Hello, we are so glad you have inquired about our property management program. I will attach to this letter a blank copy of our commercial leasing agreement. This is the agreement we enter into with the owner of the house (which would be you, hopefully). Of course, before you sign it with be filled out with our terms and conditions which are as follows:
We will fully manage your property (find a tenant, do screening, collect all rents and deposits and co-ordinate repairs) for a monthly fee of 10% of the monthly rent. So, if we rent yours for $1000 a month (just an example) we will collect $100 a month for our fee. If you would like to responsible for the repairs, we can manage for a 5% monthly fee in which we find the tenant and then only collect rent (you co-ordinate repairs)
If we do full management we do not pay for repairs, we only co-ordinate with the repair person and the tenant to schedule the repair and make sure it is done. The cost will come out of your rent collection for that month. Generally speaking, we have a $200-dollar rule. If the repair will be $200 or less, then we give the green light to go ahead and take the amount charged by the repair person out of you monthly rent payment. Any repair over $200 will require your approval prior to being done.
We do charge for finding you a screened and qualified tenant. Usually the charge is equal to the first month rent. We keep that for finding the qualified tenant, getting them in the house and doing the lease. We do leases for 12 months. If for some reason the tenant we find for you has to move out before a full 12 months then we do not charge again to find you a new tenant. If the first tenant does stay the full year and then move, there will be another first's month rent charge to find another.
Our screening company does a full check. Credit, verification of employment, previous rental history and criminal background. We charge each applicant a $45 fee to run the application and we pay the remainder of the screening company's charges. They charge us around $68 to process a married couple so we eat the difference to keep the application fee reasonable for potential tenants. This seems to be the best way for us to find you a highly-qualified tenant that is more likely to stay the full term and pay on time, etc.
We do yearly or bi-yearly property checks to ensure the tenant is using the house properly and not causing any excessive damage. Which can help you feel secure in knowing your house will not be damaged or neglected while it is rented.
We are always available by phone to you and our tenants. It really is full service when we do full management. We can even deposit your money for you and we send you a statement broken down each month showing what was paid and the amount to be deposited to you. Or we can mail you a check. Whatever works. If we do full management you very rarely even need to get involved. Making your life easier is the goal.
I think that is pretty much everything but there is a chance I forgot something. If you think of any questions please feel free to email us anytime at firstname.lastname@example.org, we answer promptly. Or you can always call. 865-609-7654 (weekdays) and 865-388-8720 (weekends)
Thanks for considering our office and we look forward to working with you should you choose us.
Have a great day!