Although no one can predict the future in the short run we are committed to the belief that real estate is an excellent long-term investment. We believe that people who own investment single-family homes, duplexes, quads, and apartment buildings will build wealth that they can count on in the future. If owning investment real estate is part of your financial strategy, we have much to offer.
The first step to a successful real estate investment is to buy right Our staff has the experience and savvy to assist you in locating the best investment properties. It is equally important to manage the rental process well.
We know how to maximize your returns and minimize your risk. Our professional property managers will locate a resident and/or manage the property.
What Can A Professional Property Manager Do For You?
Historically, renting your home has been considered a relatively simple and low risk undertaking. However, in recent years, this apparently simple task has become progressively more complex and the risks associated with becoming a landlord far greater. While managing your rental is certainly within the abilities of most property owners, the time and effort involved in management may be greater than the cost of hiring a professional property manager.
The professional property manager is conversant with the applicable statutes and regulations relevant to the management of rental property. In addition, the manager will typically perform the following tasks as part of the management service:
- Advertisement of the rental property
- Screening of potential residents
- Preparation and execution of rental agreements
- Disbursal of funds to the property owner
- Collection of rents
- Monthly and year-end accounting
- Coordination of maintenance and repair work
- Periodic property inspections
- Disbursal of deposits in accordance with state law
- Eviction of residents for breach of the rental agreement
Advertisement of the Rental Property
Until recent years, advertisement of an available rental meant placing a “For Rent” sign in the front yard and possibly placing an ad in the local newspaper. Times have changed. Today, while the old stand-bys are still used, effective advertising also includes extensive use of the internet, making availability of the property known to real estate professionals, and targeted advertising to large employers.
Screening Potential Residents
Once an application for rental is received, it must be determined if the applicant is qualified to rent the property. Has the applicant been evicted from a prior rental? Does the applicant earn sufficient income to pay the rent? These questions, as well as others should be answered prior to approving the applicant.
A professional property manager will typically check four areas when screening an applicant. These are the applicant’s credit report, income, employment, and rental history. It has become almost universal that the applicant’s credit report be checked for late pays, judgments, liens, or bankruptcies. The applicant’s employer is typically contacted to verify income, and the applicant’s prior landlord is contacted to verify rental history. While there are few perfect applicants, the information gleaned through the application review process can greatly reduce the likelihood of renting to an unqualified resident.
Preparation and Execution of Rental Documents
After the applicant is qualified, the necessary rental documents must be prepared and executed. Gone are the days of going to the local stationery store and buying a preprinted, two-page rental agreement. Today, rental agreements are custom drafted to reflect specific state statutes, and sometimes, applicable local ordinances. In addition to the rental agreement, any required addendums are prepared and may include an addendum relating to pets, a no smoking addendum, an addendum relating to pool use, and if the property was built prior to 1978, a lead paint addendum. Further, a move-in inspection is completed and documented for review by the resident at execution of the rental agreement. Ancillary forms relating to transfer of utilities and trash pick-up may also be needed depending on the location of the rental property.
Collection of Rent
Every property owner would agree that timely payment of rent is critical. If the applicant was properly screened prior to acceptance, most poor rental risks will be eliminated. However, circumstance beyond the possibility of screening can adversely affect the resident’s ability to timely pay rent. These circumstances include loss of employment, injury, illness, and changes in marital status. When the resident is unable or unwilling to pay rent, the property manager has the ability to effective move forward with the collection process, or if that fails, terminate the rental agreement and locate a new resident in the minimum amount of time.
Disbursal of Rent to the Property Owner
Typically, the property manager will receive rent on the first day of the month, with disbursal of funds to the property owner between the fifteenth and twenty-fifth of the month. Because the property manager is required to hold all funds in trust, funds must be held until checks clear, which may take as many as ten working days. In addition, time is required for the accounting and statement preparation process.
Monthly and Year-End Accounting
The property manager will provide you with a monthly statement showing all income and expenses associated with your rental property. In addition, you will receive a year-end statement showing all income, and expenses broken out by category.
Coordination of Maintenance and Repairs
If you have ever had a resident at your rental property call you at 2:00 a.m. to tell you that the water heater is leaking and your rental is three inches deep in water, you will appreciate having a professional property manager. Most property managers maintain a twenty-four hour system for receiving emergency repair calls and relationships with a variety of skilled tradesmen capable of handling any emergency. For non-emergency repairs or preventive maintenance, you are contacted in advance to discuss the work and its potential cost to your.
Periodic Property Inspections
Does the resident have an unauthorized pet? How about six roommates not listed on the rental agreement? These, and other similar problems, can only be found through a physical inspection of the property. Typically, your property manager should have a representative inspect the property one to two times during the term of the rental agreement. Inspections may be conducted either as a scheduled appointment with the resident, or while repairs or scheduled maintenance is performed.
Disbursal of Security Deposits
After the resident moves out of the property, the condition of the property must be assessed and any damages charged to the resident’s security deposit. However, the property owner is not permitted to charge for “normal wear and tear.” What can be charged for that red wine stain on the white carpet? How much for the numerous nail holes in the living room wall? These, and similar questions are addressed by the professional property manager every day.
Further, did you know that if the resident is not provided an itemized statement of deductions from the deposit within thirty days of termination of the rental agreement, the property owner is precluded from making any deduction for damage to the property?
Eviction For Breach of the Rental Agreement
Probably the most difficult part of owning rental property is evicting the resident who has failed to meet their obligations as stated in the rental agreement. Typically, this means that the resident has failed to timely pay rent. The professional property manager can handle the eviction process efficiently, while making the process far less difficult for the property owner.
The professional property manager provides a cost-effective service in the rental and management of investment property. While the above discusses the functions performed by the property manager, it should also be noted that efficiently and competently performing these functions minimizes potential risk to the property owner and in the long term, maximizes returns from the investment property.
Axiom Property Management, LLC can maximize your income, reduce your risk and protect your investment. Managing rental property requires day-to-day attention and a wide range of expertise. We have the experience and resources to achieve your rental property goals. Listed below are just a few of the advantages of working with the professionals at Axiom Property Management, LLC.
Industry expertise: We understand the industry and know how to stay ahead of the game. Our properties lease for the best market rates.
Extensive marketing power and referral network: We attract the broadest and most qualified pool of perspective residents.
Skill in negotiations with residents: Potential residents must pass our rigorous screening process. We have the experience to locate the qualified resident and timely complete the best rental transaction.
Comprehensive understanding of the laws: We are familiar with the laws governing rentals, State and Federal Housing Codes and Fair Housing Regulations.
Accurate accounting reports: We provide monthly-itemized statements and year-end tax summaries. Rent proceeds are directly deposited to your account.
Periodic property inspections: Inspections during the lease period as well as thorough move-in and move-out inspections.
Enforcement of contractual compliance: We know the appropriate action for handling any problems that may arise, including non-payment or other violations of the rental agreement.
Proficiency in home maintenance: We can ensure that your property is well cared for and that appropriate and timely repairs are undertaken at a reasonable cost.
Peace of mind: The industry experts are on your team. Let us take the stress and worry out of owning rental property.