Property Management Webinar Series

Property Management Forms

Instructed by

Kinski Leuffer, Associate Counsel

January 19, 2011

Outline

I. Forms Available

II. Recent Changes to Forms

III. New Forms

IV. Benefits

V. Q&As

I.Forms Available

How do you find property management forms?

I.Forms Available

I.Forms AvailableCategories:

• Residential Lease and Addenda

Numeric: 2001 - 2011

• Property Management Agreements

Numeric: 2201 – 2221

I.Forms Available

Listing Agreement: • Residential Real Estate Listing

Agreement, Exclusive Right to Lease

1102

I.Forms Available

Does TAR have a form for that?

I.Forms AvailableResidential Lease and Addenda:

• 2001 Residential Lease• 2002 Agreement Between Brokers for Residential Leases• 2003 Residential Lease Application• 2004 Pet Agreement• 2005 Extension of Residential Lease• 2006 Residential Lease Inventory and Condition Form• 2007 Residential Lease Guaranty • 2008 Addendum Regarding Lead-Based Paint• 2009 Agreement for Application Deposit and Hold on

Property• 2010 Pool/Spa Maintenance Addendum• 2011 Residential Lease for a Multi-Family Property Unit

I.Forms AvailableProperty Management :

• 2201 Residential Leasing and Property Management Agreement

• 2202 Commercial Property Management Agreement• 2203 Repealed – Addendum for Leasing Services • 2204 Multiple Property Addendum• 2205 Addendum for Authorization to Act for Owner

Before Owners’ Association• 2206 Owner’s Notice Concerning Condition of Property

Under Property Management Agreement• 2207 Property Manager’s Inventory and Condition Report• 2208 Notice Terminating Right of Occupancy• 2209 Late Notice or Notice of Other Breach of Lease• 2210 Notice to Tenant of Change in Management and

Accountability for Security Deposit• 2211 Lease Amendment Concerning Tenant Change

I.Forms AvailableMore Property Management :

• 2212 Denial of Lease Application• 2213 Agreement to Pay Past Due Amounts Under

Lease• 2214 Request for Rental History• 2215 Report of Incident Occurring on Property• 2216 Itemization of Security Deposit• 2217 Notice of Landlord’s Intent Not to Renew• 2218 Notice of Tenant’s Intent to Vacate• 2219 Request for Employment• 2220 General Information for Tenant of Property Facing

Foreclosure• 2221 Amendments to Residential Leasing and Property

Management Agreement

I.Forms Available2 Additional Resources:

• Privacy Policy• Remember: If you are requiring an individual to

disclose their social security number, you must have a privacy policy in place and make it available to the individual. TB&CC § 501.052(a).

• Tenant Selection Criteria Remember: At the time an applicant is provided a

rental application, the landlord is required to make available printed notice of the landlord's tenant selection criteria and the grounds for denial. TPC § 92.3515(a).

II. Recent Changes

Questions about the forms???

• What forms have been revised?

• What paragraphs changed?

• Why were the forms revised?

II. Recent Changes

Remember: • Use the most current forms.

• The Code of Ethics requires you to competently manage the property of your client (property owner).

II. Recent ChangesWhat forms were recently revised?

• 2001 Residential Lease• 2005 Extension of Residential Lease• 2011 Residential Lease for Multi-Family Property

Unit• 2201 Residential Leasing and Property

Management Agreement• 2210 Notice to Tenant of Change in Management

and Accountability for Security Deposit• 2220 General Information for Tenant of Property

Facing Foreclosure• 2221 Amendment to Residential Leasing and

Property Management Agreement

II. Recent Changes

2001 Residential Lease: • Paragraph 18: Repair deductible was removed.

2005 Extension of Residential Lease• Paragraph A: Repair deductible was removed to

comply with the lease.

2011 Residential Lease for Multi-Family Property Unit

• Paragraph 18: Repair deductible was removed to comply with the lease.

2005 Extension of Residential Lease

II. Recent Changes2201 Residential Leasing and Property Management Agreement

• Paragraph 4: Foreclosure paragraph was added to explain the property manager’s rights and options in the event of a foreclosure on the owner’s property.

II. Recent Changes2210 Notice to Tenant of Change in Management and Accountability for Security Deposit

• Paragraph 1: Reflects the changes that were made to Paragraph 4 of the Property Management Agreement (Broker may terminate this agreement).

• Provides notice:

1) There has been a change in management because the property manager has terminated his relationship with the property owner; and

2) The Current Balance of the security deposit is being returned to the tenant.

III. New FormsNew Forms:

• 2220 General Information for Tenant of Property Facing Foreclosure

• 2221 Amendment to Residential Leasing and Property Management Agreement

III. New FormsWhat do these forms do?

• 2220 General Information for Tenant of Property Facing Foreclosure

If the tenant requests information from you about the status of the property, you should provide this form that explains the tenant’s rights in the event of a foreclosure.

• 2221 Amendments to Residential Leasing and Property Management Agreement:

A property manager and property owner may use this form to amend the existing agreement.

IV. Benefits

All these forms are available as a member

benefit.

IV. BenefitsWhy should you use these forms?

• Current

• Input for revisions is gathered from fellow property managers.

• Suggestions (new forms) come from fellow property managers.

V. Q & A

Q1: What is the difference between Paragraph 4A and 4B of the Residential Lease?

V. Q & A

Q1 Answer: Paragraph 4A refers to the Primary Term of

the Lease. On the other hand, Paragraph 4B applies if

the lease is on a month-to-month basis.

V. Q & A

Q2: The TAR lease states that rent is due on the 1st of the month. When is the earliest date that late fees may be

charged?

V. Q & A

Q2 Answer: If you are using TAR’s Residential Lease and rent is due on the 1st of the month, the earliest date you may charge late fees is the

3rd of the month.

V. Q & A

Q3: A property owner hires a property manager to manage

the owner’s property. The property consists of 10 mobile

homes, but the owner only wants the property manager to

manage 5 of those mobile homes. What form should the

property manager use?

V. Q & A

Q3 Answer: The property manager should use the Residential

Leasing and Property Management Agreement. Since

the property manager will only be managing some of the mobile

homes, they should also use the Multiple Property Addendum

(TAR-2204).

V. Q & A

Q4: If a property owner persists on using an older

form, may I do so?

V. Q & A

Q4 Answer: No. You should inform the landlord that the

form is not current, and you are obligated to use a current form.

Also, the older forms will not reflect current statutory

changes.

V. Q & A

Q5: What is the difference between the Notice

Terminating Right of Occupancy (TAR-2208) and the Late Notice

or Notice of Other Breach of Lease (TAR-2209)?

V. Q & A

Q5 Answer: The Notice Terminating Right of Occupancy (TAR-2208) is a Notice to Vacate. The Late Notice or Notice of Other Breach (TAR-2209) is used prior to 2208 and

provides notice that the tenant has breached a provision of the lease.

V. Q & A

Q6: Does the Residential Lease (TAR-2001) allow the

tenant to terminate the lease early?

V. Q & A

Q6 Answer: No. The tenant does not have a right to early

terminate unless the tenant has a special statutory right to early termination under Paragraph 28

or the landlord agrees otherwise.

V. Q & A

Q7: A tenant’s lease expired and is currently on a month-to-

month status. The initial lease was written on a TAR

Residential Lease (TAR-2001) that was dated before June 1, 2010. Does the Extension of Residential Lease (TAR-2005)

apply to month-to-month leases?

V. Q & A

Q7 Answer: Yes, the form applies to all leases, including month-month leases. If the lease is dated before June 1, 2010, the first version of the

form should be provided to the tenant.

TAR Forms

2001 Residential Lease2002 Agreement Between Brokers

for Residential Leases2003 Residential Lease Application2004 Pet Agreement2005 Extension of Residential Lease2006 Residential Lease Inventory

and Condition Form2007 Residential Lease Guaranty 2008 Addendum Regarding Lead-

Based Paint2009 Agreement for Application

Deposit and Hold on Property2010 Pool/Spa Maintenance

Addendum2011 Residential Lease for a Multi-Family

Property Unit2201 Residential Leasing and

Property Management Agreement2202 Commercial Property

Management Agreement2204 Multiple Property Addendum2205 Addendum for Authorization to

Act for Owner Before Owners’ Association

2206 Owner’s Notice Concerning Condition of Property Under Property Management Agreement

2207 Property Manager’s Inventory and Condition Report

2208 Notice Terminating Right of Occupancy

2209 Late Notice or Notice of Other Breach of Lease

2210 Notice to Tenant of Change in Management and Accountability for Security Deposit

2211 Lease Amendment Concerning Tenant Change

2212 Denial of Lease Application2213 Agreement to Pay Past Due

Amounts Under Lease2214 Request for Rental History2215 Report of Incident Occurring

on Property2216 Itemization of Security

Deposit2217 Notice of Landlord’s Intent

Not to Renew2218 Notice of Tenant’s Intent to

Vacate2219 Request for Employment2220 General Information for

Tenant of Property Facing Foreclosure

2221 Amendments to Residential Leasing and Property Management Agreement

Thanks for your participation in our 5th PM Webinar!

Future Webinar• March – Invitation will be sent out

Questions? Contact the Legal Hotline 800/873-9155• You can download this presentation by visiting

the Property Management Page.• View the Texas Property Code.

Give us your feedback! Send to: kleuffer@texasrealtors.com

Thank you