percent of area median income, Woods qualified to live at Aventine. Even if she were to exceed the 60 percent threshold, Woods would not be required to relocate unless her income increased dramatically.

Her neighbors include local schoolteachers, police officers and firefighters and employees of the burgeoning service industry within the Alliance Corridor.

“In an economic down market, we find ourselves near full occupancy. We have even taken in residents with foreclosures,” said Melissa Johnson, assistant manager at Aventine. The tax credit program allows property managers to screen tenants for past criminal activity and can obligate prospective tenants to prove they have twice the amount of one month’s rent at the beginning of their leases. Proof of employment is a requirement.

Aventine’s amenities include a swimming pool, two children’s playgrounds, a media room and a host of social services such as fitness, financial education and computer classes for adults and children.

LEASING DESIGNATION PROGRAMS

Another way for residential rental property owners, managers, and leasing agents to increase the profitability of their residential community is through leasing designation programs through the National Apartment Association and the Apartment Association of Greater Dallas.

Leasing designation programs target multifamily residential housing rental professionals and allow them to improve their efficiency, decrease costs, increase operating income, and comply with laws. Also, many companies that manage residential rental property check the job applicant’s designation status before making the final decision to hire.

Through its National Apartment Association Educational Institute, the National Apartment association offers several leasing designation programs. These are:

National Apartment Leasing Professional : This leasing designation program is the most important one for entry-level professionals like you. Consider enrolling in it and completing it once you meet the minimum requirements of six months work experience in the leasing industry. You can find more information about it under http://www.naahq.org/education/designationprograms/NALP/Pages/default.aspx and http://www.naahq.org/education/designationprograms/NALP/Pages/NALPOnlineFAQs.aspx

Certified Apartment Manager: This leasing designation program is for professionals who have worked in rental housing for at least 12 months. You can find information about it at http://www.naahq.org/education/designationprograms/CAM/Pages/default.aspx

Certified Apartment Portfolio Supervisor: This leasing designation programs is program is “an in-depth review of property management principles and techniques as used by the professional supervisor” and helps professionals to put their vast knowledge into practice and improve their job performance. You can find full description of the program under http://www.naahq.org/education/designationprograms/CAPS/Pages/default.aspx

Independent Rental Owners Designation Program : This program offers independent rental owners “who manage their personally held multifamily properties important information that will enable them to improve their bottom lines”. More information about the program is available under http://www.naahq.org/publications/units/2011/05_11/Pages/DesignationProgramLaunchedforIndependentRentalOwners.aspx

When you decide that it is the right time for you to complete a leasing designation program, you can enroll in it online at www.naahq.org or contact the Texas Apartment Association or the Apartment Association of Greater Dallas.

SUMMARY

There are several different types of rental property depending on the building layout, the level of privacy they offer to their tenants, and the presence of federal and state support for rent payment.

Rental housing owners and managers can improve the property’s profitability through tax deductions and housing tax credits.

To improve their profitability and professional standing owners, managers, and leasing agents should consider the leasing designation programs offered by the National Apartment Association.

USEFUL TERMS

Apartments v. Condos: While apartments and condos appear to be one in the same thing, the difference is in the ownership. WE talk about apartments when all units in a building have the same owner. We talk about condos (condominiums) when each unit in a building has a different owner.

Housing Choice Vouchers: Government issued rent vouchers that allow low-income households to secure safe and comfortable housing in private rental communities.

Housing Tax Credits: Federal and state programs for the dollar-for-dollar reduction in the income tax liability of private entrepreneurs that have invested in affordable rental housing

Leasing Designation Program: Educational course programs that are offered by the National Apartment Association and aim to improve the job performance of apartment leasing professionals.

Section 8 Housing: Rent vouchers for housing provided with accordance with Section 8-Lower Income Housing Assistance of the United States Housing Act of 1937

IT IS TIME TO LEARN HOW TO READ a Texas Apartment Lease Agreement

So now it is time to sit down with the future resident and sign the lease agreement. Before you put your first signature as leasing agent, you have to be absolutely confident in your ability to read a lease agreement. Below is an overview of the most important provisions included in all standard Texas apartment lease agreements. They are part of the Texas Apartment Lease Agreement form of the Texas Apartment Association. If you and your manager discuss with the future tenants and agree to any changes in these sections, you have to put these changes in writing. Although Texas law does not require written lease agreements for lease terms of less than one year, it is highly recommended that all agreements are in written form and signed by both the leasing agent and the tenant.

Here is the list:

Parties: Here “parties” does not mean social activities and celebration. Rather it means the names of all sides that sign the lease agreement. In this section it is important to list the exact name of the residential community, the right number and physical address of the housing unit that the tenants are about to rent, and the names of all residents.

Occupants: There is a difference between tenants (residents) and occupants. This section lists all the names of the individuals who will leave in the dwelling, the number of days guests can visit and stay with the occupants without an additional permission from the landlord.

Lease term: Under lease term you should list the beginning and end dates of the lease, as well as the procedure for lease agreement extension. This paragraph specifies that after the expiration of the lease term listed in the agreement, the lease will be renewed automatically on a month-to-month basis until either the tenant or the landlord provides the other party with a move-out notice for the end of the agreement. This automatic renewal takes place if neither the tenant, nor the landlord has given a termination notice at least 30 days prior to the end of the lease term.

Security deposit: In the security deposit section you state the exact amount of the security deposit and

can specify whether it includes a pet deposit. It also refers to the agreement sections that cover security deposit deductions and refunds (paragraphs 41 and 42).

Keys, furniture, and affidavit of move-out: Here you specify the number of keys to the dwelling, to the mailbox, to the garage, and any other entrances and premises (key cards) that the residents are to receive. It also clarifies whether the dwelling is furnished or not. It also states that residents and occupants who have permanently moved out or under court order not to enter the dwelling have no right to hold a key.

Rent and charges: In this section you state the amount of rent that the tenants have to pay each month, where they should do the payment, by what date they should make the payment, the charges for late payments, and the charges for keeping unauthorized pets in the dwelling.

Utilities: In this section you and the residents clarify who is going to cover the utility bills. If you fill in a Texas Apartment Lease Agreement, the tenant is to cover the utility bills for water, gas, waste water, electricity, trash, and cable, unless you specifically agree on different terms.

Insurance: The rental housing owner’s insurance does not cover any of the tenants’ personal belongings. This paragraph offers two options: either tenants are required to purchase and maintain renter’s liability insurance, or they are not required to have such insurance. It is, however, strongly recommendable that tenants do have renter’s insurance.

Security Devises: If you recount for our earlier chapters, the state of Texas requires landlords to install certain security devises at their own expense.

Special provisions and “what if” clauses: Special provisions are parts of the lease that aim to avoid the problems of conflicting information. In special provisions you find listed all attachment and addenda to the

lease agreement such as the Crime-Free Lease Addendum in residential communities that participate in the Crime-Free Multifamily Housing Program.

Unlawful early move-out and relenting charges: It includes the charge to be paid or deducted from the security deposit if the tenant(s) move out before the end of the lease term.

Damages and reimbursements: Tenants have to reimburse the property owners from any damages to the property that are the result of their, their occupants and dependents, and their visitors’ conduct, property abuse, neglect, community disturbance, or violation of the lease agreement.

Contractual lien and property left in the apartment: If the tenants are late on their payment, the property management can seize their property under certain conditions until all due payments are made.

Failure to pay the first month’s rent: The first month’s rent is due before or on the first day of the lease. IN this section you state the consequences of not paying the first month’s rent: the lease can be terminated or the rent payment can be accelerated meaning that the tenants now immediately owe the entire rent for the lease term.

Rent increases and lease contract changes: In most cases the rent cannot be increased and the lease contract terms cannot be changed for the duration of the lease term. Such increases and changes are only possible, if they are mentioned in the section on special provisions and “what if” clauses.

Delay of occupancy: In this section you clarify what would happen if the tenants cannot move into their new home on time because of construction works, repairs and maintenance, cleaning, or previous tenant who has not moved out on time. The residential housing management is not held responsible for the delay, but if you do not notify the new tenants of the delay, they may have the right to terminate the lease agreement.

Disclosure rights: Here you clarify the fact that you can provide information about the tenant’s residential history to government and law-enforcement agencies and employers.

Community policies and rules: All tenants, occupants, and guests have to comply with the community rules in the residential housing community.

Limitations on conduct: Tenants are responsible for keeping their homes clean, for taking out their trash out at least once a week, use exterior passage ways only for entry and exit, and use common areas and recreational facilities only for their intended purposes and in accordance with posted guidelines. Also, tenants have to notify the housing management within 15 days if they or any occupants in their household are convicted of a felony, drug and control substances abuse, violence to another person, or destruction of property. They also have to notify the management and the owner if either they or any of their household occupants is a registered as sex offender in any state.

Prohibited conduct: Make sure that the future tenants read through this section carefully. They should be well aware of all activities and behavior conduct that is considered breach of the lease agreement and reason for termination of the lease.

Parking: The rental housing management has the authority to regulate parking in the residential community. In this section you define unauthorized vehicles and illegally parked vehicles. In Texas the rental property management has the right to tow such vehicles.

Release of resident: Here the lease agreement states that tenants are not allowed to move out early, unless under special provisions. Please note that tenants who are active duty members of the military and reserves called into active service are granted special rights that allow them to move out early.

Military clause: Just like mentioned above, military personnel are subject to several exemptions. This

clause outlines when and how a military member is able to terminate the lease agreement.

Resident safety and loss: This section covers smoke detection and safety devices, loss, crimes, and emergencies.

Conditions of the premises and alterations: In most cases tenants are not allowed to alter the dwelling or pain the walls.

Requests, repairs, and malfunctions: All requests for services of any kind must be made in writing, signed by the tenant, and delivered to the property manager.

Animals: No animals are allowed in the dwelling or in the community, unless the tenant pet owner has received written permission from the property management, signed a pet addendum, and paid pet deposit.

When we may enter: Here you and the tenant agree on who and under what circumstances can enter into the leased dwelling.

Multiple residents or occupants: In this section you specify that each resident is jointly and separately liable for the tenant obligations outlined in the lease agreement and its addenda. It specifies that if one of the residents or their visitor violates the terms of the lease agreement, this is to be considered a lease violation by all residents of the dwelling.

Replacement and subletting: Subletting of leased housing is allowed only with the explicit agreement of the landlord.

Responsibilities of owner: In this section you find outlined all the responsibilities of the landlord, as well as the steps that the tenant can take if the landlord breaches the lease agreement.

Default by resident: This section explains what constitutes a default by the residents and the steps (remedies) that the owner can take to remedy this default.

Security guidelines for residents: This section includes suggested safety and security for the protection of the residents.

Move-out notice: This section specifies the requirements for move-out notices provided by tenants a specified period prior to the end of their lease contracts. The standard time requirement for a move-out notice is 30 days prior to the end of the lease term. If the time requirement is longer, you have to issue a written reminder to the residents.

Cleaning: This section states that residents have to clean up the apartment thoroughly before they move out. If they do not do so, you have the right to charge them reasonable cleaning charges.

SUMMARY: It is important to know the specific section of the Texas Apartment Lease Agreement.

All changes to the lease agreement have to be made in writing and signed by all parties

involved.

USEFUL TERMS:

Affidavit: A written statement of fact confirmed by oath before an officer or person (notary) who has the authority to administer such oath.

Dwelling: One or more rooms rented to one or more tenants under a single lease for use as a permanent residence.

Lien: A charge upon real or personal property for the satisfaction of some debt or duty. Occupants: Individuals who live in a dwelling and whose names are listed on the lease agreement but who are not obliged to pay rent. Example of occupants are minors whose parents are the tenants. Party: A person or group of persons taking one side of a question, dispute, or contest. Tenant: A person authorized by lease to occupy a dwelling to the exclusion of others and obliged to pay rent.

MY TELEPHONE Apartment marketing and mystery shopping

APARTMENT MARKETING

It is important to know the law and the details of apartment lease agreements, but this knowledge might be of little use if you do not know of people who are interested in leasing the apartments you offer. This is where apartment marketing comes into play.

Apartment marketing means that you present the apartment in a way that is so attractive to those interested in renting, that they are willing to sign the lease agreement. There are many agencies that specialize in creative apartment marketing ideas, and are willing to charge quite a bit for their advice.

While the marketing approach of each rental community is different, because it targets different types of people in different areas of the state, it is very important to remember that first impressions last the longest.

WHEN YOU PICK UP THE PHONE

Most often prospective tenants form their first impression of the rental property through a phone call and base it on the friendliness and professional attitude of the leasing agent with whom they talk.

At first you might feel a little nervous when you answer the phone as a leasing agent, but here are a few tips that will make you feel more at ease and confident with yourself. They will help you attract prospective tenants to the property and ensure your success as a leasing agent.

Answer the phone promptly and with smile. The callers have to feel your positive attitude and your energy.

Thank you for calling! As you greet the caller, make sure you thank them for choosing your property.

Names: say your name and ask the caller for their name, write their name down and repeat it during the phone conversation.

Ask how the caller knows about your community. This is called identification of the correct traffic source. It helps you learn what works and what doesn’t in your community’s current apartment marketing and advertising.

Always ask when, what, how much, where, and why: - When do you plan to move? - Describe to me the apartment you want to lease. How many bedrooms and bathroom should it have? (What exactly is it that you are looking for?) - What price range are you budgeting for? - Do you work nearby? Where do you live now? -Would you mind if I ask you why you consider a move right now?27

Describe the amenities at your community, and create a sense of urgency. Let the caller feel that they have to come and apply for a lease as soon as possible, because your community’s housing units are in high demand.

Set an appointment. Ask them about a time that when it would be convenient for them to visti the property, and assure them that you will do the best of your abilities to be there at that time to meet them and talk with them. Your goal is to turn the phone callers into future residents. In order to do this you have to get them on the property and the best way to do this is by setting an appointment.

Ask the caller for their phone number and current address. Explain that you need them in order to be able to call them in case something comes up and to send them a brochure of your residential community and reminder for their upcoming appointment with you. Phone number and address are a great way for you to follow up on the call and make sure that the prospective tenants are still interested in leasing with you. Avoid asking “Can you give me your phone number” because they can say “No, you can’t”. Rather, say something along the lines of “Let me write down your phone number so I can call you as soon as something comes up”.

MYSTERY SHOPPING

If you think that picking up the phone and talking to people who are already interested in your community seems difficult, think how much harder it is when you meet them in person. In order to ensure that their leasing agents do a good job in attracting future tenants, many rental housing managers turn to the services of mystery shopping companies. A mystery shop is an inquiry by a specially trained shopper who shows interest in renting housing, interacts with a leasing agent both on the phone and on site, and then evaluates the leasing agent based on several criteria. The leasing Texas company in apartment mystery shopping is Ellis, Partners in Management Solutions of Irving, Texas.

27 These example questions are courtesy of Ellis – www.epmsonline.com

Mystery shopping is all about improvement, not about criticism

The Ellis apartment mystery shoppers conduct both phone inquiries (telephone shops) and on-site visits. After they complete these two steps, they write a detailed narrative and objective report about the leasing agent with whom they interacted. They evaluate leasing professional based on:

Greeting Experts recommend that when greeting potential tenants you use the five S: - Stop whatever you are doing at the moment and pay attention to the visitor - Smile because a smile is the best way to communicate professionally in a positive way - Stand up to show respect and appreciation - Shake the prospective tenant’s hand - Salutation- choose the right words to greet the person in front of you.

Identifying needs What counts under this category is whether the leasing agent asked about the size of the apartment that the potential resident wants to rent, the desired move-in date, the size of the household, the price range, the presence of pets, and any other special preferences and needs regarding the layout of the dwelling.

Demonstrating Demonstrating is exactly that, demonstrating of the property. Before you do it, however, you have to ask the prospective resident for a property identification document. While you show the property, don’t forget to be enthusiastic, smile, and carry on a friendly conversation. Besides the apartment, do not forget to show the common areas and the recreational facilities.

Closing After the demonstration invite the prospective tenants back in the office, create a sense of urgency, discuss the rent rates, and ask them to fill out an application.

Follow-up Experts recommend that you follow up by phone, email, or mail. Many people choose not to lease housing during their first visit to a rental community. They need time. You need them to sign that lease. A follow-up provides both.

On-site professionalism, behavior, and communication.

The shoppers go through a rigorous and detailed training that ensures that they behave inconspicuously while communicating with the lease agent and that they remain objective during the mystery shop and the subsequent narrative writing process. Their reports are submitted to specialists who evaluate the leasing agent’s skills, identify their strength and weaknesses, and draw recommendations if there is need for improvement28

Apartment marketing is important for the attraction of potential tenants

.

The thought that a potential tenant might in fact a trained mystery shopper of an apartment mystery shopping agency that was contracted by your employer to evaluate leasing agents might be overwhelming at first. Remember, however, that the point is not to criticize you. Rather, it is to get ideas on how to improve the rental housing sales, attract more tenants, and generate higher income.

SUMMARY

How you answer your phone matters because it creates the potential residents first impression of your housing community

In order to improve sales services and customer care rental housing managers turn to the services of marketing agencies who conduct apartment mystery shopping.

USEFUL TERMS

Apartment mystery shopping: A marketing tool used to measure the quality of customer and sales services. It is performed by a trained person, called mystery shopper, who visits the targeted rental housing community, behaves as if interested in renting, and evaluates the work of the leasing agent.

28 You can find a sample apartment mystery shopping report at https://www.epmsonline.com/dispatch/engine?Key=/h8ZBmYjJ46&ShopNo=103138&Step=View

WHERE DO I LOOK? WHO DO I CONTACT? Web-site information

In this guide you could find scattered around the names of agencies, professional magazines, and government web sites. Here is a structured overview of their contact information. Use it to find further reading materials, expand your knowledge, and become an outstanding leasing agent:

PROFESSIONAL ASSOCIATIONS

National Apartment Association http://www.naahq.org/ The National Apartment Association (NAA) is America's leading advocate for quality rental housing. NAA is a federation of 170 state and local affiliates, comprised of more than 54,000 multifamily housing companies representing more than 6.1 million apartment homes throughout the United States and Canada

Texas Apartment Association http://www.taa.org/ The Texas Apartment Association, Inc. (TAA) is a non-profit statewide trade association dedicated to unifying rental housing professionals through education, legislative advocacy and member services. TAA is affiliated with the National Apartment Association and local associations in 25 Texas cities. The full list of local apartment associations in Texas is available at http://taa.org/apartmentassociations/

Apartment Association of Greater Dallas http://www.aagdallas.com/

FEDERAL AND STATE AGENCIES

U.S. Department of Housing and Urban Development http://www.portal.hud.gov http://portal.hud.gov/hudportal/HUD?src=/states/texas

Texas Department of Housing and Community Affairs http://www.tdhca.state.tx.us/

Dallas Housing Authority http://www.dhadal.com/

FAIR HOUSING

North Texas Fair Housing- Dallas, TX http://www.northtexasfairhousing.org/ A non-profit organization dedicated to eliminating housing discrimination in North Texas.

PROFESSIONAL MAGAZINES & USEFUL BLOGS

units Magazine of the National Apartment Association http://www.naahq.org/green/news/units/Pages/default.aspx A full-color trade publication featuring news and newsmakers in the multifamily housing industry.

Rent & Retain http://www.rentandretain.com/

Tenant Screening http://www.tenantscreeningblog.com/

Real Estate Center at Texas A&M University http://recenter.tamu.edu/

LEGAL

Texas Attorney General https://www.oag.state.tx.us/consumer/tenants.shtml

Landlord and Tenant Guide at the Texas A&M University Special Report http://recenter.tamu.edu/pdf/866.pdf

NAME A TERM A glossary of most important terms for leasing professionals

Below you will find the most important terms and concepts that you, the successful leasing agent, need to know:

Affidavit: A written statement of fact confirmed by oath before an officer or person (notary) who has the authority to administer such oath.

Apartment mystery shopping: A marketing tool used to measure the quality of customer and sales services. It is performed by a trained person, called mystery shopper, who visits the targeted rental housing community, behaves as if interested in renting, and evaluates the work of the leasing agent.

Apartments v. Condos: While apartments and condos appear to be one in the same thing, the difference is in the ownership. WE talk about apartments when all units in a building have the same owner. We talk about condos (condominiums) when each unit in a building has a different owner.

Broken Windows Theory: A theory in criminology that states that minor signs of neglect and disorder encourage residents to commit further acts of neglect, disorder, loitering, and vandalism; and can lead to the social decay and raise of grave criminal behavior. Crime-Free Multifamily Housing Program: A crime prevention program that aims to reduce crime, drugs, and gangs in apartment property.

Crime prevention: Strategies and measures that seek to reduce the risk of crimes occurring and their potential harmful effect on individuals and society, including fear of crime, by intervening to influence its multiple causes.

Covenant of quiet enjoyment: An agreement between the landlord and the tenant that is implied by law and states that the landlord cannot disturb the tenant’s quiet use and enjoyment of the rented property].

Dwelling: One or more rooms rented to one or more tenants under a single lease for use as a permanent residence.

Eviction: The legal means by which the tenant may be removed from the premises when they no longer have a right of possession.

Fair Housing Act: A legislative act enacted in 1967 as part of the Civil Rights Act. As amended, it prohibits discrimination in selling or renting housing based on race, color, gender, religion, disability, familial status, national origin.

Housing Choice Vouchers: Government issued rent vouchers that allow low-income households to secure safe and comfortable housing in private rental communities.

Housing Tax Credits: Federal and state programs for the dollar-for-dollar reduction in the income tax liability of private entrepreneurs that have invested in affordable rental housing.

Lease contract/ lease agreement: Legally binding document that gives an individual 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.

Leasing Designation Program: Educational course programs that are offered by the National Apartment Association and aim to improve the job performance of apartment leasing professionals.

Lien: A charge upon real or personal property for the satisfaction of some debt or duty. Occupants: Individuals who live in a dwelling and whose names are listed on the lease agreement but who are not obliged to pay rent. Example of occupants are minors whose parents are the tenants. Party: A person or group of persons taking one side of a question, dispute, or contest.

Person with disability: Any person who (1) has a physical or mental disability that substantially limits one or more major life activities; (2) has a record of such impairment; or (3) is regarded as having such impairment. Major life activities include walking, talking, hearing, caring for oneself, seeing, breathing, performing manual tasks, etc.

Reasonable accommodation: A change in rules, policies, practices, or services so that a person with a disability will have an equal opportunity to use and enjoy a dwelling unit or common space. An accommodation is not considered reasonable if will cause undue financial cost, administrative burden, or fundamental alteration to the housing provider (U.S. Department of Justice and U.S. Department of Housing and Urban Development, 2004).

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 year29

Tenant: A person authorized by lease to occupy a dwelling to the exclusion of others and obliged to pay rent.

. According to the National Apartment Association (NAA) and the National Multi-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”.

Section 8 Housing: Rent vouchers for housing provided with accordance with Section 8-Lower Income Housing Assistance of the United States Housing Act of 1937.

Security deposit: The amount of money that the landlord/ rental property management collects in order to ensure that the rent is to be paid and expenses for the repair of damages incurred by the tenants are to be covered, even if the tenants fail to pay on time.

Security device: A doorknob lock, door viewer, keyed dead bolt, keyless bolting device, sliding door, handle latch, sliding door pin lock, sliding door security bar or window latch in a dwelling.

29 This information is provided by the Goliath Business Knowledge Data Base: http://goliath.ecnext.com

Warranty of habitability: 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 leasing landlord has to maintain the property fit and safe for living for the entire duration of the lease.