Prime Realtors Property Management, LLC
Frequently Asked Questions
1. What is your cutoff date for sending out monthly owner statements?
We usually get those out no later than the 20th and earlier if possible (After all rents are collected, invoices are paid and deposits are made)
2. If a tenant skips, do you get court judgments against them for outstanding rent, damages and fees?
We are always awarded a judgment when we win the eviction suit. We then turn the information over to the credit agency once we have a final figure. When and if, they come in to cure the credit problem, we will discount up to 50% if we can get them to pay in full. The thinking is that if we have to turn over to a collection agency the fee is traditionally 50% up to 65%.
3. If you are unable to fill a vacancy quickly, do we have the option of hiring an apartment locator or similar service at our own expense without being charged a placement fee by you?
We would obviously work with you on this but, would like to confirm that this would not require a formal process. We already cooperate with all management and locator companies and our agreement is an exclusive agreement and we would insist on being the contact and ultimate authority for any approval or denial of a credit rental application.
4. We currently pay $20 for annual lease renewals and see that your fee is 25% of a months' rent for the same service. Can we negotiate this pricing?
We attempt to maintain consistency in our contracts in attempt to avoid mistakes by having numerous fee structures in those contracts.
5. On point 13 of the Owners Management Agreement: Is the expense reimbursement for duties performed outside of day to day property management. What is this? Are we to reimburse you for mileage for driving to a property to meet prospective tenants, mileage?
Only for special circumstances outside of normal property management duties. This rarely comes into play. If I have to testify before the Real Estate Commission in Austin on behalf of an owner. This is not intended for normal day to day property management. I would always clear it with you before I started such a project. No surprises is my motto.
Frequently Asked Questions (page 2)
6. Do you normally provide photos for make ready statements or are those charged separately?
We can take digital photos for you anytime you request them, unless you expect some big production or something, then we would discuss that before moving forward. No surprises.
7. How do you handle early lease terminations or tenants leaving without notice?
I encourage tenants to give us a 30 day notice and let us show the unit during that period of 30 days. Once I have re-leased that property, we can release the leaving tenant from liability as long as they understand that any expenses you incur due to their early move out will come from their damage deposit. The law states in these cases you as the landlord can handle this one of two ways. 1st, have a stated early termination fee written in the lease and only charge that or 2nd, have it in the lease that the tenant can terminate early if they cover all expenses that their early termination caused the owner. Lease commissions, re-keying, painting, cleaning and basically anything needed to get the property re-leased. We use the 2nd method. My goal in these cases is to substitute residents and your (the owner) cash position not be affected in any way, more or less expenses. While I owe my fidelity to you (the owner) as my client, I always attempt to treat all my customers fairly and with honesty.
8. What methods do you use for filling vacancies? What fees should I expect to incur?
Institutional advertising, newsletters, Craigs List, MLS Listings, and property flyers placed on the property and handed out at functions.
9. How do you choose tenants? Do you have an application process and an application fee that you charge the prospective tenants?
We use 1 of 2 different application forms, one is our own and one is the TREC form. We charge a non-refundable application fee of $35 and collect the security deposit at that time or upon approval. It then becomes the holding deposit until they take possession and at that time it becomes the security deposit. The get the published rent and deposit amounts, they must meet our qualifications on income, credit, landlord history and criminal records. Anything less requires additional deposit amounts all the way up to first and last full months rent amounts. We also never lease a property sight unseen, never!
Frequently Asked Questions (page 3)
10. We would like a copy of the accepted new tenant applications, and the credit agency report, can you send that to us (the owners)?
We can send the application along with the copy of the executed lease and the approver's notes. We cannot send a copy of the credit report but can give you a general overview of the results over the phone. You can limit pets and smokers' but most others can lease if the pay the required toll I set up. I must also add that we have a clear set of guidelines for everyone equally or we could be accused of federal discrimination and dragged into an investigation or worse.
11. If a tenant leaves after 1 or 2 months, do you fill the vacancy for free?
Each event is investigated and treated accordingly. If we missed something then yes, if their Mother died and they had to move home, then no.
12. Regarding monthly owner statements, do you include a copy of all new leases and copies of expenses/invoices?
Yes, we do
13. Do you perform regular inspections of occupied properties to keep damages in check?
We have no set inside inspections; rather I have a gentleman drive by each unit year round and take outside photos. If he sees anything ajar then he will take a photo and bring it to my attention. The other way is using our vendors. They can go into the property without raising any concern from the tenant. They are trained to report on anything they may see that might be questionable. Holes in walls, carpet burns, dogs or pets in house (that were not reported) or trash everywhere. Then we will do a surprise inspection and know right what to look for at that time. Otherwise, with notice they would hang a picture over holes, rugs over burns, and send the pet to a friends' or sister's home for a couple of days. This is a proven system that I have devised to handle this issue and is the best way I have found in the over 40 years of managing rental properties.
14. How do you collect rent?
It is the tenant's responsibility to get rent to us no later than 5pm on the 3rd day of each month. They can mail it in, bring it to our office or drop it in our drop slot 24 hours a day.
Frequently Asked Questions (page 4)
15. What do you do when rent is late? Do you attempt to collect in person?
Depending on the history of that tenant we first send out a courtesy letter asking them to remit payment and get current. If they have a history of being late each month, I send out a 3 day notice to begin the eviction process to get them out that month. We hand deliver all 3 day notices for the shortest possible time of proof of service.
16. Who handles evictions?
I do at this time. Eventually I will have a collection/eviction agent to handle all of that when the business dictates it.
17. Do you personally (or a company representative) go to court, even when a lawyer is handling the eviction?
Someone from our company will always be at all the evictions, including any moved to State court.
18. What fees are associated with evictions?
Actual cost of court fees, lawyers if necessary and my time only when it's out of the ordinary.
19. Above what amount of the cost of a repair or improvement do you contact the owner?
$250.00 or if the repairs are questionable or has an option the owner needs to approve.
20. What is the best way to reach you and what is your response time on email or voice mail messages?
Cell phone is 24/7 and immediately most of the time, unless I am asleep and do not hear the phone. Email within 48 hours, daily when possible. Cell phone is your best bet.