Property management companies
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: My husband and I want to lease a home, and we're working with a property management company. We provided the company with an application and deposit and also signed a lease agreement—all of this happened before we were even approved for the lease. The management company also requested banking documents in addition to the income statements, employment verification, and rental history that are already in our application.
The company said it would take two or three days to process our application, but it's been longer than that. What do we do?
Answer: It's not unusual for a property management firm to take your application, run a credit report, require you sign a lease agreement, and collect a deposit before you've actually leased a property. That's a good business practice for the firm, so it can deliver to a property owner a well-qualified rental prospect. However, until the owner of the property or the property management firm signs the lease, you're not bound by it. If the company hasn't told you that you have an agreement, you can withdraw your offer by calling the management company.
It is unusual for the property management company to leave you hanging without an answer. Contact the management firm and ask if your lease has been approved. If it has not, withdraw your offer to lease and request the immediate return of your deposit. Be sure to make a record of your call's date and time. In the future, let someone else manage your relationship with the property management company and ensure you find the right home for you to lease: Contact a Texas REALTOR®.
E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.
Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.
George and Chuck are co-authors of Texas
Real Estate Brokerage and Law of Agency published by Thomson Publishing.
