Frequenty Asked Questions - Owners
Are you a homeowner or investor interested in renting your home but not quite sure if you want to hire a property manager?
Why Property Management?
Our property management fee is a very small price to pay for the added convenience, marketing, and profitability. By utilizing our skills and competencies, landlords can pursue other endeavors and business interests, instead of having to be on call for their tenants 24/7. In addition, we can leverage are size and bargaining power to get such services as maintenance, extermination and advertising at a much lower price than what you could get on your own, thus putting more dollars in your pocket.
Furthermore, we are very experienced in finding and screening applicants and tenants, so your available apartments spend less time vacant-which saves you money. By reducing vacancy and turnover, negotiating for better prices and taking care of many legal and administrative matters, we will save you a great deal of time and money in the long run.
How can I evaluate the “real” cost of property management?
Unquestionably, the largest expenses associated with property management is a result of vacancy rate and quality of tenant performance. Only by comparing the resources and services that address these concerns will one come to an understanding of the cost that may result from choosing one property management company over another.
The great majority (70%) of perspective tenants now use the web to find a new home. Every management company recognizes this fact, so all have web sites to compete for market share of perspective tenants. It is also important to know that people choose "organic" search results over "paid" placement advertising. We use the web to the full extent, arguable more than most management companies in the area. This translates into less vacancy cost and a better opportunity to select a qualified tenant.
Additionally, we have an extensive referral network with other realtors and brokers.
What lease length do you recommend?
We recommend leasing your property for 1 year at a time. However if we are leasing your property in any month besides May, June or July, we will recommend a slightly shorter lease. For example we aim to have all units turn over between the months of June, July and August. These are historically the best months for filling vacancies and finding good tenants. So to make sure your property is on this cycle, we may recommend a 8 month lease or something else, so we can get your property back on the cycle. Another reasons to be on the cycle, is so that we can pre-lease your units. If we know your vacancy is coming, we will serve the tenants a stay or leave notice and find out their intentions. At this point we can start to fill your upcoming vacancy long before it's availble. We have found preleasing is the best way to avoid vacancy.
How long will it take to rent my property?
There are multiple factors that have to be taken into consideration to answer this question. Here are some general guidelines, however, keep in mind that amenities, pricing, and location are important factors in predicting success. It is important to know that the time required to rent a property is region specific with some areas renting relatively quick and others continuing to be a challenge. Several management companies are now advertising "no Deposit", "bad credit OK", lease option with no qualifying", "no rent payment for 30 days", etc. We believe that renting to an unqualified tenant is nearly always a big mistake and that you may pay dearly for that mistake in the very near future. We encourage high qualifying standards for tenants with the price set to rent the property within 30 days. Because of the uniqueness of each home, we will work up a rental market analysis for you at no charge.
If I place my home in property management, how much control do I have in making management decisions.
As much or as little as you want. Take for example maintenance decisions. Most owners place about $250 in a maintenance trust to be used in case of minor repairs. They don’t want to be notified every time a faucet leaks. However, if there is a more expensive repair, they do want to be contacted and involved in evaluating the bids and choosing the vendor. We will work out an understanding with you about the degree to which you want to be involved in tenant selection, maintenance and repair issues, setting rental rates, etc.
Cost or Save?
It goes without saying, that good property management doesn't have to cost you money...it can make you money. If an investor has purchased property, either a single family home, a duplex, a 4-plex or a much larger multi family unit, the ultimate goal is cash flow. Pending upon the size of the cash down payment and the condition of the property, cash flow may or may not become a reality.
Too often we see investors purchase property with high leverage, usually properties that have a great deal of deferred maintenance. These are properties that are picked-up in a foreclosure or advertised by owners and agents for a small GRM (Gross Rent Multiplier). They discover within a short period of time that expenses will get out of control. No matter who is managing the property, there is no way to avoid the necessary repairs that are inevitable. Roof leaks, appliances that continually break down, carpet that needs to be replaced, vacancies and evictions all become a real sore issue with owners who had dreams of plenty. Unfortunately for them, the "Dream of Plenty" means plenty of cash out of their own pocket. Often, these new investors are confronted with tenants who have been ignored since they took occupancy and they have a list of problems stemming from floor to ceiling. By the time the new owner signs the escrow papers, these tenants have contacted city officials, code enforcement officers, building inspectors, local and state housing departments. The new owner is faced with the challenge of a lifetime and it will seem like a lifetime before he will ever see any light at the end of the tunnel.
How long is your management agreement?
Our management agreement is for a 12 month period. Read all of it on our
Ready to Get Started page.
What is Good Management?
A good property management company can be very useful to the person who doesn't have time to devote to his or her investment. A strong manager can be a real gift to the investor faced with a multitude of problems including but not limited to maintenance repairs and a large percentage of vacancies.
A property management company could also be helpful to the novice or the individual who is emotionally attached to their investment. Because of the emotional involvement, owners often are not effective in managing their own property. They have difficulty making decisions, they delay in preparing a vacancy and they have a real problem in screening new applicants. It is a nightmare if their resident fails to pay their rent. With an experienced property manager or company, these obstacles are quickly overcome. The manager usually has a plan. He or she knows what steps to take to get the vacancy ready to rent. Precise scheduling of contractors is a key element. A successful manager, faced with a unit that has been completely trashed, should have the ability to have it ready to rent within three (3) days.
Any manager with some longevity in the business has heard every excuse why a resident can't pay his rent. In addition, the manager has probably experienced first hand every possible maintenance deficiency that has occurred or is need of attention. Here again, an owner can waste valuable time and money trying to get these type of problems corrected. A successful property investor usually owns or manages their own property management company or has already taken steps to contract with a manager to oversee his investment. In either case, they have delegated a great amount of the responsibility to someone else so that they are free from the countless amounts of detail and constant stress that often plaques a property manager.
When the successful investor is about ready to purchase an apartment building, they will generally bring their property manager along for one of the inspections prior to signing any agreement. The purpose, of course, is to gain some insight from another perspective. Often the investor will overlook certain aspects or characteristics that the property manager may quickly recognize. The property manager may see signs of serious maintenance problems that an owner might overlook. The experienced manager can point out certain hazards or potential problems that might go unnoticed. The job of the manager is not to discourage an investor from making the purchase, but to help the purchaser see the whole package.
Property Management is not just providing an apartment for an individual or a family. The property manager essentially manages all types of services for the owner. Shelter is the obvious but along with that you have to include plumbing, heat, flooring, tile showers and tubs, roofs, ceilings, walls, windows, kitchen appliances, water heaters, carports, garage door openers, fans, smoke detectors, cabinets, landscaping, walkways, stucco, siding, fireplaces, brick and spark arresters. Not to mention fencing, sprinklers and swimming pools. Aside from all of the equipment and materials that is used for a housing unit, your property manager must be able to manage people. Those people are your customers and they are the individuals that will keep your building afloat. The good managers know who should be renting your unit and who shouldn't. The manager will do credit checks, verify income and previous residence. They check with references and look to see if the tenant has ever been evicted before or asked to move. After all the checks, once in awhile a property manager is fooled. It is unfortunate but sometimes circumstances change in an individuals life and the manager is forced to evict an individual or a family.
What type of properties do you lease/manage?
IPM specializes in residential property management and leasing which includes single family homes, townhomes and condominiums. We also specialize in residentail apartment complexes.
Who determines the amount of monthly rent?
The monthly rent will be determined by the owner. However, IPM can assist in determining an appropriate monthly rental rate based on market rental rates for comparable properties in your area. Take a look at our
Ready to Get Started page and you will see all the information we need from the owner.
What methods do you use to advertise the property?
We utilize several FREE advertising avenues to market your home including internet ads, newspaper ads and a For Rent Sign on your property. The cost for advertising with fee-based newspapers, websites, etc. will be the responsibility of the Owner.
How do you select qualified tenants?
Qualified tenants are selected through our thorough application process. Employment and income are verified, prior landlords and personal references are contacted, and current credit reports are reviewed to determine the qualifications of each applicant.
If my home is vacant, do I still pay the monthly management fee?
No! What makes IPM stand out from some of our competitors is that we do not collect our fee until your home is leased! So, during the leasing process, we don't get paid unless you do! However, you will still be charged a flat $85 per month fee for any accounting and bill payment services. Read more about our
property management rates and services.
How do you ensure the tenant takes good care of my property?
IPM will conduct periodic home inspections to ensure the property is being well maintained and will address any issues at that time should they arise.
What happens if a tenant is late or does not pay their rent?
IPM thoroughly pre-screens all applicants and works hard to select a qualified tenant thereby decreasing the likelihood of having a delinquent tenant. However, in the unlikely event that a tenant is late or does not pay, IPM will take all actions applicable under law to receive payment of the rent as soon as possible or begin eviction procedures if necessary.
How are maintenance requests handled?
After a tenant contacts IPM regarding a maintenance/repair issue, IPM will contact a licensed and insured contractor (who has been pre-approved by the Owner) and coordinate an appointment time with the tenant. However, if the Owner has a contractor that they would prefer to use, IPM will contact the preferred contractor accordingly. Tenants can also place
maintenance requests online 24 hours a day.
Who pays for maintenance repairs?
The Owner is responsible for all maintenance and repair costs. Minor repair costs will be deducted from the Owner’s operating costs account. Any repairs exceeding $200 will require the approval of the Owner prior to beginning repair work.
Can monthly expenses be paid by IPM?
Yes. If the Owner elects to, IPM will pay monthly expenses such as the mortgage, insurance, taxes, HOA fees, utilities, etc. These expenses will be deducted from the monthly rent collected and the balance will be disbursed to the Owner. See a
sample owner report.
What are the fees for your services?
property management rates and services
How do we get started having you manage our property?
We have a through proces for collecting information and setting up an account for you. You can find all documentation and forms on our Ready to Get Started page.
