It is our job to maximize your cash flow while preserving your property. This is the process.

Inspections:

When the property is vacant, ready to rent for the first time, we inspect it and complete a photographic report of every room and details (usually 200 to 400 photos and 6 page written inspection report) inside as well as the exterior so there is a baseline of the condition and notes of needed repairs, if any. If inhabited, we will do a visual inspection and then do a baseline inspection when it is next vacant and ready for rent.

We inspect when tenants move in and again three months after they move in, again at nine month and annually thereafter unless problems are indicated and again when they move out and the cycle resumes.

Renting your property…the process

1. Give you a list of comparable properties and advise on the rent amount…we advise, you decide.
2. Take pictures to illustrate the listing
3. Install lockbox and yard sign
4. List in REIN (the local real estate MLS) , distribute to other 90+ of the most popular real estates including the military housing site.

Showings:

We follow up on all leads, show the properties, take credit applications and run credit and background checks. You are notified weekly of the showings, thoughts of the property manager and feedback from prospects. For vacant property we utilize the ShowMojo self-showing system so prospects can view the property at their convenience.

Credit Approval:

Credit applications are made online via our website and include a complete credit report, credit score and criminal background check. We contact applicants’ current landlord to verify the applicant lived there, has no late payments, amount of rent and would he/she rent to them again. We also look up the property owner on tax record to be sure they’ve not given the name of a friend as their landlord. Also obtain a copy of latest earnings statement and photo id.

Rental fraud happens more often than one would think…had one recently that almost convinced me until I called the apartment complex office number and the purported property manager didn’t work there and the applicant had never lived there…oops.

You are then sent copies of credit application, credit report, photo id, pay stubs/income verification and landlord report with our recommendation… you make the final decision unless you prefer that we do.

Rent Proceeds:

Rents are due on the first. Rent proceeds are generally processed to your bank accounts by ACH electronic deposit (unless you prefer a mailed check) on the 7th of the month, in your account on the 8th, or the next working day if that’s a holiday or weekend.

When you are paid by ACH we send an e-mail with statement for each property and you have online access to statements and other information regarding the property.

We do not hold payment waiting for rent check clearance and should a check or tenant ACH (most pay by ACH) bounce we collect from the tenant and retain the returned check fee of $50 for our trouble.

Collecting Rent:

If not paid by the 5th of the month a late fee ( 10% of rent which is split 50/50 between us) is assessed and we call, e-mail or text (depending on tenant’s preferred method of communication) to remind tenant that payment has not been received and to be sure there is no problem.

If not paid by the 10th we send a “5 day pay or quit letter” and if that doesn’t do the job, issue an unlawful detainer around the 15th. We do not make deals with tenants regarding delinquencies…ie..giving them time to catch up, without the approval of the owner.

COVID has disrupted the normal process with eviction moratoriums, different judges handling things different ways but we have been able to pursue collections as avidly as rules and regulations permit and have proactively utilized the state rental assistance program to collect over $600,000 in delinquent rents for owners.

We handle court cases in-house unless a case is contested and an attorney is required to file certain documents for trial. We charge the $50 for each trip made to court to file the warrant and to appear in court or to do an eviction plus the court costs of the warrant and eviction writ…generally $56-80 for summons and $25 for eviction writ. These are initially paid by the owner from the reserve escrow account but reimbursed if/when the tenant who is liable for them does pay them.

If there is an eviction there will also be a charge by the locksmith to change locks unless the locksets are Kwikset Smartkey locksets the property manager or employee attending the eviction can re-key in seconds.

Fortunately our excellent application process means we have few delinquencies and rare evictions.

If a tenant disputes a case and asks for a trial, and the judge asks for a Bill of Particulars and Grounds of Defense this is beyond the representation allowed by non-attorneys. This rarely happens.

Reports:

Tenant statements, notes, repair requests, documents and owner reports are available via an owner portal to our software any time. We issue 1099’s to any contractors paid and a 1099 to you with an annual statement showing all gross receipts on your behalf and expenses categorized for your tax accountant’s benefit.

Repairs & Maintenance:

If you have contractors you prefer to use for specific types of repairs we will use them so long as they are licensed and carry liability and workman’s comp. If they don’t we can still use them if you pay them directly.

We have a small in-house maintenance crew. For most routine maintenance items we can provide faster and less expensive service. The cost is $120.00 per service call with hourly rate dropping to $90 per hour billed by the quarter hour if more than one hour is required.

If we can get the job done at less cost using an outside contractor we do but where a subcontractor can provide less expensive service (mowing, etc) we hire it out. Projects requiring more than routine maintenance are bid with other contractors to be sure you get the best price available from competent companies or if so minor no one wants to take the time to go look, assigned to a competent contractor with whom we deal regularly.

All tenant calls for repair come to our maintenance manager or after hours to the property manager assigned to your property or to our emergency phone. With the experience they’ve had building and rehabbing and fixing over the decades, many times a service call can be avoided by suggesting steps the tenant can take to resolve the problem. If the the problem cannot by solved over the phone and the situation warrants, we ask the tenant to take pictures and text or e-mail for clearer evaluation as often tenants simply don’t have the technical vocabulary to adequately describe the problem in terms of other than “it’s broke.”

Excepting emergencies we contact you with a description of the problem and our assessment before making repairs.

We respond quickly to service requests to:

1. Please the tenant in hopes they stay forever
2. To preserve and protect your property

We pay repair invoices and deduct from the $300.00 Reserve Escrow which is replenished from the next month’s rent. Copies of invoices and pictures of the repair are sent to you excepting for repairs done by outside contractors who don’t usually take pictures.

We pay all repairs the day after the bill arrives if there is sufficient money in the repair reserve or from the next month’s rent if not. Contractors appreciate being paid timely and are more cooperative when we want service immediately at a fair price, well done.

We follow up by calling the tenants to see if the job was done and are they happy for I want them to stay forever if they pay their rent on time and take care of the property.

Move-outs:

We do a walk-through after tenants have moved out, carpet has been cleaned and any other tenant responsibilities handled. The move-out inspection is performed by the property manager.

Photos are taken of any deficiencies found during the inspection. The cost of repairs attributable to the tenant (who signed a Move Out Requirement form with detailed instructions and costs when they signed the lease) is compiled, deducted from the security deposit and deficiencies corrected made upon your review and approval.

The law gives 45 days to do this but we prefer to accomplish the thing as quickly as possible.

Renewal/Replacing a Moving Tenant:

Our leases automatically renew for the next year unless the tenant or owner gives notice at least 60 days prior to the lease end date of their intention not to renew. Upon receipt of such notice, if the owner wishes to continue renting the property, we immediately put the property on the market in hopes of having it rented before the current tenant leaves. Our leases require that tenants who have given notice they are leaving allow us to show the property and we put it on the market as soon as they give notice, hoping to avoid a vacant month. (Again, COVID has disrupted this a bit but demand is so high the time on market has actually dropped in the past year.)

You will be sent a market analysis approximately 90 days prior to any lease expiration date showing both comparable rents and sales prices so you can decide if it’s time to raise the rent or sell the property or simply continue as is.

We contact the tenant about 75 days before the lease is to renew to remind them and find out their intentions for despite the lease and it being one of the points made when they sign the lease, folks forget it renews automatically 60 days prior to expiration and think they only have to give a 30 days notice.

If a rent increase is made we let the tenants know that taxes and insurance costs have also risen and provide them a copy of comparable rents showing they are still getting at or below market rate.

Relationship with Owners:

It’s your property. You should be kept informed of what goes on, be given sufficient information to make good decisions and as involved as you choose to be. Our job is to balance the eternal tension between maximizing income and taking care of the property against keeping tenants happy and ensuring they meet their rent payment and maintenance obligations.

Operations during COVID-19 Quarantine

Maintenance operations are considered construction and a necessary industry so our maintenance crew and contractors continue to work.

About half our staff works at the office and half continue to work from home but with the VOIP phone system, all work online and a well trained staff, work has not been interrupted and continues as seamlessly as if all were at the office.

Rental showings continue normally for vacant properties though most tenants whose leases are expiring and whose properties are listed for rent do not want strangers in their homes during this time and we honor their wishes. We have been using self showing VaultBoxes for some time on vacant properties whereby prospects send us a copy of their drivers license and a time and date they want to see the property. We send them a code good for one hour and they are able to see the property at their convenience. We have not seen a fall off in showings or applications for vacant properties during this crisis.

Court closures and emergency rules on eviction have disrupted collection procedures but we are now able to file summons for unlawful detainer to evict tenants and do continue to add late fees where allowed and notify all late paying tenants that there is no rent abatement and encourage them to avoid future court action by catching rent up or calling to make other acceptable arrangement or allow us to make application on their behalf for state funds.

No late fees are allowed during this crisis for properties financed with FHA, VA or other government backed or owned loans and we request that information from all owners whose tenants are late in order to comply with federal regulations.

Hope to hear from you. Call me anytime at 757-506-6564 or akeffer@kefferrealty.com.