Property Management

With regards to property management, it is broken down into to parts. You can chose to do either by itself or both together.

Leasing

This is the first part. I will give recommendations for making property rent ready, discuss all items that will stay, calculate a smart fair market rent rate, and put together a schedule. We then list the property for lease much like the sale of a home. We will make it available to other real estate agents to show their clients looking to lease a home. It will be found all throughout the internet listing portals, the MLS, our site, and so on. We will field all inquiries from prospective tenants and agents, coordinate showings, and review any applications we receive. We will run background checks and financial checks on all applicants and require they pay a $40 screening fee if they decide theyd like us to pursue screening their application. Well then give you our recommendations for proper tenant selection, write up a lease, collect deposits, and arrange for move in. Once moved in, well have the tenant complete a move in inspection form to account for the condition of the property. Typical leases are for 1 year but we usually try to find tenants who will do a 2 or 3 year. The tradeoff is they may want a small discount for this if they have good credit and references. We are paid once the property is under contract and you receive your deposit and first months rent. Our fee is 6% of the first years gross rent collected. So if rent is $2,600 per month, we will charge 6% of $31,200 ($2,600 x 12 months) or $1,872 which we will then probably have to split 50/50 with another broker if they procured the tenant for your property. Once the tenant is moved in, leasing services are concluded.

Property Management

This picks up where leasing leaves off and is an ongoing monthly service for the full oversight of you home. Our primary concern is property preservation followed by timely collection of rents followed by minimization of expenses. We handle and field all calls for repairs or concern from the tenants and respond to midnight emergencies like overflowing toilets and water leaks. Tenants are instructed to call us and will usually not have access to disturb you. The owner can be as uninvolved as simply receiving a monthly check. We will check in with the owner whenever a big repair or expense is on the horizon; but other than that we really try to leave the owner out of it because most people hire us in order to not have to deal with tenant issues. On a monthly basis we will collect the rent, pay any bills or expenses with your money (from the rent or $400 emergency reserve we have you establish), put together a statement of all income/expenses, pay ourselves, and send out the remaining money direct to you. On a twice yearly basis, we will visit the property to look for any early signs of items not functioning that could cause damage and to make sure the tenant is living up to their end of the agreement. Well make a report and send it out to to for peace of mind. If for any reason we need to evict a tenant, there is a $500-$600 charge for the attorney we will enlist to help expedite the process. We are paid only on months where rent is collected and only in proportion to the amount collected. Our fee is 8% of the gross monthly rent collected. So if rent is $2600/mo then our fee is $208 per month.

 

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