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This article is the third of a 3-part series regarding resident managers, the first part having appeared in a March issue and the second part having appeared in a May issue of the Weekly Newsletter. Resources for detailed discussions of the subject are found at the end of this article.

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It is possible that rents that are collected by the manager become “lost” prior to deposit in a bank account or delivery to the owner or the management company. In this case, it is not legal to require reimbursement by the manager unless so ordered by a judge after a successful prosecution for theft or conversion.

Resident managers, particularly if performing screening, have access to applicant information that could facilitate identity theft or other fraud against applicants or tenants. Even when the manager only collects submitted applications and forwards them to the owner or management company, a lot of each applicant’s personal information becomes available to the manager.

You must ensure that federal, as well as any additional state requirements regarding safeguarding of personal data are rigorously followed. The least risk results when the manager only hands out the blank forms and information packages, with the completed applications being submitted directly to the owner or to the management company office.

There are three important categories related to liability insurance. One is bodily injury, another is personal injury, and yet another is damage to property of others. Discussions of these and other risk issues were provided in Part 1.

Be sure that you require the manager to have motor vehicle insurance with at least the minimum coverages required by your state’s law, preferably much higher. Also, require that you be named as additional insured and are provided written proof thereof. You should also be sure that your landlord insurance includes non-owned auto coverage. This coverage is not in lieu of the resident manager having insurance on his/her vehicle, but it is back-up to his/her insurance.