PM_10 Instructor Materials Residential Property Management PDF

**10: Managing Residential Property** Learning Objectives After completing this lesson, students should be able to... **List** the different types of multi-family rental properties **Discuss** the steps in developing a management plan for residential property **Explain** how a property manager...

**10: Managing Residential Property** Learning Objectives After completing this lesson, students should be able to... **List** the different types of multi-family rental properties **Discuss** the steps in developing a management plan for residential property **Explain** how a property manager creates an operating budget **Identify** different ways to market residential property **Explain** the steps involved in finding, screening, and selecting tenants **Define** the Uniform Residential Landlord and Tenant Act **Discuss** the most common lease provisions **Compare** a tenant's options when a landlord breaches the lease agreement **Explain** what happens to security deposits when a tenancy ends **Identify** the different types of residential property and the unique management challenges of each Suggested Lesson Plan 1\. Give students Exercise 10.1 to review the previous chapter, "Staffing and Maintenance." 2\. Provide a brief overview of Chapter 10, "Managing Residential Property," and review the learning objectives for the chapter. 3\. Present lesson content: Introduction to Residential Property Management -- Managed residential property *EXERCISE 10.2 Classifying types of residential buildings* Residential Management Planning -- Management plan -- Operating budget *EXERCISE 10.3 Vacancy factor* Marketing Residential Property -- Target audience -- Internet advertising -- Print ads -- Model units and rental centers -- Leasing agents -- Additional considerations Leasing Residential Property -- Application process -- Screening and selecting tenants -- Residential lease agreements -- Lease renewals Residential Operations -- Staffing -- Maintenance Working with Residential Tenants -- Communicating with tenants -- Rent issues -- Breach of the lease agreement -- Fair housing considerations -- Tenant complains and tenant unions Handling Residential Security Deposits -- Refund after tenancy ends *EXERCISE 10.4 Deductions from security deposits* *EXERCISE 10.5 Security deposits and the useful life rule* Managing Specific Types of Residential Property -- Single-family homes -- Common interest developments -- Manufactured home parks -- Subsidized housing -- Housing for the elderly 4\. End lesson with Chapter 10 Quiz. Chapter 10 Outline: Managing Residential Property I. Residential Property Management A. Managed residential property includes: single-family homes, duplexes, triplexes, apartment buildings, many common interest developments, manufactured home parks, subsidized housing, and housing for the elderly B. Types of multi-family rental properties include: traditional buildings, mid-rise buildings, high-rise buildings, garden apartments, and converted loft buildings *EXERCISE 10.2 Classifying types of residential buildings* II\. Residential Management Planning A. The management plan represents the manager's strategies for handling the property and serves as a roadmap for ongoing management activities 1\. Regional analysis: considers the economic and demographic conditions that affect the supply of and demand for residential property in the surrounding region 2\. Neighborhood analysis: an analysis that identifies the neighborhood's physical or intangible boundaries, then gathers data about the neighborhood's characteristics, population, and location 3\. Property analysis: the manager gathers and evaluates information about the property's physical attributes, attractiveness and condition, current management, and financial status a\. Curb appeal: a building's exterior appearance and condition 4\. Market analysis: the manager determines appropriate rental rates for the subject property by locating comparable housing units and evaluating their current rental rates 5\. Analysis of alternatives: if the manager believes that any operational or physical changes to the property may be appropriate, he performs a cost-benefit analysis of the changes and presents the client with a written proposal summarizing his findings B. Operating budget: a budget that reflects the property's anticipated monthly income and expenses over the upcoming year 1\. Rent is the main source of income for residential property 2\. Vacancy factor: a percentage deduction that accounts for losses in income due to vacancies and difficulties collecting rent, expressed as a percentage of the property's potential gross rental income 3\. Typical residential property expenses include wages for the property manager and other staff, supplies and administrative costs, maintenance and repairs, owner-paid utilities, and property taxes and insurance; debt service, however, is not an operating expense 4\. When preparing the budget, the manager considers all factors that could affect occupancy over the coming year, such as economic conditions and housing trends 5\. Net operating income (NOI) budget: a budget format that lists potential gross income, effective gross income, and expenses, before providing a projected net operating income *EXERCISE 10.3 Vacancy factor* III\. Marketing Residential Property A. When planning a marketing campaign, the manager should consider the target audience and choose methods that are not only effective but reasonable in terms of time, energy, and expense B. Internet advertising is an inexpensive way to reach a large pool of potential tenants, and may include online classified ads and/or dedicated websites, with photos, floorplans, and videos C. Print ads are a traditional form of advertising in newspapers and include classified ads, display ads, and For Rent magazines D. Managers of larger properties may opt to maintain a model unit for prospective renters to visit, or a rental center used for meeting prospective tenants and distributing information and marketing materials E. Leasing agent: a trained salesperson hired specifically to help with marketing and leasing activities F. Other considerations when marketing residential property include complying with federal, state, and local fair housing and antidiscrimination regulations (such as including the fair housing logo) and maintaining the property's curb appeal IV\. Leasing Residential Property A. The first step in the leasing process involves using a lease application form to obtain information from a lease applicant 1\. A standardized application form should be used to collect information in an organized manner, and to ensure that every applicant is asked the same questions to avoid discrimination claims 2\. Most lease applications ask for information that includes: the applicant's name, address, and social security number; current employer; prior rental and employment history; bank and credit card information; permission to verify information in the application, including a credit check and a criminal background check; and the applicant's signature 3\. The application should clearly state the amount of any fee or deposit charged at the time of the application, and whether the money is refundable B. The second step in the leasing process is screening and selecting tenants 1\. The manager usually begins by obtaining the applicant's credit report from one or more of the three major credit reporting agencies (Equifax, Experian, or TransUnion) a\. The manager may require the applicant to have a minimum credit score, and must comply with the Fair Credit Reporting Act 2\. Next, the manager will contact the applicant's employer to verify income and determine if the applicant's income is sufficient to ensure regular and timely rent payments 3\. Finally, the manager should contact the applicant's current and previous landlords to determine if the applicant will make a good tenant C. A variety of pre-printed lease agreements can be used; some states require residential lease agreements to be in "plain language" D. Uniform Residential Landlord and Tenant Act (URLTA): a model landlord-tenant law created in an effort to provide some consistency in state and local residential landlord-tenant acts; many states have adopted it 1\. URLTA addresses handling security deposits, notice requirements for landlord entry, maintenance, termination notice, grounds for eviction 2\. Implied warranty of habitability: a provision implied in every residential lease that the landlord will keep the leased premises fit for habitation E. Most residential leases contain provisions that address the rights and duties of the parties 1\. Parties and occupants: every competent adult who will occupy the unit should sign the lease; a co-signer may sometimes be necessary; the number of occupants cannot exceed the amount set by state law or local housing codes 2\. Lease term: the lease should state the beginning and ending dates of the lease term a\. Term tenancy: a tenancy for a particular length of time, with a definite end date b\. Periodic tenancy: a tenancy that automatically renews itself at the end of each lease period unless one party gives notice of termination 3\. Rent: the lease usually spells out the rent due date, which is often at the beginning of the month; if the lease doesn't specify a due date, rent is due at the end of the rental period a\. The lease should specify acceptable methods of payment b\. The lease should also specify amount and conditions under which late fees will be charged 4\. Description of the premises: the lease must identify the rented premises by street address and should describe the condition of the property (usually by using a walk-through checklist) 5\. Security deposit: residential property managers require a security deposit when the tenant signs the lease 6\. Utilities: the lease should specify which party is responsible for paying which utilities 7\. Assignment and subleasing: most residential leases prohibit the tenant from assigning or subleasing premises without the landlord's consent 8\. Rules: rules in the lease address federal, state, and local requirements, as well as management policies such as use prohibitions 9\. Maintenance: the lease should state any maintenance the tenant is expected to handle 10\. Possession: the date the lease term begins usually sets the date for possession 11\. Entry and inspection: as a general rule, a residential tenant may not unreasonably refuse the manager's legitimate request to enter the unit to inspect it, perform repairs, provide agreed-upon services, or show the unit to prospective buyers or renters a\. The state's landlord-tenant act usually states how much notice a residential landlord must give before entering the premises 12\. Pets: the manager's pet policy should be clearly stated in the lease; however, the manager can't refuse service animals under fair housing law a\. Landlord may require doctor's note confirming need for service animal but cannot ask what disability is or require tenant to disclose need for animal on rental application 13\. Lease renewals: to encourage tenants to renew, a manager should send a renewal notice before the current lease expires, and may also offer incentives V. Residential Operations A. The size and organization of staff needed will depend on the size and type of property being managed, but will usually include an off-site or resident manager, and maintenance staff 1\. Resident manager appropriate for buildings with more than 15 -- 20 units B. Maintenance tasks vary depending on the size, type, and location of a property, as well as the amenities offered 2\. A significant maintenance task is preparing a unit for a new tenant VI\. Working with Residential Tenants A. Residential mangers use a variety of methods to communicate with individual tenants, make general announcements, and receive complaints and suggestions; this includes newsletters, email, and/or a website B. The manager must handle rent payments in accordance with state laws governing trust funds, keep good records and provide regular reports to the owner, and deal with rent delinquencies in accordance with debt collection laws C. If a residential landlord breaches a lease agreement, the tenant has options that include repair and deduct, self-repair, depositing rent into an escrow account, vacating the premises, or filing suit or entering arbitration 1\. If a tenant breaches the lease, the landlord's primary remedy is to evict the tenant D. Every landlord must be familiar with the federal Fair Housing Act and other federal and state fair housing laws 1\. Under the Fair Housing Act, a residential landlord must allow a disabled tenant to make reasonable modifications to the property at the tenant's expense; and must make reasonable exceptions to their rules to accommodate disabled tenants (such as allowing a guide dog even when pets aren't allowed) 2\. Managers cannot discriminate based on familial status; "adults only" complexes (or areas within a complex) are illegal, unless the property qualifies as housing for older persons E. Tenants are more likely to band together into a tenant's union when management fails to keep a property clean and in good repair, or fails to respond promptly to complaints and repair requests VII\. Handling Residential Security Deposits A. Most state residential landlord-tenant acts place restrictions on how a landlord handles security deposits 1\. A written, signed rental agreement is usually required before a landlord can collect a security deposit, and serves as a written receipt for the deposit 2\. State laws may also limit the size of the security deposit, require deposits to be held in trust accounts, and/or require the landlord to pay the tenant interest on the deposited funds B. Under state law, the manager has a certain amount of time (usually 2 or 3 weeks after a tenancy ends) to either refund the entire deposit, or provide a written itemized statement of repair expenses and unpaid rent amounts, plus any remaining refund 1\. The landlord can only use the deposit to cover damage that exceeds normal wear and tear 2\. A landlord who fails to follow a state's security deposit refund rules may have to pay penalties, up to treble damages 3\. When a rental property is sold, the original owner must either transfer the tenant's security deposit to the new owner through the escrow process, or return the deposit to the tenant 4\. Useful-life rule: while a landlord can't deduct normal wear and tear, he can deduct a percentage of the replacement cost if the tenant created damage over and above normal wear and tear *EXERCISE 10.4 Deductions from security deposits* *EXERCISE 10.5 Security deposits and the useful life rule* VIII\. Managing Specific Types of Residential Property A. A property manager may handle single-family rental homes for owners who live out of town, or those uncomfortable with or uninterested in managing property B. Common interest developments (CIDs): residential developments in which each resident owns her own unit (or has a proprietary lease to it) and also holds a shared interest in the common areas 1\. CIDs usually have a community association that often employs a community association manager 2\. The three main types of CIDs are condominiums, cooperatives, and planned unit developments 3\. Some states have special licensing requirements for community association managers; elsewhere, a real estate license may be required C. Manufactured home park residents usually own their own home, and own or rent the site on which the home is placed 1\. The park may employ an on-site manager to handle leasing, rent collection, maintenance, and other general tasks 2\. Eviction procedures, notice requirements, and other rules may be different than those that apply to other residential rental property D. Subsidized housing: residential rental property for lower-income tenants whose rent is subsidized by the government; may either be public housing or government-assisted housing 1\. Public housing: residential property owned and managed by a government body or agency 2\. Government-assisted (Section 8) housing: privately owned and managed residential property where a government agency pays a portion of the tenants' rent 3\. The manager of subsidized of housing must be familiar with regulations and perform the usual tasks, usually on a smaller budget E. A residential housing complex can be designated as senior housing without violating fair housing laws, as long as the housing meets certain requirements 1\. Housing for the elderly includes independent living communities and assisted living facilities 2\. Managers must perform the usual tasks, but may also provide additional services, such as food preparation and transportation Exercises EXERCISE 10.1 Review exercise To review Chapter 9, "Staffing and Maintenance," have your students answer the following true/false questions. 1\. One advantage to hiring a contractor is that the property manager doesn't have to worry about insurance issues. 2\. A building janitor is classified as service staff. 3\. An information desk staffer at a major office building is classified as service staff. 4\. The three main categories of maintenance are: custodial, preventive, and deferred. 5\. A purchase order is also called a work order. 6\. The property manager doesn't have to withhold income tax from the pay of an independent contractor. Answers: 1\. FALSE. The manager has to make sure that the contractor has appropriate insurance. 2\. FALSE. A janitor is part of the maintenance staff. 3\. TRUE. Service staff include information desk staff, doormen, and concierges. 4\. FALSE. The third category is corrective maintenance. 5\. FALSE. A purchase order is a form detailing a particular purchase. A work order is a form laying out the details of a repair or other work that needs to be done on the property. 6\. TRUE. Independent contractors handle their own income taxes. EXERCISE 10.2 Classifying types of residential buildings Match these classifications of residential buildings with the descriptions of various properties below. Traditional buildings Mid-rise buildings Converted lofts High-rise buildings Garden apartments 1\. A former textile plant on a river made over as an apartment building with units featuring high ceilings, large windows, and an open floor plan. 2\. A 12-unit, three-story apartment building which is older and of average condition with relatively cheap rents. There are no elevators so younger people tend to rent there. 3\. A downtown 50-story building called "Harborcrest" featuring luxury amenities for residents including a doorman, rooftop pool, and stunning views of the water. 4\. A residential development in a warehouse area by downtown, popular with workers who haven't yet formed families and want to walk to work. The buildings are fairly new and between four and six stories tall. 5\. In a neighborhood with good schools, a development of one- and two-story buildings containing lots of two- and three-bedroom units. The grounds are well-kept, with open spaces that kids can play in. Answer: 1\. Converted lofts. Lofts are usually former warehouses or other industrial buildings that have been converted to residential use. 2\. Traditional buildings. Smaller older buildings, often without elevators, are the traditional form of apartment buildings. 3\. High-rise. Buildings over ten stories tall are classed as high-rises. 4\. Mid-rise. The mid-rise building category includes structures from four to nine stories tall, usually containing smaller apartments; the renters tend to be working singles. 5\. Garden apartments. Garden apartments offer gardens and other landscaping amenities. Many of the units are on the ground floor, giving tenants ready access to the grounds. EXERCISE 10.3 Vacancy factor Discussion prompt: The 60-unit Howard Apartments is under construction. The owners have hired a property manager to prepare a budget, among other tasks. The manager creates a rent schedule for the four kinds of units the building will contain. When projecting total operating income, does the manager simply multiply the number of each kind of unit by the amount of rent that will be charged? If not, what does the manager do to get a more accurate picture of likely income? What sources of information might he turn to? Analysis: Larger buildings are rarely fully occupied. When calculating projected income for the coming year's budget, the manager must allow for a certain percentage of vacancies, as well as a certain number of tenants who won't pay rent. This percentage is called the vacancy factor. With an established building, a fairly accurate vacancy factor can usually be determined by looking at the building's rental history in recent years. This is not the case with a brand-new building. To estimate a vacancy factor for a new building, the manager looks at competing buildings. Managers of those buildings may be willing to share information about vacancy rates. More generally, the organizations mentioned in Chapter 4 are likely to publish helpful data. These organizations include: Institute of Real Estate Management (IREM), Building Owners and Managers Association International (BOMA), National Apartment Association (NAA), and National Association of Residential Property Managers (NARPM) EXERCISE 10.4 Deductions from security deposits Alyssa and her family leave their single-family rental house in a shambles at the end of their tenancy. The property manager is trying to determine how much to deduct from the security deposit. Which of the following items are likely to be deductible? 1\. Faded carpet (carpet is getting old) 2\. Cleaning 3\. Broken pane of glass in door of built-in dining room bookshelf 4\. Scarring and wear in kitchen floor linoleum at door area due to family failing to wipe backyard dirt off shoes (landlord provided a door mat) 5\. Picture hook holes in walls and holes from hanging planters in ceiling 6\. Repainting living room due to old, tired paint Answers: 1\. Not deductible. Faded carpet is probably standard wear and tear. 2\. Deductible. Bringing an apartment to the level of cleanliness it was in at the start of the tenancy is deductible (although landlords don't always charge for this if the unit isn't especially dirty). 3\. Deductible. A broken pane of glass in the door of a built-in dining room bookshelf goes beyond normal wear and tear. 4\. Deductible. Worn kitchen floor linoleum in the door area probably goes beyond normal wear and tear. 5\. Deductible. Holes in the walls and ceilings are a minor item if painting is already necessary, but it's not normal wear and tear. 6\. Not deductible. Paint eventually wears out. Painting costs---absent any special damage by the tenant---can't be deducted from the deposit. EXERCISE 10.5 Security deposits and the useful life rule Returning to our hypothetical tenant Alyssa discussed in the exercise above, let's focus on the damage to the kitchen floor linoleum. Alyssa tells the landlord that it's unfair to charge her for the full cost of replacing the flooring. The linoleum was about 12 years old and was sold as a 15-year flooring product. It would cost \$600 to replace. Is Alyssa correct? If she is, how much would be reasonable to deduct from her deposit for the damage? Answer: This question involves applying the useful life rule. When an aging building element gets damaged, it's proper to charge the tenant a prorated amount based on how much useful life the building element had left. In the case of the kitchen floor linoleum, since the landlord would have to replace the flooring in about three years, he has lost three years of useful life (15-year life -- 12 years used up = 3 years). Note that since the linoleum can't be patched, a complete replacement of the flooring is necessary. Here's the calculation. The linoleum is a 15-year product that costs \$600 or about \$40 dollars a year (\$600 ÷ 15 years = \$40 per year). The landlord could deduct \$120 from Alyssa's security deposit for this damage (3 years of useful life × \$40 = \$120). Chapter 10 Quiz 1\. All of the following are ways in which residential property management is significantly different from commercial office management, except: a\) residential managers must comply with state and local landlord-tenant laws b\) residential managers need to be on-call around the clock c\) residential managers spend less time on finding new tenants because it involves longer leases d\) residential managers should possess good people skills because they work with a variety of tenants 2\. Garden apartments are: a\) buildings of ten stories or more in an urban area b\) converted industrial spaces c\) multiple low-rise buildings in a suburban setting d\) older buildings with a dozen units or less 3\. A property's "curb appeal," and other considerations regarding its age and appearance, would be factors when performing which phase of a residential management plan? a\) Analysis of alternatives b\) Market analysis c\) Neighborhood analysis d\) Property analysis 4\. What additional element is included in a cash flow budget, but not considered in a net operating income budget? a\) Vacancy factor b\) Cash reserves c\) Maintenance costs d\) Mortgage payments 5\. The advertising method that's the best way to reach out-of-towners who haven't visited the area yet but are beginning to research apartment options would be: a\) For Rent magazine b\) internet advertising c\) newspaper classified ads d\) rental centers 6\. A residential lease application form would include all of the following, except: a\) bank name and account number b\) current employer and job title c\) profit and loss statement d\) social security number 7\. The federal Fair Credit Reporting Act requires all of the following, except: a\) a landlord may not discriminate against a prospective tenant because part or all of her income is derived from public assistance b\) notice to an applicant that her credit and background information are being checked c\) notice in writing, if an application is denied based on a credit report, that the applicant may obtain additional information from the credit agency d\) notice in writing that an applicant may dispute any errors in a credit report 8\. A building must have light, heat, and water available, and be free of garbage, under the: a\) covenant of quiet enjoyment b\) implied warranty of habitability c\) state residential landlord-tenant laws d\) Both B and C 9\. Brittany, a college sophomore, has never rented her own apartment before. Her parents accept liability for any default on her part, and sign the lease agreement as well. Her parents would be known as: a\) assignees b\) co-signers c\) co-tenants d\) sublessees 10\. A lease agreement for a month-to-month lease does not specifically say what date rental payments are due. If so, when is the rent due? a\) Beginning of each month b\) End of each month c\) Not until the end of the tenant's occupancy d\) The landlord cannot enforce payment of the rent at all 11\. A tenant decides to buy a condo when there are still a number of months left on his lease; he finds a friend who's willing to take over the remainder of the lease, but the original tenant will remain secondarily liable for the rent. The landlord must still approve this, however, under the terms of the lease agreement. This is a/an: a\) assignment b\) cancellation c\) novation d\) sublease 12\. Advantages of using a resident manager for an apartment complex include all of the following, except: a\) an on-site manager is better able to handle noise or parking problems b\) an on-site manager may respond quickly to complaints and requests, round the clock c\) the owner may save on maintenance costs by having someone on site to do basic tasks d\) the resident manager can handle all maintenance and repair tasks himself 13\. A tenant has many options if he gives notice to a landlord regarding a maintenance problem and the landlord fails to take action. One common solution is for the tenant to have the work done by a contractor and to subtract the cost of the repair from the next month's rent. This is known as: a\) arbitration b\) depositing rent into an escrow account c\) repair and deduct d\) self repair 14\. Which of the following would not fall under the scope of the Fair Housing Act's protections against discrimination on the basis of familial status? a\) Parents b\) Persons in process of obtaining custody of a child c\) Persons who use service animals d\) Pregnant women 15\. Several weeks after a tenant moves out, a residential manager must do what? a\) Provide an itemized statement listing repair expenses withheld from the security deposit b\) Refund the entire deposit c\) Use the deposit to fix regular wear and tear d\) Either A or B 16\. A manager manages a number of single-family residences, rather than one building. What is the main advantage of this type of arrangement? a\) It is less time-consuming b\) Less time is spent on marketing because the tenants stay longer c\) The commissions are larger d\) There is less in the way of grounds to maintain 17\. A common interest development is a development where: a\) each resident owns a unit and also owns a shared interest in common areas b\) each resident owns a unit but leases access to common areas c\) each resident owns a unit, which they in turn rent out to a paying tenant d\) each resident pays for a partial interest allowing use during a set time of year 18\. A new development has single-family homes on smaller-than-usual lots that residents own in fee simple, but also a fair amount of green space and recreational facilities that the residents own as tenants in common. This includes park and playground areas, a swimming pool, and forested areas. This describes a: a\) condominium b\) cooperative c\) manufactured home park d\) planned unit development 19\. In most manufactured home parks, residents: a\) own both the home they live in and the space the home is placed on b\) own the home they live in, but rent the space the home is placed on c\) rent both the home they live in and the space the home is placed on d\) rent the home they live in, but own the space the home is placed on 20\. An apartment building is privately owned, but residents' rents are partially paid through a government agency's housing vouchers. This would be considered: a\) a cooperative b\) an independent living community c\) government-assisted housing d\) public housing Answer Key 1\. c) Residential managers spend more time marketing the property and finding new tenants because they're used to shorter lease terms and higher turnover than commercial managers. 2\. c) Garden apartments are large apartment complexes, usually in suburban areas, with several low-rise buildings in a landscaped setting. 3\. d) Property analysis focuses on the characteristics of the building and other factors within the property lines. 4\. d) A cash flow budget includes the owner's mortgage payments as expenses. A vacancy factor helps determine the property's effective gross income, while cash reserves and maintenance costs are expenses that will be used in calculating net operating income. 5\. b) Internet advertising, on sites such as craigslist, is free from geographical limitations, and can be viewed by anyone from anywhere. 6\. c) A profit and loss statement might be required as part of a commercial lease application, but would not be relevant as part of a residential lease application package. 7\. a) The Fair Credit Reporting Act is not an antidiscrimination law; it requires certain notices to lease applicants concerning use of their credit histories. 8\. d) The implied warranty of habitability, which promises that the premises will be fit for habitation, is implicitly part of every lease. Most states' landlord-tenant laws, however, make this protection explicit as well. 9\. b) A co-signer is a party who won't live on the leased property, but who accepts liability in case of a tenant's default and who also signs the lease agreement. 10\. b) If a lease does not specify, rent is not due until the end of each rental period (at the end of the month, with a month-to-month tenancy). Most leases, however, will explicitly state that rent is due at the beginning of each month. 11\. a) In an assignment, the remaining lease is transferred to another party, but the original tenant remains secondarily liable for the rent. 12\. d) A resident manager is unlikely to be able to do all maintenance and repair work himself; for instance, experts are usually needed to do electrical work, or to work on elevators or fire safety systems. 13\. c) Repair and deduct involves having repair work performed on a tenant's behalf by a professional, and then deducting the cost of the repairs from the next month's rent bill. The tenant must allow the landlord's repair deadline to expire and also provide the landlord with a cost estimate of the cost of the repairs, before having any repairs made. 14\. c) Persons who use service animals are protected under the Fair Housing Act, but they're protected against discrimination on the basis of disability. Parents and parents-to-be are protected from discrimination on the basis of familial status. 15\. d) A residential manager may do one of two things: either return the entire security deposit, or return part of it while retaining part of it to pay for damages (not regular wear and tear), accompanied by written notice of repair expenses. 16\. b) Single-family homes have less turnover, as residents stay there longer, which means less time spent on marketing and negotiating leases. However, travel time between properties is increased, and there is more yard maintenance to do. 17\. a) A common interest development is any development where residents own their own units, but also own a shared interest in common areas. A condominium is a typical example; the owners association is likely to employ a property manager to oversee the jointly-owned common areas. 18\. d) In a planned unit development, lot sizes are small, but that is compensated by having common areas that residents own together. A property manager is likely to work for the owners association to manage the common areas. 19\. b) In most manufactured home parks, a resident will own the manufactured home he lives in, but usually rent a space in the park where the manufactured home is placed. 20\. c) Government-assisted housing is privately owned and managed but where tenant rent is partly paid through a government agency. By contrast, public housing is owned and operated directly by a government agency.