CENTER WE SPECIALIZE IN MANAGING SINGLE FAMILY HOMES IN GEORGIA EXPERIENCE * EXPERTISE * EXCELLENCE

Transcription

1 CENTER WE SPECIALIZE IN I MANAGING SINGLE FAMILY HOMES IN I GEORGIA EXPERIENCE ** EXPERTISE ** EXCELLENCE OWNER MANUAL Wellll Reprresentted Ownerrs Wellll Qualliiffiied Tenantts Equalls Happy Ownerrs!! 1140 OLD PEACHTREE RD..,, SUITE D DULUTH,, GA Voice: Office: Fax: Owners@atlantapropertymanagement.com Website:

2 TABLE OF CONTENTS Welcome...5 Overview of Services and Fees.6 Management Fees...6 Electronic Payment..6 Owner Payments and Statements.6 Tenant Screening.6 State of the Art Marketing...6 Maintenance Services.7 Rent Collection and Evictions.7 Getting Stated...8 Initial Site Visit..8 Proposal 8 Management Engagement Begins 8 Property Intake.8 Rent Ready Units.8 Keys and Remotes...9 Marketing...9 RE/MAX Center Team Cowan...9 Mission...9 Principles...9 Owner Documents.10 Property Information...10 Owner Information.10 Electronic Banking Authorization ACH form...10 Mortgage Authorization...10 Utility Authorization...10 Owners W9.10 Management Agreement..10 Insurance Authorization...10 Change of Owner Information...10 Owner Work Request/Authorization...10 Owner Vacation Notice...10 RE/MAX Communication...11 Company Communication...11 RE/MAX Website...11 General Office Information...12 Address 12 Communication..12 Emergencies...12 Monthly Newsletter 12 Staff/Personal.12 Owner communication Owner Vacation Notice...13 Owner Responsibilities...13 Page 2 of 31

3 Company Policies...14 Department of Real Estate Requirements...14 Code of Ethics...14 Drug-Free Policy...14 Legislation...14 Lead-Based Paint...14 Mold Issues...15 Answers Regarding Funds...16 Banking...16 Monthly Statements...16 Disbursement of Monthly Funds...16 Deposit Holds.16 Accounting Software..17 End of Year Procedures...17 Renting Your Property...18 Preparing to rent the property...18 Requirements for Property Condition.18 Utilities.18 Transferring Utilities to The tenant..19 Cleaning of Property..19 Setting the Rent...20 How Long Will the Property Be Vacant?...20 Advertising/Marketing...21 Publications/Newspapers...21 Internet/Website...21 Signage...21 Showings and Applications...21 MLS Databases..21 Agent Referrals..21 Processing Tenant Applications...22 Tenant Screening...22 Cosigners...22 Application Approval..22 Pets...22 Service animals...23 The Tenant Move In...24 Rent and Security Deposits...24 Rental/Lease Agreements...24 Walk-Through...24 Tenant Handbook...24 Tenant Education and Preparation...24 Working with Your Tenants...25 Collecting Rent...25 Notice to Pay or Quit...25 Evictions..25 Other Notices...25 Tenant Problems...25 Maintenance...26 Preventative Maintenance...26 Emergencies/Disaster...26 Selection of Vendors.27 Maintenance Company ARIPM 27 Page 3 of 31

4 When The Tenant Vacates...28 Notice to Vacate...28 Communication with Owners and Tenants...28 Tenant Move Out...28 Security Deposit Refunds...28 Collections...28 Additional Services...29 Referrals...29 Annual Survey/Inspection...29 Supervision of Extraordinary Maintenance...29 Refinancing of Property.29 Eviction Protection Plan...29 Real Estate Services...29 Cancellation of Management...30 Written Notice...30 Notice to Current Tenants...30 Distribution of Documents...30 Final Distribution of Funds...30 Conclusion...31 Page 4 of 31

5 WELCOME We Specialize in Managing Single Family Homes Thank you for choosing RE/MAX Center, Team Cowan to manage your investment. We are aware that you had many choices and we appreciate that you have selected us as your Property Management Company. Many of our clients are not investors, but homeowners like yourself who have decided to lease your home for a variety of reason. Because of this, some items in this manual may be new to you. Therefore, we have prepared this Owner Manual to assist you in a successful business relationship with our company. RE/MAX works to achieve the highest professionalism in Real Estate Sales and Property Management Services. We urge you to take the time to review the information enclosed. We feel this will further clarify many of the questions you will have pertaining to the procedures for our Property Management services. Please contact us immediately if you have questions, using the company contact information provided in the following pages. Special note: The information provided in the RE/MAX, Team Cowan, Owners Manual is subject to change. Landlord/Tenant laws, personnel, policies, and procedures change accordingly to events that take place. RE/MAX works diligently and continually to improve services and personnel training and remain current with all landlord/tenant legislation. Once again, thank you for choosing RE/MAX, Team Cowan, as your Property Management Services provider. We look forward to a successful business relationship. Page 5 of 31

6 OVERVIEW OF SERVICES AND FEES Management Fees Tenant Procurement Fee: One Month s rent Ongoing monthly Management fee: % of monthly rent Renewal fee (when tenant remains longer then 12 months) Repair Fees Eviction costs (pass through) Copying Fee of $1.00 per page for reprints, extra copies These are just a sample of some of our fee s, there may be more or less. Please review your management agreement for which fees apply to you. Electronic Payment Owners paid by direct deposit. Tenants may pay rent by electronic check, Money Orders, and U.S. postal mail. Owner Payments and Statements Each owner has a secure folder on our Property Management software system, with copies of paid invoices, management agreement, lease agreement, monthly statements and annual statements. Owner funds are disbursed on the 10 th and 25 th of each month, or the next business day thereafter. Owners receive a 1099 form at the end of each year for tax preparation. Tenant Screening Income verification Rental History Prior eviction actions Credit History Criminal Background We believe that diligent Tenant Screening is key to a successful relationship. We follow the guidelines published by the Fair Housing Act on every applicant. State of the Art Marketing First Multiply Listing Service (FMLS), Used by R.E. Agents and Realtors. GA Multiply Listing Service (GA MLS) Used by R.E. Agents and Realtors. REMAX, Local and International syndication of Listings Used by people all over the WORLD! Numerous Paid and Free Websites Used by People all over the country. Atlanta Property Management website Used by people locally and nationally. On-Line Rental Applications. Electronic Signatures for Easy Signing. Page 6 of 31

7 Maintenance Services Long term vendors that can handle 99.9% of items that are reported. On-line maintenance reporting from tenants. 24 x 7 Monitored maintenance hotline for emergency. 6:00am to Midnight monitored Maintenance service calls Rent Collection and Evictions We insist on timely rent payment from tenants. We act promptly when rent is not paid. When necessary, we handle the entire eviction process. Be the sole point of contact for the tenant about the property. Deal with the situation when the tenant does not pay the rent, all the way through eviction and collection s if necessary. Page 7 of 31

8 GETTING STARTED Initial Site Visit A RE/MAX, Team Cowan property manager must visit your property before we can officially price it or agree to manage it. The site visit includes interior access. Proposal Immediately following the initial site visit, Team Cowan will prepare a proposal consisting of a market rent survey of rents for comparable properties in the area, a draft management agreement, and various property intake forms. We will deliver these documents to you by . The Management Engagement begins We must receive these items to begin the management engagement: 1. A signed management agreement with intake documents completely filled out. 2. Keys to the property, sheds, entry doors etc. 3. Garage/Gate openers, codes to any security systems and gates. 4. Copies of any subdivision Rules and Regulations, Covenants, Restrictions, Bylaws and further HOA documents. 5. Copy of existing leases (if applicable). 6. Copy of Home warranties. 7. Copy of deed for property (we can assist if you can t locate one). Property Intake Survey When we have received the management agreement, keys, and other items listed above we will survey the property. RE/MAX Team Cowan does this to ensure that we can accept the risk of placing a tenant in the property and that the property is ready for market. When we survey the property we will do the following: Test all electrical circuits Verify that all light fixtures work and have light bulbs Verify that all appliances work Verify that the furnace and air conditioner work Verify that all plumbing fixtures work Verify that windows are operable Verify that all utilities are turned on Verify that all remotes are accountable for Look for obvious structural defects Verify carpets are within their life cycle Verify that the property is in white glove showing condition inside and out Verify that all exterior doors may be operated by a single key Verify that the property meets RE/MAX Team Cowan requirements for move-in condition Rent Ready Units After the property survey RE/MAX, Team Cowan will send you a report of our findings. Sometimes the property is ready to market and needs no repairs. Sometimes extensive work is needed. If work is needed, we will send you a list of repairs along with our bid to complete the work. You may choose to have ARIPM complete the work or you may complete the work yourself. Team Cowan policy allowed owners to make repairs themselves if property is vacant only, otherwise you must use Team Cowan contractors of choice will the property is occupied. Page 8 of 31

9 Keys and Remotes The tenants reasonable expectation is to enjoy everything they are entitled to in the lease from the first day of their tenancy. Surprisingly, It takes weeks to round up the various keys and remotes required to give the tenant full access to the property they are entitled to, and are paying for, in their lease. Tenants become furious when this happens. Owners frequently take the strategy, Let s just market the property now and we ll get al the keys, fobs, and remotes after the tenant moves in. This strategy doesn t work and only creates a hostile environment from the start of the lease. RE/MAX Team Cowan, requires one full set of keys, fobs, remotes, clickers, codes, and any other devices required to enter the property and related amenities (such as the mailbox, pool, parking garage, exercise facility, etc.) be provided at owners expense for each tenant named on the lease, plus one complete copy for RE/MAX Team Cowan key safe. If two (2) tenants are named on the lease, this means that RE/MAX Team Cowan needs three complete sets of keys, remotes, fobs, or gate clickers. Marketing After the property is both safe for tenant occupancy and ready to market, we will take photographs, place a sign (where allowed by HOA regulations) in the yard and market the property. RE//MAX CENTER,, TEAM COWAN RE/MAX Center is a full service real estate company operating in Duluth, Ga., specializing in full-service property management and residential sales. RE/MAX is an abbreviation used in lieu of the full company name RE/MAX CENTER, and will be used throughout the Owner Manual. Team Cowan is an abbreviation used in lieu of the full company name, Tom Cowan III, and will be used throughout the Owner Manual. RE/MAX, Team Cowan Mission Statement The mission of RE/MAX, Team Cowan is to provide the highest quality of service while demonstrating integrity, professionalism and concern for the long term goals of the client. RE/MAX & Team Cowan Principals The owners/principals of RE/MAX are Pat Finnick. He is the broker of RE/MAX and have collectively, over 20 Years of experience in the real estate industry. Team Cowan, Thomas D Cowan III has 19 Years of real estate knowledge as an agent and investor. Tom Cowan provides the guidance and direction of RE/MAX Team Cowan. He personally oversee all contracts, policies, and procedures, and work to educate their personnel to provide excellent service to their clients. Page 9 of 31

10 OWNER DOCUMENTS A copy of your management agreement was included as part of your initial sign up. Please refer to it and your RE/MAX Owner Manual as needed and keep it with you for a handy reference. It is important that RE/MAX receive all critical information before we begin management to create a smooth working relationship and transition of your property from you to us. Please let RE/MAX know if you fail to receive any of the forms/agreements listed below. Property Information Info about property and HOA Owner Information Info on family important dates Electronic Banking Authorization Allow RE/MAX to transfer funds via ACH Utility Authorization Allows RE/MAX to cancel and pay for services Owners W9 Reporting of Income to IRS Management Agreement Rules of engagement Insurance Authorization Allows RE/MAX to be added to Insurance policy It is very important that owners have proper homeowners insurance. Your policy must be a landlord policy rather then a owner-occupant policy. Per your management agreement, you are required to name Thomas D Cowan III and RE/MAX Center to your landlord policy as additional insured. The policy should be for a minimum of $300, You may need to change insurers in order to acquire an insurance policy that meets these requirements. If so, we will gladly assist you in locating one. Failing to change your policy to a landlord policy could lead to a denial of claim from your insurer on a future claim. Owners frequently ask why RE/MAX and Tom Cowan, must be named as additional insured. The reason is that if either party is sued in the course of managing the property due to no fault of either party then your insurer will simply defend us along with you at no additional expense to you. Otherwise, you would become responsible for all our legal expenses personal and this could cost you a lot of money. Things have changed a lot in the insurance industry, homeowners insurance used to be very easy to get. Insurance companies have had to pay an increased number of claims recently and consequently they are looking harder before they issue or change policies. You may find that your insurer will not write a policy naming RE/MAX, Tom Cowan, as additional insured. RE/MAX, Tom Cowan is happy to furnish you with referrals to insurance agents and companies who can write the policies that provide the protection you need. During our business relationship, information can change. We have included several forms for your convenience. These forms can be located in our Owners portal section of our website. Change of owner inform Notification of any important change when it happens address, telephone, fax, , etc. Owner Work Request/Authorization This is for authorizing work requests via telephone conversations. Owner Vacation Notice Notification of unavailability of owner for longer than two (2) weeks Page 10 of 31

11 RE//MAX COMMUNICATION Communication is a key to the success in any relationship and the RE/MAX/Owner relationship is certainly not an exception. We work constantly to improve communications with all of our clients or prospective clients. This includes everyone owners, tenants, applicants, vendors, buyer, sellers, and the public. Company communication On the next page, you will find all general office information such as address, telephone numbers, address, website, and office hours. RE/MAX personnel communicate by: Telephone Fax Written correspondence RE/MAX website RE/MAX stays current with business technology. The RE/MAX website, has proved to be a tremendous asset. Here are a few of the benefits for clients on the RE/MAX website: Prospective tenants can search our site for available rentals. Prospective tenants can make application via our online application process. Tenants can access important information, such as a work order request. Tenants can pay their rent online. Tenants can send RE/MAX an from the site Prospective owners can request a comp check for their property. Prospective owners can get management information and details Prospective owners can learn about eviction process in Georgia. Owners can obtain management forms. Owners can access owners Monthly and yearly reports. Owners can visit the owners resource page. Owners can view the RE/MAX monthly newsletter, The RE/MAX Report. Owners can search property insurance information. Owners can review Georgia eviction process and information. Our Preferred vendors can logon to review and update work orders assigned to them. Page 11 of 31

12 General Office Information Address Mailing Address 1140 Old Peachtree Rd. Suite D Duluth, GA Attn: Team Cowan Street Address 1140 Old Peachtree Rd. Suite D Duluth, Ga Attn: Team Cowan Walk in not allowed, Please call to setup a time to come in to ensure that a person is there to meet with you. Office is not always manned. Communication Business # FAX # Main Office Owners@atlantaproeprtymanagement.com Website Skype By Appointment Face time By Appointment Office hours Monday Friday 9 12 am Monday Friday 1 5 pm Saturday By appointment only Sunday Closed Holidays Closed Emergencies Call Option #5 Monthly Newsletter To keep you updated on the property management industry, improvement tips, and what is going on in the rental market for the Atlanta area, you will receive our client newsletter REMAX Home Report via monthly. RE/MAX Staff and Personnel Tom Cowan Sr. Property Manager & Sales Lisa Theiseen Property Manager & Sales Teresa Cowan Property Manager & Sales Dominick Fabricatore Maintenance Supervisor Page 12 of 31

13 OWNER COMMUNICATION Communication works both ways. We need communication from you, the owner. It is important that you let us know of any significant change that can affect your account. RE/MAX needs to know when you are moving, if you have a problem with your account, if your social security number has changed to a Tax ID, or any other important information. To assist in communicating any changes to us, we have provided the Change of Owner Information form with this manual that is easy to use. RE/MAX encourages all owners to use to contact us. It is fast and effective. Please supply us with your address on all the RE/MAX forms. We will enter your address in our database. Special note: When using , we request that you put the property address in the subject line. With the problems of spam, worms, viruses, trojans, and more in the Internet world, this helps us identify the importance of your message, and avoids oversights or deletions of messages. Owner vacation notice RE/MAX respectfully requests that owners notify RE/MAX of vacations that are two weeks and over. Another alternative is to inform your Emergency contact listed on the Owner Information Form. The purpose in asking for this information is only so RE/MAX is prepared in the event of an emergency repair or major problem concerning the owner s property and/or tenant. A convenient Vacation Notification Form is included with this manual. OWNER RESPONSIBILI ITIES A successful business relationship works both ways. RE/MAX takes their management Responsibilities seriously, and requests owners to do the same. Owner Responsibilities are: Maintain the property in a condition that is marketable and habitable. Keep all utilities on during vacancy. Notify RE/MAX of any ownership change or eminent owner change for the managed property. Supply RE/MAX with accurate information so RE/MAX can service the management account properly. Review statements monthly and notify RE/MAX of any discrepancies found as soon as possible. If using ACH, check statements monthly for accurate or missing deposits and notify RE/MAX if there are problems immediately. Support Fair Housing Laws and guidelines, as well as all necessary legislation. Maintain a current Landlord insurance policy for their property. Review their property insurance yearly and update as needed. Exercise responsibility for required maintenance and the safety of their tenants. Treat RE/MAX personnel with courtesy and notify RE/MAX principals if there are problems with RE/MAX personnel so they can be resolved quickly Visit the property periodically and if an owner cannot perform this function, RE/MAX requests the owner assign a third party to represent this in this capacity. The Scope of Property Management Page 13 of 31

14 COMPANY POLICIES It is very important in the field of Property Management, that RE/MAX follow local, state, and federal legislation and guidelines. Our company takes pride in our industry, and we further implement guidelines and policies of several organizations, such as the National Association of Residential Property Managers, NARPM, and the National Association of Realtors, NAR. Additionally, we train all personnel by requiring them to read and follow the RE/MAX Property Management Policy and Procedures Manual and RE/MAX Employee Manual. Department of real estate requirements The Georgia Department of Real Estate requires licensing for all persons conducting Property Management and Real Estate Sales in our state. RE/MAX requires all personnel that are Brokers, Property Managers, and Real Estate Agents to have a Georgia Real Estate license. Code of ethics RE/MAX follows the Code of Ethics outlined by both NARPM and NAR, and GAR. RE/MAX considers this a top priority in conducting business, and is required of all RE/MAX personnel. Drug-free policy RE/MAX has a drug-free policy for all personnel, vendors, and tenants. RE/MAX incorporates this policy into RE/MAX rental/lease agreements, tenant, personnel, and vendor documentation. Legislation RE/MAX adheres to the laws and guidelines of federal, state, and local legislation, and incorporates this into all documentation, policies, and procedures. Here are some of the agencies and acts RE/MAX follows: Fair Housing (HUD) - RE/MAX supports and follows Fair Housing laws and guidelines; the RE/MAX office displays Fair Housing signage Equal Opportunity - RE/MAX is an Equal Opportunity employer; the RE/MAX office displays Equal Opportunity signage. SCRA Act Serviceman s Civil Relief Act, which has replaced the Soldiers and Sailors Act of 1940 URLTA - Uniform Residential Landlord Tenant Act FCRA - Fair Credit Reporting Act EPA Environment Protection Agency Lead-based paint Lead-based paint became a major issue in the 1990s that prompted mandatory requirements for Residential housing and continues today. RE/MAX follows all mandated federal and state guidelines for lead-based paint. All properties prior to January 1, 1978 require disclosures to all tenants and owners. Tenants sign lead-based paint disclosures prior to renting a property and RE/MAX provides them with the required EPA Pamphlet, Protect Your Family from Lead in the Home. On April 22, 2008, EPA Issued a rule requiring the use of lead safe practices and other actions aimed at preventing lead poisoning. Under the rule, beginning in April 2010, contractors performing renovation, repair and painting projects that disturb lead based paint in homes, childcare facilities, and schools built before 1978 must be certified and must follow specific wok practices to prevent lead contamination. Page 14 of 31

15 Team Cowan through its sister company ARIPM, complies with all EPA requirements for working on homes that may contain lead based paint. Mold issues RE/MAX regards mold issues as a top priority in property management. Owners should be aware that mold is another leading issue in the property management industry and failure to act if tenants report or discover mold can lead to costly lawsuits. Several cases regarding mold have awarded damages to tenants in the millions of dollars. This is an area of extreme liability and RE/MAX takes action if a tenant reports mold. RE/MAX notifies owners as soon as practical of any mold issues so RE/MAX and/or the property owner can take the proper steps. Page 15 of 31

16 ANSWERS REGARDING FUNDS When you entered into a management agreement, RE/MAX established an account for you and your property. RE/MAX recognizes the importance of accurately collecting and disbursing funds. The bookkeeping program used by RE/MAX is specialized software designed to handle the many facets of property management and accurate record keeping, and complies with the requirements of the Georgia Real Estate Commission. Banking RE/MAX holds your account in a trust fund mandated by the state of Georgia. This account does earn interest. RE/MAX accounts for each owner s funds separately in the trust account and does not co-mingle funds with broker monies, following the Georgia Real Estate Commission requirements. Monthly statements RE/MAX, Team Cowan posts all owners monthly statements online at the web based owner portal within 48 hours of disbursement of owners funds. Upon special request we will send out statements via U.S. Postal Mail at an additional charge of $$2.00 per statement plus postage billable to the owner to cover the additional manpower and costs to fulfill this request. If you have difficulty reading your monthly statement, please contact your management team. If you do not have an address contact us and we will gladly assist you in setting up a free Gmail account. Disbursement of monthly funds RE/MAX Team Cowan disburses available funds to each owners financial institution on the 10th and 25th of each month using Automated Clearing House (ACH) direct deposit.. If this day falls on the weekend, RE/MAX issues funds on the next business day. RE/MAX does not disburse funds on weekends and holidays. If rents are paid late and are unable to be included in the 10 th of the month transfer the owner disbursement will be the 25 th of the month. Special requests for out of cycle disbursements are billable at $15.00 per request. RE/MAX does NOT issue owner checks unless there are sufficient funds in the owner s account. It is vital to accurately post rents, pay vendors, and disburse funds for your account. Therefore, it is vital that RE/MAX adhere to this schedule to ensure servicing every owner s account. Disbursement: A file that is created and transmitted to your bank, normally it takes one day for your bank to receive this file and can take hours for them to process. Each bank is different please check with your bank. Please understand that once the file hits your bank we have no control of the process. Deposit Holds: It is customary to hold deposited funds for 72 hours (Business Days) after deposit to ensure that funds have cleared prior to disbursement to owners. Note that funds through the banking system could take 3 weeks but we only hold for 72 hours. If funds are disbursed to an owner and the funds come back NSF. RE/MAX Team Cowan will contact owner prior to withdrawing the funds from owners account. RE/MAX distributes owner funds in two ways: ACH direct deposit directly disbursed into an owner s bank account;. Check upon special request for an additional charge of $10.00 per check issued. RE/MAX Team Cowan is not responsible for the Mail System any lost checks will be stopped at a cost of $29.00 per check and billable to the owner. Page 16 of 31

17 Accounting Software RE/MAX, Team Cowan uses a state of the art cloud base accounting system called Appfolio for owner accounts. This provides us with a feature rich package for tracking all owner and tenants ledgers, work orders, and web based marketing. End of year procedures At the end of each year, RE/MAX is required to file 1099 s for income received over $600. Please note that this amount is for total income received, and not the yearly total of owner disbursements. The Internal Revenue Service dictates the total income received requirement. Please note that security deposits are not included in this amount unless money was charged against the tenant for damages and the money was paid to the owner. It is necessary that you supply RE/MAX with the necessary Social Security/Tax ID information so the 1099 information for reporting is accurate. RE/MAX will send the 1099 for the rents collected for the year by January 31st of the previous tax year. If there is a change in your tax information such as a new trust or address, please notify us with the Owner Change of Information form. If you need another change form, please contact us. RE/MAX also issues 1099s for disbursements to vendors for work over $ Therefore, owners do not have to issue 1099s for work completed and paid for through the RE/MAX trust account. Owners are responsible for issuing 1099s to any vendor paid through the owner s personal account. The last statement of the year (General Ledger) will reflect total amounts for income and expenses that have transpired throughout the year, such as management fees, leasing fees, landscape, utilities, repairs and maintenance, etc. The amounts will not reflect any funds issued through the owners personal account. This report is located at the Owners online portal usually around the January 15, each year. Please understand that RE/MAX does not issue statements to the owner s tax preparers directly. Year-end statements may be confusing at times and hard to read. Please read this section carefully as I am going to explain how to read the year-end statement. If you have any questions after you review your year-end statement, please do not hesitate to contact Tom Cowan to discuss your statement. Upon reviewing you statement you will notice a number of accounting codes, the first being the 1000 account. This is your checking account with all the entries for the entire year. Look for all accounts between the numbers of 4000 and These are the income accounts. This should equal your 1099 amount. Then look at all the 5000 and 7990 accounts. These are your expense accounts. If you deduct the total expenses from the total income then that amount should equal the 3010 account. This is your actual taxable income (amount you pay taxes on). IF the numbers do not agree let us know and we can see were the error is in the adding and subtracting. We strongly recommend that you view your monthly and yearly statements within 30 days of receiving them or the First of January. We move all files off-site at the end of April. After April we would have to send off for the file and assign man power to investigate any questions. IF a request comes in after April and nothing is found to be wrong or the owner just can t find the report there is a charge to reload and investigate. This billable charge is $50.00 dollars due to the cost of reloading of information and man power to investigate. Page 17 of 31

18 RENTING YOUR PROPERTY Preparing to rent the property When prospective tenants view your vacancy, RE/MAX wants the property to look its best and compete with area rentals. A property maintenance report and rental market survey is completed. The RE/MAX management team will contact you to discuss the details of your vacant property and any necessary maintenance. Requirements for property condition RE/MAX Team Cowan, markets only homes that are in proper showing condition and are fully repaired. Before RE/MAX Team Cowan will market a home, the following requirements must be met: All of the owner s personal belongings must be removed. The garage, attic and other storage areas must be clear. Carpets, if any, must either be professionally cleaned or appear to have been professionally cleaned. All interior paint must either be freshly painted or appear freshly painted. The home must be in white glove showing condition. All major systems must be operating (electrical, plumbing, gas, HVAC). All appliances included in advertising must be installed and in operating condition. All utilities must be turned on. Locks on all exterior doors must be keyed to the same key. Landscaping must be in good condition. All work identified in the property maintenance report must either be completed or funded for ARIPM to complete the work. When a tenant moves into a home that is rent-ready, we have an opportunity to begin the landlord-tenant relationship with mutual respect and trust. On the other hand, nothing sets a tenant against the property, the owner, and the manager more than moving into a home that is not ready. It is like checking into a hotel room that has not been cleaned. The relationship with the tenant can become polarized and adversarial from the very beginning. When this happens, the landlord/tenant relationship never recovers. Utilities must be on while property is shown All utilities must be on while the property is vacant and being shown (electricity, water, and gas (if property is not all electric). There are two reasons for this. First, RE/MAX Team Cowan cannot inspect, repair or clean the property between tenants if utilities are not on. Second, properties with no utilities show poorly, making it difficult to attract a qualified tenant and leading to extended vacancies. Page 18 of 31

19 RE/MAX Team Cowan recommends owners order continuous service plans for all utilities were applicable. In this case, when a tenant moves out, the utilities automatically revert to the owner s name and remain on. Once the tenant terminates utility service, it is as inconvenient for you, the owner, to get service back in your name as if it never had been in your name at all. If utilities are off, it may take a week or more to get them back on in the owner s name, increasing the vacancy cost between tenancies. Sometimes owners live out of state or out of the country and it is simply impossible for them to resolve utility issues without being personally present. In such situations, RE/MAX Team Cowan has been successful in negotiating with utility companies on behalf of owner clients using a limited power of attorney form. This form authorizes RE/MAX Team Cowan to represent the owner to the utility companies. If you have need for such a form, please contact our office and request it. Transferring utilities to the tenant All leases make it the tenant s responsibility to turn on utilities as of the Third business day of the lease. Tenants agree to this in writing and we also reconfirm this responsibility when we go over the move-in instructions. RE/MAX Team Cowan recommends that owners turn off utilities on the third business day of the lease. We view this as a customer satisfaction issue. While it is the tenant s responsibility to have all utilities turned on the first day of the lease, it is often very cumbersome and sometimes impossible to accomplish this. A family with small children, for example, will be very grateful for a couple of days of utilities at move-in. RE/MAX Team Cowan instructions to owners are to have all utilities in the owner s name terminated no later than the third business day of the lease. This is the owner s responsibility; RE/MAX Team Cowan has no right to terminate utilities that are in the owner s name unless we our added to the account. Why has my property been cleaned more than once? Here are some of the reasons: 1. When a property is vacant for an extended period, dust enters and settles and the property simply becomes dirty again. 2. Various kinds of insects become more active at certain times of the year; spiders, for example, are very active in the fall. When a property is vacant, spiders, ants, cockroaches and many other kinds of insects will make inroads and cause the property to need cleaning. 3. Various small creatures tend to enter vacant homes and die. These may include insects of all kinds, lizards, rodents, and birds. Dead creatures in the home can be very upsetting at move-in. 4. All of our homes are listed on FMLS. FMLS agents have electronic keys that give them access to show the home. Agents may bring prospects to see the home or agents may pre-view the home on behalf of prospects. Agent access is a twoedged sword: It is in the owner s interest to have the home listed in the multiple listing service and available for agents to show. All sorts of cleanliness issues may ensue after agent access however, including dirt tracked in, muddy footprints, trash strewn about and pristine bathrooms left an unsanitary mess. If any of these things happen, our staff may not learn of the problem until shortly before tenant move-in. Page 19 of 31

20 5. Even if the home is shown only by our staff, frequent showings and occasional use of the bathroom may be enough to create the need for cleaning. Imagine if a popular property were shown multiply times during a week of heavy rain to groups of people, many of whom use the bathroom. 6. If vendors have been in to repair the home, it may needed to be cleaned again. In an ideal world, every vendor would leave a pristine home as clean as he found it. In reality, carpenters, plumbers, electricians, appliance delivery services and the like do not bring cleaners with them and are not prepared to do serious cleaning after they have completed their work. 7. In some cases, the owner has cleaned the home, and the owner s standard of cleanliness for move-in is lower than RE/MAX Team Cowan standard of cleanliness for move-in. In the event of a disparity, RE/MAX Team Cowan standard will prevail and the property will be cleaned again. It is never acceptable to move a tenant into a dirty property! Setting the rent Supply and demand determines rent. If there are multiple rentals available in the area of your property, it is necessary to be very competitive. If very few are for rent in the same area, it can make it easier to rent the property. Markets change and RE/MAX Team Cowan advises owners on the current rental market. How long will the property be vacant? This is the most commonly asked question RE/MAX Team Cowan receives from owners. Unfortunately, there is no way to predict how long a property will remain on the market, even in the best market conditions. However, RE/MAX works diligently to rent the property as quickly as possible. What is important to remember is that the most important objective is to have a quality tenant. RE/MAX Team Cowan, or any other property management company, can rent properties quickly if they do not have standards for obtaining good tenancy. However, bad tenants will only create more expense and another unwanted vacancy; therefore, waiting for the right tenant is worth the additional time it can take to rent the property. Page 20 of 31

21 ADVERTISING//MARKETI ING Publications/newspapers RE/MAX wants the greatest exposure for your property and places advertising in the AJC Home Finder. Internet/website RE/MAX has found that the Internet and the RE/MAX website, receives tremendous exposure, as well as using and other paid and non paid sites. Signage RE/MAX displays For Lease signs prominently, unless prohibited by HOA rules and subdivision covenants. Each sign carries the office phone, cell phone and website address. Signs promote calls and website visits. The caller can immediately access the property information and showings 24 hours a day. Showings and applications The RE/MAX Team Cowan, property managers conduct showings for each vacant unit. We arrange showing times for your property in advance through our voice messaging system, and appointments by contacting the RE/MAX office directly. When prospective tenants see the property, the management team answers questions and inform the prospective tenant of the location of our online application. MLS Databases Atlanta has two (2) Realtor databases covering certain sections of the city. RE/MAX Team Cowan subscribes to both of the services. We want to ensure that our properties are marketing to all Realtors and agents no matter what database they subscribe to. Some companies can not afford to subscribe to both so we cover all the bases to ensure that your property is known to be available. Agent Referrals RE/MAX Team Cowan has worked with many agents and Realtors throughout the years so we created a list of these individuals so when we get a new property to market we will blast them with the information to let them know of our inventory in case they might have a client they are working with. Page 21 of 31

22 Processing Tenant Applications Tenant screening Thorough screening is crucial to successful Property Management. RE/MAX requires all applicants to fill out a detailed application and submit it for processing/approval. A credit check is NOT enough! Our company conducts a careful review of their: Credit Income Criminal Nationwide Evictions Nationwide Employment Rental or Home Ownership History All applicants must submit verifiable information on their income to show they can support the property. Rental history or previous home ownership is carefully checked. Cross-referencing all three areas credit, tenant history, criminal, employment and income - provides the answers to qualify or disqualify prospective applicants. If a pet is allowed on the property, the screening includes the pet (please review the upcoming pet policies). Cosigners RE/MAX Team Cowan normally does not accept cosigners. RE/MAX Team Cowan policy is that the applicants should have the ability to rent on their own merits. However, there are sometimes conditions that may warrant taking a cosigner on a property. If this is the case, RE/MAX Team Cowan will notify the owner, discuss the reasons, and obtain owner authorization. Who approves applications: RE/MAX Team Cowan or the owner? RE/MAX Team Cowan has an excellent track record of placing tenants. Since we screen our tenants so thoroughly we have very few evictions and other tenant problems. RE/MAX Team Cowan makes the decision of which applications to approve without bringing you, the owner, into the loop. If we have had difficulty finding a tenant for your property and are therefore considering an applicant we regard as high-risk, we will consult you and make this decision together. Pets If an owner authorizes a pet, RE/MAX Team Cowan increases the deposit even more. RE/MAX Team Cowan does not use the term pet deposit. By avoiding this terminology, RE/MAX can use the amount of the entire security deposit when there is animal/pet damage. Although the RE/MAX policy is to increase the security deposit, the amount cannot exceed Georgia landlord/tenant law. Many tenants have or want pets. It is legal for property owners to discriminate against pets. You may wish to do so. However, whether you have or have not decided to allow a pet in your property, the RE/MAX Team Cowan application has a place for prospective tenants to list pets and how many. It is important NOT to discourage full disclosure on pets while taking an application. If you do allow a pet, RE/MAX Team Cowan does not place inappropriate pets in a property. RE/MAX Team Cowan recommends to owners that when the property is on the market, that pets are negotiable. This can solve two problems. 1. First, this encourages prospective applicant to disclose any pets. Then, based on the owner preference on pets, RE/MAX can automatically notify the applicant that the owner does not allow pets. Page 22 of 31

23 2. Second, by listing pets as negotiable, it avoids eliminating an excellent tenant that does care for their pet, has an excellent tenant history, and owns a pet that is suitable to your property. Service animals Special note: Service animals for handicapped/disabled persons are NOT pets by Federal law, and owners cannot discriminate against handicapped/disabled persons with a service animal. Fair Housing legislation does NOT allow owners or property managers to collect deposits of any kind for service animals. However, Landlords can still process applicants who are handicapped or disabled on the same criteria as other applicants: income, credit, and tenant history. If they fail to qualify in these areas, the landlord/manager can still deny the application, handicapped or not. Page 23 of 31

24 THE TENANT MOVE IIN Rent and security deposits RE/MAX does not accept personal checks prior to renting the property and does not allow payments on security deposits we require all funds paid in full prior to renting the property. This eliminates prospective tenants who really do NOT have the necessary funds for renting. Once approved, all applicants must pay in full, the first month s rent (Reservation Fee) in certified funds. It is RE/MAX policy to require a one month s reservation fee to take the property off the market until the move in date. At move in the tenant is required to pay one month s rent for the security deposit. All security deposits are normally equal to one month s rent and must be in submitted in certified funds. However, RE/MAX Team Cowan may request a higher deposit amount based on a number of factors. But at no time will the deposit be more then what is allowed by the Georgia landlord/tenant laws. Rental/lease agreements Once RE/MAX Team Cowan receives funds, a thorough rental/lease agreement with the applicant is completed along with any required addendums. All persons 18 and over, including adult children, are required to read and sign all rental/lease agreements, and fill out an application (active school children are excluded). If the accepted applicants are a foreign nationality and cannot read and understand the documentation, they must supply an interpreter of legal age for signing the rental/lease agreements. Walk-through A vital part of the rental agreement is a detailed walk-though addendum performed with the tenant, documenting the condition of the property when they move in. Unless extenuating circumstances prevail, the RE/MAX Team Cowan team completes the walk-through with the tenant before the tenant takes possession of the property. If the tenant is represented by an agent the tenants agent will do the walk through with the tenant. The walk-through documents the condition of the property. When the tenant moves out of the property, there is a sound basis for the security deposit refund. RE/MAX also documents the move in with digital photos. Tenant handbook Tenants immediately receive the RE/MAX Tenant Handbook. This detailed booklet gives them additional information on how to care for the property, report repairs, maintain the property, make timely payments, how to give proper notice to vacate, leave the property in good condition, and more. Tenant education and preparation Taking the time to prepare tenants for their Residency is another step toward a successful tenant/landlord relationship. Additional forms that the tenants may need are included with the RE/MAX Tenant Handbook. RE/MAX Team Cowan wants both owners and tenants well informed. Page 24 of 31

25 WORKING WITH YOUR TENANTS Collecting rent Rents are due on the 1st business day of the month and late if not received in the RE/MAX Team Cowan office by the 9:00 am the 2nd business day of the month. RE/MAX Team Cowan recognizes that many things can happen where it concerns rent; rent can really be lost in the mail ; employers can delay the tenant s paycheck, there are real tenant emergencies, and more. Therefore, we make a serious effort to determine why the tenant is having a problem. If RE/MAX receives the rent prior to issuing owner funds, RE/MAX Team Cowan does not contact the owner unless the RE/MAX Team Cowan management team determines there is an ongoing rent issue. Notice to pay or quit If RE/MAX Team Cowan does not receive rent by the due date, RE/MAX Team Cowan prepares and delivers a timely notice to pay or quit (Demand Letter), as the law allows. RE/MAX Team Cowan makes every effort to mail and post notices properly should legal action be required. If RE/MAX Team Cowan determines the tenant is not going to pay the rent during the notice to pay or quit period, or shortly thereafter, RE/MAX Team Cowan will proceed to file a dispossessory warrant at the county court house where the property is located. In most cases the tenants simply get current with their account and the dispossessory warrant is dismissed. In the rare event that a tenant does have to be evicted, prompt filing of the dispossessory warrant minimizes the time an owner has to carry a non-paying tenant. Evictions If an eviction is necessary, RE/MAX Team Cowan handles every part of the process. We will file all necessary documents, monitor legal proceedings, attend court if necessary, hire a crew to perform a put out with the county Marshall, and prepare the property to be marketed to a new tenant. Professional and correct legal action by a property manager both reduces the owner s expense in an eviction and avoids the risk of a lawsuit for wrongful eviction. Other notices There are other notices that may be involved with tenants. RE/MAX Team Cowan serves notices as situations warrant, such as a notice to clean up the landscape, a notice to enter the property, a notice to perform survey/inspections, a notice regarding an illegal pet, illegal tenants, etc. These tenant violations may be in the form of a letter or a legal Notice form. Often, these notices are simply to correct minor tenant problems and most tenants comply. However, if necessary, RE/MAX Team Cowan contacts the owner with the information to discuss the situation. Tenant problems RE/MAX Team Cowan has years of experience handling the myriad of tenant difficulties that can occur. The RE/MAX Team Cowan policy is to obtain good tenants, eliminating many tenant problems. However, even good tenants have problems. RE/MAX Team Cowan treats each problem with common sense approach, follows landlord/tenant law, and uses the appropriate documentation. If the situation is serious, RE/MAX Team Cowan will contact the owner, and works with the owner to find a solution for the problem. Our company policy is to take a what if approach. RE/MAX Team Cowan documents tenant problems in the event that it becomes a legal problem. One of the reasons you hired a property Page 25 of 31