Owner Frequently Asked Questions.
Q. What type of properties do you manage?
A. We specialize in RESIDENTIAL PROPERTIES only single-family homes, town homes, duplex and doubles or semi-detached homes.
Q. Do you guarantee the tenants that you place in my rental property? A. We do everything that is legally possible to screen each applicant thoroughly to make sure that they will be good, responsible tenants. However, it is impossible to guarantee that at some point there may not be a problem. Things change in people's lives. They may lose their job, get a divorce, or have a death in the family. If there is a problem, we stay on top of it to make sure that your losses are kept to a minimum.
Q. What happens if the tenant doesn't pay their rent? A. All rents are due and payable on or before the 1st of each month, if rent is not received by the end of business on the 3rd of the month, we will send a late notice demanding the immediate payment of rent. We stress very strongly the damages to the tenants' credit and the future of not being able to rent from another property manager because of a rent suit. Whether or not we eventually have to proceed with a trial and formal eviction depends on the tenant. It is always financially better for all involved if a solution can be worked out. If the tenant has experienced a one-time event which caused them a financial hardship, and we have had no previous problems with them, it is better for you, the owner, and the tenant if we give them a chance to correct the situation.
Q. How much security deposit do you charge the tenant? A. Our standard policy is 1 months security deposit. Pets are not allowed without an additional deposit. Normally $200 each minimum with a maximum of two pets allowed. (We would also have to have prior approval from you to rent to pet owners). Higher security deposits are necessary due to weak credit, short Tenant rental history and other factors.
Q. Do I have a chance to approve an applicant? A. Yes, if you wish, when we receive an application that meets our standards of qualification, we will discuss them with you before final approval. Of course, we are required to abide by all Fair Housing Laws, and will not deny an application unless it does not meet our income and credit standards..
Q. How long will it take to rent my property? A. If you are competitive in pricing the property at a realistic rental amount and condition, it usually takes from 30 to 60 days to acquire an acceptable, qualified tenant. Occasionally, it may take longer depending on the time of year and the market price range. If it looks like the market is sluggish, we will discuss alternative marketing plans with you.
Q. What needs to be done to my property before it is ready to rent? A. The better the condition the property is in when it is leased, the better tenants you will get and the better they will take care of the property. We advise you, in detail, what should be done to accomplish this see ("Owners Make Ready"). Usually, if a property is well maintained, the only thing that needs to be done is thorough cleaning and painting. Of course, any defective windows, screens, appliances or mechanicals must be repaired, and any exterior maintenance and yard care done.
Q. How do you make sure the tenant is taking good care of my property? A. There are several ways we have to know this. Most important is very careful tenant selection. We do our utmost to rent to only qualified, responsible tenants. During the tenancy, we may stop by to say hello and take the occasion to enter the property. Our repair or maintenance people are instructed to report any reasons for suspicion that the tenants are not taking care of the property. If we are fortunate enough not to have any repairs or maintenance at your property over an extended period of time, we will schedule a walk-through with the tenant for a safety inspection. Also, usually in the 9th month prior to renewing a lease we will make an appointment to walk through the property to check the systems. All properties receive periodic drive-bys. If the outside is not being maintained as it should, we will call the tenant and request permission to inspect the inside.
Q. What do you do if the tenants are not taking care of my property or have unauthorized pets? A. We give them an opportunity to correct the situation by sending them a letter listing the problems, and in most cases, usually they will. We will consider allowing a pet, with the owners' permission. We require a "PET DEPOSIT" to be paid per our lease agreement. We follow up with a visit to the property. If the problem continues or the pet deposit is not made we will notify the tenant's of their lease violation, take appropriate action and give them notice to vacate.
Q. How do you handle tenants maintenance request? A. Tenants may telephone their requests, mail, e-mail or fax them to us. Unlike some management companies, we don't force tenants to submit maintenance requests in writing (except in certain circumstances) - we would rather talk to them personally. When we do receive a written request, we contact the tenant and have them explain the problem to us. If it is something out of the ordinary, or not easily described, we usually go to the property and investigate before sending a service person. We make sure it is not something we can have the tenant fix themselves (ex: reset button on the food disposal or tripped ground fault breaker or reset the lever on the well pressure tank). After determining that it is a legitimate problem, we will send the appropriate service person, who then reports back to us. If the repair is a MAJOR repair, we will contact the owner for permission before the repair is done. If it was determined by the service person the problem was caused by the tenant, the repair will be made and we will then charge back the tenant for the service call.
Q. When do you mail the Owner's check? A. We make every effort to have the owner rent proceeds in the owners bank account on the 15th of each month. (By ACH direct deposit) HOWEVER, we must wait for the tenants' rent check to clear the bank. If we receive the rent on the 5th of the month, it could take until the 15th to clear. Florida Real Estate License Law prohibits a broker from commingling funds. If we send your rents to you and the tenants check bounces for some reason, then we are paying you out of the general fund with someone else's money. We strongly recommend to all our owners to be at least one month ahead in their mortgage payment. This way, If something happens and your rent payment is late, it will not affect your credit standing with your lender.
Q. What will I receive with my accounting statements?
A. It is emailed each month after payments are made to the owner. The statement will show all currant income and expenses for the accounting period and any time frame in the past. At year-end we prepare a complete accounting statement for each property owned and the IRS tax form 1099 for your accountant. We will include copies of all original invoices and receipts for any maintenance, expense and repairs.
Q. Can you transfer the rent directly into my bank account? A. Definitely YES, We direct deposit owners proceeds into their bank account. This is on the 13th of the month and will be in the Owner Account by the 15th, unless the tenant check has not cleared.
Q. Do you hold some of my money for repairs? How much?
A. We typically hold a minimum of $300 per unit for minor repairs. If used, we replace it when the rents are paid. If there are major repairs approved by you, the owner, we will pay the vendor when we collect the rent. If the repairs are going to cost more than the rent, we advise you and request a check to cover any anticipated shortage in your rental account. We will then pay the vendor. Florida Real Estate License Law forbids a Licensed Real Estate Brokers to allow an owner’s account to become negative.
Q. Do you use the cheapest maintenance people you can find? A. No. But we don't use the most expensive either. We use qualified contractors on an "as needed" basis. By handling our property maintenance this way, we have compiled an extensive list of available service people and their specialties. These service firms know that they will be treated fairly and paid on time so they respond to our repair requests in a timely fashion. Our maintenance service people are market price competitive and extremely competent and reliable. All of the trades' people we use must be licensed by the state of Maryland and must be properly insured. In most cases we are able to get preferential service at competitive pricing, and any savings are passed on to the owners as an added value to our services.
Q. How do I know you won't spend money on large repairs without my approval? A.Our management agreement spells that out very clearly. Together we set the limit at the time you employ us. Typically, any expense of $250 or more must be authorized by the owner - UNLESS IT IS AN EMERGENCY. For normal maintenance and repairs, we take care of it without bothering you. You will see the invoice when you receive your monthly statement. If we suspect something might exceed our agreed limit, we will call you and discuss the options and make suggestions or recommendations. For example, some owners will choose to repair an older broken appliance while another owner might want to go ahead and buy a new one. We let you make those decisions based on your current situation. Sometimes a large expense, like a water heater that needs replacing, is unavoidable. In an emergency or those cases where the health or safety of a tenant is an issue, we will initiate the repair work and give you a courtesy call to let you know what is happening and what we are doing about it.
Q. Do we need any special insurance?
A. We require our owners to carry and maintain a Landlord-Owner-Tenant Insurance policy covering liability and any disaster that may happen to the property (fire, flood, etc). We keep a copy of the binder in the file and are listed as "additional insured party." If there should be a disaster, we have the ability to immediately initiate contact with adjusters, contractors, etc. to help facilitate remedies as quickly as possible. We also require the tenants to have their own "Renter's Insurance" to cover any loss they may suffer, anything that may be their fault, or their own liability coverage.
Q. What if I want you to use my plumber or my brother-in-law? A. We cover this when we go through the management agreement. We will be happy to use your preferred trades people (Even if it is your brother-in-law). They must perform their work in the same expedient and professional manner that our regular vendors do. They must also be licensed and insured to perform the work. This is to protect all concerned. Our professional reputation, both with tenants and owners, is determined, in large part, by how well we handle maintenance. This is very important to all of us.
Q. How much do you charge?
A. Our management fees are based on the service we provide. There are several factors, age and type of property, rental license requirements, lead paint free or requiring treatment and inspections, scheduled rents, services requested, location, condition of the property, etc. Is the property currently tenant occupied with a good, or a problem tenant? Our management fees are fair and competitive based on the gross collected rent each month. The Leasing Fee is a percentage (%) of the first month’s rent for a new tenant and a modest lease renewal charge for maintaining and retaining good current tenants. All advertising costs are covered by this fee. We can give you a firm price for leasing and managing once we know more about your property and your needs and desires.
Q. Are there administration fees or other service charges?
A. There is a one time set-up charge of $200 for each property that is already occupied and a small year-end administrative fee to cover the year-end 1099 tax form, statements and account ledgers for your accountant to prepare your federal and state income taxes. We don't charge for monthly copies, long distance calls, mileage, or other incidentals. We don't mark up maintenance costs. The only other expenses you could incur would be for services that fall outside the normal scope of our management agreement (such as negotiating and contracting and overseeing a major renovation). That would not happen without discussion and a separate agreement between us.
Q. Do you guarantee the tenants that you place in my rental property? A. We do everything that is legally possible to screen each applicant thoroughly to make sure that they will be good, responsible tenants. However, it is impossible to guarantee that at some point there may not be a problem. Things change in people's lives. They may lose their job, get a divorce, or have a death in the family. If there is a problem, we stay on top of it to make sure that your losses are kept to a minimum.
Q. What happens if the tenant doesn't pay their rent? A. All rents are due and payable on or before the 1st of each month, if rent is not received by the end of business on the 3rd of the month, we will send a late notice demanding the immediate payment of rent. We stress very strongly the damages to the tenants' credit and the future of not being able to rent from another property manager because of a rent suit. Whether or not we eventually have to proceed with a trial and formal eviction depends on the tenant. It is always financially better for all involved if a solution can be worked out. If the tenant has experienced a one-time event which caused them a financial hardship, and we have had no previous problems with them, it is better for you, the owner, and the tenant if we give them a chance to correct the situation.
Q. How much security deposit do you charge the tenant? A. Our standard policy is 1 months security deposit. Pets are not allowed without an additional deposit. Normally $200 each minimum with a maximum of two pets allowed. (We would also have to have prior approval from you to rent to pet owners). Higher security deposits are necessary due to weak credit, short Tenant rental history and other factors.
Q. Do I have a chance to approve an applicant? A. Yes, if you wish, when we receive an application that meets our standards of qualification, we will discuss them with you before final approval. Of course, we are required to abide by all Fair Housing Laws, and will not deny an application unless it does not meet our income and credit standards..
Q. How long will it take to rent my property? A. If you are competitive in pricing the property at a realistic rental amount and condition, it usually takes from 30 to 60 days to acquire an acceptable, qualified tenant. Occasionally, it may take longer depending on the time of year and the market price range. If it looks like the market is sluggish, we will discuss alternative marketing plans with you.
Q. What needs to be done to my property before it is ready to rent? A. The better the condition the property is in when it is leased, the better tenants you will get and the better they will take care of the property. We advise you, in detail, what should be done to accomplish this see ("Owners Make Ready"). Usually, if a property is well maintained, the only thing that needs to be done is thorough cleaning and painting. Of course, any defective windows, screens, appliances or mechanicals must be repaired, and any exterior maintenance and yard care done.
Q. How do you make sure the tenant is taking good care of my property? A. There are several ways we have to know this. Most important is very careful tenant selection. We do our utmost to rent to only qualified, responsible tenants. During the tenancy, we may stop by to say hello and take the occasion to enter the property. Our repair or maintenance people are instructed to report any reasons for suspicion that the tenants are not taking care of the property. If we are fortunate enough not to have any repairs or maintenance at your property over an extended period of time, we will schedule a walk-through with the tenant for a safety inspection. Also, usually in the 9th month prior to renewing a lease we will make an appointment to walk through the property to check the systems. All properties receive periodic drive-bys. If the outside is not being maintained as it should, we will call the tenant and request permission to inspect the inside.
Q. What do you do if the tenants are not taking care of my property or have unauthorized pets? A. We give them an opportunity to correct the situation by sending them a letter listing the problems, and in most cases, usually they will. We will consider allowing a pet, with the owners' permission. We require a "PET DEPOSIT" to be paid per our lease agreement. We follow up with a visit to the property. If the problem continues or the pet deposit is not made we will notify the tenant's of their lease violation, take appropriate action and give them notice to vacate.
Q. How do you handle tenants maintenance request? A. Tenants may telephone their requests, mail, e-mail or fax them to us. Unlike some management companies, we don't force tenants to submit maintenance requests in writing (except in certain circumstances) - we would rather talk to them personally. When we do receive a written request, we contact the tenant and have them explain the problem to us. If it is something out of the ordinary, or not easily described, we usually go to the property and investigate before sending a service person. We make sure it is not something we can have the tenant fix themselves (ex: reset button on the food disposal or tripped ground fault breaker or reset the lever on the well pressure tank). After determining that it is a legitimate problem, we will send the appropriate service person, who then reports back to us. If the repair is a MAJOR repair, we will contact the owner for permission before the repair is done. If it was determined by the service person the problem was caused by the tenant, the repair will be made and we will then charge back the tenant for the service call.
Q. When do you mail the Owner's check? A. We make every effort to have the owner rent proceeds in the owners bank account on the 15th of each month. (By ACH direct deposit) HOWEVER, we must wait for the tenants' rent check to clear the bank. If we receive the rent on the 5th of the month, it could take until the 15th to clear. Florida Real Estate License Law prohibits a broker from commingling funds. If we send your rents to you and the tenants check bounces for some reason, then we are paying you out of the general fund with someone else's money. We strongly recommend to all our owners to be at least one month ahead in their mortgage payment. This way, If something happens and your rent payment is late, it will not affect your credit standing with your lender.
Q. What will I receive with my accounting statements?
A. It is emailed each month after payments are made to the owner. The statement will show all currant income and expenses for the accounting period and any time frame in the past. At year-end we prepare a complete accounting statement for each property owned and the IRS tax form 1099 for your accountant. We will include copies of all original invoices and receipts for any maintenance, expense and repairs.
Q. Can you transfer the rent directly into my bank account? A. Definitely YES, We direct deposit owners proceeds into their bank account. This is on the 13th of the month and will be in the Owner Account by the 15th, unless the tenant check has not cleared.
Q. Do you hold some of my money for repairs? How much?
A. We typically hold a minimum of $300 per unit for minor repairs. If used, we replace it when the rents are paid. If there are major repairs approved by you, the owner, we will pay the vendor when we collect the rent. If the repairs are going to cost more than the rent, we advise you and request a check to cover any anticipated shortage in your rental account. We will then pay the vendor. Florida Real Estate License Law forbids a Licensed Real Estate Brokers to allow an owner’s account to become negative.
Q. Do you use the cheapest maintenance people you can find? A. No. But we don't use the most expensive either. We use qualified contractors on an "as needed" basis. By handling our property maintenance this way, we have compiled an extensive list of available service people and their specialties. These service firms know that they will be treated fairly and paid on time so they respond to our repair requests in a timely fashion. Our maintenance service people are market price competitive and extremely competent and reliable. All of the trades' people we use must be licensed by the state of Maryland and must be properly insured. In most cases we are able to get preferential service at competitive pricing, and any savings are passed on to the owners as an added value to our services.
Q. How do I know you won't spend money on large repairs without my approval? A.Our management agreement spells that out very clearly. Together we set the limit at the time you employ us. Typically, any expense of $250 or more must be authorized by the owner - UNLESS IT IS AN EMERGENCY. For normal maintenance and repairs, we take care of it without bothering you. You will see the invoice when you receive your monthly statement. If we suspect something might exceed our agreed limit, we will call you and discuss the options and make suggestions or recommendations. For example, some owners will choose to repair an older broken appliance while another owner might want to go ahead and buy a new one. We let you make those decisions based on your current situation. Sometimes a large expense, like a water heater that needs replacing, is unavoidable. In an emergency or those cases where the health or safety of a tenant is an issue, we will initiate the repair work and give you a courtesy call to let you know what is happening and what we are doing about it.
Q. Do we need any special insurance?
A. We require our owners to carry and maintain a Landlord-Owner-Tenant Insurance policy covering liability and any disaster that may happen to the property (fire, flood, etc). We keep a copy of the binder in the file and are listed as "additional insured party." If there should be a disaster, we have the ability to immediately initiate contact with adjusters, contractors, etc. to help facilitate remedies as quickly as possible. We also require the tenants to have their own "Renter's Insurance" to cover any loss they may suffer, anything that may be their fault, or their own liability coverage.
Q. What if I want you to use my plumber or my brother-in-law? A. We cover this when we go through the management agreement. We will be happy to use your preferred trades people (Even if it is your brother-in-law). They must perform their work in the same expedient and professional manner that our regular vendors do. They must also be licensed and insured to perform the work. This is to protect all concerned. Our professional reputation, both with tenants and owners, is determined, in large part, by how well we handle maintenance. This is very important to all of us.
Q. How much do you charge?
A. Our management fees are based on the service we provide. There are several factors, age and type of property, rental license requirements, lead paint free or requiring treatment and inspections, scheduled rents, services requested, location, condition of the property, etc. Is the property currently tenant occupied with a good, or a problem tenant? Our management fees are fair and competitive based on the gross collected rent each month. The Leasing Fee is a percentage (%) of the first month’s rent for a new tenant and a modest lease renewal charge for maintaining and retaining good current tenants. All advertising costs are covered by this fee. We can give you a firm price for leasing and managing once we know more about your property and your needs and desires.
Q. Are there administration fees or other service charges?
A. There is a one time set-up charge of $200 for each property that is already occupied and a small year-end administrative fee to cover the year-end 1099 tax form, statements and account ledgers for your accountant to prepare your federal and state income taxes. We don't charge for monthly copies, long distance calls, mileage, or other incidentals. We don't mark up maintenance costs. The only other expenses you could incur would be for services that fall outside the normal scope of our management agreement (such as negotiating and contracting and overseeing a major renovation). That would not happen without discussion and a separate agreement between us.