property manager: Questions I Answered For a New Property Manager - 01/07/10 04:24 PM
1. Where did you obtain the lease agreements used between your owners and tenants? We have our own and it is on our website under Owner Services. You might try your state or local Realtor Assn. or Apartment Assn.
2. I know this varies state by state, but how do you manage trust accounts? Do you have one trust account, or is there a trust account maintained for each owner or property? This is one area I’m a little foggy on… any insight would be helpful. We have one trust account. Property managers use software that makes it much easier. We … (10 comments)

property manager: 10 Reasons Using Professional Property Management Pays for Investors - 08/03/08 10:30 AM
 
It is cheap.  With tax write offs the investor gets close to a 50% discount. Decisions are made with current laws in mind. The investor's insurance company protects both the investor and the property manager for one price.  It does not cost extra to cover the property manager. Tenants get 24/7 access to repairs. All bills can get paid by the property manager, no rent collection, no bank deposits, no check writing, and no stamps! Many property manager's are starting to offer online access to statements and bills, so no need to maintain a filing system.  I do suggest downloading … (3 comments)

property manager: Can I Manage a Property for a Friend Without A Real Estate License? - 07/31/08 02:40 PM
There is a big difference between what a licensed and insured property management company provides for an investor and what you can provide.  Besides licensing and insurance there is your liability to consider.  If you make a mistake and someone gets injured or killed are you protected?  How?  I ask this to make sure you get into  this venture with your eyes wide open.  Are you an employee of the owner or independent?  Is there a written contract?  Did you know that if there is a fair housing claim (many are over occupied property) that you are personally liable no matter … (2 comments)

property manager: Property Management is About Setting and Following Rules & Procedures - 06/18/08 06:06 PM
An owner recently came to see me about their property.  They had several rentals and the portfolio was in disaray.  Vacancies, deferred maintenance, many delinquencies, poor cash flow was the result.

The way to fix the problems was to implement rules and procedures and then follow through on them. 
Let the tenants know when the rent is due and when late.  If late, serve notices to pay or vacate.  If not paid after that, evict.  Most of the time, after the first eviction, the rest of tenants either pay or move voluntarily.

Inspect the units and get them fixed … (3 comments)

property manager: How Much Should The Late Fee Be on Your Rental Agreement? - 05/21/08 05:56 PM

What is a proper and legal amount to charge a tenant when the rent is not paid as agreed?
Many landlords and property managers employ late fees to penalize their tenant for the added risk of a late payment.  Some charge a flat fee and some a percentage of the rent rate or a percentage of the late amount.  Some even charge a daily penalty. 
I am not an attorney but I do know that the late fee should compensate the landlord for the damage incurred by the late payment. 
One way to figure this "damage" is to mirror the … (18 comments)

property manager: Does a Higher Rent Mean I Will Attract a Better Tenant? - 05/10/08 06:28 PM
This is a belief of many newbie rental property owners.  I think it is myth that many owners want to believe because if true, it also has the benefit of making the owner more money (on the back of the tenant) and it makes them look smart and savvy.   Too many owners think their property is special.  This is probably because they are emotionally attached to the property.
 Owner's vision of their rental: 
Tenant's vision of the property they rent:
The reality is that most good tenants shop based on location, condition, and price.  Those with the best credit want the … (12 comments)

property manager: My Scariest Day in Real Estate - 05/07/08 04:51 PM
 
I pulled up to a vacant house I was renting one afternoon a few years ago. I opened the lockbox, took out the key and opened the door.  My appointment had not yet shown up so I thought I would open up some of the drapes.

I walked into the kitchen and noted that the drapes at the slider were blowing into the room.  The slider door was ajar about six inches.  I went over to the door and shut and locked it.  I thought that was strange, but everything was in order so I was not too alarmed.  … (37 comments)

property manager: The Reluctant Landlord - 05/07/08 05:11 AM

The current market is creating a large class of landlords known as Reluctant Landlords.  These are landlords that would prefer to sell their property, but due to market conditions, cannot.  Most live in their property and must move due to a job transfer.  The tax laws allow them to rent the property for up to three years before they have to pay any tax on their equity gain (unless they earn a really large gain of over 250-500K).
If you or a client of yours is a Reluctant Landlord, you should think about being a landlord a little differently than an investor … (9 comments)

property manager: Can a tenant get my phone number and address if I use a property manager? - 05/06/08 05:09 PM
 
               
A good property management company is trained to protect the owner's confidentiality. The property management company should not release any information about the owner to anyone without the owner's approval.

But, be aware that anyone can access county tax records. If the home address is on the tax roles for the rental property they own, they may be contacted by their tenant or anyone else for that matter. 
 
 For added protection, you can obtain a fictitious name in your county and apply that name to your ownership records or simply use a post office box for all mail concerning your property including your tax records.

www.HomePointe.com  Professional Property … (8 comments)

property manager: Rental Housing Inspection Program City of Sacramento Property Management Executives ONLY - 05/06/08 03:14 AM
… (0 comments)

property manager: What liabilities does a landlord have and how can the landlord protect themself? - 05/03/08 06:03 PM
As the owner of a rental property you could be held liable for known and unknown conditions at the property. In most cases your fire/liability insurance policy will cover you adequately. You should discuss with your insurance company the amount of recommended limits for your situation. 
                             
If you use a professional property manager,most have an indemnity clause in their management agreement that places basic liability for all acts on the owner. Insurance companies know this and most will willingly name the property manager as either additional insured or name the manager as an interested party to the policy at no extra cost. This … (10 comments)

property manager: What do landlords do with the tenant security depost during the tenancy? - 05/03/08 05:44 PM
Once a deposit is collected from a tenant, the owner or property management company has the funds to hold.  In California, the landlord has complete use of the funds, including spending the funds. 


There are two options really in terms of what do to with the security deposit.  If the property is managed by a licensed real estate agent, which is the only option unless an owner does it themselves, then the agent may require the owner to let the agent hold the funds.  In California, the funds would be placed in a Trust Account by the agent (property … (9 comments)

property manager: What do I do if I have to move before my lease is up? - 04/25/08 06:27 PM
 If you must break your lease you should contact your property manager both in writing (letter or email) and via telephone as soon as possible. Although you are responsible for your entire lease, we can go to work to find a replacement resident as soon as we receive your written notification. Once we are able to secure a replacement resident and start their rent, you can be released from your obligation. You may be responsible for advertising expenses and leasing fees as well as rent until the replacement resident's rent begins.
Need a property manager?  http://www.homepointe.com/
 
 
… (1 comments)

property manager: What Do You Use To Paint Your Rentals? - 04/17/08 11:16 AM
                                       
One of the things you learn after being in this business for a long time is to try to standardize the work you do.  The less on the job thinking, the better. 
When it comes to painting a rental unit, it is best to try and use the same paint over and over.  While this may be boring, it saves time, money, and helps to rent property quicker.  We normally us Kelly Moore flat and semi-gloss.  Use semi-gloss in the kitchens, bathrooms, and laundry rooms, and flat in all other rooms.  The trim and doors are painted semi-gloss.
The reason for … (5 comments)

property manager: 2008 2nd Quarter Residential Rental Survey for the Sacramento Region is Available - 04/09/08 07:37 AM
HomePointe's 2008 2nd Quarter Residential Rental Survey has just been published.  You can access this survey at our website along with past surveys by clicking this link:  http://www.homepointe.com/owner_services_rental_survey.asp . 
The Sacramento rental market appears to be holding its own, but rents are not rising.  We feel this is due to the many homeowners that cannot sell their properties.  They are instead renting them out which is keeping plenty of homes on the rental market.  We are losing some homes to foreclosure but not a great number.  We expect the coming months to see a small increase in rents but a lot is … (0 comments)

property manager: If you get sued by your tenant who pays the attorney fees? - 04/08/08 10:04 AM
If you have tenants you are subject to getting sued by them.  You are also in a position to have to sue your tenants at some point for non payment of rent or to enforce some part of the rental agreement.  If you have never been sued or have not sued one of your tenants you are either new in the business, have very few rentals, or you have been lucky so far.
 One of the tools we use as a professional property manager is a clause in our rental agreement that limits the use of attorney's fees.  The odds are that … (12 comments)

property manager: My Property Won't Rent, What is the Problem? - 04/06/08 05:29 PM
I talk to landlords and real estate agents all the time that cannot figure out why their property will not rent.  I ask them, "Have you reduced the price?"  They typically answer that they are getting no resistance to price.  "People don't complain at all, they tell me it is a good deal, but not for them."
Well I can tell you that if you would just lower the price, at regular intervals, until the property rents, it will rent at the current market rent.  Of course, you must advertise and have the property in good condition.  Your property must also not … (12 comments)

property manager: Do You Need a Property Manager in the greater Sacramento Area? - 04/05/08 05:17 AM

 
 
 
 
 
HomePointe Property Management has three offices.  One in Roseville serving Lincoln, Rockin, Roseville, Granite Bay, Antelope, North Highlands, Natomas, Citrus Heights, and other nearby areas.  We also have an office in Orangevale serving Orangevale, Folsom, El Dorado Hills, Cameron Park, Serrano, Fair Oaks, Carmichael, Rancho Cordova, Gold River and other nearby areas.  Our original office is in Sacramento and serves Sacramento, Elk Grove, Galt, Natomas, Land Park, East Sacramento, West Sacramento, Davis, Oak Park and other nearby areas.
We do not sell but we can refer you to local brokers that we know. 
We have a referral program for brokers and are … (0 comments)

property manager: Who keeps late fees? - 03/15/08 04:19 PM
Property management companies around the country have different policies on who keeps late fees paid by the tenant.  Late fees are charged to tenants when they pay their rent late.  Who keeps the collected late fees is a contractual matter between the owner and their property manager.  Most management companies have a standard policy in their contract on this subject.
Some property management companies place collected late fees into the owners account and keep nothing. 
Some companies add the total late fees into the amount of total collections and keep a percentage of the late fees at the same rate they charge the owner … (14 comments)

property manager: Are property managers good for vendors? - 02/28/08 03:26 PM
In my first few years in the property management business I noticed that the company I worked for went through a lot of different vendors.  The problem was that the property management company was a "slow pay" client.  The work would get completed then the property manager had to collect the rent, or worse, rent the property, then the vendor could get paid.  Since there were often multiple vendors involved, some vendors would not get paid for 45-90 days.  This is a sure fire way to put a vendor out of business.  It is also a sure fire way to have … (2 comments)