Property Management Law
What is Property Management Law?
Property Management Laws are those statutes and regulations that govern the professionals responsible for managing properties such as apartments, homeowners associations, condominiums, office buildings, cooperatives, and the like.
In most states, property managers must be licensed. This typically involves either holding a degree or taking a course on property management and passing some form of written examination. Licensing also usually requires a background check, and criminal convictions for crimes of dishonesty or felonies may disqualify an applicant. After obtaining a license, most jurisdictions require continuing education and payment of annual fees to maintain a license in good standing.
Property managers owe a fiduciary duty to the communities or buildings they represent. A fiduciary duty is the highest duty owed at law, and requires the property manager to always act in the best interests of their clients. This means avoiding conflicts of interest and opportunities for self-gain that would work to the detriment of the client. This duty is owed to the community as a whole, though, not to each individual resident within the community.
Homeowners Association and Condominium Laws
Much of property management law is intertwined with the laws of the communities they represent. Property managers are expected to know and understand these laws and assist their communities in administering their obligations under them and the associations' governing documents. Examples of common obligations property managers help associations fulfill include collecting assessments, paying association financial obligations, making annual reports to state agencies, ensuring compliance by residents with the rules of the association, and so forth.
Though not technically governing bodies, there are a number of professional organizations related to property management. Many of these are instrumental in lobbying for laws related to both communities and property managers. They are also sources of information about trends in the property management industry and local legal news.
Unauthorized Practice of Law
One other area of increasing concern for property managers in recent years have been decisions by several states indicating that certain functions performed by property managers may constitute the unauthorized practice of law. It is important for property managers to work closely with legal counsel to ensure that they do not inadvertently violate the law through common practices like preparing and recording claims of lien, sending demand letters, or advising the client's board of directors on the state of the law relating to a particular issue.
For more information about property management law, please review the materials below or contact an attorney in your area who focuses on community association or property management law. To find an attorney in your area, please visit our Law Firms page.
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Property Management Law - US
- ABA - Commercial Real Estate Transactions Group
This group analyzes the transactional and ownership issues which confront commercial real estate attorneys when dealing with land transfers, construction, brokerage services, servitudes, title insurance, property and liability insurance, and ownership of commercial real estate. Each committee within the group focuses on one of these topics.
- Certified Property Manager (CPM)
The challenges in today’s job market—from industry consolidation and increased competition to being expected to do more with less—make it harder for you to prove your experience and your credibility. The CPM designation can demonstrate your expertise and integrity to those who matter most—employers, owners and investors.
- Community Association Manager Licensing
CAI encourages the national certification of community association managers. In states that propose mandatory regulation of community association managers, CAI will support a regulatory system that incorporates adequate protections for homeowners, mandatory education, and testing on fundamental management knowledge, standards of conduct and appropriate insurance requirements. CAI opposes the licensing of community association managers as real estate brokers, agents or property managers.
- Federal Real Property Council (FRPC)
The FRPC was created according to provisions in Executive Order 13327, "Federal Real Property Asset Management," signed by President George W. Bush on February 4, 2004. Executive Order 13327 states: "The policy of the United States is to promote efficient and economical use of America's real property assets and to assure management accountability for implementing federal real property management reforms."
- Property Management - Wikipedia
Property management is the operation of commercial, industrial or residential real estate. This is much akin to the role of management in any business. Property management is also the management of personal property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain end item deliverables. Property management involves the processes, systems and manpower required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization, and disposition.
- Property Owners and Managers Survey (POMS)
The Property Owners and Managers Survey (POMS) Overview, Summary Tables, and Source and Accuracy Statement are now available from the U.S. Census Bureau. POMS was designed to learn more about rental housing and the providers of rental housing. The purpose was to gain a better understanding of the property owners and managers on whom the nation depends to provide affordable rental housing and what motivates their rental and maintenance policies.
- Public Housing Authorities Directors Association
Founded in 1979, PHADA represents the professional administrators of approximately 1,900 housing authorities throughout the United States. PHADA works closely with members of Congress in efforts to develop sensible and effective public housing statutes and obtain adequate funding for low-income housing programs. The association also serves as an advocate before the U.S. Department of Housing and Urban Development on a variety of regulations governing public housing nationwide.
- Quality Housing and Work Responsibility Act of 1998 (QHWRA)
Public housing reform is represented through the Quality Housing and Work Responsibility Act of 1998 (QHWRA). QHWRA was signed by President Clinton on October 21, 1998 and is found in Title V of HUD’s FY1999 appropriations act (P.L. 105-276).
- Real Estate Management Code of Professional Ethics
The purpose of this Code of Professional Ethics is to establish and maintain public confidence in the honesty, integrity, professionalism, and ability of the professional real estate manager. The Institute of Real Estate Management and its Members intend that this Code and performance pursuant to its provisions will be beneficial to the general public and will contribute to the continued development of a mutually beneficial relationship among Certified Property Manager® Members, CPM® Candidates, Accredited Residential Manager® Members, Accredited Commercial Manager Members, Associate Members, and other Members, national and international professional real estate associations and organizations, and clients, employers, and the public.
- US General Services Administration - Real Property Management
GSA develops, promotes, and assesses compliance with management policies and regulations for the effective and efficient stewardship of federal real property assets and alternative workplaces. GSA provides information and data on federal and commercial real estate, the workplace, and related services.
Organizations Related to Property Management Law
- Building Owners and Managers Association (BOMA)
The Building Owners and Managers Association (BOMA) International is an international federation of more than 100 local associations and affiliated organizations. Founded in 1907, its 16,000-plus members own or manage more than nine billion square feet of commercial properties. BOMA International’s mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research, standards and information..
- Community Associations Institute (CAI)
Community Associations Institute (CAI) is a national organization dedicated to fostering vibrant, competent, harmonious community associations. For more than 30 years, CAI has been the leader in providing education and resources to the volunteer homeowners who govern community associations and the professionals who support them. Our members include community association volunteer leaders, professional managers, community management firms and other professionals and companies that provide products and services to associations.
- Institute of Real Estate Management (IREM)
The Institute of Real Estate Management (IREM) has been the source for education, resources, information, and membership for real estate management professionals for more than 75 years. An affiliate of the National Association of Realtors®, IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. With 80 U.S. chapters, 13 international chapters, and several other partnerships around the globe, IREM is an international organization that also serves as an advocate on issues affecting the real estate management industry.
- National Association of Realtors
The National Association of Realtors strives to be the collective force influencing and shaping the real estate industry. It seeks to be the leading advocate of the right to own, use, and transfer real property; the acknowledged leader in developing standards for efficient, effective, and ethical real estate business practices; and valued by highly skilled real estate professionals and viewed by them as crucial to their success.
Publications Related to Property Management Law
- HUD Guidebook - Private Management of Public Housing
Under intense pressure to stretch resources, both healthy and distressed public housing authorities (PHAs) increasingly are exploring private management of their properties. To help PHAs weigh the many issues involved, HUD's practical new Private Management of Public Housing: A Guidebook draws on the experiences of PHAs that have used private management and on the insights of private owners, managers, and financiers of multifamily dwellings.
- Journal of Property Management
Published bi-monthly by IREM, the Journal of Property Management offers comprehensive coverage of the real estate management industry. Each issue is filled with expert insight on trends and issues affecting all property types.
- Property Management: 9 Essential Qualities of a Third-Party Manager
Property management is often in demand when the brokerage side of business is slow. However, success in this specialty doesn’t come easy. Here are the skills you need, experts say. Commitment to customer service. You need to respect your tenants and empathize with their concerns.
Articles on HG.org Related to Property Management Law
- Homeowner Association Problems Solved by a Real Estate LawyerMany communities where homes are sold have homeowners’ associations attached as a service for the neighborhoods surrounding the area. These organizations have bylaws, often contracts and certain rules that the property owners in these locations must abide by.
- Legality of Restrictive CovenantsMany who buy a home believe that they are able to whatever they feel is necessary to the house or land. If they want to alter the land and create a garden, install equipment or build additional structures, they feel they are able to do so after the property has been purchased. However, there are numerous contracts that prevent these actions.
- Is It Possible to Sue When Return on Investment Does Not Materialize?When someone has invested in a luxury hotel, there are many factors to consider before progressing to litigation. Some return on investment may not be monetary. The income earned from these investment properties could be of a material manner instead of a financial payment.
- Early Lease Termination Agreements: Economic Considerations for Landlords and Distressed TenantsA small business has leased commercial space, encountered economic difficulties, and can no longer afford the lease payments. In some cases, the business is out in front of the problem, seeking to work with the landlord prior to a payment default. In other cases, the business is already behind on its rental obligations, and possibly facing a legal action for eviction.
- Avoiding Typical Problems with Commercial Leases with the Help of a Real Estate LawyerThere are a number of concerns that may arise when starting a commercial lease. It is vital that the documentation signed by the person involved is analyzed thoroughly by a real estate lawyer to ensure the statements are most beneficial for the leaseholder.
- Property Ownership: Joint Tenants or Tenants-in-CommonThe ownership of a property may be accomplished through various means. However, there are two that are common especially among married or tenants that need a joint ownership arrangement. In many real estate dealings, married couples find the need to have joint rights to a property based on numerous factors.
- Protect Your Construction Project with a Real Estate Lawyer in Your CornerConstruction projects may be affected by numerous concerns that could lead to litigation based on liability issues. These may be through workers becoming injured, third-party problems, defective parts or materials, breached contracts and clients that are not satisfied with the results of the project.
- Quiet Title Actions – Legal Title versus Equitable TitleSome situations arise that demand a quiet action in real estate deals, title conflicts and a completion of ownership transfers and claims. When someone must file to authenticate their title being valid despite claims explaining that it is not, the individual usually must undergo a quiet title action.
- Provisions to Include in Commercial LeasesWhen dealing in real estate commercial leases, it is vital that those that may purchase the property understand what provisions are provided in and for the contract that is signed. It is especially important to know which clauses may impact the buyer and which are allocated as beneficial to the purchaser.
- Seller Obligations to Disclose Conditions to Home BuyerWhen a seller is considering selling the property he or she owns, there are certain obligations placed upon that person that require him or her to disclose to the potential buyer once he or she has made a serious offer.
- All Real Estate Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Real Estate including: construction law, eminent domain, foreclosure, homeowners association, land use and zoning, landlord and tenant law, property law, property management.