What Can A Professional Property Manager Do For You?

 

Property Manager Signing agreement

Historically, renting your home has been considered a relatively simple and low-risk undertaking. However, in recent years, this apparently simple task has become progressively more complex and the risks associated with becoming a landlord far greater. While managing your rental is certainly within the abilities of most property owners, the time and effort involved in management may be greater than the cost of hiring a professional property manager.

The professional property manager is conversant with the applicable statutes and regulations relevant to the management of rental property. In addition, the manager will typically perform the following tasks as part of the management service:

  • Advertisement of the rental property
  • Screening of potential residents
  • Preparation and execution of rental agreements
  • Disbursal of funds to the property owner
  • Collection of rents
  • Monthly and year-end accounting
  • Coordination of maintenance and repair work
  • Periodic property inspections
  • Disbursal of deposits in accordance with state law
  • Eviction of residents for breach of the rental agreement

Advertisement of the Rental Property

Until recent years, advertisement of an available rental meant placing a “For Rent” sign in the front yard and possibly placing an ad in the local newspaper. Times have changed. Today, while the old standbys are still used, effective advertising also includes extensive use of the internet, making the availability of the property known to real estate professionals, and targeted advertising to large employers.

Screening Potential Residents

Once an application for rental is received, it must be determined if the applicant is qualified to rent the property. Has the applicant been evicted from a prior rental? Does the applicant earn sufficient income to pay the rent? These questions, as well as others, should be answered prior to approving the applicant.
Family in front of their new rental home

A professional property manager will typically check four areas when screening an applicant. These are the applicant’s credit report, income, employment, and rental history. It has become almost universal that the applicant’s credit report be checked for late pays, judgments, liens, or bankruptcies. The applicant’s employer is typically contacted to verify income, and the applicant’s prior landlord is contacted to verify rental history. While there are few perfect applicants, the information gleaned through the application review process can greatly reduce the likelihood of renting to an unqualified resident.

Preparation and Execution of Rental Documents

After the applicant is qualified, the necessary rental documents must be prepared and executed. Gone are the days of going to the local stationery store and buying a preprinted, two-page rental agreement. Today, rental agreements are custom drafted to reflect specific state statutes, and sometimes, applicable local ordinances. In addition to the rental agreement, any required addendums are prepared and may include an addendum relating to pets, a no smoking addendum, an addendum relating to pool use, and if the property was built prior to 1978, a lead paint addendum. Further, a move-in inspection is completed and documented for review by the resident at the execution of the rental agreement. Ancillary forms relating to the transfer of utilities and trash pick-up may also be needed depending on the location of the rental property.

Collection of Rent

Every property owner would agree that timely payment of rent is critical. If the applicant was properly screened prior to acceptance, most poor rental risks will be eliminated. However, circumstances beyond the possibility of screening can adversely affect the resident’s ability to timely pay rent. These circumstances include loss of employment, injury, illness, and changes in marital status. When the resident is unable or unwilling to pay rent, the property manager has the ability to effective move forward with the collection process, or if that fails, terminate the rental agreement and locate a new resident in the minimum amount of time.

Disbursal of Rent to the Property Owner

Typically, the property manager will receive rent on the first day of the month, with disbursal of funds to the property owner on the tenth and twenty-fifth of the month. Because the property manager is required to hold all funds in trust, funds must be held until checks clear, which may take as many as ten working days. In addition, time is required for the accounting and statement preparation process.

Monthly and Year-End Accounting

The property manager will provide you with a monthly statement showing all income and expenses associated with your rental property. In addition, you will receive a year-end statement showing all income, and expenses broken out by category.

Coordination of Maintenance and Repairs

If you have ever had a resident at your rental property call you at 2:00 a.m. to tell you that the water heater is leaking and your rental is three inches deep in water, you will appreciate having a professional property manager. Most property managers maintain a twenty-four-hour system for receiving emergency repair calls and relationships with a variety of skilled tradesmen capable of handling any emergency. For non-emergency repairs or preventive maintenance, you are contacted in advance to discuss the work and its potential cost to your.

Periodic Property Inspections

Does the resident have an unauthorized pet? How about six roommates not listed on the rental agreement? These, and other similar problems can only be found through a physical inspection of the property. Typically, your property manager should have a representative inspect the property one to two times during the term of the rental agreement. Inspections may be conducted either as a scheduled appointment with the resident or while repairs or scheduled maintenance is performed.

Disbursal of Security Deposits

After the resident moves out of the property, the condition of the property must be assessed and any damages charged to the resident’s security deposit. However, the property owner is not permitted to charge for “normal wear and tear.” What can be charged for that red wine stain on the white carpet? How much for the numerous nail holes in the living room wall? These, and similar questions are addressed by the professional property manager every day.

Further, did you know that if the resident is not provided an itemized statement of deductions from the deposit within thirty days of termination of the rental agreement, the property owner is precluded from making any deduction for damage to the property?

Eviction For Breach of the Rental Agreement

Probably the most difficult part of owning rental property is evicting the resident who has failed to meet their obligations as stated in the rental agreement. Typically, this means that the resident has failed to timely pay rent. The professional property manager can handle the eviction process efficiently while making the process far less difficult for the property owner.

Conclusion

The professional property manager provides a cost-effective service in the rental and management of investment property. While the above discusses the functions performed by the property manager, it should also be noted that efficiently and competently performing these functions minimizes potential risk to the property owner and in the long term, maximizes returns from the investment property.

Our Full Residential Property Management Package

Prospective TEnants
Here is what is included in our Full Residential Property Management Package:

DILIGENT PLACEMENT:

Property managers accept calls and inquiries regarding your home. They arrange appointments and coordinate showings of your property.

We have an impressive track record in placing quality residents.
We attribute this success to our extensive marketing efforts, screening process and commitment to exceptional service. Truly, the relationships we have with other local real estate professionals often stacks our pipeline with qualified tenants, which is the best component of our “marketing”. We believe the most important part of professional property management is finding a quality resident for your home.

Our marketing program is among the best in the area. Most important is our reputation. We are known for quality homes and professional management practices. Promotion efforts include media advertising, rental brochures, signs, flyers, and our website, along with a family of other websites.

Overview of Marketing Resources

  • Office Open Mon-Fri
  • By appt evenings and weekends
  • Competitive rents
  • Full-time Leasing Agents
  • Our Web-Site & e-mail
  • Professional Yard Signs
  • Experience & reputation excellence

After a potential resident is located we conduct an extensive screening process. This process includes credit reports, criminal and sex offender background checks and a South Carolina State Eviction search. After acceptance, we complete negotiations, execute contracts, process documents and install the resident in the home.

Overview of Resident Screening

  • Investigate Credit
  • Move-in Inspection Documentation
  • Verify Employment & income
  • Important Information Provided to Resident
  • Security & Pet Deposits
  • Check out Rental History
  • Negotiate best Lease Terms

PROFESSIONAL MANAGEMENT:

Property managers collect rents, deal with resident issues, periodically inspect the property and personally supervise the home. The manager provides an “arms length” relationship between owner and resident.

By maintaining excellent relations with our residents and diligently caring for your property, we avoid most potential problems. Residents are informed of their responsibilities regarding your property and their contracts. We will quickly and professionally settle any problems that may arise, with our clients’ interest in mind.

If there is a problem, whether it is collecting rents or settling resident disputes, we will handle the situation appropriately. We are knowledgeable in the South Carolina Property Code/South Carolina Landlord/Tenant Law and all the legal and contractual relationships involved in renting property. If necessary, we are prepared to make a court appearance on your behalf for eviction suits.

We utilize quality control procedures and proven business practices in the management of your home. In addition to the routine management of your home we are on call 24 hours a day 365 days a year for emergencies.

Overview of Managing the Property

  • Collect all Rents
  • Late Notices
  • Renovation Work
  • Early Terminations
  • Monthly Accounting
  • Resident Newsletters
  • 24-Hour Emergency Line
  • Bounced Checks
  • Routine Maintenance
  • Unauthorized Pets
  • All Charges Verified
  • Regular Inspections
  • Move-Out Inspections
  • Evictions
  • Neighbor Complaints
  • Owner Newsletters

QUALITY MAINTENANCE:

We supervise maintenance.

We employ only the most skilled and reliable maintenance personnel. Professional property managers normally supervise necessary home maintenance. The actual maintenance expenses for the home are the responsibility of the homeowner in most cases, unless caused by a tenant. Every effort is made to control maintenance costs while maintaining the integrity and value of the property. Problem reports are verified to eliminate unnecessary service calls. Maintenance that is the resident’s responsibility or fault is billed to the resident. When required, maintenance personnel are properly licensed, bonded and insured. Our staff oversees maintenance and contractors are not paid until all work is satisfactorily completed.

To control quality and to manage the high risk of litigation from a maintenance contractor or resident, we use reliable maintenance personnel with whom we’ve established long-term relationships with preferred pricing.

MONTHLY FINANCIAL REPORTING:

RG Properties of SC LLC provides monthly statements for your rental income and expenses, but the reports are available to our owners 24/7 through our website’s owner’s portal.

We can handle all your accounting and payment requirements. Income checks and property statements are processed by the 11th of the month in most cases. Proceeds are either mailed or directly deposited electronically each month. A complete statement of your property account and an income statement are provided each month online, which you can view any time. Account history is stored on-line for three years. We can quickly search your records on request. At the end of the year, we prepare a complete package for your tax preparer. Periodically, we send information on the status of your home and the real estate market.

Other Services

  • Licensed, Bonded & Insured
  • In House Maintenance
  • Property management Staff
  • Accounting and bill pay services
  • Other support staff
  • Latest Technology
  • Monthly Operating Statements

MANAGEMENT FEES AND OTHER CHARGES:

Property management is a very competitive business. Some property managers only offer a standard management service while others offer a range of services. There are different ways property managers can charge for services. It is important to ask what services are optional or available. Be sure to understand all possible charges other than a percentage of the rent.

Fees and charges should be addressed completely in the property management agreement. Examples of common charges for a standard management service are: flat percentage of rent or a percentage of rent plus fees for individual services. Examples of possible other fees are placement fees for locating a resident and/or charges for advertising, referral fees, lease renewals, fee for closing an account, and miscellaneous administrative expenses.

RATE SCHEDULE:

Our fees are very competitive and are based on the services you request. Services are usually computed as a percentage of the rent, a flat fee, or a combination of both. The client controls the level and type of services. Services range from standard property management package or a combination of standard management and other services. We would be happy to meet with you and design a management package that fits your needs. All fees are subject to applicable gross receipt tax. For basic pricing information, please visit the “fees/services” navigation tab at the top of this page.