PROPERTY MANAGEMENT FEES
- Monthly Management Fee – 8% of Gross
Monthly Rent (minimum $100)
- One Time Admin Setup Fee – $299
- Tenant Placement Fee – $250
- Realtor Referral Fee – $300
- Minimum Reserve Requirement $250
Our minimum reserve requirement is only $250.00 (depending whether you have a home warranty or not), which we collect to cover the immediate costs of authorized minor repairs and/or maintenance work.
No Tenant Renewal Fee
First Class Realty does not charge our owners a fee if the tenants renews their lease. Most property management companies charge anywhere from a $100-$300 renewal fee.
Maintenance and Administrative Fees
First Class Realty does not charge miscellaneous fees to coordinate the repairs and pay the vendors on your behalf. This is all included in the property management fee.
No Advertising Fee
As a benefit to our landlords, we do not charge extra fees for online advertising and marketing. While we do provide and extensive amount of marketing and advertising to get your property lease, this is all included in your property management fee.
We use different methods of marketing and adverting including a strong search engine marketing campaign, single property web sites, craigslist and facebook. Our goal is to have your property leased within 30-45 days.
However, if you would like additional advertising such as newspapers or other print classifieds we will be happy to handle that for you but you would be responsible for the cost of the advertising.
Although you may want to go the extra step to reach to as many potential renters as possible it probably isn’t necessary. Most of our rental properties are successfully rented out through our overwhelming online presence and through the MLS.
We use Buildium, the number one property management software company for all our accounting services. All of our landlord and tenant statements, banking, monthly payments… and all other secure and sensitive information is managed through this system that is a security fortress that keeps everyone’s personal information totally safe and private.
One of the benefits of Buildium is that our tenants and landlords can login to view their accounts, pay rent, receive payments and pay bills.
In addition to your online account access, First Class Realty will provide you with a detailed report each month that breaks down all income and expenses for your property.
All invoices and receipts for any repaired items as well as any correspondence on your property will be included in each report. These reports will be sent to you no later then the 15th of each month.
Owner proceeds will be disbursed by the 10th of each month by direct deposit (preferred) or check, unless the tenant pays their rent late.
A 1099 tax form will be provided at the end of the year for all tax and accounting purposes.
First Class Realty has a very extensive tenant screening process. It is very important to our property managers to take every step possible to protect our clients’ rental properties.
We take every upfront precaution to avoid getting into a situation of having to evict any tenants as that is not in anyone’s best interest.
We also take steps to make sure the tenants are following through with the regular maintenance requirements that are outlined in the lease agreement. The last thing an owner wants is to have to spend thousands of dollars rehabbing a property every time a renter moves out. This saves you the anxiety of worrying about your investment until the time the tenants vacates.
We do everything we can with our targeted online rental marketing campaigns to attract the most trustworthy and qualified tenants for our owners.
The Qualification Process
In order to make sure we are providing you with the most qualified tenants, we go through the following check list…
- Credit Check
- Criminal Background Check
- Employment Verification
- Income Verification
- Rental History Verification
- One-on-One Interview
With the high amount of foreclosures and short sales in today’s real estate market many people will have no choice but to rent for a while.
Because of the current economic situation that many people have found themselves in it is not uncommon for many people to have some type of negative mark on their credit due to a foreclosure, short sale or bankruptcy.
However, it’s imperative that the property manager thoroughly reviews their credit to look for signs of credit abuse, previous evictions, unpaid utilities, a history of numerous late payments or any other patterns of defaults.
Once we have gone through the check list make sure they are qualified to lease the property we will then interview them personally.
Our property manager will schedule an appointment with the prospective tenant to ask specific questions for clarification on our findings.
We do not want our applicants to feel like they are being interrogated but it is important to meet with them to ask questions and let them have the opportunity to clarify anything that may help us understand their situation. We do pay close attention to every aspect of the conversation to get a better feel for who is signing a lease agreement.
By meeting with the tenants face to face this allows us to build a mutual respect with our tenants so that they know they can call us anytime with concerns and will know that we are a professional property management company that cares about our tenants and landlords.
This interview usually takes place at the office or in a convenient location for the applicant. However, there may be instances where we will conduct a phone interview in cases where the applicant yet in town but is moving here.
The Final Decision
We grade each applicant on an unbiased point system to ensure that there aren’t any fair housing laws violated. This system takes into account their income, credit, rental history and several other factors.
Based on this system it is determined if the tenant is approved, approved with a larger security deposit or denied.
We will consider input from our landlords but we also make sure our staff and landlords are not violating any one’s rights as set forth in the Fair Housing Act.