Monday, February 17, 2020
Evaluate the property and determine an accurate rental rate
- Perform detailed documentation of the interior and exterior including photos.
- Offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing good ROI.
- Gather data on rental rates in the area and work with you to determine the optimal rental rate.
- Discuss with you the pros and cons of different policies such as accepting pets, allowing smoking etc.
Market the property for rent
- Prepare home for rent:
- Clean home and optimize interior appeal
- Manicure landscaping to increase curb appeal
- Create ads tailored to the property and advertising medium and may include:
- Paid and free rental listing websites
- Signs (if applicable)
- Work with other leasing agents to find a tenant.
- Field calls from prospects for questions and viewings.
- Schedule prospective tenants for showings throughout the week and weekend.
- Provide prospective tenants with rental applications that are legally compliant with fair housing laws.
- Collect & process applications with application fee.
- Provides unique Surety Bond program to attract more prospective renters and increasing financial security for owners.
Tenant Screening and Selection
- Perform a background check to verify identity, income, credit history, criminal background, eviction/rental history, etc.
Did you know that less than 25% of felony convictions show up in the typical national criminal database? Be sure to ask your Seaside Paradise Rental agent for more detail on the extensive background search they perform.
- Grade tenant according to your pre-defined tenant criteria.
- Inform tenants who were turned down.
- Draw up leasing agreement.
- Schedule move-in date with tenant.
- Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance.
- Ensure all agreements have been properly executed.
- Perform detailed move in inspection with tenant and have tenants sign a report verifying the condition of the property prior to move-in.
- Collect initial rent and security deposit or surety bond payment.
- Receiving rent.
- Hunting down late payments.
- Posting 3-Day Notice.
- Enforcing late fees.
"Putting a buffer between you and the tenant makes it much easier to ensure timely rent payments. Renters have a harder time making excuses and asking for special treatment when dealing with a company since they know we have no choice but to follow the law."
- Posting 3-Day notices in accordance with state law.
- Filing relevant paperwork to initiate and complete an unlawful detainer action if necessary.
- Coordinating with legal and law enforcement to remove tenant and tenants possessions from unit as permitted by law.
- Refer owner to a qualified attorney if necessary.
- Understand and abide by the latest local, state and federal legislation that apply to renting and maintaining rental properties.
- Perform periodic inspections (Inside and Outside) on a predefined schedule looking for repair needs, safety hazards, code violations, lease violations, etc.
- Send owner periodic reports on the condition of the property.
- Provide accounting property management services
- Detailed documentation of expenses via invoices and receipts.
- Maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.)
- Provide annual reporting, structured for tax purposes as well as required tax documents including a 1099 form.
- Provide easy to read monthly cash-flow statements which offer a detailed breakdown of income and itemized expenses.
Maintenance, Repairs, and Remodeling
- Provide and oversee maintenance.
- Establish a preventative maintenance policy to identify and deal with repair needs.
- Provide a network of licensed, bonded and fully insured contractors who have been vetted for good pricing and good work that is up to code.
- Maintain and monitor a 24 hour emergency repair hot-line.
- Larger renovation or rehab projects.
- Provide recommendations on how the project can maximize rental income.
- Assist in preparing preliminary estimates.
- Get multiple independent bids for the work.
- Inspect unit and fill out a report on the property's condition when the client moves out.
- Provide tenant with a copy as well as estimated damages and/or move out fees.
- Return the balance of the security deposit to the tenant (if any).
- Collect any outstanding balances from tenant.
- Forward uncollectable balance to Collection Agency.
- Forward any portion of the owner’s portion of the tenant deposit to the owner or hold in owner reserves for repairs.
- Clean unit and perform and needed repairs or upgrades.
- Re-key the locks.
- Put the property back on the market for rent.
THE BOTTOM LINE:
From a financial standpoint, is managing your property the best use of your time? Can you afford the risks of a bad tenant or failing to follow the law?
Ultimately, your decision to hire or not hire a management company should hinge on whether or not it makes sense financially. Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.