Property Management: The Process, A Crash Course on What You Should Know
Owning a property takes a lot of responsibility. Along with that responsibility is a long list of to do's that ensures your home or investment property is being maintained properly and efficiently both within the management process and in a financial sense.
If having one property is a hand-full, the thought of multiple properties to maintain could make your head spin. This is where the added strength of a strong property management company like Kashmiri Realty & Property Management by your side can play a big role in your real estate purchase endeavors.
Every company has their process, you should be aware of some of the standard items you must go through and that all Realtors must include in their process as requested by Federal law. These are the highlights you can expect from a property management company in the Jacksonville and Orange Park area.
Military Service Members
As a real estate property management service provider in a region where there's a high military presence; and as a big supporter of our military service members. Kashmiri Realty focuses on providing assistance with property management when a service member is being deployed into theater or transferred to a U.S. military base. You have enough to worry about with the big change that's coming, selling your vehicle, storing your personal property and now selling or renting your home. Don't stress on the property, let a professional team take the workload off your back.
Real Estate Investors
A real estate investor is always looking for a reliable property management company that can take care of a multitude of objectives such as:
- Rental Agreements
- Property Showings
- Follow up
- Rent Collection
- Maintenance, just to name a few.
You need a team that is flexible, a team that is available and a team that will not only follow but provide insightful information on prospected property investment opportunities. You don't want a good property in a great location and at a reduced cost to pass you by.
Second Home or Vacation Properties
As a multiple property home owner, you will likely have a second investment home in the same city or state. You could also have a second or vacation home located in a different city or state. If the property you're not living in is located in the Jacksonville or Orange Park area, a property manager can help you get your properties shown, rented and maintained.
The Process that Works for You!
As the client, you will have an Exclusive Property Management Agreement with the property management company. Most agreements with your property manager will last for one year and will renew automatically each year. You can cancel the agreement with a written notice sent 90 days ahead of the date of expiration.
With any real estate agent or broker that is representing your interest, on your behalf, you can expect some of the following items to be covered in the contract that your tenants will sign.
- Tenant Screaning
- Lease Terms
- Security Deposit
- Leasing Fees
- Management Fees
- Statements/Leasing/Tax forms
- Tenants Default/Agent Authority
- Damages or Missing Items
- Facsimile/Electronic Signatures/Email
- Fair Housing Compliance
- Acts of God
- Eviction Proceeding
- Attorney Fees
- Waive of Litigation
- Property Information Sheet
Getting your Rental out on the Market
The rental process for your tenants will cover all essentials and provide you with security and peace of mind that the new tenant was vetted correctly for proper documentation. It also ensures that the tenant's onboarding process is moving forward correctly per the state and federal housing regulations. The process is as follow.
After all of the house preparations have been completed, similar to some of the prep that you would do for an open house as we outlined for you in this article "Sprucing & Preparing your Home for Your Open House".
The rest would follow:
- We list your property for rent
- We advertise your property
- We show your property to top prospective tenants
- Prospective tenants will apply online
- Their online application is submitted for a screening check
A tenant screening is vital to an investor's property, it helps evaluate the ability of your prospective tenants to pay the rent without potential defaults in the near future. The goal is to make sure the tenants can fulfill the complete term of the agreement. Once the screening check is returned, the prospective tenants will receive an approved or denied letter.
Once the tenant has been approved, the execution of a lease agreement will be consummated, and the tenants will be able to move in with a couple of caveat.
- If it is an immediate move in, the tenant will be required to pay the security deposit plus the move in funds which would be 1 months' rent.
- The alternative option would be for the tenant to sign the lease agreement and pay the security deposit up-front. The move-in funds will be paid at the time of move-in, along with any other associated fees such as pet fees.
If the tenant is not approved, a denial letter will be provided and the search for the next prospective tenant will continue.
The Move-In, Move-out
Before the tenant moves in, the Realtor will do a property walk through inspection. Which will include:
- Pictures of the property, both inside and outside
- A home inspection of the property, both inside and outside
- Every 6 months, a walk through is completed for the landlord
- When the tenants move out, there is a move-out inspection
If the property is in good condition as it was when the tenants first moved in, the security deposit is released with nothing withheld. If the property is not in good condition at the time of move out, the security deposit could be withheld.
If there are minimal damages, the cost for the damages will be deducted from the security deposit. If the damages are equal to or more than the value of the security deposit, the full deposit may be withheld to mitigate the loses from the property destruction caused by a tenant.
Rental Payment Default
If the tenant does not pay the rent by the 3rd of the month, a 3-day notice is served with the request that the payment be made in full plus the 10% late fee of the monthly rental amount. The notice is placed on the door and followed up with after the 3 days have expired. If the payment is not made in full, the eviction process may begin.
When the tenants sign the lease agreement, they agree to provide a 2 month notice to not renew the lease agreement. The same way the property manager will provide the tenant with 2 months' notice prior to the lease agreement 's expiration date.
For your property management needs, call Kashmiri Realty & Property Management at 904-644-7006.