Property managers operate within a specific legal and professional framework, meaning there are several actions they are strictly prohibited from undertaking. Primarily, they cannot perform actions that are illegal, discriminatory, or fall outside the scope of their professional license and the agreed-upon management contract.
Unlawful Tenant Removal and Eviction
A significant restriction for property managers is the inability to forcefully remove tenants or engage in "self-help" evictions. In virtually all jurisdictions, property managers must adhere to strict legal procedures for eviction. This means they cannot:
- Physically remove a tenant from the property.
- Lock out a tenant by changing locks or blocking access.
- Shut off utilities (e.g., water, electricity, heat) to compel a tenant to leave.
- Remove a tenant's belongings without proper legal authority.
These actions are considered unlawful "self-help" evictions and can result in significant legal penalties for the property manager and the property owner. Any eviction must be carried out through the proper legal channels, typically requiring a court order obtained after due process.
Providing Legal or Financial Advice
Property managers are not licensed attorneys or financial advisors. Therefore, they cannot:
- Offer legal interpretations of leases, landlord-tenant laws, or other legal documents beyond general information. They must refer tenants or owners to qualified legal counsel for specific legal advice.
- Provide financial planning, investment advice, or tax advice related to the property. They should recommend consulting with licensed financial professionals or accountants.
Engaging in Discriminatory Practices
Property managers must strictly adhere to fair housing laws, such as the Fair Housing Act in the United States. They cannot discriminate against prospective or current tenants based on protected characteristics, including:
- Race
- Color
- National origin
- Religion
- Sex (including gender identity and sexual orientation)
- Familial status (presence of children under 18 or pregnant women)
- Disability
This means they cannot refuse to rent, impose different terms or conditions, or make discriminatory statements in advertising based on these factors.
Ignoring Laws and Regulations
Property managers are legally obligated to comply with all applicable local, state, and federal laws. They cannot:
- Disregard local zoning ordinances or building codes.
- Violate health and safety regulations for rental properties.
- Overlook state-specific landlord-tenant laws regarding security deposits, lease terms, or maintenance responsibilities.
- Fail to provide required disclosures to tenants.
Performing Unlicensed Work
Unless they hold the appropriate licenses, property managers cannot perform work that requires a specialized trade license. This includes, but is not limited to:
- Major electrical wiring or repairs.
- Significant plumbing installations or fixes.
- Extensive structural renovations.
For such tasks, they must hire licensed and insured contractors.
Overstepping the Management Agreement
The relationship between a property manager and a property owner is defined by a management agreement. Property managers cannot:
- Make major financial decisions or authorize significant expenses without the owner's explicit approval, unless pre-authorized in the agreement.
- Sell the property or enter into a mortgage without the owner's specific authorization.
- Act outside the scope of duties outlined in their contract.
To ensure clarity, here's a summary of common prohibitions:
| Action a Property Manager Cannot Do | Reason for Prohibition |
|---|---|
| Forcefully remove tenants | Illegal "self-help" eviction; requires legal process |
| Provide legal or financial advice | Not licensed attorneys or financial advisors |
| Discriminate against tenants | Violation of Fair Housing Laws |
| Ignore applicable laws/regulations | Legal obligation to comply with all statutes |
| Perform unlicensed trade work | Requires specialized professional licensing |
| Act outside management agreement scope | Violates contractual terms with property owner |
Understanding these limitations is crucial for both property managers to operate legally and effectively, and for property owners to know what to expect from their management professionals.
