Frequently Asked Owner/Investor Questions

 

 

  1. How many properties does Premier Property Management manage?

 

·         We manage approximately 200 properties.  We manage single family homes, condos, town homes and multi-family developments located in the Grand Valley.  

 

  1. What will my property rent for?

 

·         The rental market can be influenced by inventory, interest rates and general economic conditions.  We conduct a market survey to ensure our rental rates compare to the local market.  Keep in mind that rental rates are not an exact science.  Homes in premium condition and in premium locations demand premium rent and homes in dis-repair will demand sub-average rent. 

o       Please keep in mind…Tenants and the market are not sensitive to what the owner’s monthly mortgage is.    

 

  1. How long does it take to find a tenant for my property?

 

 

  1. How does Premier Property Management market my property?

 

·         The marketing of your rental property includes exposure to our website and our rental list that is available 24 hours a day at our office.  We are utilizing the local newspapers and referrals from local real estate offices and the Grand Junction Area Chamber of Commerce.  We also place a “For Rent” sign in the yard and/or window of the property. 

 

  1. Who shows my property?

 

·         We do.  It is part of the service we offer.  We have a dedicated staff member (a licensed real estate broker) who sets up appointments to show your home to prospective tenants. 

 

  1. Who checks out the tenants’ qualifications and background?

 

·         We do.  It is part of the service we offer.  We require tenants to complete an application.  We conduct checks on general background information (previous landlord, employer, personal references and credit reports); we verify income and also check for any derogatory information relative to police records, arrests, or bankruptcies.  Our experience over many years has taught us that properly screening tenants is one of the most important steps in successfully managing your home.  Spend the required amount of time screening and selecting the right tenants and the long-term payoff can be huge!

 

  1. What are the responsibilities of the property manager?

 

·         We are a full service property management company. 

o       We can make mortgage, property tax, insurance and utility payments from all rent proceeds. 

o       We will show, evaluate prospective tenants, and sign the lease with new tenants. 

o       We will collect rent.

o       Take all calls from tenants.

o       Arrange for repairs (of course, you always have the ultimate responsibility for the maintenance and repair of the property).  You can choose to do the work yourself or allow us to oversee all repairs.  You can approve any repairs and capital improvements over an agreed upon amount. 

o       We will ensure repairs are done properly.

o       We will send appropriate notices to tenant for late or nonpayment of rent, violations of the rules, etc.

o       Coordinate and oversee evictions.

o       Inspect property.

o       Provide you with accounting of all money received and disbursed monthly, as well as keep a client trust account for deposit money.  (State law regulates property managers as much as it does real estate agents.)

 

  1. What expense would be tax deductible?  Is the interest paid on the mortgage (or any part there of) still deductible?

 

·         We recommend you consult your accountant prior to tax time.  We would be happy to answer any questions your accountant may have.

 

  1. What about when a tenant has not paid the rent?  If we need to do an eviction?

 

·         Even a good tenant can have financial problems.  In the state of Colorado, eviction occurs when the court enters an order for the tenant to vacate the property.  As in most states, it is never legal for a Colorado landlord to evict a tenant without a court order. 

·         We know procedures to properly evict a tenant. 

 

 

Important!... Owner Acknowledgements!

 

 

Owning an investment property is a smart investment for many but it does involve risk similar to other investments.  As a property owner it is important to us that you understand these risks… As your property manager, it our job to maximize the profitability of your investment.  However, please understand that there may be times when losses occur.  Below is a list of items we call “Owner Acknowledgements.”  We review these items when we meet with you to discuss the management of your property.  The list is based upon our experience with tenants and property owners.  The items are our attempt to ensure that owner’s expectations and reality are as close as possible. 

 

  1. Homes require regular and preventative maintenance.  Different occupants stress the homes in different ways.  Unforeseen maintenance may be required. 

 

  1. Sprinkler systems, plumbing systems, appliances and heating/cooling systems require maintenance.  In order to keep your investment property in good condition, and maintain the home in a safe condition for your tenants, it is imperative to keep these items, as well as other items, in good working condition.

 

  1. Over time, exterior items such as fences, the exterior frame, and siding of the home should be painted.  Also, landscaping above and beyond simple mowing and weeding needs to be attended to.  Please do not expect the tenant to perform painting and landscaping other than mowing and weeding.

 

  1. Property managers will monitor the overall condition of the interior and exterior of your home and will coordinate repairs as necessary as per the Property Management Agreement.  Making a repair immediately for $50.00 is typically more effective and cost efficient than doing the same repair later for $500.00

 

  1. Property managers do not control the rental market and do not guarantee how much the home will rent for.  Property managers also do not guarantee how long it will take to rent your home.  If you demand top dollar for rent, be advised that it could require a lengthy time period to find a tenant.

 

  1. Property managers often do not accept the opportunity to manage every home that is made available to them to manage.  If the homeowner does not want to properly maintain the home, then the property manager may elect not to assume responsibility for managing the property.

 

  1. In the State of Colorado, water is a lienable item.  Ultimately, it is the homeowner’s responsibility to pay the water and sewer bill unless other legal arrangements have been made via a HOA.  The property manager will monitor tenant water use and water bill payments to ensure proper payment of water and sewer bills.  Utility companies do not always bill in a timely manner; occasionally you may receive a water bill from a reading that is several months old.

 

  1. In the State of Colorado, HOA may place liens on properties if HOA fees are not paid.  Ultimately, it is the homeowner’s responsibility to pay the HOA fees.  The homeowner may choose to pay the HOA fees themselves or elect the property manager provide this service. 

 

  1.  Property Managers maintain an escrow account(s) for all tenant security deposits.   Property managers are responsible for the maintenance of the tenant’s security deposit, not the owner.

 

  1.  Property managers do not control the individual lives of tenants.  Tenants do things that neither of us understand nor can explain.  Be aware that tenants can leave the home in better or worse condition than when they moved in.

 

  1.  Tenants will sometimes move out of a home without any notice. 

 

  1.  Property Managers will turn down a perfectly good tenant if they cannot bring certified funds for the security deposit and first month rent as per the rental agreement. 

 

  1.  Tenants may not comply fully with the lease.  Occasionally legal action is required to force a tenant to comply with the lease. 

 

  1.  Be aware that tenants will make promises that they cannot keep. 

 

  1.  In the event that an appliance/fixture needs to be replaced the tenant will expect the appliance to be replaced with a similar appliance of the same like and kind.

 

  1.  Please understand that home repairs priced below $250 are considered minor repairs.  We will make these repairs as needed with out the owners consent as per the property management agreement.

 

  1.  Property managers are also licensed real estate brokers.