What Happened? Part 2 – Nevada Legislative Update 2019

Share

In Part 1 of this series, we discussed the activities of the 2019 Nevada Legislative Session, specifically SB 151, as it relates to property management in Nevada. Today’s post will discuss additional bills passed during the session which will impact our industry.

NEVADA REAL ESTATE LICENSEES

SB 230 affects real estate licensees in a number of ways. First, and perhaps most important,real estate licensees MUST include their real estate license number on any and all advertising materials, including flyers, business cards, websites, social media, and other advertising venues. This portion of the bill became effective on July 1, 2019, so be sure to update all your advertising now! The bill also tasks the Nevada Real Estate Commission with implementing regulation allowing conditions and limitations for licensees to advertise using a nickname.

Also effective July 1, brokers are no longer required to “prominently display” licensees of agents associated with the brokerage; they must now be kept in a secure manner, and made available for inspection by the public or the Nevada Real Estate Division.

The bill brings many changes to the education requirements for real estate licenseesin Nevada. For all new licensees (those submitting applications for licensing on or after January 1, 2020), pre-licensing education will now be a total of 120 hours (instead of 90 hours). At least 15 hours of the pre-licensing instruction must focus on preparing contracts, and another 15 hours must be specific to agency laws and requirements.  

Continuing education requirements are also set to increase, pending mandated new regulation by the Commission. The new regulation “must require a minimum of 36 hours of continuing education.”  In conjunction with new continuing education requirements, the Commission is also required to include regulation authorizing someone aged 65+ years to apply for an exemption from the continuing education requirement.

EVICTION ACTIONS

In addition to the changes discussed in my post on SB 151, the Nevada Legislature also passed SB 74. This bill allows for appeal of an eviction orderby either party within ten (10) days of the date of the order. Additionally, the bill provides that, should a Landlord unlawfully recover possession of the property, a Tenant is entitled to expedited relief (and can recover possession), even if there is an eviction action pending. This bill takes effect October 1, 2019.

AB 266 – This bill became effective on July 1, and provides for automatic sealing of court records on eviction casesthat do not go all the way through to a lockout order. It is largely a cleanup bill, clarifying existing law. In short, if the court does not enter an award for possession of the property to the landlord, the case dies, and the records are sealed. 

ANTI-DISCRIMINATION

As many of you are aware, some of the older governing documents of homeowners associations contain language that is in direct opposition to the provisions of the Federal Fair Housing Act. SB 117 took an important step toward correcting the impacts of such language by allowing property owners to record a separate document with the county that strikes the discriminatory language in their association’s governing documents. The bill takes effect on October 1, 2019. 

MULTIFAMILY PROPERTIES

SB 212 went into effect on July 1st, and allows towing companies to post notices on improperly parked vehicles, provided the towing company has a contract for that purpose with the owner or manager. The bill also allows immediate towing without further notices if the vehicle was previously tagged three or more times in the same multifamily complex during the preceding six months.

For managers of multifamily housing that meets the definition of “Affordable Housing” and is accessible to persons with disabilities, SB 104 is an important read. The bill requires such managers and owners to make quarterly reports to the Housing Division to assist in its mission to maintain accurate records of affordable housing in the state. The bill took effect July 1, 2019. 

SB 367 provides that renters of low-income housing funded in total or in part by the “Account for Low-Income Housing” will be allowed to keep one or more pets, subject to minor restrictions. This bill goes into effect on January 1, 2020. 

CONTRACTORS

As property managers, we’re often responsible for selecting contractors to perform work on the properties we manage.  SB 397 became effective July 1, 2019. The bill authorizes licensed contractors to perform work in specialties outside the scope of his/her contractor’s license provided: (1) the work is not plumbing, electrical or HVAC, and (2) the value of the work does not exceed $1,000. 

AB 175 – Establishes a formal registration process at the state level for “Environmental Health Specialists.”Although many existing specialties are exempted from the registration requirement, the bill takes aim at uneducated and unlicensed vendors who practice in this area of work. 

LASTLY…

If your business involves selling real estate as well as property management, AB 335 will interest you. It tightens up requirements on a homeowners association for furnishing “resale packets” and the fees charged relating to a change in ownership of a home/condominium in a common-interest community. Most importantly, resale packets must be valid for a period of not less than 90 days.

It’s important to note that the 2019 Nevada Legislative Session also took up a number of bills attempting to address the increasing problem of homelessnessin our state. One of those bills, AB 174, establishes the Nevada Interagency Advisory Council on Homelessness to Housing. This is an important step toward bringing together a number of state agencies, as well as experts in the public realm to address the homelessness issue in Nevada. We’ll be watching the Council’s activities closely.

This was a busy session for the Nevada Legislature! Some of the greater impacts of the bills discussed in this space will be determined by the local courts, over the next couple of years. Please share your thoughts and feedback, by commenting on this post. Thanks for reading!

Share

BRAND NEW CLASS

Share

On Thursday, June 20th, I’ll be teaching a new property management class for the first time in Reno, NV. The class is called “Rental Application Scoring.” The topic is very timely, given the push toward transparency in property management’s approach to tenant screening.

Here’s what we cover in this 3-hour class…

  • Understanding today’s renter
  • Pre-screening rental prospects
  • Renter Qualification Criteria
  • HUD Rules – Criminal history, domestic violence, limited English proficiency
  • Objective rental application scoring techniques
  • Offsetting risk, and adverse action

Class will be held from 1:00 to 4:00 PM at the offices of Ticor Title on Kietzke Lane in Reno. Please let me know if you’d like to attend!

— Judy

Share

New Service for Pet Screening!

Share

Today’s blog post is a guest entry by John Bradford of “petscreening.com.”

 

There are two Ps that can cause property damage – People and Pets.  If you are a housing provider and property manager then you deal with both on a daily basis. Pets are animals but animals are not always pets. This is demonstrated when dealing with Assistance Animals (i.e. service/companion/emotional/therapy/etc.) These animals are not pets, but rather, serve as an assistive device to help an individual with a disability.

The ABCs of Pet Screening

Pets are not a protected class. Housing providers and property managers are free to accept/decline as they see fit. The reality, though, is approximately 45% of applicants have at least one household pet so having a no pet policy can, arguably, be a costly policy. That said, housing providers and property managers should understand the risks when dealing with pets because, after all, if something happens it’s going to be considered on your watch. There are three areas, known as the ABCs, to help significantly improve pet diligence: Affirmation, Behavioral, and Compatibility.  Affirmation is getting the pet owner on the record about the general care of their pet such as having current vaccinations as well as going to a veterinarian on a regular basis. Behavioral is ensuring there is a stated history about a pet’s past and present behaviors such as knowing if FIDO has ever bitten a person or another animal. Compatibility is having more details on a pet’s breed, weight, sex, pictures, vaccinations and more.  The ABCs can vary greatly for each pet. Pets are not equal and neither is the pet’s owner general care.

Assistance Animals Are Not Pets

Assistance Animals are intended to help to help an individual with a disability. The problem in the housing industry is that Assistance Animal fraud does happen. It’s sad, but true, that some pet owners will try to claim their pet is an Assistance Animal just to avoid paying a pet deposit/pet fee/pet rent. The FHAct is intended to protect those who legitimately need Assistance Animals, but there is an incredible amount of complexity in reviewing each claim. Property managers are not fair housing experts, so the pressure to handle these claims correctly is compounded by a lack of expertise. There are some published suggested guidelines from HUD, but these documents still leave many unresolved issues. There remains very little case law to reference, so property managers must do their best to determine if the requestor’s documentation is both reliable and credible. It’s advisable to request documentation about the disability-related need for the Assistance Animal, verify the therapeutic relationship between the requestor and verifier, request information about licensure, registration, profession, compliance of the verifier, and confirm the animal does not present a direct health or safety threat to others or has a past history of such behavior. It’s inadvisable to request documentation about the requestor’s disability, share/provide access to requestor’s medical records with others (HIPAA privacy laws), limit reliable/credible documentation to medical doctors/physicians only (there is no exhaustive list), require animal training documentation (except for Service Animals), implement breed and size restrictions, and charge a fee of any kind. There are still subjective areas of interpretation such as telemedicine, formulaic on-line questionnaires to issue recommendation letters for Assistance Animals, video counseling, and for-profit businesses exclusively focused on issuing recommendation letters for Assistance Animals. In summary, dealing with Assistance Animals can be complex and stressful.

Pet (and Assistance Animal) Screening – Liability Reduction & Revenue Potential

For clarity, you can charge fees for pets, but you cannot charge for Assistance Animals. There is a real opportunity for housing providers and property managers to generate new pet-related revenues assuming one has the insight into the ABCs of a specific pet. Variable pet deposits/pet fees/pet rents are rarely utilized, but are very achievable when you have the right data at your fingertips.

The options for housing providers and property managers are usually to handle these matters in-house or outsource the review/decision making to an attorney which can be expensive. Now, there is a third option which is relatively new to the marketplace but is rapidly gaining traction.  It is PetScreening.com.  This is not an advertorial because PetScreening.com is no cost to housing providers and property managers. In fact, the tool can actually help generate new pet-related revenue streams while adding a third-party layer of liability protection and the validation of Assistance Animals. PetScreening.com provides your firm with a standardized way of handling household pets and Assistance Animals. The tool creates a comprehensive Pet Profile for each pet based on the ABCs discussed above. Each Pet Profile is accessible 24×7 in an on-line report with a unique URL that can be shared with your property managers, field inspectors, maintenance vendors, and, perhaps, even your property owners. Every Pet Profile is up-to-date and receives an easy-to-read 1 to 5-paw score. Only Property Manager users can see the factors that impact each Pet Profile score. The scoring can be used to help create standardized pet-related fee schedules that are variable and correlate with each Pet Profile score. Lastly, not only is PetScreening.com zero cost to housing providers and property managers, but a rebate is earned and paid quarterly for every active Pet Profile. The scoring, however, is not applicable to Assistance Animals. These types of applications are reviewed, on a case by case basis, by the PetScreening.com team of reviewers who work with the requestor/applicant to seek credible and reliable documentation to support the Assistance Animal claim.

Check it Out!

In closing, housing providers and property managers are experts at managing rental assets such as single-family homes, multi-family communities, and vacation rentals. Pets and Assistance Animals are a necessity of the housing industry, but they add both additional complexity and liability to your business. PetScreening.com is free, delivers incredible value to its users, and is changing the way the housing industry deals with pets and Assistance Animals.

Share

Nevada’s AB194 – Tenant Damage to Property

Share

evictionShort, and sweet, Nevada’s AB 194 was passed by both houses of the legislature, and signed by the governor this week. It becomes law on October 1, 2013.

 

The new law specifically calls for criminal liability for renters who willfully damage or destroy the rental property:

“This bill clarifies that a person who holds a leasehold interest in the real property of another person may be criminally liable for the willful or malicious destruction or injury of that real property.”

 

The text of the bill is nice and simple:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 206.310 is hereby amended to read as follows:
206.310 1. Every person who shall willfully or maliciously destroy or injure any real or personal property of another, for the destruction or injury of which no special punishment is otherwise specially prescribed, shall be guilty of a public offense proportionate to the value of the property affected or the loss resulting from such offense.
2. It is not a defense that the person engaging in the conduct prohibited by subsection 1 holds a leasehold interest in the real property that was destroyed or injured.”

 

Tip for Nevada Property Managers: This might be good language to add to your residential and commercial lease agreements, as a deterrent to willful property damage. At the very least, you’ll want to remind your tenants of this provision of law if you become aware of any tenant-caused damage to the property.

 

 

Share

Winter Newsletters – Who Reads This Stuff?

Share

It’s been our practice for quite some time to send our tenants a newsletter every fall and spring, helping them prepare for the coming season. It’s that time of year again… time for the Winter Newsletter.

 

Hoping to garner some fresh ideas for this annual publication, we searched online today and found all kinds of interesting stuff. From holiday recipes, to tips for saving water, to security recommendations, and human interest stories… It seems property managers are becoming more and more creative, in an effort to reach out to their tenants. I applaud the efforts I see being made, but I’m left to wonder if that approach really works. Continue reading “Winter Newsletters – Who Reads This Stuff?”

Share

A day in the life of a Property Manager

Share

A day in the life of a Property Manager...

This one came in from a Facebook friend, and fellow property manager. It’s a situation that occurs more frequently than you might imagine, so I’ll share it with you for your feedback.

 

“I had to do a lock-out eviction on a tenant who owes about $2,000 in back rent. She is the only tenant on the lease, although she has allowed other people to live there. We have possession of the property now, but there’s an issue with personal property. Everyone who has ever lived there is claiming ownership of some of the property. None of them were ever on our lease. The tenant who was named on the lease states that none of the property is hers, and she doesn’t care what I do with it.

 

What do I do? Continue reading “A day in the life of a Property Manager”

Share

Nonviolent Property Management

Share

Property Management can be a very challenging profession, in terms of communication. Most often, when the telephone rings, it is a problem. The tenant is unhappy because something needs to be repaired. The owner is unhappy because he’s not making as much money on the property as he thinks he should. The vendor is unhappy because he didn’t get paid the day he submitted his invoice. Property Managers must balance the needs and wants of all parties in landlord/tenant relationship, whether residential or commercial, while at the same time, setting appropriate boundaries, mediating disputes, and communicating difficult messages.

 

Because most property managers have little to no training in communication techniques, many of them burn out within the first year or two in business. The negativity is just too much for them to take. It is out of this awareness, “Nonviolent Property Management: Communication Skills for Property Managers” was developed.

Continue reading “Nonviolent Property Management”

Share

Questions from Property Managers – How can you tell if the tenant is really gone?

Share

Today’s question comes from one of our faithful readers, a fellow Nevada property manager, and a valued guest contributor, Bob Frenchu. Bob writes:

 

“When do you decide the tenants are out of the property?

 

Let’s say you’ve served a 5-Day Pay or Quit eviction notice. Noon of the fifth day rolls around, the tenants aren’t answering their phone. You drive out to the property to check to see if they’ve moved out of the premises. You knock, get no answer, open the door and find:  Continue reading “Questions from Property Managers – How can you tell if the tenant is really gone?”

Share