Sunday, June 28, 2009

Extensive Tenant Screening

We have found that most managers will take the first person to walk in the door with a check. At Synergy, we have coupled our extensive experience with our firm guidelines to yield an excellent rental experience for both the renter and owner. In fact, a good manager should on some occasions actually advise the owner not to accept a tenant that they want to rent to!

Extensive tenant screening should include, but is not limited to: credit analysis, criminal background checks, employment verification, bankruptcy & eviction search, sex offender data base search, terrorist search, rental history checks, office interview, and asset verification if applicable. One should also be sure to make certain that the individual who the tenant is reporting as the landlord is verified as being the owner or a licensed agent. It is also recommended that the “landlord” be asked questions off of the warranty deed to prove he or she is the actual owner. Dead beat tenants can be extremely creative in their deceit. It is imperative to take your time in this vital area of management.

Consequently, we with good screening a manager should have eviction rates of 5% or less. The tenant base should be highly selective, which translates into below-average collection losses. The bottom line is that a good manager should treat their owner’s properties like they were their own. If you wouldn’t rent your own property to a tenant, what would that say about your character if you were willing rent a client’s property to that same tenant?

For Free Consultancy about Hiring Naples Rental Management pls visit this link

Thursday, June 25, 2009

Proper Management from A to Z

Good management is not defined by quick leasing and high rental rates. A good manager should focus and improve on many areas of management. Should an owner’s property need any repairs, a good manager should handle all repair facilitation as well as pass the repair cost savings received from our vendors due to our high business volume directly to them, free of charge. Additionally, some management companies should consider establishing a handyman service. Provide professional license and insured repairs at below market repair rates exclusively to our clients is a great selling point.

It would not seem that this is an additional area of concern. However, many of managers actually charge repair coordination service fees. We believe that this is completely ridiculous. Having no hidden fees is important. Many owners look at it as being unethical. Furthermore, hidden fees can do a great disservice to the owner.

A quality management software program is also a must. This software should enable managers to provide accurate, comprehensive free accounting statements and should be provided with full service management. Accounting statements should be ready for your accountant to put directly into their Schedule E. No deciphering, reconciling, or adding up receipts should be needed. Consequently, your clients should not have to pay an accountant for this service likely saving you up to $500 per property, per-year.

A good manager should also have a business relationship with a good eviction and tenant-landlord dispute attorney in the area; all rental agreements should be custom attorney prepared leases that are up-to-date with current statutes.

These leases should help protect your clients from frivolous lawsuits and help insure more favorable collection judgments. Also, should you need to sue a tenant; your clients should receive reduced attorneys fees due to your business relationship with this attorney.

For Free Consultancy about Hiring Naples Rental Management pls visit this link

Thursday, June 18, 2009

Ideal Real Property Management and Repair Cost

Real Property Management Cost

Must have the absolute lowest rates; management fee structure must be simply put, untouchable.Charge a leasing commission equal to 84% of the first month's rent for an annual lease (7% of the gross lease). Almost every other company charges the entire first month! Additionally, management fees are only 10%.

Repair Costs

Should need repairs that vendor relationships typically provide the owners with a 20% - 25% repair cost savings. The property management must able to achieve these discounts due to the volume business they do with their vendors.

For Free Consultancy about Hiring Naples Rental Management pls visit this link

Wednesday, June 17, 2009

Ideal Highly Qualified Property Management Team

Here are some Minimum Criterion:

  • Possess a minimum of a Bachelor's Degree in business administration with a GPA of 3.0 or higher
  • Successfully perform a minimum of two years of post graduate property management experience with distinction
  • Successfully complete a 63 hour pre licensing course which covers topics approved by the State Real Estate Commission
  • Pass the State Real Estate Licensing Examination
  • Commitment to 7 day per week 8 -8 work week

Furthermore, must be members of the Association of Residential Property Managers and the local area board of Realtors

For Free Consultancy about Hiring Naples Rental Management pls visit this link

Tuesday, June 16, 2009

The Ideal Property Inspection

Property management should inspect the home before the tenant takes occupancy, when they vacate, and must have a handyman perform inspections quarterly. A copy of the inspection report must be e-mailed to both customer and your manager .The handyman should not only checks the unit for damage, he or she also changes the air filter and puts an Algaecide tablet in the air conditioner drain pan

For Free Consultancy about Hiring Naples Rental Management pls visit this link

Monday, June 15, 2009

Caution on Naples Property Management that has this following Crrterion

Signing a binding long-term contract

Companies that do leasing only

Companies that only advertise on their website and the MLS

Management companies whose managers only work from 9-5

"Hidden fees", many companies do not openly advertise many hidden costs

Agents who do not do enough tenant screening

Companies with managers who manage too many properties

Companies who don't disclose exactly how they will market your property

Companies who use stock, out-dated leases

Companies who won't let you see their lease agreements or rental applications

For Free Consultancy about Hiring Naples Rental Management pls visit this link

Managing your Tenant and Renewals

Although we recommend professional property management to nearly all owners some owners simply like to manage their homes themselves. Many owners are not as experienced with dealing with tenants. Miscalculation in this important area of management could cost an owner thousands in profits. Some common errors are befriending a tenant, approving unnecessary repair expenses, and giving too much of a concession to a good tenant.

Many owners become friends with their tenants over time. This is simply put - a bad decision. As the President of Synergy Real Estate, I prohibit my managers not to befriend tenants. In fact, I do not even want the tenants to like us. I do however want to treat them fairly and gain their respect. This important boundary implores the tenant to more closely performing as required in the lease. Many befriended tenants pay late more frequently, do not provide the appropriate notice, and expect you to take requests at all hours.

Proper tenant management also requires a firm hand in dealing with unnecessary repairs. Many tenants in the first month test the water with a barrage of unnecessary repairs. They are essentially seeing what you will approve and won’t. This is the point at which it is vital to remain vigilant but fair. It is a necessary repair to fix a broken sink. However, to shampoo the carpets after a tenant moved in because they were not clean enough is not. Also, you should always require that a tenant submit a repair request in writing. And most important - set boundaries and be firm.

Should you give a good tenant a discount in rent? The only time I would consider this is if I legitimately believed we would have to evict or lose a good paying tenant. This would also be contingent upon market rental rates when compared to the prevailing rate. At the end of the day, your goal is to maximize net income. You should not be concerned with being nice. You can donate money to charity any time you like. But a properly managed property should be run like a business. Would a grocer remain in business if they gave 30% off to each customer with a sob story? Be prudent and always make the decision that maximizes profit while maintaining your asset.

For Free Consultancy about Hiring Naples Rental Management pls visit this link