Daily Real Estate News  |  November 13, 2006  |   Big Changes May Await Property Managers
The shift on Capitol Hill could have big impacts on property managers and their portfolio operations in the next 12 months, Institute of Real Estate Management Vice President Charles Achilles told attendees at Sunday’s Property Management Forum.


For example, said Achilles, although there’s been little activity on federal immigration reform, nine states and numerous municipalities have enacted laws that require employers to examine the work status of employees and impose fines for hiring illegal immigrants. Some locales are also fining landlords that rent to illegal immigrants, and more places are considering such laws, said Achilles.

Commercial property owners are also losing contests that would prohibit telecommunications vendors from installing wiring in buildings without compensating the owners, a practice called “forced access.” In Louisiana, Gov. Kathleen Blanco vetoed a bill that would have limited forced access because she feared the law would negatively impact government revenues from telecom fees.

At the federal level, the shift to a Democratic Congress means it’s less likely that the 15-year depreciation amortization period for leasehold improvements, which expired at the end of 2005, will be renewed, said Achilles. He does expect a reindexing of the Alternative Minimum Tax, however.

Achilles also anticipates that Congress will address the need for a federal intervention to ensure the availability and affordability of natural disaster insurance. IREM and NAR support a federal backstop similar to the one that exists for terrorism insurance. Other issues property managers should be watching include data security, water conservation (in the form of rules requiring sprinkler retrofits), and lead-based paint renovation regulations, said Achilles.

— By Mariwyn Evans for REALTORŪ Magazine Online