In multifamily property management, there are a lot of rules and regulations to follow. From fair housing laws to health and safety codes, there are many laws to adhere to so that tenants are provided with a safe, secure, and comfortable living environment. However, policy compliance is more than just legal requirements, it's a crucial part of maintaining a good reputation and creating a positive community for residents. In this article, we'll explore why policy compliance matters, the consequences of non-compliance, and how to ensure compliance in multifamily property management.
Why Policy Compliance Matters in Multifamily Property Management
First and foremost, policy compliance helps ensure the safety and security of residents. Everyone deserves to live in a home that is free from hazards and that meets the applicable health and safety standards. By adhering to these policies, property managers can help keep their tenants safe and healthy.
Policy compliance also helps to build a positive reputation for the property management company. A company that is known for adhering to policies and regulations will be viewed as a responsible and trustworthy business partner. Additionally, potential tenants are more likely to be attracted to properties with a good reputation, leading to improved occupancy rates and higher profits.
Furthermore, policy compliance is essential for preventing legal consequences and expensive lawsuits. Even small infractions can quickly escalate into costly lawsuits or fines, which can be detrimental to a property management company's bottom line. By staying compliant with policies and regulations, property managers can avoid these risks and protect their business.
Consequences of Non-Compliance in Multifamily Property Management
The consequences of non-compliance can be severe. For example, if a property manager fails to comply with fair housing laws, they could face lawsuits, fines, and even the loss of their license to operate. Similarly, if a property doesn't meet health and safety regulations, it could face fines or, in extreme cases, eviction of tenants.
Non-compliance can also lead to a loss of reputation and trust. Even if the non-compliance is unintentional, it can still be harmful to a property management company's reputation, potentially leading to a loss of business and revenue.
How to Ensure Policy Compliance in Multifamily Property Management
Ensuring policy compliance in multifamily property management is not an easy task, but it is essential. There are several steps that a property manager can take to ensure that they are adhering to policies and regulations:
Stay informed: Keep abreast of changes to policies and regulations that affect multifamily properties. For example, Florida’s new law, SB 898, which lays out specific conditions regarding the tracking of physical keys and assets and annual reporting. Other ways to stay informed include attending relevant trainings and seminars to stay current on new developments, such as the Florida Apartment Association’s legislative conference held annually that discusses top issues, such as the new Live Local Act and SB 898.
Develop policies and procedures: Develop clear policies and procedures that outline how the company will comply with regulations to ensure consistency across properties.
Educate staff: Train staff members on policies and procedures and provide ongoing education to keep them up-to-date on any changes or developments.
Monitor compliance: Monitor the compliance of policies and procedures within the company and adjust as needed.
Use technology to track compliance: Utilize technology, such as electronic key management systems, relevant software, or apps, to track compliance and ensure accountability across the company.
Policy compliance is important for multifamily property management companies to prioritize because it ensures resident safety, builds a positive reputation, and avoids costly consequences. This can be achieved through proper policies and procedures, training for staff, and ongoing monitoring and accountability.