Do you own rental investment real estate? Owning rental properties for the most part can be financially rewarding, however, the side effects of owning a rental property are oftentimes discouraging to some landlords. There are no ways around the issues of...…Tenants! Finding them, talking to them, answering their questions, screening them, trusting them, contracting with them, collecting security, having them pay you money for rent, hoping that they don’t thrash your rental property and of course, eviction if and when they don’t live up to the contractual agreement.
Finding qualified tenants is no secret. It just takes lots of time, money, and patience. Placing ads in various medias to advertise your property to people (prospective tenants) informing them that you have a vacancy does not come cheap. The drama involved afterwards can also be very taxing to most landlords.
If you want to find your own tenant, save yourself a few bucks, and have us manage your property afterwards, that’s perfectly fine with us, in fact we encourage it because leasing activities is one of our greatest expense.
The leasing expenses that we charge to the landlords sometimes do not cover our cost in finding tenants and dealing with them prior to move-in. In fact, most of our leasing duties are FREE; we just hope to have a long relationship with the owner and manage their property for years, therefore, recouping the cost of finding you a tenant.
Our leasing agents must travel to your property and “evaluate” your property to insure that it is rent ready. They usually stay at your property for a few hours to install a “for-rent” sign on the property, and install a lockbox, and to insure all the keys work along with the garage door opener and the mailbox and the pool gate and/or the community gate, etc. They insure that all the utilities are turned-on and all the mechanicals of the house work, such as the AC and heating system along with the water heater unit, etc. They take numerous pictures of your property so that we have a record of what your property looks like, and we have pictures to input into advertising medias, and have a record of what your property looks like before the tenants arrive (for security reasons or court evidence, etc.) They also have to determine a fair rental price by shopping your property with other “like-as” properties. They canvas the neighborhood to insure that the property is also competitive with “for-rent by owners”, most of which as priced usually lower than what is determined through the MLS and computer system.
These leasing duties are not complicated; they are just labor intensive and time consuming. The management company has to pay a salary to our leasing agents for performing these duties and the numerous trips back and forth to your property to “show” your property to your prospective tenants.
The cost of the advertisement is not our biggest expense; it’s the labor intensive requirements of having to have a staff of live people to answer the numerous inquiries that result with the advertisement. Once your property is being advertised, prospective tenants call and ask numerous questions; such as…Do you allow pets? What’s included with the rent? Are the landscape service and pool service included with the rent? Do I have to pay for maintenance? Do you accept section-8? I have bad credit, how do you screen your tenants? Can my boyfriend live with me? Etc, etc, etc………Having a full-time staff to answer the feedback of advertisement can be quite expensive.
Some landlords cannot accommodate the phone calls because they work during the daytime hours and upon arriving home in the evening, are in no mood to talk on the phone. Other landlords just don’t like to talk to prospective tenants. Some landlords do not like to meet a total stranger at the rental property for obvious reasons. Some landlords are just plain too busy to use their valuable time to talk to numerous people during normal business hours. Some landlords cannot and will not provide the time.
The screening process is time consuming, also is the move-in process. After the tenant fills out the rental application and the necessary back ground checks have been conducted, a leasing agent must draft a lease agreement (the rental contract) and thoroughly explain the lease agreement to the tenant and set forth some ground rules such as when the rent is due and where to send the rent, the consequence if rent is not paid, who to call in cases of maintenance and/or emergencies, or any changes to the agreement, etc. The contract is signed by all parties, explained, and executed, a lengthy and time-consuming task. Afterwards, a move-in walk through is scheduled and conducted. As you can determine, if an owner provides their own tenant, the management company saves a whole lot of time, money, and energy. We pass these savings on to you, the owner/landlord.
The following are a list of vendors that provide advertising service for rental properties. Also included are: websites that are useful, credit-reporting agencies for screening purposes, downloadable rental applications, tenant qualification guidelines and suggestions, and much more useful information.
Upon finding a “qualified” tenant, go ahead and contact us to contract for property management services and to service your tenant along with your property. The leasing fees and advertising cost will not be charged to you. The only charge that we will bill the property is the one-time set-up fee of $295.00, and of course the subsequent reoccurring property management fee of 8%, that fee will just be deducted from your rental proceeds monthly.