Operations Overview for Tenants
(Action Plan from Tenant Perspective)
The company will be well thought out and utilize time saving technology such as a website that allows potential tenants to go thru the entire process of becoming tenants without ever having to come thru an office door. The website will start with a list of available properties, these properties will be advertised on other real estate websites as well as our own.
The potential tenant can view virtual tours of the properties, get rental information, school district info and more. At this time the tenant can come into the office and check out a key for the property after placing a small, refundable key deposit. If the potential tenant likes the property, they can go online and fill out a digital application and use a credit card for the application fee. The fee will be 35.00. This 35.00 covers a credit and background check at a cost of 20.00. The additional fifteen dollars covers the expense of the website and the time associated with checking the customers references. All rental properties have a hundred and fifty dollar leasing fee to property owners.
If the potential tenant passes the requirements for leasing, we will schedule a time to do a walk thru at the property. This walk thru will include a property condition form that verifies the condition of the property for use later against damages or other grievances.
The tenant is given a briefing on who to call for maintenance issues, website address for payments, payment drop off procedures and a ninety day inspection is scheduled. The purpose of the 90 day inspection is to catch any problems that might not be reported by the tenant. This inspection is billed to the property owner at a low fee (30.00) and is an optional service that is selected when the land lord signs up with our management company. During the 90 day inspection, minor issues might be fixed at cost. i.e. leaking sink drains, smoke alarm battery replacement, knob adjustments etc.
The tenant will continue paying rent online or thru the office/dropbox by check or MO. In ideal situations, this will go thru the lease with no issues. If any late fees are assessed throughout this time, they will be collected by the property management company and kept as payment for this service.
Thirty days prior to lease end, we will contact the tenant if they have not contacted us about renewing the lease. There is no charge to the property owner for lease renewals.
In cases with issues:
When a tenant has a maintenance issue less than two hundred dollars, we will use an approved vendor without prior approval for the repair when deemed neccessary. All work requests must be sumbitted in writing by the tenant. Repairs over two hundred dollars the property owner will be contacted and permission for bids to be placed is requested. We will get three bids on the property and submit for approval. Once the property owner approves a bid we will manage the repair and have the company invoice the owner directly. We charge a 10% over ride on managing the repairs.
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 owner is not charged for advertising.
Evictions will be handled by an attorney on retainer. We will negotiate with the attorney what aspects of this I can handle as the owner/operator of the property management firm. i.e. the proper way to serve a pay or quit notice, getting us on the court docket, supplying the neccessary info. This way we can lower our cost to the attorney and charge a surplus for our time that passes to the property owners reserve account.
What happens if the rent is late?
The rent is due on the first of each month. We begin collection proceedings after the third of the month. If the rent is not paid by the 5th we take the first step in the eviction process and send out a 3-day notice to pay rent or vacate. If the resident does not pay by the 11th of the month the owner is notified and eviction papers are filed at the courthouse.
Property manager requires that each property be covered by $1M of liability insurance with PM named as an additional insured. This level of coverage is usually beyond the scope of your rental dwelling or homeowner’s policy. Please contact your insurance agent to request this coverage. Proof of owner-carried liability must be provided to PM within two weeks of signing your management agreement. You may carry this coverage with your own insurance company or PM can add you to our Umbrella Liability policy for a fee.