Please find below our Top Ten FAQS we recieve from prospective customers about renting their homes. I find 90% of the questions are from the following.. Once in a while we get some different ones and for that matter entertaining ones..
TOP TEN FAQ's FROM LANDLORDS
1. How do you screen prospective tenants?
We screen all tenants in accordance with all applicable local, state and Federal laws. First, let it be known that we can not screen based on Color, Race, Sexuality, Religion, Handicap or challenged, Elderliness or Familial status.
However, tp help protect the owner and us we use the NTN www.ntnonline.com to screen all applicants for several reasons. They are able to provide the most concise report for the most reasonable cost plus they have a scoring system that accepts or rejects applicants based on the criteria entered. There system auto generates a rejection letter in accordance with the FCRA.
Now the applicant is required to pay $50.00 for the application fee and you as the owner do not need to cover this. The tenants need to pay since this helps screen serious applicants.
We require the following before we can assess the eligibility of the prospective tenant.
- Completed application, credit reporting documents, etc.
- Application fee of $50.00 (Covers credit, OFAC, tenant skip trace, national criminal check, SSN Validation and address
verification)
- First months rent in the form of a Certified Bank funds or Cashiers Check.
- Documentation of income such as Paystub, military LES, Job offer, etc.
- Verification of identity such as copy of one for each applicant. (license, military ID, passport)
We will ensure that you able to screen every applicant and be able to make a sound decision on your new prospective tenants. We will also provide you a "quality grade" on your prospective tenant based on our experience but of course the decision is the owners.
2. What are your fees for property management?
We will work on a custom fee structure. In generally we can charge from 8% to 10% depending on how much we need to do.
a. What services you need us to provide?
b. Condition of your property?
c. Location of your property?
d. Have you referred business to us?
e. Are you a repeat and loyal customer?
3. Do we need to provide appliances for tenants?
We recommend that you ensure that you have all the required kitchen appliances in your rental property. Not to mention in a very appealing condition also. Most renters in the DC/Northern VA are working professionals and seem to have very detailed viewing capacity. Basically, if your house has old equipment this will turn off most prospective tenants and keep your home on the market longer.
However, we recommend that you not provide a washer or dryer unless if your property is a condo or townhome. If you have a single family we have found most prospective tenants do not need a washer or dryer. This you may need to consider on a case by case basis.
4. Do we need to change our " home owners policy"?
Ensure that your insurance agent is aware that your property is a rental policy. Also, we at HPE will require you name HPE on the policy as "additional insured" and or under a "property management endorsement". Most experienced insurance agents understand this.
If your property is newly vacant then you need to ensure that your policy is upgraded to cover vandalism and other potential losses.
5. Can we require the tenants to have a "renters policy"
Yes, we will require before move that the new tenants will have a copy of the "renters policy" that covers your property paid in full for the year.
6. What about allowing pets in our rental property?
Well, this is certainly a tough call. This depends on your tolerance for risk and your ability to allow your property to be vacant longer. In the NOVA area a property that allows pets certainly appears to fill quicker.
Here are some items to consider.
a. Contact your home owners insurance agent and find out about what pets may not be allowed under your policy.
b. Ensure you have a pet security deposit. In Virginia you can have up to two months total deposits(security, pet, keys,etc)
c. Non Refundable pet fee can also be considered.
d. We do not recommend dangerous dogs like pit bulls and several other breeds due to obvious liability reasons.
e. Have the tenants provide a photo of all pets in your property.
f. Have the tenants provide a written request for any new pets.
g. Ensure tenants read all association docs regarding pets.
h. Provide tenants with local contacts for dog licenses, etc.
7. Do the tenants need to have the carpets professional cleaned?
Yes, we will require tenants have your carpets cleaned by one of our screened cleaners.
The tenants will sign this acknowledgement twice since we will "withhold or deduct" the amount to clean the carpet if the tenants do provide a receipt from an approved company. This carpet cleaning needs to be even if they do not have pets, smoke or have children.
8. What are the typically rental prices we can fetch and will it cover our mortgage?
This is the magic question in the NOVA area. We have many customer owners that are backwards, underwater, negative equity, etc on their properties for whatever reason. So if you are backwards (Meaning that your monthly PITI (payment, interest, taxes, insurance) are higher than the market rents you can get.) we recommend that you seriously review your financial situation. Not only will your tenant be sending us a rent check but we will require you maintain the difference of your payment to us quarterly if we pay your motgage from your rent proceeds.
We can do a rental CMA on your property for you over the phone to provide you a "rent range". However, to accurately provide you the more detailed analysis we would need to view your property for the condition, safety and amenities.
You can get a fairly good estimate of your property rental value here.
http://www.rentometer.com/us
9. What can we do if a tenant wants to buy our rental property?
Well lets see here are a few options.
a. Have your tenant obtain a mortgage.
b. Have you provide "owner financing" to your tenant if you can.
c. Work on a Lease Option Contract with your tenant. (HPE can help)
10. What about Security deposits and what do we need to do with these?
First, lets say that the courts take these very seriously. We maintain an Escrow account and follow all applicable local and state laws. If we manage your property we will worry about this and not you.
Please consult your attorney or even please view the Fairfax County Handbook here
http://www.fairfaxcounty.gov/consumer/tenant/tl_handbook.pdf
PDF available here. http://www.hpepropertymanagement.com/documentationinfo.html
HPE Property Management, LLC provides comprehensive property management services for residential property owners. We provide superior service to our military, diplomatic services personnel, government contractors, professional investors as well as the landlord by default owners.
HPE Property Management has established itself as a leading provider of property management services in Northern Virgnia by delivering the service, expertise and experience discriminating property owners and investors require.
There are a variety of factors that determine true success in real estate investments. Marketing your property correctly, qualifying and retaining the best tenants, maintaining your property in top condition - these are all crucial elements that determine your ultimate return on investment. Choosing a seasoned property manager is the single most important decision you can make in protecting your real estate investment and maximizing cash flow.
If you must shop around for a property management company, please contact us last!
We believe we can win your business and provide you a level of trust.
Please call (703) 651-9169 for additional information or view our website pages for more info.
11700 Plaza America Drive, Suite 150
Reston, VA 20190
Phone: (703) 651-9169 E-mail: joe at hpepropertymanagement.com
EQUAL HOUSING OPPORTUNITY
Disclosure; licensed agent with Keller Williams Realty in Reston, VA
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