As you may already know, Property management duties fall into four categories:
Keep the owners informed, the lines of communication open and ready when the owner has questions or concerns, and work within owners’ goals and criteria for the property and the tenants.
Preserve the condition of the property, and if possible, increase the value of the property.
Hold the tenants accountable to their monthly payments and maintenance duties.
Keep the property cash-flowing… and when it is empty, nobody receives income.
Most managers charge 50% of one month rent amount as a charge to complete the following “Lease-up” tasks: 1. Marketing the property as available for rent, taking photos, posting them on the Internet and signage, 2. Fielding calls from inbound potential tenants, asking questions over the phone to qualify the tenants, 3. Meeting tenants at the property to show it, and collecting applications, both online, over the Internet, and in person, 4. Screening applications, calling references, verifying employment, 5. Communicating the rules and guidelines of the property, 6. Collecting signatures and funds from the tenant to move them into it. 7. Completing a walk thru of property condition, digital photos to document the condition. Matrix charges 35% of one months rent, or $550, whichever is higher, usually paid up front, if the property is not yet ready rent, or paid thru tenants first months rent payment.
If the property is empty, and not producing income, the first step of the process is to help owners prepare it for rent. If the property has been vandalized, we assist with contacting the insurance company.
If there are squatters, or non-paying tenants, Matrix will call and make trips to the property and assist with eviction, however, sometimes, if needed, we call the police and have squatters arrested.
The next step is to lease the property — a “lease up” fee. On the property management agreement, the one time fee is 35% of one months rent, or $550 , whichever is higher, and 8% per month. I hope this helps you understand the work that we do, and the work we continue to do for you monthly.
***By the way, None of the funds paid to contractors to prepare the property include Matrix. We do not collect over-rides, nor kick-backs from our vendors nor contractors. We collect funds from owners, log them as expenses on the property, and pay them directly to the contractors, flooring, windows, clean up, trips to the dump, etc. Or, owners can pay their own contractors directly.
Also, we strongly encourage, not require, owners to pay for a home warranty policy, which covers the systems of the property: plumbing, faucets, toilets, kitchen appliances, stove, oven, microwave if built-in, water heaters, garage door openers, etc. all items that fail regularly throughout the year, especially the HVAC system, heaters during the winter, and AC units during the summer.
For bookkeeping and taxes, Matrix provides monthly summary statements, either online, or printed and mailed, owners preference, as well as annual 1099 forms to owners, so the gross funds collected by Matrix appear on owner’s 1099 annual tax form, to assist the CPA or tax preparer. Please feel free to call if you have questions: 209-252-0016 or email service@MatrixPropertyRentals.com Thank you, Nino Pascolati