What needs to be done to prepare a property for rent?
The property should be in the best possible condition to attract a quality resident. Paint should be in good shape with marred or dirty areas touched up. Neutral colors for walls and floors are best. Blinds or shades are ideal window coverings. The home should be “detailed” clean and the yard in excellent shape.
How do I determine the rental amount?
The competition determines the rental amount. As experts in the field, we know the market and the competitive rental ranges for your home. If the home is marketed too high the home will be vacant much longer. If it is marketed too low, it may be one or two years before the price becomes competitive again.
How do you market the property?
The property is immediately added to our rental availability list, web sites, hot line and other resources. Lists go out weekly to over 150 Realtor and Relocation Offices. A sign is placed and marketing photos are taken within 48 hours. Each property is assigned to a property management team to track the marketing effectiveness for the individual property.
How long will it take to rent?
Vacancy periods are market driven. There is also some luck involved in the right person looking at the right time. On average in today’s market it takes between one to two weeks to rent a home. Homes rent more slowly between Thanksgiving and New Years. Location and price effect vacancy.
What are the policies regarding Pets?
Statistics indicate that 75% of renters own pets. Restricting pets reduces the number of available qualified residents. Pets should be screened and pet references checked out.
What about smokers?
It is common to prohibit smoking inside the property. This does not significantly reduce the marketability of the property.
Is it possible to refuse to rent to families with children?
In federal, state, and local Fair Housing regulations children come under the protective class of “familiar status”. It is unlawful to discriminate against children in any way.
Is first and last month’s rent as well as a security deposit collected up front?
If a resident has good credit it is common practice to collect first month’s rent and a security deposit up front. A security deposit can be used for any owner costs while a last month’s rent can only be used for rent. The security deposit is held in a property trust account as required by real estate regulations.
What happens if the rent is late?
The rent is due on the first of each month. We begin collection proceedings after the third of the month. If the rent is not paid by the 5th we take the first step in the eviction process and send out a 3-day notice to pay rent or vacate. If the resident does not pay by the 11th of the month the owner is notified and eviction papers are filed at the courthouse. Most evictions are the result of loss of employment.
When are monthly funds distributed?
The payments to owners are processed around the 8th of the month. Disbursements are made by check or ACH direct deposit into the owners’ accounts and statements mailed the same day. Payments to Owners who had late rents (received after 5th) are processed between the 10th and 20th.
Who handles emergencies?
A property manager is always on call for emergencies. We have an extensive network of maintenance vendors and sub-contractors to handle any emergency on your property, day or night. We are on call 24 hours a day 365 days a year.
What is the average length of tenancy?
Over 50% of rental agreements are for one year. Other agreements range from six to eighteen months. At the end of the lease term the owner can decide to renew to the resident (if the resident wishes to remain), vacate the resident, or allow the resident to remain month-to-month. If the market has changed the owner can raise the rent at lease end.
How are repairs handled?
The home’s personal property management team is responsible for approving all maintenance requests. Residents are required to submit all repair requests in writing. It is our policy to notify owners of maintenance requests greater than $250.00. If funds are available the expense will be deducted on the next month’s accounting statement. If funds are not available the property manager will contact the owner for payment arrangements. Sometime a request falls into the category of a maintenance emergency. Emergencies are scheduled immediately and the owner notified at the first possible opportunity. Some maintenance requests can result in a rent abatement if not handled timely. The owner is notified immediately when there is a rent abatable maintenance issue.
What happens if the resident leaves before the end of the lease?
The resident is responsible for the rent for the term of the lease. If residents leave before the termination date they will be charged for rent until the home is re-let. We, on behalf of the owner, will do everything possible to re-let the home and minimize the residents’ cost. The owner is not charged for placing a tenant if the tenant terminates lease prior to 6 months of residency.
How is the owner protected if the resident damages the property?
A refundable security deposit taken at move-in is usually sufficient to handle the minor damage caused by residents. Residents with excellent credit and references seldom cause significant damage. If the resident leaves the property owing money for rent and/or damages they will be billed. If they do not pay, and with the owners permission, we will contact an attorney to file a writ for restitution with the court. If the court agrees with the charges the court will enter a judgment against the resident. The judgment can either be turned over to an attorney or a collection agency. A judgment remains on the person’s records for several years or until satisfied.
For more information about Vallejo Property Management, please visit our educational blog page.