What is the monthly Management fee?
- Only Choice PM charges 8% monthly management fee.
What is included in tenant screening?
- We perform criminal, credit and background screenings everyone in the home over age 18. Employment verification is completed and five years of past rental history are verified. We do a home visit to ensure they are a tenant that preserves the value of the owner’s investment property. A quality tenant results in on time rent payment and protection of the owner’s property.
What is the leasing fee? Renewal fee? Other fees?
- Leasing fee is equal to one Months rent. Upon purchase from Only Choice PM the property will be tenanted. Therefore, you will not be responsible for a leasing fee until further down the road if the property becomes vacant and it is necessary to lease the property to a new tenant.
- Vacancy fee is $50. The flat fee is to ensure the property is maintained even while vacant. Utility payments are coordinated as well as vacancy checks to monitor the property for vandalism or theft. If you have chosen to have an alarm system, we also respond to any alarms at the property. When a property becomes vacant we strive to ensure any repairs/upgrades to the property are quickly communicated to the owner and the property is move in ready in two weeks. Because this is our policy, we rarely charge a vacancy fee to an owner. The vacancy fee helps to ensure the owner is timely in his response to return the house to rent ready and we provide the necessary resources to lease the property as quickly as possible. Our goal is to maintain a very, very low vacancy rate with our current vacancy rate less than 1%.
- Set Up Fee is $100. We provide in-house Property Management and all properties are already set up withOnly Choice PM , therefore this fee does not currently apply. It is a non refundable administrative fee that may be charged in the future shall we decide to accept properties bought elsewhere.
- Marketing Picture Fee is $50. There will be Marketing Pictures taken as a part of the Leasing Fee. You may opt to pay $50 fee for higher end photos, photo edits or videos
- Termination fee is $1000. The cancellation fee is stipulated for the owner to abide to the contract term of one year. Building tenant and owner relationships in Property Management is very important. The termination fee ensures thatOnly Choice PM and our owners and tenants are given time to develop a relationship and that owners don’t jump to a new Property Management Company based off a single experience.
Can you manage properties not rehabbed by Only Choice PM ?
- Not Currently
How long does it take to tenant a vacant property?
- Most properties are tenanted before the rehab is even completed. Occasionally it may take up to two weeks to tenant a vacant property.
How many years of experience do you have?
- With ten employees we have over 25 years of experience in real estate and construction management experience.
When do Owners get paid?
- An owner can expect payment to be made between the 20th and 31st of the month as long as rent has been paid and there are no outstanding bills on their account.
What happens if a tenant doesn’t pay rent?
- We have strict collection processes in place. Very rarely do we even have to collect late fees.
Do you have any pro forma statements for any of your turnkeys?
- Yes, we can provide you with an example Owner Statement from Propertyware (our property management software) showing the income/expense statements of a property for the year. As far as an estimated financial statement you should expect for the year, twelve months of rent for the property less 8% property management fees, and the maintenance option you chose.
How long is the property management contract for?
- The initial property manage contract is for a one-year period with an automatic renewal.
How long do the tenants typically stay for? What is the eviction/turnover rate?
- The average tenant stays for two years and the eviction rate is 2.2% and turnover rate for the year is less than 2%.
How many clients does your company have?
- We currently have 52 owners of 135 properties.
How do you come up with rent estimates?
- We generate rents from the current KC market in the area and based on the 135 properties we currently manage.
How long does it typically take to rehab the properties from start to finish?
- Rehabs generally take 2-3 weeks start to finish depending on the complexity.
What is your vacancy rate?
- The current vacancy rate is 4%.
Are any of your clients repeat buyers?
- Yes, multiple clients have purchased multiple properties.
Which neighborhoods are your properties in and which do you avoid?
- We do not avoid any neighborhoods, we look at the property and make sure the property is in good condition and can be tenanted.
What type of neighborhoods do you buy into?
- A, B, C, etc.
- A majority of our properties are considered B and C properties, but we have properties at all levels.
Do the properties come furnished with appliances/blinds, or would I need to supply these?
- The properties are furnished with appliances/blinds, etc.
Basically, do I need to do anything to the property or is it truly turn key?
- Truly turnkey with an existing tenant and a one-year lease minimum. We desire two or three year leases.
How soon after closing should I expect tenants?
- Property will already be tenanted.
Do you warranty your work?
- There is a 3-month warranty on all properties.
How does owner disbursement work?
- Owners are paid within the first three weeks of the month, as long as rent has been paid.
What kind of exit strategies are available?
- In the management contract, there is clause that Only Choice PM would work to find a buyer for the property once notified of the desire to sell the property.
Would I need to sell to another investor, or could I sell to a homeowner?
- If a tenant is in place with a current lease, the best option is to sell to another investor. If there is no current tenant or the lease has expired, then you could sell to a prospective homeowner.
What is the typical costs associated with tenant turnover (i.e. damages, PM fees, etc).
- Most damages are covered by the tenant’s deposit, which is generally one month’s rent. A new tenant would result in paying a lease fee (one month’s rent). No additional Property Management fees.