“At Homeowners Property Management has been helping people own their dream home for over thirty years. Our success is built on our solid foundation: Worry-Free Living. The secret to our success is from our proven system: “communicated care”: our Tenants and our staff are our #1 goal. We truly believe that our core value is “service-oriented…” It is about the experience – the Tasks, the People, and the daily relationship we share with each tenant. We strive to offer an amazing experience to each person every day, and that’s what makes us different.
As a residential rental property management company, you’re not only in the business of selling or renting your properties, but you also need to be in the business of actually getting those properties rented or sold. One of the most common problems of landlords is that they lose money too fast. This is not the goal of homeowner’s property management companies. Our company believes that it’s about the ROI (Return on Investment) and having a good tenant base that actually supports the revenue stream. The only way to support revenue flow is to constantly grow the tenant base – both on the rental and owner-occupied fronts. This is where homeowners’ property management companies excel.
Your monthly invoice is filled out by one of your Tenant/Master Cleaners, and that is typically the first thing that a new client sees when they call to do an inspection. The following paragraphs will describe working with a homeowner’s property management company. First, your Tenant/Master Cleaner will submit the necessary paperwork and submits an insurance policy to the insurance carrier.
The second part of your monthly invoice is the actual transaction cost. Here are some things to keep in mind as you prepare this section of the invoice: Whether you charged a discount to get an applicant because of their credit score, if you gave any applicant special treatment (i.e. if you considered them a good risk) and whether you charged anything above the applicable fair market value for the residential rental property. If you charge anything above fair market value, your potential tenant may not feel comfortable living in your house. Your client’s credit score will influence this decision in the end.
The third part of the monthly invoice is the actual rent paid for each tenant. Your process will vary from property to property, but generally, you set up an arrangement whereby you pay the rent to your Tenant/Master Cleaner and the Security Deposit to your homeowner. This portion of the monthly property management agreement will vary from company to company. If you are setting up an equity percentage agreement, your percentage of the equity will also be taken into account when calculating the rent payment. You may want to include some form of late fee and additional charges in the monthly amount of rent. Make sure you have these items in the clause of the lease.
The final part of your monthly bill is the actual money for the residential properties. You are required by law to pay a Property Insurance premium on your investment through homeowners’ property management. This will cover the cost of liability coverage, property taxes, and the loan principal. You may also want to include depreciation coverage on some of the rental properties that you hold. In many instances, you cannot deduct these expenses from your income taxes.
At the end of the year, most rental properties will have to be sold and the proceeds should be applied to the outstanding balance of your loan. This is often where a real estate investor would make an offer on the property. With a turnkey system, you can have the properties and all of the associated work orders already set up for you to collect rents on a monthly basis. Your monthly rent payment will only include the cost of the property and all of the work orders that have been contracted to you. This streamline method of doing business allows you to more efficiently manage your inventory and your overall property portfolio.
Many investors with these systems find that their monthly income and bottom line improve dramatically when utilizing a turnkey system like this. You can rest assured that any tenant that signs a contract through one of these third-party management agreements will also receive full customer support via the owner portal. You will not be dealing with angry tenants or back-breaking work orders again.