QUESTIONS FREQUENTLY ASKED BY NEW CLIENTS
We believe it’s important to ask a lot of questions when you are researching a property management company. We truly believe that the more educated you are, the less questions you will have, and the less time you have to spend being worried about what is going on with your property.
Our communication from day one is always pro active. We want to answer the questions you didn’t even know you had!!
Please read through some of the most common questions we receive from new clients:
Question: What and who determines the rent for my property?
A: Ultimately, the rental market determine rent. We do a rent analysis on your property by looking at the properties currently listed for rent, and compare these to determine market rent. We give you market recommendations and it is you how decides what price your property will be listed for.
Question: How are the security deposits handled?
A: Security deposits are deposited into the trust account. They remain in the trust account until the tenant vacates the property. By state law, any security deposit money due the tenant, must be refunded or applied to any outstanding charges within 30 days.
Question : How are tenants selected?
A: We carefully screen each prospective tenant application by obtaining a report, which includes credit, evictions, criminal, and sex offender registry information. We also verify rental history, & employment. The owner of the property is informed, but is not involved in this process to ensure equal treatment of applicants.
Question: Do I pay for processing the tenants’ application?
A: No. Owner pays nothing.
Question: Who pays for maintenance and repairs to my property?
A: The owner pays for maintenance and repairs, unless, in rare cases, the tenant has agreed to assume responsibility, or tenant neglect can be proven as the cause of the damage or repair. Click here for tips on how to keep maintenance costs low.
Question: Who pays for the marketing of my property?
A: We pay for all signage and labor costs related to marketing your property for rent. Over 80% of renters report to searching for rentals online. RPM strategically positions and markets your home with the most aggressive and comprehensive advertising campaigns of any management company in the area.In addition to our website, the property will be marketed on sites, such as Craigslist as well as over 100 of the nations leading rental listing sites to find a tenant quickly and increase your profitability.
Question: Are management fees tax deductible?
A: Generally, they can, as a direct expense item. However, owners should confirm this with their tax advisor to ensure the deduction falls within state and federal guidelines.
Question: What is typically involved in preparing a property to be rented?
A: Owners should always expect to make the property move-in ready for a tenant. The property will rent quicker and demand a higher rent if it is in good condition.
Question: How is rent collected, processed, and sent to the owner?
A: Rent is due on the 1st and late on the 5th. All rents are deposited into a property management trust account. Any bills the owner has asked us to pay are paid for out of that account. All money left in the account is sent to the owner by check or direct deposit on or around the 10th of the month, and every Thursday thereafter. Rent is not sent to the owner as soon as it is received, to allow time for payments to clear.
Question: How does an eviction work?
A: Rent is due on the 1st and late on the 5th. Late fees begin accruing on the 5th of the month. Late calls are made on the 6th and 7th of the month, and 72 hour Notices are mailed out on the 8th of the month. If the tenant fails to pay rent within the time frame indicated to them on the 72 hour Notice, the file is sent to an attorney to begin the eviction process. The attorney files a complaint and summons at the courthouse, and then a summons to appear is served to the tenant. This first appearance date is typically within 1-2 weeks of filing with the court. At first appearance, the tenant and attorney will agree to a move out date, and this agreement will be filed with the court. This move out date is typically 2 weeks after first appearance. If the tenant does not move out on the previously agreed upon date, then a Sheriff lockout will be scheduled, typically within 1 week of the request being made. Evictions can take anywhere from 30-60 days, depending on timeliness of the court and response of the tenant.
Question: How long will it take to rent my property?
A: This is determined by 3 main factors: 1) Market rents 2) Condition of the property 3) Advertising. RPM will consult and advise an owner in each of these 3 areas, however, the ultimate price and condition of the property is decided by the you the owner. Read more on how to rent your property faster.
Question: What is the tenant damages the property?
A: Any time maintenance is dispatched to the property, it is determined whether the damage is caused by tenant, or normal wear and tear. If it is determined the issue is caused by the tenant, they must pay before any work is done. In cases where an issue is, or will cause imminent damage to the property, work is completed, and the tenant is billed.
Question: Should I allow pets?
A: About 50% of all tenant have some kind of pet. Anytime an owner chooses to eliminate potential tenants from renting their property, it may take longer to fill vacancies. It is our recommendation that owners be negotiable on pets. State laws allow for pet deposits, as well as pet rent per month. If this is something you are interested in, please be sure to speak to your Property Manager. Read this blog post to determine if being pet friendly is a good investment here
Question: How long is the management agreement?
A: One year. If owner chooses to terminate early, they must pay a termination fee, equal to 3 month’s management fees.
Question: What if my property doesn’t rent?
A: All properties rent eventually. Time of year can be a factor in how quickly a property may rent (Example: properties rent faster in the summer than during the winter holidays). However, we will let the owner out of their contract with no termination fee, provided they abide by all recommendations given by RPM in an attempt to rent the property. (Example 1: Market rents are $1200.Owner ignores RPM recommendation and demands $1800, or owner will not correct poor condition of property. Termination fee will not be waived. Example 2: Owner markets the property at recommended market rents and property still does not rent, termination fee will be waived.)
Question: What if I want to sell my property?
A: An owner can choose to sell their property at any time during the contract. If the property is sold using one of RPM’s preferred brokers, the termination fee will be waived.If the owner chooses to sell it themselves, or use an outside broker, owner must pay a termination fee equal to 3 months management fees.
Question : What areas do you cover?
A: Real Property Management provides these and other industry leading services to Portland, Beaverton.
Didn’t see the questions you have or find the answer you were looking for? Click here to visit our Education Center, or check out our video library!