How would the initial acquisition work in regards to tenant monies:
– Security Deposit, 1st and/or last month rent, any other fees.
Once we agree on a tenant applicant (our recommendation that we would offer our guarantee and you agreed): We contact that applicant and tell them they are approved and the home will remain on the market until they bring in a deposit to hold it until the move-in date that was agreed upon. The amount of deposit may be only $1,000, or the entire security deposit. The money $>>> goes to the Shidler property management TRUST account for the tenant’s behalf and your property. It is in good faith. A day or so before the possession date, they sign lease documents, and deposit balance of funds due to move in would be: $2,200 first month, and $2,350 security deposit, plus any pet deposits if pet allowed $>>>goes to the Shidler property management TRUST account. The funds are account, marketing-leasing cost and reserve funds for account set up and any first month’s balance of funds directly deposited into property owners’ personal bank account, the first month funds may be a few days later than our goal of by the 9th day of the month.
Who holds the security deposit?
The security deposit is usually held in our property management trust account over the lease period, then used toward tenant damages or rent balances in final accounting. You may hold the security deposit funds, but must account for any interest you may earn by holding it and pay it to the tenant and account for repairs and deductions at the end of the tenancy.
What if the tenant doesn’t last 5 years (based on your required contract), do we have to pay a new tenant acquisition fee?
– Is there an associated fee for renewals?
NO EXTRA fee for a tenant staying month to month after lease term with same lease terms after the original lease. We have had tenants staying month to month for ten years or more. BUT if a written extension of lease is needed, then the extension fee is 1/2 of the regular lease fee or regular fee 50% of rent, the extension would be 25% of rent when needed.
Are the lease agreements 5 year terms only?
Our typical lease is one or two years, we can offer longer terms if desired. You may have gotten the five years from our management fee. The special discount offer is for 5 years, not the leases, we can go shorter than five years for your management agreement today, but not offer the discount deal.
If shorter terms, how are renewals handled? Is there an adjusted market increase?
At the end of our typical one or two year lease, we do a rental market study like the one that I sent you. We (you and our management) can decide upon any rent adjustments that would be fair. The lease extension would include the modified rent amount. California has an annual rent increase limit of 5% plus inflation up to about 3.5%. But we plan on filing an exemption on your behalf so that we may freely adjust rent as needed.
When the tenant moves out (in good standing), is there a final walk through?
– If so, who conducts it and determines repairs needed, if any?
YES. Final walk through can be done in advance, or after the tenant moves out. There are certain California laws that must be complied with regarding tenant use and damages. If move out walkthrough is in advance, it gives the tenant time to fix what they see needs fixing before moving out. Our team inspects and photos the property, you may want to take a look yourself, your input is welcome. We can arrange to conduct the repairs or you may put your hands to it yourself.
How are rents collected? They pay your company or us directly?
– If your company, how do we collect?
Rents are due on the first of the month, late after the 5th day. Rents are paid directly through the tenant portal online 24 hours a day, by mail, or in person at our office. Check, bank draft, or money order. The funds are deposited into your property trust account, funds accounted for any fees and repairs accounted for and balance directly deposited into your personal bank account on or before the 9th day if rent is paid on time.
Is there a yearly inspection of the property? If so, who does it and is there a fee?
Before lease renewal, yes our team takes a look at the property and makes photos available online. If the tenant is not taking care of the property we should not extend the lease, might want to get them out. No fee for this inspection.
To confirm, we are able to use our preferred vendors for repairs, correct?
Yes. You can arrange repairs and fix yourself. If we supervise the work our fee is 10% of their invoice.
Does your companies withhold for our quarterly taxes (FTB for rentals)
NO we have not withheld tax funds YET, California is trying, but not yet for residences, but for foregin owners yes and we don’t have any of them.
