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Tips for Tenants
Published on: December 16, 2015 | Read Full Story
Frequently asked questions by new clients:
Q: Why use a property management company?
A: Everyone who considers renting living space to tenants needs to decide whether they have time for being a landlord and if it is something they truly wish to take on. Thankfully, having a rental property does not mean you have to also be a landlord. One benefit of hiring an outside firm to manage the property is that the tenant-landlord transaction is managed by a third-party intermediary. When the relationship is handled at arms-length, managing it as a business becomes easier. If problems do arise, it is easier to work out differences between the management company and the tenant and it does not need to involve the owner.
Q: I’ve never had any problems with my tenants and I manage my own properties. Why should I pay someone else to do the same work?
A: Often, the property management company is better prepared to provide a high level of service for the tenants because of the resources it can apply to a particular issue. Avoiding problem tenants, retaining quality tenants, understanding and abiding by legal and regulatory requirements as well as keeping the property properly maintained are all key to maximizing the profitability of the owner’s assets. Although owners may be capable of handling their own affairs, it may not be the best use of their time and effort. Property Managers are professionals with the training, experience, and resources to assist owners for a fee that is not only tax deductible, but also very reasonable given the specialization of services provided.
Q: What else can Alpha-Omega Properties, Inc. offer to me?
A: Rather than just manage your properties, we will take a proactive, systematic approach and run your properties as a business. Businesses have plans and objectives and together with you, we will determine what those should be and drive our management to reach those goals. In addition, we feel strongly that our owner clients should learn more and become better educated investors. By helping our clients learn about the different possibilities of locating, financing, and owning more rental property, they have unique opportunities to grow their investment portfolio. Having the time to focus on building wealth rather than managing an existing portfolio requires confidence that tenant concerns are being handled expeditiously and that the financial management of the properties can be handled by an outside firm. Using an investor minded property management company is key to this success. We will send monthly financial statements through an encrypted website. You will also receive an end of year statement to use when filing your taxes.
Q: So what are the fees I can expect? What is this going to cost me?
A: Our fee structure is competitive. Reductions in service fees are available for larger numbers of units, however, all clients will receive the same high level of service. The exact fee will be determined once our property manager has had the opportunity to conduct an initial meeting with the property owner and is able to tour the property in question. Remember the opportunity costs of managing a property on your own. The likelihood that a management company will help the owner avoid costly mistakes is high, potentially saving the owner the equivalent of many years’ worth of monthly management fees.
Q: What determines the rent for my property?
A: Ultimately the rental market. We use our marketing skills, analysis, and judgment to optimize rents in accordance with your goals.
Q: How are the security deposits handled?
A: Security deposits are deposited into an Alpha-Omega Properties, Inc. Trust Account. They remain in the trust account until the tenant vacates the property. Any security deposit money due the tenant will be refunded within thirty (30) days.
Q: How are tenants selected?
A: We carefully screen each prospective tenant application and verify rental history, employment, and obtain a report that includes credit, evictions and criminal history.
Q: Do I pay for processing the tenants’ applications?
A: No. You pay nothing.
Q: Who pays for maintenance and repairs to my property?
A: The owner pays for maintenance and repairs unless, in rare cases, the tenant has agreed to assume responsibility or the tenant has caused the damage.
Q: Are management fees tax deductible?
A: Generally, yes, as a direct expense item. However, you should confirm this with your tax adviser, as your specific situation may be different.
Q: What is typically involved in preparing a property to be rented?
A: Generally, you should expect to make the property move-in ready for a tenant. Your property will rent quicker and demand a higher rental value if it is in good condition.