MOST FREQUENTLY ASKED QUESTIONS
FROM OUR PROPERTY OWNERS.
The decision as to the amount of monthly rent is always made by the property owner. However, VPM can be of great assistance in this area by providing the owner with MLS and other “state of the art” information sources on similar properties which have recently rented in the area.
The goal is to seek the maximum monthly rental without pricing the property "out of the market."
The key to receiving rents on time is to have efficiently screened the tenant's credit and financial background before entering into a lease agreement. It has been consistently proven that tenants who have handled their past credit and rental obligations well will continue to do so in the future. Unfortunately, the opposite of this also holds true much of the time.
VPM has instant computer access to the major credit reporting bureaus and can review a prospective tenant's credit and other financial history in a matter of minutes.
VPM has a strict, but fair, policy on rent collections. All rents are due on the first day of each month. Tenants have a five-day grace period in which to pay. On day six, no matter what the reason or excuse, the rent is late and VPM starts a District Court proceeding against the tenant. The local Sheriff then serves the tenant a summons to appear before the Court. The Court hearing usually takes place between the 14th and 20th day of that same month.
In most cases the tenant will have made the late rent payment before the scheduled Court date. In the rare event that the Court process must continue, actual eviction will usually take place during the second or third week of the following month. Eviction is a very unusual event at VPM, as our pre-lease screening has indicated that the tenants are people who value their good credit rating.
Inspections, inspections and inspections. VPM conducts an in-depth, outside-and-inside, room-by-room inspection of the property prior to the tenant moving in. The tenant is then provided with a copy of this inspection and invited to add any additional comments.
Every 180 days throughout the course of the lease term, VPM will be back at the property to complete a detailed inside/outside inspection (Copies will be provided to you). These 180-day inspections will help keep you advised of how things are going. These inspections also give the tenant a chance to point out items to VPM which may be in need of attention about the property.
At the time the tenant moves out, VPM conducts a final inspection to determine if there should be any deductions from the tenant’s security deposit for items over and above normal wear.
The repair or replacement of an item which is damaged or neglected by a tenant is handled in one of two ways. If damage comes to VPM's attention by way of the tenant, or during a routine inspection of the property, VPM will arrange for the repair, or replacement of that item. Initially this repair will be paid for from the owner's management account reserve fund. However, the tenant is then immediately invoiced for the cost of the repair. In the event the tenant does not pay this invoice in a timely manner, this will be treated the same as late payment of rent.
In the event the tenant-caused damage is not detected until the tenant has moved out of the property, the cost of any repairs will be deducted from the tenant's security deposit.
Typically we would anticipate that the majority of repairs necessary for the upkeep of a property would be of the smaller, routine, "handyman" nature. It is expected that the property owner allow VPM the leeway to make these smaller day-to-day repair decisions. $350.00 will be set aside from the owner's first month's net rent in order to establish a reserve fund to cover these smaller repair items. VPM will provide the property owner with a detailed accounting each month of all monies collected and expensed.
Have you purchased a home warranty? We will follow up to assure that the warranty repair was completed in a workmanlike manner and disburse the required deductible funds on your behalf.
Almost every property will at one time or another be in need of a repair of either an "emergency" nature, or require a repair or upkeep of an item which does not fall into the normal routine. Repairs of an emergency nature such as burst pipes, water heaters flooding, or anything which would leave the tenant without a vital utility will be immediately handled by VPM in a way which will lessen any further damage to the property and allow the tenant the continued, uninterrupted use of the dwelling. VPM will also notify the owner by phone, email, etc.
When larger repair items which are not of an emergency nature, such as new carpeting, deck staining, exterior trim painting, become necessary, VPM will contact the property owner with the nature of the needed repair and obtain bids from the various contractors with whom we deal on a regular basis. The property owner will then make the decision as to when and how to go forward with the needed repair.
If the property is currently tenant occupied, VPM will make the monthly mortgage payment each month on the owner's behalf. However, if the owner prefers to continue making the mortgage payments, VPM will deliver all monthly net rents to the owner in a timely manner.
All payments which are necessary for condo fees, homeowner's associations, front foot, capital facility payments, rental licensing, any service contracts, etc. will be made by VPM on the owner's behalf, as these items become due (All of these additional payment services are included in VPM’s standard monthly management fee plan, at no additional charge).
VPM's monthly bookkeeping cycle is as follows: All payments authorized by the property owner for mortgages, condo/HOA fees and the monthly management fee to VPM are paid on, or about the first part of the month in which they are due. Rents are collected during the first five days of the month. On the sixth and seventh days of the month any additional expense items which may have accrued are paid.
On the eighth day of the month two things occur. All net rents which are due to the property owners are electronically transferred from VPM's CapitalOne Management Account directly to each owner's individual bank, credit union, or S&L account. This usually makes these funds available to the owner on the next business day. Additionally, detailed monthly statements, along with copies of any repair invoices, etc., are made available to our property owners by way of each property owner’s private, individual Internet Portal.
An important management function, which property owners sometimes tend to neglect, is good record keeping of the numerous income and expense items related to the rental property, throughout the course of the year. This usually results in a “mad scramble” to get it all together come tax time.
Remember that just about every rental related expense which you will incur (including VPM management fees) can result in a personal tax deduction for you. If you are not fully aware of the value of these deductions, think about discussing this with a professional tax preparer.
VPM provides detailed monthly income/expense statements, along with an end of year financial report, including Form 1099, so that you, or your tax preparer, can take advantage of every deduction which is due to you.
All of the owner services which have been covered in this web site, with the exception of procuring new tenants, are provided for in one low monthly management fee. This tax-deductible fee is 7.9% of the monthly rent (Minimum $89.95/month).
Vantage Property Management