FREQUENTLY ASKED QUESTIONS

Transcription

1 FREQUENTLY ASKED QUESTIONS 1. What is the difference between Property Management and Tenant Only services? Tenant only services include listing the property in the MLS, arranging for other advertising as requested by owner (such as Military by Owner), screening and presenting applications to the owner and writing the lease. Property Management services additionally provide on-going management during the term of the lease. 2. What services does a Property Manager provide? Property Management services include collection of rent, maintenance of security deposit(s), maintaining financial records and providing monthly and annual statements to the owner, arranging for repairs to the property as necessary, inspecting the property on a regular basis, advertising the property to obtain a tenant, screening applicants, writing leases and appropriate addenda, and seeking legal recourse should the tenant fail to pay rent or damages the property. Your property manager is the first person a tenant will call should there be maintenance issues or any type of emergency at the property. 3. Am I obligated to use Lamplight Properties/Legacy Realty Services should the tenant buy the house? Should the tenant desire to purchase your property, a separate brokerage agreement will be required. It is our hope that you will be sufficiently happy with our services that you will want us to assist in facilitating the sale, however there is no legal obligation to do so. 4. What commission is due Legacy Realty Services if I decide to sell the house? Commissions on Real Estate transactions are always negotiable. The commission to the buyer s agent will reflect the most commonly occurring percentage at the time of the listing so as to encourage agents to show your property, however the listing commission will be reduced in respect for our on-going business relationship by an amount to be determined at the time of listing. 5. Can I sell the house during the lease period? It is difficult to sell a residence during the leasing period unless it is to an investor, as the tenant has a leasehold right to occupy the property. A property can be listed for sale as much as 90 days from the termination date of the lease and the tenant is required by the terms of the lease to allow showings of the property for the purposes of acquiring a buyer. 6. Can Legacy Realty Services help me with my relocation? Legacy Realty will be happy to help you locate an agent for an upcoming move. 7. Can I offer the home for sale AND for rent simultaneously? Homes are frequently offered both for sale and rent. 8. Can I continue to market the property for sale with another company and use Lamplight Properties for management?

2 Many real estate companies do not offer property management services and therefore are not in a position to market rental properties unless the owner is going to self-manage. It is, however, very confusing to the consumer to have two separate companies simultaneously representing property. In this situation, it is best to either take the property off the sale market first, or for one company to offer the property for both sale and rent and have Lamplight Properties assume responsibility at the time the tenant moves in. 9. When will I know what the current tenant plans to do at the end of the lease? We contact our tenants in writing 90 days from the date of termination inquiring as to their plans. If we do not get a response within 7 days we send a second inquiry and if we still do not receive a response, we begin calling. As soon as we get an answer, we communicate with the owner. 10. What can we do if the tenant doesn t cooperate in showing the property? Tenants have the right to restrict showing opportunities to reasonable times. If it becomes clear that they are not cooperating, we remind them verbally and/or in writing that their lease requires such cooperation and failure to do so constitutes breach of lease. 11. What is the difference between Rent to Own and Lease Option? Rent to Own is basically a form of seller-financing all or some of the monthly rental amount is applied to the agreed upon purchase price. A Lease Option is a purchased right to purchase the property during a specified period of time at terms which are determined at the beginning of the lease. The option may be exercised solely at the discretion of the tenant at any time prior to the expiration date, after which time the option is void. 12. Can I list my property for sale with Property Management? Should you wish to sell your home, as a licensed real estate agent, I would be pleased to assist you. 13. How long will it take to find a tenant? It is not possible to predict how long it will take to find a suitable tenant. Location, condition, price and number of comparable properties available have a direct bearing on how quickly a property will rent. A centrally located, properly priced home in good condition will have the best chance of renting quickly. 14. How much rent can I expect to get for my property? Each time a property comes up for rent a market analysis is done to determine the appropriate rental amount, just as you would for the sale of a home. Over priced properties don t rent. 15. What is the minimum/ maximum term of a lease? There is no minimum term for a lease, but generally we recommend 12 month minimums. The exception to this would be if a lease were ending between October and February, at which time we would recommend considering a 6 month lease to get the cycle back into the more active time of the year. Any lease extending beyond 5 years must be recorded on the deed, so we do not recommend leases longer than 5 years.

3 16. What are the pros and cons of accepting pets? The down-side of not accepting pets is that it limits the pool of potential tenants available to you. The down-side of accepting pets is the increased risk of damage to your property. If you choose to accept pets, we strongly recommend that they be accepted on a case by case basis. There are several breeds of dogs which make liability insurance coverage more difficult to obtain and we have adopted the policy of not accepting snakes under any circumstances. Please be reminded, however, that properly certified service animals (such as Seeing Eye) are not pets and do not fall under this policy. 17. How much money can I require as a pet deposit? Pet deposits are a balancing act between requiring enough to cover damages and asking so much that you discourage potential tenants. Our listings state that pet deposits are $ , which allows us to increase the amount for multiple pets or those which might be considered high risk. 18. Does anyone inspect my property? Properties are inspected between tenants to determine the distribution of the security deposit and to establish the condition of the property at the time a new tenant assumes responsibility. Our regular vendors also know our standards and advise us when they see anything that concerns them. Otherwise, properties are inspected on an as needed basis. 19. What does the Property Manager do if they see property damage? When damage or situations constituting breach of lease are come to our attention, we notify the owner of the specifics of the situation. In some circumstances the owner may choose to waive any action being taken. If the situation requires remedy, we notify the tenant of their breach of lease and establish a date for re-inspection, by which time the damage or breach must be remedied. This is especially important in cases of pet damage. Tenants can be given a 21-day quit notice to remedy the damage or they will be given notice of termination. 20. What does the Property Manager do if the tenant doesn t pay the rent? Rents are due on the 1 st of each month and delinquent after the 5 th. If the rent is not in our office on the morning of the next business day, a 5-day quit notice is prepared and mailed to the tenant. If the rent plus late fee are presented prior to the end of the 5 th day, no further action is taken. If the rent is not presented, a Writ of Unlawful Detainer (Possession) is filed with the court. If the rent and various fees and costs is received before going before the judge, the tenant is able to remain in the property. If not, the eviction can proceed. 21. When would I need to hire an attorney? An attorney may be required if a tenant contests an eviction or if either landlord or tenant brings suit against the other. 22. What can I do to keep repair costs down? Proper on-going maintenance is the best insurance against repair costs. Deferred maintenance always costs more in the long run. For rental property, it may be advisable to choose appliances with fewer bells and whistles and to keep the landscaping simple. 23. What is the VRLTA?

4 The VRLTA is the Virginia Residential Landlord and Tenant Act. This is the document which sets for the rules by which individuals (natural or legal) owning more than 10 rental units in the Commonwealth of Virginia are governed for the protection of both the Landlord and the Tenant. (There are exemptions and exceptions to this general rule, when in doubt, consult the Act.) If the individual does not fall under the Act by law, they may opt to be governed by the Act rather than the Common Law of the Commonwealth of Virginia. We require Landlords opt in to the act because of its clarity when compared to Common Law, judges are much more familiar with it and it offers and it affords greater protection for all parties involved. 24. What is a repair escrow? A repair escrow is an amount of money deposited by the owner of a rental property with the Property Management company. This money allows the Property Manager to make repairs promptly and without having to go to the owner each time a repair is required. Any deductions from this escrow is replenished from the next rental payment. 25. Can I use the tenant s security deposit for rent? The tenant s security deposit is held against damages to the property. It may not be used for rent unless there is unpaid rent at the end of the lease. 26. What can I use the tenant s security deposit for? The tenant s security deposit may be used for unpaid rent at the end of the lease, physical damages to the property, general or carpet cleaning or other expenses necessitated by the actions or inactions of the tenant. 27. What type of insurance do I need on my rental property? Because you will not be residing in the property, insurance on your personal property will not be required. Most insurance companies have several levels of insurance for rental properties, from basic fire and lightning insurance to far more comprehensive plans which afford much broader coverage. It is our recommendation that you discuss your specific situation with your insurance carrier and be advised by them. 28. Is the tenant required to have insurance? We require proof of personal property and liability insurance from all our tenants prior to move-in. 29. Should I purchase a home warranty? It is not our recommendation to purchase a home warranty. Because the warranty companies negotiate their hourly rate downward, when there are peak repair seasons (first cold or hot snap of the year when heat or A/C units reveal weaknesses) warranty calls go to the bottom of the pile in favor of more financially rewarding work. Warranty companies also often do extensive searches for the least expensive part to accomplish the repair, causing delays which lead to frustrated and unhappy tenants, owners and managers. 30. Does anyone check on the vendor s work? Most of the vendors we utilize are those with which we have extensive experience. In these instances it is not our practice to check each individual job and rely on our tenants to let us know if there continues to be a problem. With vendors with whom our experience is limited or on jobs which are unusually complex for some reason, we do check the work.

5 31. Will I be informed before work is done on my property? When a tenant places a work request, our first determination is whether this is a repair that is required by law or if it is optional. Mandatory repairs (safety or systems issues) are ordered immediately, consulting with the owner if there are decisions to be made concerning which repair option to choose. If there are no options, the owner is notified as soon as is practical. If the work requested is optional, the owner is consulted for a decision. 32. Can I do repairs to the property myself? Repairs not requiring licensed contractors (plumbers, electricians, etc.) may be made by the owner between tenants only. During a tenant s occupancy it is our policy to arrange for repairs by using our own vendors for liability reasons. 33. Can I continue to use preferred vendors? If you have preferred vendors, we will make reasonable efforts to use those vendors. However, in an Emergency, or if your vendor will be unable to effect a repair within a reasonable length of time, we reserve the right to utilize our own vendors. 34. How do you handle existing service contracts? We honor existing service contracts but request that they not be renewed upon expiration. 35. What reports can I expect? You will receive monthly statements reflecting receipt of rent, any maintenance expenses incurred during the month, and the amount forwarded to you. You also receive a consolidated statement at the end of the year. 36. How are my monies deposited? Monies can be deposited directly to your account with local banks, or mailed to you. 37. When can I expect to see my rent money deposited? We make every effort to process and deposit or mail your proceeds within two business days after receipt of rent. 38. Who gets the Insufficient Funds fees? Insufficient Funds fees are retained by Lamplight Properties to offset the actual charges to our account resulting from checks not honored. 39. Who gets the Late Payment fees? Late Payment fees are retained by Lamplight Properties to compensate for the additional efforts required to secure unpaid rent. (See Question 19) 40. How much do you charge to manage my property? Property management requires a $ maintenance deposit (see Question 23). A leasing fee of 1/2 of one month s rental amount is charged when a new tenant must be obtained. There is no charge for

6 lease extensions. Monthly charges are 8% with a cap of $ per month. 41. What is the leasing fee for a short term lease? For leases under 6 months, the leasing fee is 50% of the normal charge. For leases above 6 months, it is prorated based on the length of the lease (a 9 month lease would be ¾ of the regular charge). 42. What is the fee for a tenant renewing the lease? There is no charge for lease renewals. 43. How soon can I begin advertising my property at the end of the lease? Properties can be marketed for rent no more than 60 days prior to the end of a lease and for sale, no more than 90 days prior to the end of a lease.