Help Me With Sign Arizona Banking Month To Month Lease

Help me with industry sign banking arizona month to month lease

hi in this lesson we're going to get into the Arizona residential Landlord and Tenant Act and you know there's a sign this is an actual sign written in a residential unit it says there will be no loud noisy in room or hallway it is the law the police will be call you and your guests will be in their hands the landlord all right so watch out don't rent a place there so what's the Arizona residential landlord and tenant act all about well first of all the name tells you that it deals with residential property not commercial property and there are some specific exemptions to the law let's take a look at what the law does not apply to it doesn't apply to commercial properties to non-residential properties it also does not apply to hotels and motels these are transient type dwellings so hotels and motels fall under a totally separate set of laws it also doesn't apply to religious service housing such as convents and Rec Therese how about school dormitories nope properties that are owned dormitories that are owned by the university or the private high school and so on those are not regulated by the landlord-tenant act and finally public housing now by public housing I mean housing that is owned by the government I'm not talking here about section 8 housing which is private housing but where the tenant might qualify for a rent subsidy we're talking about public housing housing owned by the city or another government entity would not be regulated by the landlord tenant act in the Arizona landlord tenant Act there are specific provisions preventing discriminations against families with children of course unless there is a valid deed restriction and for more information on this you can refer to the lesson that we've had here in this course on fair housing so let's talk about the obligations that a landlord has and we'll look at the tenants obligations first let's talk about security deposits the landlord cannot require the tenant to pay more than one and a half times the first month's rent they they're delineated as a security deposit or as prepaid rent so for example let's say we had a one thousand dollar monthly rent that that first month's rent let's say it's paid on the first of the month would be a thousand dollars the maximum security deposit would be one and a half times that or $1,500 now that includes that includes any prepaid and the additional prepaid rent so the most the landlord could require the tenant to pay in that example will be the thousand dollars that's the first month's rent paid in advance plus the $1500 no matter how it's delineated now if a tenant wants to voluntarily pay more than that in advance they can do that but the landlord cannot require that also any items that are stated as a deposit are considered to be refundable unless they are specifically stated as non-refundable so a landlord if they want to make sure that certain deposits are non-refundable should specify that they are non-refundable otherwise they are refundable a termination of the lease of course the tenants going to want to get their security deposit back but what if they've done damage to the property well first of all when they first moved in there the landlord and tenant should have gone through and gone through a checklist as to what damage the property might have already had kind of like renting a car when you rent a car you want to walk around the car and Mark off the areas where there are dings or dents in the fenders or whatever well the same thing should be done at least inception and then at least termination prior to that the tenant and the landlord should do the same thing to see if there's any additional damage oftentimes there is or sometimes the tenant leaves the property not having to gone through a check the tenant oftentimes wants their security deposit back well let's take a look at what your course material says here it says here that to apply security deposits to damaged end or rent the landlord upon demand of the tenant in other words the tenant has to ask for it must deliver the tenant an itemized written statement of amounts due within 14 business days of the termination of the tenancy now what that is saying is that if the tenant demands it the landlord has to give them this 14 is letter within 14 days as accounting but if the tenant doesn't demand it the landlord really doesn't have to do it however smart landlords and all property management companies that I know make this a regular practice so when a tenant moves out they go through the property with them hopefully and either way if there's some money that's going to be retained by the landlord the landlord gives them this itemized accounting of what the security deposit would be used for so smart businesses to always do it whether or not the tenon asks for it now if the landlord fails to Propontis apply that after the tenant asked for it as your material says the landlord could be subject to two times the amount of the security deposit as damages if they don't comply so in theory then the tending to get their security deposit back plus two times the security deposit as damages if they went to court and the court found the landlord at fault so this is an interesting area security you know there's always a lot of give-and-take and a lot of pull and push between landlords and tenants but the landlord tenant act is rather clear in this specific issue now separate fees separate fees other than deposits are okay in other words you can specify there's going to be a $300 cleaning fee or there's going to be a 200 or whatever the dollar amount is fee for your pet and these can be required again above the security deposit but they've got to be called a fee not a deposit and the landlord has to disc who the manager is if there is a manager who the owner is or the owners agent oftentimes a property management company they also have to disclose and state in the lease that there's a copy of the landlord tenant act that we're talking about here is available through the Arizona Department of Housing the landlord has to comply with health safety and building codes that's common sense the landlord has to keep the premises fit habitable and safe the landlord has to provide trash receptacles and provisions for trash removal the one exception to this is in single family rental single family rentals you don't have to provide the trash receptacle or provisions for removal you have to provide the label and has to provide basic necessities like hot and cold running water and air conditioning or heat when the seasons demanded how about tenant obligations well a tenant is required to use the premises in a safe manner to keep it clean to use equipment reasonably also no deliberate destruction of the property that may seem obvious but the law specifies that and not disturb any of the neighbors if you're in a multi-unit development obviously those other tenants have the right of quiet enjoyments or no heavy metal after about well no heavy metal period and to follow rules pretty straightforward obligations what are the common problems between tenants and landlords is the landlord entering the premises or disturbing the tenant at any time the landlord feels like they'd like to now some landlords feel that this property is mine and I can go in and out of there anytime I like well not so what the law allows the tenant to do is require the landlord if the tenant chooses to give the tenant at least two days notice which what two days written notice to enter the premises except in the case of emergencies let's say that I knock on your door and I say hey Joey how you doing you know we're checking out all the apartments to see if they need to be painted this season do you mind if I come in and you say sure Jim well you've allowed me to enter the premises I haven't had to give you any notice but what if instead of saying that you know Jim you know I'm kind of busy right now and I'd like you to come back and another time I tell you what I'm gonna give you two days you can come back two days from now and then you can take a look at the property so it's only if the tenant demands that if the tenant requires it and in real estate a lot of times actually tenants do require this especially if they're in a rental house and the owner wants to put the house up for sale the tenant of course doesn't want to be disturbed and it makes it very difficult for the real estate agent to show the property when the tenant is always asking for two days notice before you bring a prospective buyer through the property let's keep it simple here the landlord can knock on the door and ask permission to enter and the tenant can give it or the tenant can require the landlord to give them two days written notice to enter the premise let's talk a little bit about breaches by the landlord if the landlord breeches some of the terms and conditions for health and safety reasons let's say for example it's summertime it's a hundred and five degrees out and the air conditioning breaks down well the tenant has to notify the landlord that the air conditioning stopped working but now the landlord doesn't take any action to correct this issue and the tenant fields hey I've got to I've got to terminate this thing I've got to stop this lease even though the tenant might not want to terminate the lease and move out because it's a health or safety issue the tenant can notify the landlord and writing and say look if you don't fix this in five days I'm terminating my lease if it's for other reasons other than health or safety then the tenant can terminate the lease after giving the landlord ten days written notice there's a provision in the landlord tenant Act which is referred to as self-help for minor defects you see a broken window there or how about the toilet keeps on running or the toilet won't flush for whatever reason that's a relatively minor defect that being the case the and of course has to notify the landlord but the tenant if once they notify the landlord that this problem exists and the landlord doesn't take action to fix it in a reasonable amount of time then the tenant can actually hire a licensed contractor and as long as the charge is no more than three hundred dollars or half the month's rent whichever is greater the tenant can have that licensed contractor fix that minor defect again the landlord has to be given notice so the attendant cannot just go ahead and say okay the toilets broken and call and call a plumber in and then tell the landlord well I'm reducing my rent by the $500 bill if the landlord was not notified the tenant has no right to do that it's only after the landlord has been given notice and the landlord fails to take a reasonable action a reasonable time to a reasonable amount of time to go ahead and fix that minor defect one of the questions that comes up is in a periodic tenancy typically a month to month tenancy when can the landlord give the tenant notice and when does that notice to terminate become effective so let's take a situation in which the rent is due on the first of each month by law landlord tenant annex says that the landlord has to give the tenant or the tenant give the landlord at least 30 days notice but that notice begins at the commencement or the start of the next rental period for example today is February 9th and let's say the redness due on the first of each month and I've paid the rent already for February and the landlord comes in and says Jim I need you to leave here's your 30 days notice well when does my 30 days begin it doesn't begin until March 1st and my time to vacating would be at the end of March because the February rental rental period has already begun I've already paid that rent so the 30 days notice does not begin until March 1st the beginning of the next rental period Oh Eve Ixion's well sometimes landlords evicting and in this circumstance and when the only one we're going to talk to you there's actually a long list of different reasons for eviction but the most common one by far is the tenant hasn't paid the rent in that circumstance the landlord must give the tenant at least five days notice to cure the default to pay the rent and if not then after that five days the landlord can begin an eviction now remember let's say the rent is due on the first of the month if the fifth of the month comes the landlord cannot at that point bring an eviction action because the landlord has not given the tenant any notice so if the landlord receipt does not receive the rent on the first the fight until such time as they give that ten and five days notice they cannot begin the eviction process what happens if the tenant abandons the property and leaves some personal property behind furniture the TV whatever it else it is that the pretendin might have well the landlord has to be careful here the landlord cannot just dispose of that the landlord by law must hold that personal property for at least ten days after the ten days the landlord can actually dispose of it however they choose they could throw it away they could sell it however they must keep it for at least ten days and a smart landlord if the tenant vacates the property not having paid the rent of course now remember if the tenant has paid the rent even though the tenant may seem to have abandoned the property the tenant is still a valid renter so it's only after the tenant has failed to pay the rent seems to have abandoned the property that the landlord might go in there find some personal property around and if they if they feel that the tenant has abandoned the property they're going to still have to hold that property for at least ten days what happens if someone is a victim of domestic violence well in that particular situation the law does allow the tenant to terminate that lease without any penalty more commonly than not of course it's a woman who is the victim of domestic violence she wants to get out of the property she may want to go to a safe house in that circumstance she would be allowed to terminate the lease and there would be no penalty that the landlord could charge because of the fact she's a victim of develop domestic violence sometimes landlords want to lock a tenant out of their property because they haven't paid the rent or the the tenant has personal property in their hasn't paid the rent but clearly has not abandoned the property so we're distinguishing here between a situation where the tenant has obviously abandoned the property taking most of their stuff out but left some things in there in that circumstance if the landlord feels that tenant has abandoned the property then the landlord can enter the property take that personal property has to hold on to it for at least 10 days that is not considered to be distrained however let's say it's pretty obvious the tenant is still living in the property the landlord cannot go in there and take out some of their personal property and say if you don't pay me the rent I'm going to keep this property or until you pay me the rent I'm not going to give it back to you nor can the landlord lock the tenant out in residential property in Arizona district is illegal it's not illegal in commercial property but in residential property it is what happens when the landlord and tenant have a dispute well we have this landlord tenant act this landlord tenant law how do you resolve disputes well they're resolved in court and typically it's not judge judy or judge Wapner all right it's typically done in what is called either small claims are more frequently Justice Court it doesn't go to Superior Court High Court typically these residential landlord tenant disputes are resolved in justice court if a landlord wants to evict a tenant that's typically where they go they go to Justice Court so to resolve landlord tenant disputes typically we go to court whoo-hoo bedbugs what about them well they're a common problem across the country and some years ago bedbug legislation was into the Arizona landlord-tenant Act and what the law says is that the landlord shall not enter into in other words can't enter into a lease agreement for a unit where there is known infestation so the lander would have to take care of that infestation before entering into a new lease with a tenant and they have to provide tenants this is in all cases now they have to provide tenant with educational materials so if you are a landlord whether or not you have bedbugs now you're supposed to be providing tenants with some written educational materials relative to bedbug infestation also tenants are not allowed to knowingly move in infested items so if a tenant was aware of the fact that some of their furniture and so on or clothing was infested with bedbugs they should not knowingly move that in and the tenant has to notify the landlord of any infestation so if a tenant finds the property or the building is infested with bedbugs then they have to notify the landlord now the law actually doesn't specify penalties for these things so if the landlord rented a unit to somebody that was infested or for tenant knowingly move things in then the other party's remedy is simply to take them the court to try to recover some damages single-family residences single-family detached residences are excluded from this bedbug provision in the law why because bedbugs typically migrate through walls from unit to unit they don't cross over a 50 foot or a hundred foot divide between the two single-family houses so where single-family residences are concerned this bedbug legislation does not have any force in effect oh yeah one day I was driving down the street and there was some all this old junk furniture out on the street but fortunately the tenant who put it out there or maybe was the landlord but I presume it was a tenant actually had written this on this old mattress so those of you in particular that are young and in need of furniture and you're driving down the street and you see this nice couch or mattress sitting out there I would suggest you leave it alone because the chances are whoever put it out there is not going to be nice enough to have warned you that it's full of bedbugs so that's our little discussion here on the Arizona residential landlord and tenant Act in this lesson we're going to talk about property management and also planned communities first off property management so who are the parties to a property management agreement well they are the property owner the investor who owns that rental property and the broker or brokerage firm and they enter into a property management agreement we're gonna talk about those in just a minute so please realize the property owner is the principal and the property manager is the agent and the type of agency that's created here is called a general agency now in another lesson we talked about specific agency and general agency a specific agency is the type that's entered into in a listing agreement where the owner hires the broker to sell the property and the broker is given very limited authority just to show the property market the property and prepare and present offers in a general agency under a property management agreement the broker is hired to collect rent to pay bills to enter into leases with tenants and so on so it's a much broader type of agency therefore it's referred to as a general agency so keep in mind in property management the agency is a general agency the broker is a general agent of the principle and I want you to remember that the broker is the manager sometimes people get confused in property management situations they think that the salesperson can actually manage the property outside of the realm of the brokerage company absolutely not true property management requires a broker's license a brokerage company right and if a salesperson wants to manage property they have to do so through the come so the broker is the property manager and he or she is a general agent as I've already mentioned and that manager has to be licensed if they're managing two or more properties you might remember in one of the other lessons that we had we talked about there's an exemption in the licensing law that says the manager of not more than one property may actually manage receive compensation if they are not licensed so aside from that exemption if someone is managing two or more properties whether for the same owner or for different owners then they must be a licensed broker or salesperson representing a broker in order to legally manage those properties and a property manager has fiduciary duties there's no difference between a seller client and a buyer client or an investor client a landlord client that when you manage those properties so the property manager has fiduciary duties the full slate of fiduciary duties to that client one of the biggest ones of course since they're handling a lot of the clients monies is accounting please keep in mind that the salesperson always represents the broker what we're seeing in actual fact today is that some people don't think they need a license to do property management so there are actually people who are unlicensed acting outside the law doing property management another thing that we're seeing is sometimes a salesperson this helped an investor buy five or ten or more properties and then investor wants that salesperson to manage the property but the brokerage company the salesperson works for does not do property management yet that sales person just to keep that client satisfied actually goes ahead and manages those properties on their own that is clearly illegal the management has to be done through the brokerage firm so what are the concerns the main concerns and duties of a property manager well the main concern is to get the highest possible return and that's net return for the owner not just bringing in the highest amount of rent but keeping expenses down as low as possible so the net income to the owner that's the bottom line income that's what the property manager should be trying to do is get the highest net return for the owner as part of that by the way is to know the market and know where the maybe the rent should be increased somewhat maybe the property manager should recommend some repairs or maintenance to the property which even though they're gonna cost some money might allow that property to rent for a lot more thereby increasing that net return another concern for a property manager of course is protecting the owner from risk insurance of course can minimize the the owners risk but what about just inspecting the property making sure that there's nothing that could cause some harm for example when tom was walking around my property here and I saw that the cover to one of the irrigation boxes had was missing well somebody could be walking by there especially at night not see that and put their foot in there and break their leg or break their ankle so just good observation and making sure that there's nothing out there that might might harm a tenant or a passerby also making sure that the vendors the people that the property manager might be contracting with have sufficient insurance and are well qualified and where necessary are licensed contractors doing whatever work needs to be done so aside from concerns what are some of property managers duties well take a look at your course material pretty simply stated they include collecting rents leasing units advertising vacancies keeping accounts filing reports to the owner maybe hiring employees and some larger properties buying supplies overseeing remodeling a long list of things that a property manager might do for the owner so what kind of recommendations might a property manager make to an owner well certainly maintenance and repairs how about insurance making sure there's enough and sufficient insurance on the maybe increasing the rent so they can get that bottom line up a little bit so a lot of duties and a lot of recommendations that property managers might make to the owner now the law specifically states certain things that must be in a property management agreement let's go through these first of all must contain all terms and conditions property management agreements have to be signed by all parties they have to have a beginning and an ending date there can be and there has to be a cancellation provision in a property management agreement the law doesn't say what that must be but it must give the landlord and the property manager the ability to cancel in some way shape or form disposition of funds how moneys are going to be handled have to be included in the property management agreement status reports how frequently will status reports be made to the owner typically it son monthly what's the amount of that set aside for and the purpose of reserve so are you putting money aside to make sure that when needed the roof can be fixed or that the air conditioning or heating units can be taken care of as a landlord you want to make sure your property is in good shape as a property manager you want to make sure that there's money available that maybe you set it aside so that you don't have to keep on going to the landlord and asking them for money it's a lot easier to set it aside with the landlord's knowledge and consent of course so that you have that money available to do the repairs when necessary what about interest well the law allows landlords to collect interest on property management trust accounts so who's going to get that interest well in most instances brokerage firms say well the interest is going to go to the brokerage firm also the property management agreement must specify how the broker and how much the broker will be compensated also property management agreements cannot be assigned to another property management company without the express written permission of the property owner so just like listings and buyer broker agreements their employment contracts and they cannot be assigned to a third party without the other party's consent also property management accounts property management accounts must be trust accounts question who can sign on these property management trust accounts the answer is the designated broker Ken or a licensee with the company also an employee such as a bookkeeper it has to be an employee in the direct employ of the broker so those 3 persons can sign on a property management trust account property owner however cannot sign on trust accounts so even if you manage a series of properties owned by one owner and yet and the rents and other monies go into trust accounts the property owner even though they're all just that one owners properties cannot cannot sign on that trust account cannot have access to that trust account nor by the way can a broker have access to a client's account so in other words sometimes in a rare circumstance a client says well deposit all the money into my personal account for me well the broker can do that but the broker cannot have access to that account what about record-keeping on property management accounts well first of all for residential property management leases and things relating to finders fees which we'll talk about in a minute have to be kept for one year financial records have to be kept for three years so these are a little different than the five years that we talked about when we talked about general record-keeping for brokers residential property management has some special time periods commercial property similar to regular brokerage listings and sales five years all records have to be kept for five years if there is a termination of a property management agreement what the law requires is that within five days the property manager has to give the landlord a list of all security deposits within 35 days they have to reimburse all monies that have to be reimbursed within 75 days provide a final accounts receivable and payable list and within that same 75 days a final reconciliation of the property management account so those are required when a property management agreement is terminated so what about these finders fees that I mentioned well in a very special circumstance if you have an apartment building and the tenants of course are unlicensed most of them are owned all of them are probably unlicensed they're not licensed real estate agents you can pay them a finder fee that can't be cash but it can be a rent reduction or a rent credit so if they invite their friends or relatives to come in and maybe rent one of the apartments in that complex the landlord of the property manager can pay that tenant even though they're not licensed as a real estate agent they can pay them a finder fee no limit on the amount no limit on the amount of times it can be done but it has to be a rent credit or rent reduction so that's our discussion on property management in the next lesson we're going to get into and talk about HOAs in other words planned communities