Investment Property Owners’ FAQ
What needs to be done to prepare a property for rent?
The property should be in the best possible condition to attract a quality resident. Paint should be in good shape with marred or dirty areas touched up. Neutral colors for walls and floors are best. Blinds or shades are ideal window coverings. The home should be “detailed” clean and the yard in excellent shape.
How do I determine the rental amount?
The competition determines the rental amount. As experts in the field, we know the market and the competitive rental ranges for your home. If the home is marketed too high the home will be vacant much longer. If it is marketed too low, it may be one or two years before the price becomes competitive again.
How do you market the property?
The property is immediately added to our rental availability list, RPM web sites, multiple listing server and other websites that pull from our MLS. We place a For Rent sign on the property if signs are permitted by the HOA.
How long will it take to rent?
Vacancy periods are market driven. There is also some luck involved in the right person looking at the right time. On average in today’s market, it takes between four to eight weeks to rent a home. Homes rent more slowly between Thanksgiving and New Years. Location and price effect vacancy.
What are the policies regarding Pets?
Statistics indicate that 75% of renters own pets. Restricting pets reduces the number of available qualified residents. Pets should be screened and pet references checked out. In general, a well-behaved cat or dog causes less wear and tear on a home and yard then a young child.
What about smokers?
It is common to restrict smoking inside the property. This does not significantly reduce the marketability of the property.
Is it possible to refuse to rent to families with children?
In federal, state, and local Fair Housing regulations children come under the protective class of “familiar status”. It is unlawful to discriminate against children in any way.
Who handles emergencies?
A licensed property manager is always on call for emergencies. We have an extensive network of maintenance personnel and sub-contractors to handle any emergency on your property, day or night. We are on call 24 hours a day 365 days a year.
Is first and last month’s rent as well as a security deposit collected up front?
If a resident has good credit it is common practice to collect first month’s rent and a security deposit up front. A security deposit can be used for any owner costs while a last month’s rent can only be used for rent. The security deposit is held in a property trust account as required by state real estate regulations.
What happens if the rent is late?
The rent is due on the first of each month. We begin collection proceedings after the fifth of the month. If the rent is not paid by the 15th we take the first step in the eviction process and send out a 48 hour notice to pay rent or vacate. If the resident does not pay by the 25th of the month, the owner is notified and eviction papers are filed at the courthouse. Most evictions are the result of loss of employment. In most cases, we use an attorney for evictions. We manage over 800 properties. Our eviction rate is less than 2% of properties under management.
When are monthly funds distributed?
State Real Estate Regulations require that rental checks must have cleared the bank and the accounts reconciled to the penny before disbursing funds. The payments to owners along with statements are processed around the 3rd of the month following the month in which rent monies are collected. Disbursements can be made by paper check or ACH direct deposit into the owners’ accounts and statements are emailed the same day.
What is the average length of tenancy?
100% of rental agreements are for one year. At the end of the lease term, the owner can decide to renew to the resident (if the resident wishes to remain), vacate the resident, or allow the resident to remain month-to-month. If the market has changed, the owner can raise the rent at lease end.
How are repairs handled?
The home’s personal property management team is responsible for approving all maintenance requests. Residents are encouraged to submit all repair requests in writing. It is our policy to notify owners of all maintenance requests. If funds are available, the expense will be deducted on the next month’s accounting statement. If funds are not available, the property manager will contact the owner for payment arrangements. Sometime a request falls into the category of a maintenance emergency. Emergencies are scheduled immediately and the owner notified at the first possible opportunity. Some maintenance requests can result in a rent abatement if not handled timely. The owner is notified immediately when there is a rent abatable maintenance issue.
What happens if the resident leaves before the end of the lease?
The resident is responsible for the rent for the term of the lease. If residents leave before the termination date, they will be charged for rent until the home is re-let. We, on behalf of the owner, will do everything possible to re-let the home and minimize the residents’ cost. The tenant breaking the lease is responsible to pay the rent until the end of the lease term and pay for any expenses to prepare the unit for a new tenant.
How is the owner protected if the resident damages the property?
A refundable security deposit taken at move-in is usually sufficient to handle the minor damage caused by residents. Residents with excellent credit and references seldom cause significant damage. If the resident leaves the property owing money for rent and/or damages, they will be billed. If they do not pay, we turn over the balance to a national collection agency. The credit report will remain on the former tenant’s credit report until paid or 7 years, whichever occurs first.
Ready to talk about your property investment strategy?
Give us a call today at (252) 329-7368 (RENT).
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