All Forum Posts by: Laura Kayes

@John Moore Most management fees typically are percentage based, although some companies do offer flat-fees. Either way, its usually between 6-10% with most being closer to that 10% range. That is the percentage of the monthly rent. 

Hi @John Moore

In regards to fees:

1) What are your monthly management fees?

2) Do you collect management fees when a unit is vacant?

3) Are there miscellaneous fees that I should expect to incur?

4) What is the escrow reserve amount?

5) What is your re-leasing fee?

6) What do you charge for lease renewals?

7) Do you up-charge for repairs?

8) Are there any start-up fees?

9) What is your repair allowance?

10) Are there cancellation fees if I am unhappy with service?

11) Who keeps the late fees? 

For Leasing:

1) What is your procedure for qualifying tenants?

2) What is your average days on market?

3) What leasing agreement do you utilize?

4) What strategies do you use to fill vacant units quickly?

5) How do you set your rental rates?

6) Who can show the properties? (Do they utilize self-showing, lockboxes, supra keys ect.)

7) Do you have any tenant guarantee for tenants you place in the property?

8) How do you handle evictions? What is your eviction rate?

9) Are tenants required to maintain renters insurance?

10) How long are your leasing agreements?

In regards to maintaining your property:

1) Do you have an in-house maintenance team?

2) Do you have a relationship with vendors in this area?

3) How many properties do you currently manage?

4) Will you visit the property regularly? (Try & find a company that does quarterly inspections)

5) What is your procedure if a tenant is violating their lease agreement? (trashing the property, not changing air filters, overlooking repairs, unauthorized pets)

6) What is your process for handling service requests?

7) How often will you provide me updates about my property?

Other questions:

1) Do you have one property manager I will communicate with? If not, how do you handle communication with owners? 

2) Are you a licensed property manager?

3) What types of properties do you manage/how many properties/ what areas?

4) How do you send reports? Is there an online interface for tenants/owners?

5) How often am I updated on the property accounting?

6) How is rent collected?

7) How long is the management agreement for?

8) Do you have references?

9) Do I have to sell my property with you if I list it for sale?

10) Can you provide copies of your contracts?

Good luck! :) 

Hi Joel,

I am in Texas, so I'm only speaking from my point of view here/knowledge as a PM. When an investor purchases a property with tenants in place, the existing lease stays in place, however we send out an email, an official letter and place a phone call to the tenants letting them know that their is a new owner/PM and detailing to them how to pay rent moving forward. If the tenant tries to pay the previous owner, that owner should turn the payment away and direct it towards you, however even if they don't do that, since you are the new property owner and have supplied the written notice ^^^ they need to pay you moving forward. Hope that helps! 

Vartan,

Great questions.  Even if the numbers make sense, it doesn't mean that anyone will rent the property (or at least in a time frame that makes sense for you) if there is an over supply of other houses for rent in the area. Try and find an area where not only do the numbers make sense, but there is not an over supply of other properties for rent. You definitely are asking the right questions. Learn from looking at different areas and noticing trends, but don't buy in a market where properties are sitting for months on end.

Also, just a side note.. sometimes Zillow and Trulia ect. are not totally accurate. For example, I've had properties that I have rented out and zillow/trulia still have them showing available even months later. Definitely check with your realtor and verify that what you're seeing is accurate.

Best of luck!

@Aaron W. are you speaking about a particular repair? 

@Nicole Obregon look at his rental history since the eviction in 2015. Did his eviction actually go to court, or was it filed and then they moved out? If the eviction went to court, I would say no do not rent to him. 

TAR leases are only to be used by licensed Realtors. Just FYI. You can have a realtor draft the lease for you.

@Account Closed You can hire a property manager to act on your behalf, or you can hire an attorney. Most management companies don't have "a la carte" eviction services, and you may have to sign a contract for a period of time. As a PM myself (I do not cover that area, so please don't flag this...) I can tell you that property managers can save you A LOT of headache when dealing with bad tenants. Tenants usually try and manipulate owners, but once a manager is involved they shape up real quick. Just my 2 cents :) 

Hi everyone,

First, for disclosure I am a licensed agent and a property management company owner in the state of Texas. 

Okay, back in April of this year I was working for a PM company as an employee and a vendor is asking me for my help. The contractor completed work at 2 properties owned by the same owner, which was managed by the PM company at the time. These were all safety related work issues that were approved by the PM company and under the repair allowance in the agreement (I signed this account...). 

This owner cancelled his pm agreement right after the work and never paid the vendor for the work. Usually, the owner would paid the PM company and the PM company would then pay the vendor after the work was completed. The PM company claims that they didn't manage the property when the vendor did the work...but they did. I don't have access to my contract signed with this owner as when I quit my docusign was taken away.

1) Can I request all PM agreements I signed be sent to me

2) Who is liable..PM or owner? My opinion is ultimately the PM company should be held liable to make sure this vendor gets paid.

The PM agreement states: (21) hire contractors to repair, maintain, redecorate, or alter the Property provided that Broker does not expend more than $ for any single repair, maintenance item, redecoration, or alteration without Owner’s consent; Leasing & Management Agreement concerning: (TAR-2201) 6-1-10 Initialed for Identification by: Broker/Associate and Owner , Page 3 of 11 (22) hire contractors to make emergency repairs to the Property without regard to the expense limitation in Paragraph 4A(21) that Broker determines are necessary to protect the Property or the health or safety of an ordinary tenant;

3) Should/Could the vendor file a mechanics lien at this point? It is $4,000 worth of work and materials

Any suggestions would be appreciated! I've told the vendor that he should file a mechanics lien and that my opinion is the PM company needs to own up to this, but the vendor thinks going after the owner is the best. The owner also was previously contacted by both myself and the vendor and he stopped replying.

Thanks all!

Also, keep in mind that the market controls the price. Your property is awesome, however if every other property is listed lower, then it is going to be difficult. Did you just purchase? If it is not supposed to be an investment property then I would consider offering it for sale and for rent.