[RPPTL Leasing Committee] Affiliated business transaction and property management

[RPPTL Real Estate Leasing Committee]

Many property managers are making it mandatory for the tenant to buy renters
insurance, a/c filters, fridge filters, coordination of utility services,
internet, and quite a few other products and services.  Some things are not
mandatory but more and more are.

 

The property management companies are making quite a bit off of these
arrangements with kickbacks becoming very common and addictive.

 

Does anyone know much about this type of thing and the legality?

 

Would an affiliated business statement be enough in the lease or the
addendum that they are using?

 

I know there is disclosure needed with an ABA for real estate closings due
to RESPA but rentals? 

 

Not only is this occurring between the tenant and the property manager but
also the property manager and the owner.  For example, the property manager
uses a third party inspection service for move in and move out inspections,
the owner pays for it and the property manager is getting a kickback from
the third party inspection service. 

 

It's getting really common. 

 

Any experts out there?   I may have some clients who need something written
up properly in their property management agreements.

 

Thanks!

 

Harry

 

LAW OFFICES OF 
HEIST, WEISSE & WOLK P.A.
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website:   <http://www.evict.com/> www.evict.com 
Email:  <mailto:harry at evict.com> harry at evict.com



 <https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870> 


Visit us on Facebook

 


 

THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND
INTENDED FOR THE PERSONS NAMED ABOVE ONLY.  ALL OTHER USE, COPYING, OR
DISTRIBUTION IS STRICTLY PROHIBITED.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20201202/1debd7b6/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 1153 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20201202/1debd7b6/image002.png>