FREQUENTLY ASKED QUESTIONS
BACKGROUND & EXPERIENCE
VACANCIES
POLICIES
FEES
CONTACT
FINANCIALS
MAINTENANCE & REPAIRS
BACKGROUND & EXPERIENCE
1. How long has the managing broker been in property management?
A: Since 1996. Beginning in California, then Georgia and migrating to include Tennessee.
2. How long have you managed in this area?
A: Since February 2005. We specialize in the Greater Chattanooga/Northwest Georgia area, but are also familiar with some of the nearby outlying areas also.
3. What is your field of expertise?
A: Single-family and small multi-family (up to 200 units) residential properties.
4. What is the managing broker's educational background?
A: An accounting major for two years before changing direction and obtaining degree in Business Management.
5. What professional organizations do you belong to?
A: Member of Chattanooga Association of Realtors, TN Association of Realtors, GA Association of Realtors, National Association of Realtors; multi-year member of National Association of Residential Property Managers (NARPM); member of National Association of Female Executives (NAFE); Notary Public in Georgia; Chattanooga Area Chamber of Commerce. Currently pursuing RMP (Residential Management Professional) designation from NARPM.
6. How many units do you currently manage and have you ever managed in the past?
A: As of August 2010, 142 and growing. Previously, up to 354 units.
7. Do you handle purchase and sales transactions also?
A: Although we are a licensed real estate firm, qualified to handle the purchase or sale of properties in TN or GA, we have elected not to handle any sales transactions for the general public, although we will participate in sales or purchase of property for our existing clientele. The reason is simple: it is not our primary focus, and in order to maintain the level of attention that we commit to each of our owners, handling sales would be detrimental to our area of expertise: Property Management.
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VACANCIES
1. What is the average time to fill a vacancy?
A: This is the “crystal ball” question, and depends on a number of factors, such as location, price, condition, pet policy, etc. However, generally speaking, recently our vacancies have been on the market less than 24 days on average, and we have maintained that average for the past 18 months and counting.
2. How many vacancies do you currently have?
A: Our vacancy rate has consistently remained at or below 6%.
3. What percentage of tenants have to be evicted?
A: Typically, this is less than 15%, and many of those are for job loss-related reasons.
4. How long does it take to get a non-paying tenant out?
A: If the process goes precisely along the minimum time frame outlined in the law, a tenant in TN can be out of the property in approximately 28-42 days (4-6 weeks), and a tenant in GA can be out of the property in approximately 21-28 days (3-4 weeks). These estimates can vary based on a number of factors (ex. A setout cannot be done in the rain, or if the tenant cannot be promptly served).
5. Do you charge for monitoring and maintaining vacant units?
A: No. The only costs involved with vacant units are the advertising, utility and yard care costs. We do regularly visit and inspect vacant units to ensure that thermostat settings have not been altered, lights have not been left on, doors are properly secured, grounds and interior are clean and ‘show-ready’.
6. How do you market vacant units?
A: We employ a number of relevant marketing venues, depending on the location of the property and the target market of tenants that we are seeking. Typically, we use the Chattanooga Times Free Press, Craigslist, Rentals.com, our own website, flyers, direct mailing, and neighborhood canvassing. On occasion, we’ve found it useful to use Walker Messenger, Catoosa News, Chattanoogan.com, Georgia Trader or other smaller, less-circulated publications or websites.
7. Do you recommend incentives for filling vacancies?
A: Occasionally, yes. Sometimes there are many available properties on the market in a relatively small area of town, or perhaps a property is off the beaten path & requires an extra nudge to make the property more appealing than the competition.
8. How do you screen applicants?
A: We submit applications to our third-party objective credit & background reporting company to obtain a complete history of applicant’s credit, criminal, and eviction history. We cross-reference previous addresses with ownership records, and we contact landlords and employers for direct verification. We also require 30 days’ worth of pay stubs or 2 years’ tax returns for self-employed individuals.
9. Who handles yard care on vacant units?
A: We have a team of landscapers who take care of the vacant units at a minimal fee per visit, with visits every 10 days during peak growth season. They can also handle year-round grounds maintenance for your property if you desire, at a negotiated rate.
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POLICIES
1. What is the late payment policy?
A: Rent is due on the first of the month and late after the fifth of the month (excluding Saturdays, Sundays and holidays). Any unpaid balance on the 10th is set for eviction filing unless special arrangements have been made and approved.
2. Who will be the person handling my property?
A: You will have a designated Property Manager. This is the person who will know all of the details pertaining to your property, the tenant, maintenance issues and other details that pertain to the property. This will be your direct contact person.
3. What is the policy regarding pets at my property?
A: This is determined initially by you. If you decide to allow pets, we require a $250 non-refundable pet fee, per pet. This fee is simply for the convenience of allowing the pet on the property and is not applied toward any cleaning or damages that may be caused by the pet. Those costs are held from the security deposit. This fee is passed on to you at the termination of the lease agreement with the tenant. It is estimated that approximately 70% of tenants have pets; however, pets can be very costly to rental property owners, so deciding whether to allow pets is a large and important decision. Under no circumstances will we allow aggressive breeds of dogs, as this may have an impact on your insurance coverage, as well as pose a threat to neighbors.
4. How many people will be permitted to live in my property?
A: Our policy is to permit two people per bedroom.
FEES
1. What are the monthly management fees?
A: This is based on several factors, such as type of property (multi-unit, single family, etc), total number of units to be managed for owner (more units equals management percentage discount), location of property (higher-risk areas or long-distance driving areas are subject to slightly higher management fees). In general, the management fees are 10% for single-family units and 7-9% for multi-unit buildings, assuming no other extenuating factors. This percentage is based on actual rents collected.
2. What is the fee for procuring new tenants?
A: This is based on the lease term that we are able to successfully negotiate. A lease term of 6-12 months (typical) is $250. A lease term exceeding 12 months is $350. A lease term for less than 6 months (rare, and only with prior owner approval) is $150.
3. What is the fee for renewing leases?
A: $50.
4. Are the procurement or renewal fees refundable or guaranteed?
A: Yes. If the tenant fails to remain in the property for the entire term of the lease or renewal period, the fees will be credited back on a prorated basis & applied toward any subsequent procurement or renewal fees.
5. What is the reserve requirement & what is it for?
A: The reserve is currently $300 per property, to a maximum of $1,000 per owner, and it is for incidental expenses that may occur when there may not be any funds on hand to cover them. For example, advertising costs on a vacant unit, or a leaking water heater on the day after owner proceeds are disbursed. This is fully refundable at the termination of the management agreement, provided the account is in good standing, otherwise this will be applied to any outstanding owner balance at that time.
CONTACT
1. How do tenants contact you?
A: We are available by phone, fax, email, mail or in our office. Our office is open M-F 9:00 AM to 7:00 PM, Sat 10:00 AM to 5:00 PM, and Sun 11:00 AM to 4:00 PM. Email is checked and answered until late each night, as are incoming faxes. We have voicemail on all of our phone lines, and calls are generally returned within two hours. There is also a dedicated emergency hotline specifically for after-hours or weekend and holiday emergency maintenance calls. When no one is available to answer the phone in the office during business hours (lunch hour, employee sick, etc), all calls are routed directly to a cell phone.
2. How do owners contact you?
A: Of course, all of the above options are available, but all owners are given the direct cell phone number of their assigned Property Manager.
FINANCIALS
1. How often are financial statements prepared & delivered?
A: Never and always. All of our owners are able to sign up & login to our system to view their financial information anytime, 24 hours a day. All that is needed to enroll is a valid email address.
2. How are owner proceeds disbursed?
A: We have the ability to disburse owner proceeds via direct deposit, or we can mail a paper check. There is no fee for either option.
3. When are proceeds disbursed?
A: On or by the 15th day of each month for residential properties managed; on or by the 25th for HOA communities managed.
MAINTENANCE & REPAIRS
1. Who handles maintenance and repairs?
A: We have a team of in-house techs, as well as a pool of competent, trusted vendors, that we use for maintenance. We can handle any type of problem or equipment failure that your property may suffer. All maintenance techs or vendors that do any work on your property are properly licensed and insured.
2. What is the cost for maintenance and repairs?
A: Our in-house maintenance fees are $50 per hour during regular business hours. After-hours rates are $75 per hour. Vendor rates are set by the individual vendors, however, we have negotiated below-market rates from any vendor that we use in order to keep your costs to the absolute minimum. Anytime a single repair is expected to exceed $300, you will be contacted for prior authorization (emergency repairs excepted).
3. Do you check on occupied units periodically?
A: Yes. We do a drive-by of each unit at least once monthly. If we note any kind of issue or concern, we schedule an inspection on the unit, and take a closer look. If we find that there are tenant-caused or tenant-related problems, we address those directly with the tenant, requiring them to resolve the issue promptly. We schedule follow-up inspections as needed to ensure compliance.
4. Do you conduct interior inspections periodically?
A: The Property Manager conducts an interior inspection at the time of offering a lease renewal. This is done at no charge. In addition, we offer an optional inspection plan that you may sign up for. This provides an extra measure of peace of mind for owners. The inspection is intended to be a method of early detection for any type of leaks, roof or gutter problems, tenant abuse or neglect, and to confirm that the HVAC filters and smoke detector batteries are being properly changed by tenants. This is not intended to be a thorough home inspection such as you might get at the time of property acquisition, nor is it any kind of appraisal. The fee for this inspection is $40 for the first unit and $15 for each additional unit at the same address. The inspections are conducted in March, July and November.
5. How long does it take to get a vacant unit ready for occupancy?
A: We can have a vacant unit ‘turned’ and rent-ready within 10 days from the date of receipt of funds to do the work. This can include complete painting, re-carpeting, repairs, cleaning, etc. If you authorize us to do so, we can hold the final months’ rent from the exiting tenant, which can then be applied, again with your approval, toward the costs of turning the unit. This eliminates the delay for mail time. If significant and unusual repairs are necessary (such as sub-floor replacement or re-roofing), additional time may be required. A complete itemized estimate of turnkey repairs and anticipated costs will be sent to you for approval before any work begins.
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