The basics of property management and how we do it at Full Circle Property Management!
So you own or will own rental property? No matter if you are a reluctant landlord renting out the home you lived in or are an experienced investor looking for value and profit, a good manager can help you eliminate stress and enhance monthly and long term value. Here is a guide to how to do that!
PART I: Pre-Rental Analysis and set-up.
One of the most difficult things for an investor is to determine the correct rental amount, so you can maximize your income without scaring away good tenants. Tenants that will pay a higher rent than market rent are those that no one will take, that have some evictions they are running from, and just need a quick place to stay. Good tenants do their research, they know the market, and shy away from the
overpriced ones or those needing work.
We will assist you in analyzing your property and determining the correct rental amount and what improvements may be needed to make your property “rent-ready”. If there is work to be done, we can assist you with one of our preferred vendors or our in-house
maintenance team, at a discounted rate, passing any of our discounts on to you as we have a network of preferred vendors that are top quality vendors operating at competitive rates.
In addition, we will set up your rental bank trust account to collect the rent and pay the bills each month, and we will use that account to transfer electronically any deposits to your personal bank account, normally by the 10th of the month. A separate bank account complies with Ohio law and also makes your accounting clean and neat for taxes. We will also set up your secure online access where you can see the repairs made, rent collected, run reports, and monitor how much money is in your account, whenever you want-wherever you are, online 24/7.
PART II: Finding and screening a tenant
The process of finding and screening a tenant is a key component of successful management of your property. We use a variety of ways to find tenants, including yard signs where applicable and based on location. In addition, we use websites like craigslist, Zumper, Trulia, Zillow, Hotpads, Padmappper, and a host of others. Additionally, we keep a database of interested people who call us from time to time looking for property in certain areas so sometimes we already have a good tenant for a vacancy before you even sign up with us.
Screening your prospective tenant is thorough and comprehensive. We screen all prospects for credit history, previous rental history, criminal activity, prior evictions, sex offender status, source and amount of income, and references. Tenants pay for this service with their application fee so its free to you! We combine computer searching with personal calls, unlike most rental companies.
We are looking for the tenant who has income of 3 times the rent at minimum, clean eviction and criminal record, good references from previous landlords, and decent credit. We thoroughly screen tenants as those with a few blemishes in the far past but good trending can sometimes make the best tenants. Once we find a prospective tenant, we will make a recommendation to you, and you have the final approval, not us. You will remain in full contact with us during the process, being updated as we go, and we will make suggestions if the property is not quickly rented.
PART III: Collecting rent and paying the owners:
We fill out all the forms with the tenant, move them in and collect the rent in a variety of ways to provide your tenant with the most chances and ways to pay on time, including debit and credit cards, if they prefer. Rents are due on the 1st, late after the 5th with $50 late fee as standard in our lease. Once they pay, we let the payment clear for 3 banking days, then electronically transfer the rent, minus expenses and our fee, to your bank account. This bank to bank transfer takes 3 business days due to Federal banking regulation, so in most cases you will have your funds by the 10th to 15th of the month or sooner.
PART IV: Repairs to your property:
If there is a repair needed, it will normally be at 3 AM, or on a holiday weekend! Actually if that happens it is rare, but we do maintain a 24 hour emergency phone service in case of emergencies. Maintenance calls come to our maintenance department by phone, by email through the tenant portal, or from our website. If they are minor, we normally save you money by using our in-house maintenance staff, charging $55 per hour during normal hours. If the repair is outside our normal skill level, like complicated plumbing or electrical issues, we will use one of our preferred vendors where we have negotiated discounts that will be passed on to you. There is a small scheduling and supervision fee on outside vendors prices, and we get preferred service and pricing!
If the item is expensive, over $700.00, we will get bids and consult with you for your decision with our recommendations. If you have vendors you prefer to use, and they are regular contractors with insurance, we can use your vendors. Plus you can always do your own repairs if you want, just let us know your preferences.
PART V: Reporting
All of our owners will be provided access to our 24/7 website where you can see your income, expenses, and run reports anytime you want. In addition you will receive monthly email reports that you can print and save, normally by the 15th of the following month, and an annual summary report at the end of the year for easy transfer to your Schedule E for taxes.
PART VI: Pricing
We have some of the most competitive pricing in the market, and the highest level of customer service. Our fees are flat, maximizing profit for you and decrease based on units!
Sample Management Fee:
1—3 Units: $ 75.00 per month per unit
4—7 Units: $ 65.00 per month per unit
8 Units or more: $ 55.00 per month per unit
* For special property like multi-family or campus property or commercial please call.
Leasing Fee: $ 500.00 per unit leased
Lease Renewal Fee: $ 150.00 if tenant renews for 6 months or longer, includes unit inspection and report
Late Rent Fees: 75% to the owner, 25% to the management company
Contact us at 614-538-1717 or email to email@example.com