Residential Landlord FAQ
How it works
When a new client calls us they often start with "can you tell me how it works?"
Sometimes they are new to becoming a landlord and some are really asking "how do you do business?"
Either way the answer is the same.
Most property managers do the same thing. We have different strengths and different people in our staff with their own skills and levels of performance but the tasks are essentially the same. We differ a little in how we achieve them and we differ in our prices but after that almost all residential rental managers do this:
1) Assess the property and discuss the value with the owner.
note: this is how we choose a price
2)Take photos
-hopefully good ones
3)Post advertisements
note: we pre-screen applicants
4) Show the property to potential tenants
5) Process applications, background checks, etc.
6) Negotiate a lease.
7) Collect the Security Deposit and put it in a Trust account
8) Collect the rent and deliver it to the owner less fees and/or costs.
9) Do the move-in inspection.
10) Collect rent monthly and deliver the balance to the owner,
11) Ongoing tasks
If the tenant has any issues they contact us for help.
if the owner has any issues they contact us for help.
If the tenant gives notice to move-out we begin advertising again.
If the tenant is failing to pay rent or other issues we handle the eviction and if necessary court proceedings.
12) After move-out we do a move-out inspection.
13) Clear and repair the property within the limits of the tenancy act.
14) Refund the balance of the Security Deposit to the tenant.
And start the process all over again.
Sometimes they are new to becoming a landlord and some are really asking "how do you do business?"
Either way the answer is the same.
Most property managers do the same thing. We have different strengths and different people in our staff with their own skills and levels of performance but the tasks are essentially the same. We differ a little in how we achieve them and we differ in our prices but after that almost all residential rental managers do this:
1) Assess the property and discuss the value with the owner.
note: this is how we choose a price
2)Take photos
-hopefully good ones
3)Post advertisements
note: we pre-screen applicants
4) Show the property to potential tenants
5) Process applications, background checks, etc.
6) Negotiate a lease.
7) Collect the Security Deposit and put it in a Trust account
8) Collect the rent and deliver it to the owner less fees and/or costs.
9) Do the move-in inspection.
10) Collect rent monthly and deliver the balance to the owner,
11) Ongoing tasks
If the tenant has any issues they contact us for help.
if the owner has any issues they contact us for help.
If the tenant gives notice to move-out we begin advertising again.
If the tenant is failing to pay rent or other issues we handle the eviction and if necessary court proceedings.
12) After move-out we do a move-out inspection.
13) Clear and repair the property within the limits of the tenancy act.
14) Refund the balance of the Security Deposit to the tenant.
And start the process all over again.
How we are different
How we are different.
We price our service to match and motive our performance.
Since we do not charge anything up front we don't get paid until you get paid.
If we have an existing tenant but they haven't paid rent yet then we don't paid until rent is collected.
We don't get paid extra to deal with tenant caused issues.
And we are on a percentage commission.
Thus we have to balance these three things.
-How soon (to get paid).
-How much (how much we get paid).
-Fewest problems (because we get paid the same amount regardless of the issues).
So - we have every incentive to rent out your home as soon as possible, for as much as possible, to the best available applicant.
As such we take professional pictures (not cell phone pictures).
We advertise each property individually.
And we pre-screen applicants, then do a background check to avoid poor tenants.
We price our service to match and motive our performance.
Since we do not charge anything up front we don't get paid until you get paid.
If we have an existing tenant but they haven't paid rent yet then we don't paid until rent is collected.
We don't get paid extra to deal with tenant caused issues.
And we are on a percentage commission.
Thus we have to balance these three things.
-How soon (to get paid).
-How much (how much we get paid).
-Fewest problems (because we get paid the same amount regardless of the issues).
So - we have every incentive to rent out your home as soon as possible, for as much as possible, to the best available applicant.
As such we take professional pictures (not cell phone pictures).
We advertise each property individually.
And we pre-screen applicants, then do a background check to avoid poor tenants.
our pricing
We offer a few different packages
Our pricing is very simple.
The greater of $150 or 10% a month. Plus $585 one-time new tenant fee
But only when rent is received.
No Rent = No Fee.
ZERO up front fees.
One-time new-tenant fee NOT DUE until we actually get it rented.
This is one time and if the tenant stays is never charged again.
If the unit is vacant there is no fee.
If the tenant does not pay there is no fee until we collect it.
ZERO Surprise Fees
ZERO Startup or Setup Fee
ZERO Advertising Fee
ZERO Inspection Fees
(max one per 4 months [free 3 per year outside of the move-in/out. Issue related inspections are also free)
Discounts Available for 3 or more properties or single dwellings that rent for more than $2500/month.
You would NOT be charged these without first a discussion and permission, and they are not mandatory: Non-core service fees range from $75/task to $140/hr depending on the task. Examples of this would be forwarding the owners mail, picking up and delivering a new countertop microwave, letting a bank adjuster into the property, or completing major non-emergency maintenance such wiring in a new smoke detector.
Our pricing is very simple.
The greater of $150 or 10% a month. Plus $585 one-time new tenant fee
But only when rent is received.
No Rent = No Fee.
ZERO up front fees.
One-time new-tenant fee NOT DUE until we actually get it rented.
This is one time and if the tenant stays is never charged again.
If the unit is vacant there is no fee.
If the tenant does not pay there is no fee until we collect it.
ZERO Surprise Fees
ZERO Startup or Setup Fee
ZERO Advertising Fee
ZERO Inspection Fees
(max one per 4 months [free 3 per year outside of the move-in/out. Issue related inspections are also free)
Discounts Available for 3 or more properties or single dwellings that rent for more than $2500/month.
You would NOT be charged these without first a discussion and permission, and they are not mandatory: Non-core service fees range from $75/task to $140/hr depending on the task. Examples of this would be forwarding the owners mail, picking up and delivering a new countertop microwave, letting a bank adjuster into the property, or completing major non-emergency maintenance such wiring in a new smoke detector.
the order of things: before you rent out the property
This is the most basic summary.
- Read the residential tenancies act and the government help sites so you understand the rules.
- Make sure the home is in proper condition for a tenant.
- Take good advertising pictures or hire a photographer to do it. It needs to be wide-angle and a good phone is not wide enough without an adapter. Even then it is not usually good enough but it may give you time.
- Look at what other people are asking for similar units. Remember these units are vacant and NOT a good indication of what tenants are really paying. But it does give you a starting point. If the market is bad we strongly recommend under-pricing the other people. Vacancy time will cost you more than the lower monthly rent. Have a look at our How to Price page.
- When people call you always pre-screen before showing them the property.
- Always use a lease and both of you and the tenant sign it. Always provide them a copy ASAP.
- Always collect both the Security Deposit AND the Rent before you hand over keys. Do not be tricked or accept excuses or sudden emergency reasons.
- Always do a move-in inspection and both you and the tenant sign it, and give them a copy ASAP. Consider using an inspection app on a phone that can include pictures.
- When they move-out always do a move-out inspection with the tenant ASAP. You only have a total of 7 days from their move-out to do this. If they don't contact you you need to give them 2 appointment options then do it yourself and send them a copy. Ask for a forwarding address.
- After the move-out you have 3 more days (10 from their move-out day) to mail them the Security Deposit Statement and any refund. If you do not know the costs you can write in estimates and then you have another 20 days to get a final proper Statement with actual receipts. You must mail the tenant the Statement by regular post. Keep your receipt or take a picture of mailing it. If they have not provided a forwarding address then mail it to the "last known address' AKA the rental property they just moved out of.
choosing your tenant
We always pre-screen. This is the first thing we do:
"If it's OK we have a few questions before we make an appointment.
Do you have a job? How many working adults would be living there? What are the weights of any pets? When would you move in? And how long can you stay?"
This eliminates most incompatible tenants. And, as a second benefit - when tenants cease to respond immediately it has inevitably been because they realized you are going to do a full application later, which they won't likely pass.
As for the full application the most important things are their photo ID and paystubs. You need to verify the person is who they say they are, especially if you ever need to go to court, and you need to verify how much they make and from where.
"If it's OK we have a few questions before we make an appointment.
Do you have a job? How many working adults would be living there? What are the weights of any pets? When would you move in? And how long can you stay?"
This eliminates most incompatible tenants. And, as a second benefit - when tenants cease to respond immediately it has inevitably been because they realized you are going to do a full application later, which they won't likely pass.
As for the full application the most important things are their photo ID and paystubs. You need to verify the person is who they say they are, especially if you ever need to go to court, and you need to verify how much they make and from where.
dealing with non-payment
Be consistent and follow simple expectations.
if they are late call them and ask for the rent. Do this without attacking words. And try to reach them informally before dropping off a formal eviction notice.
Ask them if they can pay even some to show they are trying. Something shows they mean it. Nothing is a really bad sign. Usually 2 weeks delay is reasonable if they show effort.
If they do not pay in 3-5 days(regardless of if they respond to you) give them a 14 notice of eviction due to unpaid rent. We also recommend posting a separate notice of inspection and go check on the property properly. If they are causing significant damage you can use a 48 hour eviction due to the damages if you feel the need. Make sure you follow the rules about the notice or they can ignore it. If they respond then consider waiting the 14 days before doing anything else. If they do not respond consider opening a court file sooner than later.
This may surprise an owner but empathy and a firm approach is the balanced approach. If you start threatening a tenant in your fear of what they are doing you will emotionally exhaust them. If a tenant has not paid rent or are causing other problems, even if they seem just to be stubborn, more likely they have other stresses going on.
By taking an attacking approach they are more likely to fight back, and leave your walls with a few holes.
Show gentle understanding that you understand that life is hard, that you would love to help but cannot afford it because the bank won't give you a break in turn. Even in the eviction letter show some expression that you sincerely regret it and hope it works out. They are not usually likely to leave the home cleaned but they do not usually beat it up.
If there are ongoing issues during the tenancy you need to address them as they happen. If you wait until the end and try to deduct it from the Security Deposit you may not be allowed. The court expects you to have requested payment as issues occur. They do not accept avoiding conflict.
if they are late call them and ask for the rent. Do this without attacking words. And try to reach them informally before dropping off a formal eviction notice.
Ask them if they can pay even some to show they are trying. Something shows they mean it. Nothing is a really bad sign. Usually 2 weeks delay is reasonable if they show effort.
If they do not pay in 3-5 days(regardless of if they respond to you) give them a 14 notice of eviction due to unpaid rent. We also recommend posting a separate notice of inspection and go check on the property properly. If they are causing significant damage you can use a 48 hour eviction due to the damages if you feel the need. Make sure you follow the rules about the notice or they can ignore it. If they respond then consider waiting the 14 days before doing anything else. If they do not respond consider opening a court file sooner than later.
This may surprise an owner but empathy and a firm approach is the balanced approach. If you start threatening a tenant in your fear of what they are doing you will emotionally exhaust them. If a tenant has not paid rent or are causing other problems, even if they seem just to be stubborn, more likely they have other stresses going on.
By taking an attacking approach they are more likely to fight back, and leave your walls with a few holes.
Show gentle understanding that you understand that life is hard, that you would love to help but cannot afford it because the bank won't give you a break in turn. Even in the eviction letter show some expression that you sincerely regret it and hope it works out. They are not usually likely to leave the home cleaned but they do not usually beat it up.
If there are ongoing issues during the tenancy you need to address them as they happen. If you wait until the end and try to deduct it from the Security Deposit you may not be allowed. The court expects you to have requested payment as issues occur. They do not accept avoiding conflict.
Move In and move out inspection
The move-in is extremely important. If you don't have one you cannot charge the tenant for any damages caused.
We recommend using a photo based inspection application on a phone. Something that takes pictures, ads notes and accepts signatures.
If you don't do the move-out you might still be able to charge them but you won't be allowed to deduct it from the Security Deposit.
We recommend using a photo based inspection application on a phone. Something that takes pictures, ads notes and accepts signatures.
If you don't do the move-out you might still be able to charge them but you won't be allowed to deduct it from the Security Deposit.
Maintenance
Our main number 1-888-866-8848 provides options for tenants to reach someone 24/7
We do have contractors of every sort.
The most common problem we have is getting good contractors to look at jobs less than $500. They will require a call out fee, which is anywhere from $75 to $140 even before they do anything. If we try and fight these call-out fees then the contractor will not service the property again, and worse, they may not service the property manager again. For this reason we disclose in our service agreement the call-out fee. Again, this is not from us but from the contractor.
Quality of contractors. We must use larger and more organized providers. We have to use contractors with enough employees to be available when needed. Contractors also need appropriate licenses and more importantly insurance. In the event an issue goes to insurance a proper licensed contractor must be qualified to write reports. Some small one-man contractors may be cheaper but they are often not available when needed or they do not have sufficient business insurance for liability reasons.
We do have contractors of every sort.
The most common problem we have is getting good contractors to look at jobs less than $500. They will require a call out fee, which is anywhere from $75 to $140 even before they do anything. If we try and fight these call-out fees then the contractor will not service the property again, and worse, they may not service the property manager again. For this reason we disclose in our service agreement the call-out fee. Again, this is not from us but from the contractor.
Quality of contractors. We must use larger and more organized providers. We have to use contractors with enough employees to be available when needed. Contractors also need appropriate licenses and more importantly insurance. In the event an issue goes to insurance a proper licensed contractor must be qualified to write reports. Some small one-man contractors may be cheaper but they are often not available when needed or they do not have sufficient business insurance for liability reasons.
The Residential Tenancy Act REQUIRES owners do appropriate maintenance. This is not really subjective. We have found this includes having walls in good repair and all baseboards on. If a property is not well maintained a tenant can ask for abatement (a discount) and generally the court will give them something even if the maintenance is small.