We don’t stop at simply managing your real estate investment, we’ll help you clarify your exit strategy. What do you want to get out of real estate? There’s more to this business than collecting rent. Keep your rental investment secure.
Owner Benefit Package
A comprehensive range of optional services to bring your property management full circle with security and safety. Extra protection on your rental income for one low monthly price.
11 Questions for Determining if You Need a Property Management Firm
Questions designed to help you determine if you should consider hiring a property manager. — By Jordan Muela
Hiring a Property Management Company
This guide is designed to empower property owners with the knowledge and tools necessary to confidently evaluate all of the property management companies they interview, and hire a property manager that can competently meet their needs. — By Jordan Muela
Owner FAQs: Answers to Owner’s Commonly Asked Questions
Q: What is your rent collection procedure? And do you evict tenants?
A: Rent collection happens automatically, through automated emails and phone calls. Tenants can pay with EFT, debit cards, and Pay Near Me booths located at many different retailers. We determine very early on in a tenant’s stay how they pay their rent and act accordingly. We have some tenants that pay late every month and we know who they are. When we do have to file an eviction, often the filing itself brings the tenant back in line and we avoid a court hearing, etc. or it gets them out more efficiently and quicker. By having an attorney as one of the owners of Realty Solutions we are uniquely suited to seamlessly process your eviction. There are filing fees, legal fees (discounted to clients), sheriff fees and lockouts fees attached to each eviction.
Q: What exactly does the monthly PM fee cover? Does it cover the yearly town inspections, your own company's routine "checkup" visits, etc.? And, who does the inspections, is it hired out to contractors?
A: We treat every property as if it was our own. Besides collecting and disbursing rent, it includes monthly/yearly reporting for our clients detailed receipts for expenses, weekly staff meetings to discuss every property and improve our company’s processes. We routinely build rapport with your tenants and troubleshoot all issues as they arise. We also make sure you and your property are conforming to local municipal requirements, and will attend any inspection as needed. We do a very thorough move out/move in inspections during vacancy, documenting everything inside and outside of the units. A once a year inspection can be requested, but we rely on our excellent vendors to also be our eyes and ears on the ground. PM Fees do not cover any municipal fees associated with inspections as that is a third party fee, and does not cover any required repairs and maintenance.
Q: Is there a yearly charge for lease renewal?
A: Yes, $150.
Q: What is the listing commission if you get the property rented? Does this also include the inspection fees, background checks, time, etc.?
A: Commission is usually equal to one-month’s rent for a traditional 12-month lease; we also have multi-year lease options if the opportunity arises. The commission is just that, commission to list, advertise, market and get potential Realtors/Tenants interested, etc. We do not charge to attend a Certificate of Occupancy inspection but will bill for any fee the third party municipality charges. Credit and background checks are paid by the applicant/tenant.
Q: What happens during a vacancy? What is the incentive to get it re-rented if you are the listing agent?
A: We are in the business of prepping and managing rented properties, so it is of high importance for us to turn over and get it rented as soon as possible for our owners. We want to be your partners in this, your business, and it’s important to us to run your portfolio like a business. On average, rent-ready properties that are vacant usually rent within 21 days (DOM averages assume; good condition & accurate market pricing).
Q: Can I see what is going on during the month? When do I get paid, how often do I get reports?
A: You can see everything that is going on in our system in real-time. You have an owner portal which gets you access to all information including maintenance tasks, ledgers, and communication to and from the tenants. We distribute owner draws twice a month to get you your NET funds.
Q: We have someone interested in renting our property, do we pay a commission?
A: We are real estate brokers so you can list with us (commission assessed), you can use your own Realtor (commission assessed) or get a potential tenant on your own and pay a reduced commission, for tenant screening and placement.
Q: What's a Reserve account? Do you ask for more money each month?
A: A Reserve is a predetermined amount of funds (your money) which stays in the property account to cover any monthly expenses. Think of it like an operating expense account for your business. The standard minimum reserve is $500. We will handle it for you and it used to pay for minor expenses on the property. Our leases are written in such a way that many of the maintenance costs are back on the tenant. We will only ask for more money in a month if there is a large maintenance item, which you will be consulted on before any decisions are made.
Q: What are the most significant advantages to hiring professional property management?
A: Many people want to have rental properties as investments, but are afraid that managing will take so much of their time that they will not be able to concentrate on their own businesses or jobs. In addition, individual landlords are often not familiar with the industry standard of rentals or a myriad of other local and state laws, and can find themselves being taken advantage of by a tenant or inadvertently discriminating. A professional property manager understands what it takes to obtain good tenants and maintain the property. They are also very familiar with what is the ‘norm’ for rental properties and can deftly assess circumstances as they arise. With monthly reports being given, daily concerns are removed from your attention. You have the benefits of your investment with none of the hassles.
Q: Why do I need to add your company as an additional insured on my home owner’s policy?
A: It is part of the Property Management Agreement signed (under paragraph 9) to manage your property and a policy of Realty Solutions LLC. By doing this, it helps to limit our liability in case a lawsuit is filed against you and your property. We, as agents and managers, are working on your behalf. Investment properties and the management of them carry a lot of risk. We ask every one of our clients to have us listed as an additional insured on their insurance policies to limit exposure. As an added value to you, Realty Solutions LLC also has Errors & Omissions insurance (with an Equal Opportunity/Anti-Discrimination Rider) that extends to all our clients to limit their liability. We also require all of our vendors who will be working in or around your property to carry a high level of coverage, and we require the tenants to carry a minimum level of renters insurance as well; you benefit from this with no additional cost to you. The task to add us is simple to do and not out-of-the-ordinary for any insurance company. There is no additional cost to you through your insurance company, just your time/phone call.
Q: Do you charge a cancellation fee, or have a long-term contract?
A: Our initial contract period is 90 days. We call this the getting to know you, your property, and your tenants’ phase. After that all we ask is 60 days’ notice to cancel your account. The cancellation fee will only be applied if we receive no notice or if we aren’t informed of the sale of the home during our management period.
Q: Why are you a flat fee company and not a percentage?
A: Our flat price of $129 monthly per door allows us to deliver the same quality of service across all of our managed units. As your portfolio grows our pricing scales with you. We are your partners in this and will help you grow your portfolio in any way we can.