Leasing – Houstonius

Produced at the Poodle Ranch concerning emotional support animals, are landlords given exceptions under FHA rules, if the building only has 4 apartments Yes, under the federal Fair Housing Act (FHA), there is a specific exception that can apply to buildings with four or fewer units. This is commonly known as the "Mrs. Murphy Exemption." However, the exception only applies if certain criteria are met. Here is the breakdown: 1. The "Mrs. Murphy" Exemption A landlord is generally exempt from the FHA's requirements regarding Emotional Support Animals (ESAs) if: The building has four or fewer units (e.g., a four-plex, triplex, or duplex). The owner lives in one of the units as their primary residence. 2. When the Exemption Does NOT Apply Even if the building only has four units, the landlord must still follow FHA rules (meaning they must allow a documented ESA) if: The owner does not live on-site: if the landlord lives elsewhere, the building is treated like any other commercial rental property and must comply with the FHA. A Real Estate Agent is used: If the landlord uses a licensed broker or management company to rent the units, the exemption is typically voided. Discriminatory Advertising: Landlords cannot run ads saying "no disabled tenants" or "no ESAs," even if they are otherwise exempt. The exemption applies to the act of choosing a tenant, not the advertising of the property. 3. Texas-Specific Considerations In Texas, state law generally mirrors the federal FHA. While the federal "Mrs. Murphy" rule provides a shield for small, owner-occupied dwellings, it is important to note: Reasonable Accommodation: In most other rental situations, an ESA is not considered a "pet" but an "assistance animal." Landlords cannot charge pet deposits or pet rent for them. Documentation: A landlord (who is not exempt) can request a "reliable disability-related need" letter from a healthcare professional but cannot ask for specific medical records or a diagnosis.

In October 2025, this month, my client closed the purchase of a commercial property worth approximately $1,650,000 in southwest Houston.  Negotiations took approximately 3 weeks, because buyer and seller were sometimes traveling.  Neither buyer nor seller appeared motivated, but they were.  The broker representing the seller was professional and helpful. There had been other purchase offers from other prospective buyers. My client made a cash offer which therefore was not contingent upon getting a loan with a reasonable amounts of earnest money and the option fee to buy the right to terminate during feasibility and inspections. My client buyer immediately had a tenant for the property at a fair lease rate for 5 years. The lease contract is promulgated and approved by the Texas Real Estate Commission and Association of Realtors. It provides that the tenant pay a monthly base rate plus a rate for property ad valorem taxes and hazard insurance and common area maintenance, referred to a CAM. CAM, common area maintenance are paid by tenant each month plus the base rent amount. This monthly CAM payment is to pay for the  normal operating expenses paid by the owner. The problem is that rent payments do not pay for Major Future capital expenditures such as Roof replacement Nor building foundation repairs.  Both may seldom happen but they are expensive large amount of money. A roof may cost $4 per square foot, thus can be between $20,000 to $100,000 depending on the size of the building.  Foundation repairs can cost $250 a foot to dig under a foundation. It may cost $400 per pier footing placed each 4 feet under the concrete slab.  A foundation repair on a small building might cost $10,000 to $20,000 or more. Houston was built on mud. Thick dark grey gumbo soil. Every building will eventually need foundation work.  The gumbo clay soil imbibes water then dries, thus the foundation moves each dry or wet season. I devised a method for the tenant to pay for Future Major Capital Expenditures. The lease requires that the tenant to pay 5 cents per square foot of building each month, into a Sinking Fund (no pun intended).  Thus a 15,600 square foot building would monthly pay  $833 to landlord which is required to go into a separate saving account.  Each year the amount paid into the Sinking Fund is $10,000, thus after 5 years the fund has deposited $50,000.  Roofs and foundations are expensive to maintain. Normally, owners do not easily find the funds and may try to sell the building.  They would get a higher price if he building is in good condition to sell or lease.  It is like trying to sell a car with faulty transmission. Phone me to discuss at  2812368189 your building if you are about to negotiate a new lease.

Lester Langdon here.  In the past, several of my clients have had problems with squatters.  Here is a recent article from the Fort Worth Star Telegram, written by Tiffani Jackson Here’s what Texas’ new squatter laws mean for landlords, tenants and homeowners It’s a nightmare scenario for homeowners — discovering that someone has taken up residence in your property without permission, and finding out the process to remove them is anything but simple. Lawmakers say squatting has become a growing problem in Texas, frustrating property owners and leaving law enforcement with limited options. To address it, Gov. Greg Abbott signed two new laws this summer that make it easier to clear squatters from private property and add tougher penalties for fraud and trespassing. “Texas is facing a squatting crisis, with property owners struggling to evict delinquent tenants or remove people who were never supposed to be on their property in the first place,” Abbott said in a news release. Critics, however, warn the measures could blur the line between squatters and struggling tenants behind on rent. Whether you’re a landlord, homeowner or tenant, here’s what to know about how the new laws work. Who is considered a squatter under Texas law? A squatter is someone who occupies property without permission, such as an abandoned home or a residence where they were never granted a lease. Unlike guests who overstay their welcome and may be considered tenants, squatters generally have no lease or rental agreement to protect them. Texas law has long recognized “adverse possession,” which allows someone to claim ownership after occupying land for years under strict conditions, but that process is rare. The more pressing issue for most homeowners is how to quickly remove someone who moves in without consent and refuses to leave. How does the new law change the process? Senate Bill 1333 creates a new legal tool for homeowners: filing a sworn affidavit with the sheriff to request immediate removal of squatters. This bypasses the drawn-out eviction process that usually applies to tenants. The law also ramps up penalties for squatting-related fraud, making it a misdemeanor to present fake deeds and a felony to sell, lease or rent property using fraudulent documents. Property damage caused while trespassing now carries heavier criminal charges, with damage over $1,000 potentially prosecuted as a second-degree felony. Importantly, the expedited removal process does not apply to family members or current/former tenants, it’s focused on unauthorized occupants only. What protections exist if someone is wrongfully removed? Lawmakers built in safeguards for people who are mistakenly evicted under the new process. I If an individual can prove they were wrongfully removed, they can sue the property owner for damages. That includes actual losses, exemplary damages, attorney’s fees, court costs and up to three times the fair market rent of the property. These protections aim to balance property owners’ rights with due process for legitimate occupants. How does the law affect evictions in Texas? Senate Bill 38 targets the court side of eviction proceedings, requiring justice courts to hear cases faster — within 10 to 21 days of filing. It also allows courts to issue summary judgments in clear squatting cases, speeding up removal when the facts are straightforward. The law clarifies how landlords must serve notices to avoid disputes over whether squatters were properly informed. Justice courts are limited to ruling only on possession of the property, not title disputes or broader claims, which keeps cases narrowly focused. The bill also prevents local courts or agencies from altering eviction rules, creating consistency statewide. When do the new laws take effect? SB 1333 took effect on Sept. 1, 2025. SB 38 will go into effect on Jan. 1, 2026. Both were passed during the 89th Texas Legislative Session and signed by Gov. Abbott,

Spotting Signs of Fraud Overview: This briefing document summarizes the key themes and important information presented in the PetScreening article "Spotting the Signs of ESA Fraud." The article addresses the increasing trend of individuals attempting to fraudulently pass off their pets as assistance animals (Emotional Support Animals - ESAs) to avoid pet fees and restrictions in rental housing. It highlights the importance of a thorough review process for accommodation requests, outlines potential red flags indicative of fraud, and clarifies the legal distinctions between pets, service animals, and support animals under HUD guidelines. Main Themes and Important Ideas: Increased Accommodation Requests and Potential for Fraud: The article notes a rise in assistance animal accommodation requests as more communities become pet-friendly. This increase has led to a corresponding rise in individuals attempting to fraudulently classify their pets as assistance animals to bypass pet policies. "As more and more communities allow pets onsite, most operators are seeing an uptick in assistance animal accommodation requests. It’s no secret that there are bad actors trying to pass their pets off as assistance animals to circumvent pet fees and restrictions." Importance of a Thorough and Consistent Review Process: Due to the prevalence of potentially fraudulent requests, the article emphasizes the critical need for property operators to implement a robust and consistent review process for all accommodation requests. "This is why having a thorough and consistent review process of each accommodation request is paramount." High Rate of Insufficient Documentation: PetScreening's data reveals that a significant portion of accommodation requests lack sufficient documentation according to HUD guidelines. While not always indicative of fraud, it highlights the challenges in verifying legitimate needs. "In over 450,000 reasonable accommodations requests already reviewed by PetScreening, nearly 60% were returned to the animal owner as insufficient. In other words, the accommodation request did not meet HUD’s 2020 Assistance Animal Notice guidelines." Distinguishing Insufficient Documentation from Fraud: The article clarifies that insufficient documentation doesn't automatically equate to fraud. However, it outlines specific "tell-tale signs" that should raise suspicion. "It’s important to note that when a request is deemed insufficient, that definitely doesn’t always equate to fraud -- although there are a few tell-tale signs to look for when determining the legitimacy of such requests." Key Indicators of Potential Fraud: The article identifies specific red flags that may suggest fraudulent activity: Healthcare provider questioning the validity of their signature. Apparent alterations to the date on supporting documentation. Inconsistencies in names within the documentation. "For instance: If a healthcare provider questions the validity of his/her signature If the date on the supporting documentation appears to have been altered If a name in the supporting documentation appears to have inconsistencies" Rights of Housing Providers in Suspected Fraud Cases: The article asserts that housing providers have the right to seek additional information and exercise caution when reviewing suspicious requests, including the possibility of denial. "In the event that you encounter any of these “ifs” or other indicators that seem questionable during your review of an assistance animal request, additional expertise and diligence during the review process is likely warranted. Fraud is a very serious matter and, if suspected, you should navigate this cautiously and carefully. It is well within your rights to seek additional information during the review process before making a final determination of the request which may include the denial of the accommodation request."

Several clients with properties have phoned to get my opinion on the status of prices and rental rates?  I am hunkered in the bunker for the last 4 weeks, but am watching the real estate markets. My answer to current market conditions is …. Too soon to tell. I do not know why? Several owners have asked how to handle  tenants who do not pay rent due to Covid virus challenges.  I have promulgated forms to negotiate future payment of current rent of both commercial and residential tenants. Phone me to send it to you. You might let the tenant spread the one month rent over the next 4 months payments. Put it in writing on the form. Some landlord will be effected by Ghosting. Some tenants do not send the rent payment and The tenant will not return phone calls. This is true of commercial and residential mortgages. The county does not allow evictions until May 1st. There may be line at the court house civil courts office window. Get there early and take a folding chair.  But first you must prove you have delivered notice of demand for payment.  Send a certified letter or post the notice on the door with a witness or take a photo of the notice on the door.   I expect tenant musical chairs. There will be more demand for rental spaces, both commercial and residential. Tenants who did not pay rent will move to another space. Some will move before eviction and owe a month or two of back rent, thus on a lease application they can truthfully say they have not been evicted. However, if you phone the previous landlord, you may find that the tenant owes back rent for several months. So how should you handle prospective tenants who skipped out of the last lease without paying for several months. It depends on how much you need the tenant. I suspect that there are many good tenants who are normally reliable, who had unexpected challenges this year. They may be a good risk, whether they skipped rent or whether they left before eviction. We have added a new service feature to help you lease your empty space ….. both commercial and residential. We can fill your space for a fee which is a small fraction of the fee which another broker would charge you. We handle the advertising cost and inquiries … but let the owner  meet and  interview prospective tenants. Then we ask the prospective tenant to complete an online lease application and sign an authorization to a background and criminal and credit check. The tenant pays the credit check fee. This can all happen online and we send the application and background check to the owner by email. With owner approval and review, we write the lease and send for digital electric signatures and give you a copy. Owner collects the lease deposit when the tenant get the key or whenever the lease directs.   To start, we meet the owner at the property and sign a marketing agreement, then take interior and exterior photos. What else is new February 14th, approximately 3 weeks before I went into seclusion in the bunker, My buyer signed contract to purchase a small new multifamily built last year. We were going to close the deal on March 20. Seller had built 3 buildings and two were purchased by other buyers. Fortunately, my client inserted language which required seller to provide copy of City Multifamily Certificate of Occupancy …. That seller did not have. The State of Texas law says that the penalty to Not register your property with the City list of multifamily properties …..  is $500 per day…. But the city has not ever implemented the penalty in past 5 years …. Probably because it may not be a legal law.   I think the other two properties were purchased without such city inspections which are required to get the Certificate of Occupancy. I guess the buyer broker did not know. It will cost approximately $2,000 to make electrical changes to satisfy the city inspector to get the Certificate of Occupancy. It has been very difficult for the buyer to get a loan with the current depressed economic situation during t...

The World Has Become Complicated Five broker skill sets which effect buyers and sellers People Laws Institutions Real Estate Properties Technology People skills –  Ask questions and listen. If they sound like you know everything, it is probably not true and they  have a confidence problem.  We have to learn by their mistakes, so arguments may not help. A seller overpriced her property, after I had suggested a lower range. She does not need the money. She increased the price by 25%. Six months later she got down to the top of the price range and one year later it is now priced to sell. She paid property taxes and mortgage payments on a vacant property for one year.  The most important question to ask is …. “When do you want the money?” Most likely, I will let you learn by your mistake  My two most recent property seller’s did not listen to my suggested asking price.  They both increased the asking price to be 10 % higher than the original starting ask price. Then later then reduced the ask price, then again reduced the price a third time.  They wasted 6 months of property taxes and maintenance and made the marketing time appear to be stale. Sellers have to get through the emotional stages to have realizations to reduce the price.  All of us often learn by experience.  It would be nice to listen to experts with more experience. A client should  know, like and trust their agent otherwise the client thinks every problem is created by the agent. Ultimately, The market is right. Most importantly, “I don’t always know.” I must admit that sometimes it is hard to determine value, especially on unique properties. You can Not use the county appraisal district value.  That is why owner tax payers hire property tax consultants.   Here is a list of 24 people that may be involved. Not all of them in each deal. ·      Buyer ·      Seller ·      Buyer agent ·      Seller agent ·      Title company ·      Building inspector ·      Bug inspector ·      Mold inspector ·      Environmental consultant ·      Hydrostatic plumbing inspector ·      City inspector ·      Utility company ·      Surveyor ·      1031 Tax Deferred Exchange 3rd party Intermediary ·      Commercial mortgage broker ·      Residential mortgage broker ·      Property Manager ·      Real Estate attorney ·      Insurance agent ·      Residential appraiser ·      Commercial appraiser ·      Residential lender ·      Owner Association ·      Sometimes a locksmith   Laws, Taxes, Trusts, Legal entities – The world has changed from 25 years ago.  I feel like a target. Wish I had gotten a law degree to have more and cheaper ammunition.  The real estate residential transaction contracts were 5 pages and are now 9 pages plus 3 addendums with 6 additional pages. The commercial contract is 14 pages plus may 6 additional pages of addendums and amendments…… And each year, the addendums and amendments are changed. The brokerage firms now have added their own docs for their client to sign and for my clients to sign. Some have added an additional seller disclosure document and a final buyer home walk through acknowledgement. I am not supposed to give a legal opinion about any documents which are not promulgated by the Texas Real Estate Commission, but often will discuss those docs and disclose I am not an attorney Do you understand the different types of written contracts and the different parts of each contract. There are more than 150 legal contract forms to understand PLUS Texas Real Estate Commission Texas Association of Realtors Houston Association of Realtors Plus recently the Managers of brokerage forms are requesting the completion of their own broker forms ….. such as a second additional Seller Disclosure form for buyer to sign and a Buyer Home Walk Through form to be signed before closing. Plus Lenders are now requiring their own loan disclosure own forms to be signed by borrowers and sometimes by sellers before closing … such property financial disclosures and environmental di...

Fill your empty rental space ?    Get occupied quick. Use our "Easy Rent" service. You choose and approve the Right tenant. $100 fee - due after tenant signs lease. Multifamily, Residential, Office, small Warehouse, Commercial Reduce your leasing costs and increase your marketing exposure. Find good quality tenants. Your rental photos will appear "For Rent" on the real estate portals below the MLS   HAR.com         Zillow.com          Homes.com Move.com      Realtor.com       Trulia Apartments.com Trulia.com Homes     Houston Chronicle.com   Sign up today and get that vacancy rented faster. You have the option to attend and show the space yourself and meet possible prospective tenants.   $100 Fee after results Please phone "Realty Consultants" at 281 236 8189 Includes up to 23 photos of interior and exterior. We use promulgated forms approved by the Texas Assn. of Realtors. We offer digital electronic signatures and online tenant applications and background checks. Residential  and Commercial blank lease contracts and necessary forms ... Plus video explanation - click here to download .