Marketing the Property
The marketing strategy for each property will vary depending on the property and the needs of the investor. We do an evaluation of the rental market surrounding the property every time the property becomes vacant or is up for lease renewal. With this evaluation and the needs of the investor we can create a marketing strategy that includes advertising, tenant screening, collection policy, and a rental rate that will create high revenue but will limit the vacancy expense.
In the past 18 years we have been able to keep our portfolio vacancy expense to only 5% of the scheduled rents. Currently it is less than 1%.
Account and Reporting
Each investor receives a statement / ledger showing all the revenues and expenses related to that property. For the investors with more than one property a summary statement is also created to show the investor the results of the entire portfolio. These are the reports the disbursements are made from. Disbursements are made monthly.
At the end of the year each investor will receive a summary showing all the revenues and expenses over that entire year, for each property. These reports are ready to take to your accountant without any additional work. This alone can save you money in accounting fees and in the time it takes to prepare the information for your accountant.
We can work with our investors to forecast the revenues, expenses, cash flow, and debt reduction of any single property or even their entire portfolio. This is very helpful to budget for large future expenses, (i.e., furnace, roof, boiler, etc.) or even to help evaluate a possible future investment. This comes with our excellent staff and if used properly we can be invaluable too to the investor.
The Collection Policy
Our policy simply stated is:
Rent is due on the 1st. It is late on the 6th. If it is not in by the 6th a 3 day notice to vacate is posted the 2nd business day after the 6th. After that if the tenant is still occupying the property the matter is turned over to the attorney and he works through the courts to get a formal eviction. A late fee of 10% of scheduled rent is charged on rent received after the 5th. Late fees are retained by management.
- Monthly Management Fee is 10% of Collected Rent
- Lease up Fee is 40% of Scheduled Monthly Rent for the first year and 10% for each subsequent year
- Maintenance Rate is $35.00 per hour (in-house maintenance staff)
All the above services are included with these fees.