Services
What are the benefits of using a professional property manager?
Utilizing the services of a Professional Property Management Company relieves you from the burden of unexpected and untimely tenant and repair issues. It also provides you with a tested and true vendor team (via your property manager) to handle repair and maintenance issues at your home. Having a Property Manager handling the details of managing your rental home allows you to focus your time and talents on other matters instead of worrying about your rental property.
How long have you been managing property?
We have been in the property management business for over 15 years
What associations do you belong to?
We go above and beyond all ethical standards set forth by the National Association of Residential Property Managers and Texas Real Estate Commission. We also have ZERO complaints with the BBB.
What is your style or philosophy of Property Management?
We believe that you hire a property manager to manage the property for you, not to assist you in managing it yourself. We offer a turnkey style of property management service which is most appreciated by those property owners who prefer to be "out of the loop" on all but the most important matters related to the management and leasing of the property.
We don't pester you with small details, questions, information or updates about your property or tenants, except for those matters which will have a significant impact on your monthly cash flow. Instead, we simply take care of the things you have entrusted us to handle on your behalf.
What if I want to be informed to a greater degree than you've just outlined?
For some property owners, our system is not a good match, and we understand that. We are very up front about the fact that we don't want you to hire us if you expect to be involved in minor details or decisions related to the management and leasing of your property. We simply haven't designed our systems and procedures to accommodate that level of involvement by owners and would instead refer you to a property manager who accommodates the level of involvement you desire.
Under your "turnkey" system of property management, how informed then will I be about what's going on with my property?
Our general rule of thumb is this; if something has happened, or is about to happen, that will disrupt your ordinary monthly cash proceeds by more than $500, we will let you know about it.
An example would be that we receive a 30-day notice from your tenant, and therefore a turnover, along with related expenses, is pending and we want you to be informed and prepared for it.
Another example would be that your A/C unit has failed during the middle of a hot summer; we've determined that the 12 year old compressor needs replacing and have initiated the work to replace it. We'll call to let you know what has happened and the expected financial impact on the following month's statement.
Finally, for new owners that seem a bit nervous, we do tend to break our own rule somewhat during the initial lease-up and make-ready maintenance process, as we bring your property into our system and attend to any initial details such as bringing the locks and smoke detectors up to code or curing any necessary repair or maintenance issues. We do want you to be comfortable working with us going forward, so the startup process may involve more communication, if you so desire, than is outlined above. You will settle in and become comfortable with us very quickly though, and after the initial period of getting started, we'll revert to our normal routime and level of communication.
What type of rental properties do you manage?
We manage residential single family homes and duplexes that are in good to excellent condition. Another way to say it is; we manage safe, well maintained homes that attract good, quality renters.
What type of rental properties do you NOT handle?
We don't manage anything larger than a duplex, such as 4-plex properties or small apartments.
We don't manage commercial properties.
We don't manage homes with chronic repair issues or conditions that might adversely affect the health or safety of an ordinary tenant. An example would be a home with a rotted 2nd story deck that an owner "can't afford" to properly repair.
In which areas do you offer property management services?
We currently manage properties in Texas and California.
How do you determine the rent value of my home when it needs to be rented?
Each time your home comes up for rent, we will perform a market analysis to determine how much homes similar to your's have been leasing for recently. Once we determine a starting value, we add or subtract based on the time of year, competition from other available homes for rent near yours, the condition of the property (older vs. newer carpet, age of appliances, floor plan, etc.), and other relevant market factors.
As a general rule, we believe it's a good idea to price your rental property at or slightly below market value and get it rented quickly. Vacancy is your worst enemy and we work hard to prevent excess vacancy loss. Sometimes owners get hung up on trying to squeeze out a little extra rent, but we will council you against being too optimistic. For example, a home with a market rent of $1,195, if placed on the market for a more optimistic $1,250, only has to remain vacant about 2 weeks longer than it otherwise would have to completely erase the additional $660/yr. that the $1,250 would have achieved. Another way to quickly rent out the property is to offer a first month move-in discount on rent.
How will your property management company market our home when it needs to be rented to a new tenant?
Exposure and good photos are the name of the game. We market your home for rent as follows:
- Sign in the yard
- Listed in the MLS with good quality photos
- JMBGroupLLC.propertyware.com
- AustinHomeSearch.com
- Realtor.com
- Craigslist.com
- Listed on Postlets.com
- Backpage.com
- DotHomes.com
- Enormo.com
- FrontDoor.com
- Google Base
- HotPads.com
- Local.com
- Lycos.com
- Oodle.com
- Vast.com
How much security Deposit will you require from new tenants?
We normally require about 70% to 100% of a full month's rent.
Will you allow tenants to have pets in our property?
We would rather not. If we do, pets will be limited to 35 lbs each and a maximum of two total animals. We also prohibit certain aggressive breeds of dogs such as Pit Bulls and Rotweilers.
If you instruct us to market the home as a No Pets property, we are happy to do so, and will not allow pets at all. Or you can instruct us to allow cats only, or dogs only. Be aware that pets can cause damage beyond the normal pet deposit of $200 to $500 per animal. On the other hand, not accepting pets eliminates a lot of prospective renters, so the more restrictive the pet policy, the greater likelihood of a longer vacancy at lease-up.
The pet policy for your particular home is something we will discuss at greater length with you during our initial conversation.
Do you allow smoking in our home?
No. We write into every lease, for every property we manage, a "no smoking" policy.
Do you inspect the property on a schedule?
Yes, we perform an inspection of the property every 6 months.
How will prospective tenants be screened and qualified by your property management company?
We require tenants to provide at least two years of good verifiable rental history (or proof of home ownership), good credit, and verifiable income at least 3 times the monthly rent. That's it in a nutshell, but a lot more goes into the screening than just those three items.
Credit/Background
We pull the credit score, payment patterns, payment history, public records search (for tax liens, bankruptcies, judgments), UD/Skip, collection accounts, SSN validation
Rental History
We pull residence information according to what the credit bureaus have on file and compare to application. This search also goes back 20 years and pulls every address associated to the applicants SSN. We call the applicant's current/previous landlords and ask about the applicant's payment history, whether there were bounced checks, late payments, unauthorized roommates, pets, noise, damage, etc.
If the former landlord is a private home owner (instead of an apartment manager), we pull the County tax record to verify that the person listed as the landlord is in fact the owner of the former rental property.
We also run an MLS search on the tenant's former addresses to see if there was any MLS sales or rental activity that contradicts the rental time frame listed on the application.
These two additional cross-checks alone have caught many bogus applicants in years past who might otherwise have slipped through a less rigorous screening process.
Additional Address Checks
We also pull a copy of the applicant's driver's license from a public database we subscribe to. This online driver's license service shows the date of last renewal (which isn't shown on the actual driver license). We compare that address and date to the most addresses and dates listed on the rental application.
The online driver license also allows us to click on the applicant's driver license address and see all other driver licenses that have the same address listed. This sometimes reveals interesting results as we discover additional people (girlfriends, roommates) not listed on the application, with recent license renewal activity at the same address of the applicant. We then ask questions to clarify whether or not those individuals are planning to move in to the new rental property as well.
We perform the same address crosschecks against the addresses that appear on an applicant's credit report.
Employment Verification
We fax an employment verification form to employers, and ask the applicant for a recent check stub. Income must be at least three times the monthly rent to qualify.
Criminal Background, Eviction and Terrorist Database Search
We perform a Criminal Background check on each applicant as well as an Eviction History search and Federal Terrorist Database search. Our report search evistions within the state court database unlike other companies who just search for civil judgments or UD/Skip.
Most good applicants will sail through the screening process and be approved. Otherwise, the screening process may reveal red flags which we look into further. Commonly, an applicant may qualify based on income and rental history, but have poor credit. In some instances, if we think the applicant is a reasonable risk, we will offer them approval with additional security deposit equal to at least one month's rent.
In all instances we are very thorough with our screening of tenants, probably moreso than many other property managers, and will never let an urgency to rent diminish our screening requirements.
Do you use a well written lease agreement that protects me and my property?
Yes. We use the most recently updated Texas Association of Realtors Residential Lease Agreement.
How strictly do you enforce the lease agreement after the tenant moves in?
We enforce the lease very strictly, including late fees, pet policy, unauthorized occupants, vehicle limits, HOA Rules, lease term, and all other terms and conditions of the lease agreement. If we become aware of a lease violation, the tenant promptly receives a violation notice and is required to cure the violation to avoid further action.
How does your property management company handle repair requests from tenants?
All non-emergency repair requests are reported to us in writing, as required in the lease agreement. We strive to respond to and complete most ordinary repair requests in 3 business days or less.
Repairs and property condition issues offer the greatest opportunity for friction and ill will between landlords and tenants. A property manager walks the line between a tenant who wants things fixed ASAP, and an owner who is sensitive to repair expenses. We in fact want the tenant to enjoy a well maintained home in which everything functions as designed and intended. It's to your advantage that this happens, as a happy tenant is more likely to remain in the property at renewal.
This is where the rubber hits the road on the "turnkey service" philosophy that was outlined above. If something in your home is legitimately broken, worn out or in need of repair, we are going to have it fixed or replaced without consulting with or informing you, so long as it falls within the $500 repair cap established in the property management agreement.
In many instances, we will quiz the tenant about the problem and attempt to solve it over the phone. This is commonly accomplished with problems such as tripped breakers or GFI outlets (reset breaker), malfunctioning garage openers (check the eyebeams), disposals (reset button), dishwashers (wall switch), HVAC (thermostat not set properly, filter door loose or intake blocked), etc.
This by the way is where we as a small shop can offer a more personal level of repair troubleshooting and diagnosis than a large property management company with an impersonal repair pipeline process. Essentially, before spending your money on a service call, we attempt to troubleshoot and solve the problem. Once it�???�??�?�¢??s determined that a legitimate problem exists, and that a service call is needed, we send a vendor who we have probably been using for more than 10 years and whom we trust to take care of the problem.
How much of my money do you hold in reserve for repairs?
$500 (or an amount you are comfortable with) is held in your account at all times, to be used if needed to pay for a repair after your rent proceeds have been dispersed.
Will you use my Home Warranty Company, such as American Home Shield?
We do not recommend your purchase a American Home Shield or any other Warranty Company policy.
If, as a property manager, I wanted to damage my reputation with as many tenants as possible by providing the lousiest repair service possible, I can't think of a better way to accomplish that than by using American Home Shield on all service calls. They simply are not compatible with the level of service we demand of our vendors, and they don't make the cut to be a member of our vendor team. We've been burned so many times in years past that we finally decided we'd had enough, and said "no more".
Nothing affects the reputation of a property management company more than the manner in which repairs are handled. Tenants judge us by almost no other measure. It therefore makes little sense to entrust vendors we don't know, whom we have no relationship with or control over, with the reputation of our company and the relationship with your tenant. Instead, when repairs are needed, we will send our trusted vendors with whom established relationships exists, and they will provide the quality service we require in a professional and timely manner.
That said, if we determine through our own vendor that a covered mechanical item in your home has failed, or is in need of costly repair, we will endeavor to get American Home Shield, or whatever Home Warranty company you have, out to honor the warranty, provided that they accomplish the service call and repair in a timeframe and manner that is acceptable.
Will you use my brother-in-law to perform repairs, he's fairly handy?
No, we only use our qualified vendors. We are not able for liability reasons to use your friends or relatives to perform work on your home unless they are in fact licensed vendors (see below).
Will you use my favorite Plumber, A/C Company, etc. each time a repair is needed?
We will be happy to invite them to join our vendor list, if they are qualified and insured, but we can't promise that a specific vendor will be dispatched to your home for certain repairs.
When will I receive my owner statement and check each month?
Owner rent checks are processed between the 10th-15th of each month. Please note that if you are set up for epay, our 3rd party processing Company takes 5 business day to credit to your bank account. Make sure to verify routing/account number and that they accept ACH payments.
What other fees or possible charges do I need to know about?
It's rare that anything other than the fees above are actually charged to one of our owners, but your management agreement will have some of the the following items listed.
We absorb and pay for all other marketing costs, including commissions to other agents if needed, out of the leasing commission you pay us.
If you lose a rent proceeds check, there is a $25 replacement fee (our charge to cancel the check at our bank)
We may charge for mailing/copy costs other than your regular monthly statement, such as if you want a copy of the tenant's lease mailed to you, or we have to send certified mail to your tenant or provide a copy of a large HOA Rules document to your tenant.
Do you charge a markup on maintenance invoices?
No, we do not mark up maintenance or repair invoices.
Do you charge a "setup" fee?
No, there is no setup fee, but we will need you to mail your repair holdback of $500 to us along with the management agreement. If an existing tenant is in the property, we will need you to send the security deposit to be held in our deposit escrow account.
What visibility do I have into my property finincials and performance?
We strive to provide you unparallel service and visibility into the performance of your rental properties. From our Owner Portal, you have access to the following areas:
My Account
A summary screen where you can see alerts notifying them of unpaid bills and work orders that require approval. From here you can also update your contact information, change your password and use the conversations feature to communicate with our management team.Statements
View your owner statements onlin and see the general profitability of your rental properites. These owner statements are shared as a Adobe PDF documents that your owners can view the from Statements section of the Owner Portal. In addition, you can view all owner draws and contributions that have been made in and out of your portfolio.Reports
This area lists real-time reports that we have shared with you. This data is completely dynamic and allows you to gain visibility into the daily management efforts for your rentals.Bills
Youhave real-time access to all the bills and bill payments for the expenses recorded against your rental properties. From this section you can search through your bills, vie wtehir details and even download copies of vendor invoices.Maintenance
You now have instant visibility into all the work orders created for your rentals. This includes service requests from tenants and those created by our management team.Documents
View a list of all documents that we have shared with you.
What type of Property Management Agreement will I be signing?
We use the Association of Realtors Property Management Agreement along with some other forms as listed below.
Property Management Agreement
Owner Notice of Property Condition
W-9 Form
What is the process once I decide to have you manage my home?
We will visit your home to have a look, and if it meets our condition requirements, we will send you a management agreement and initiate the process of assuming management of your property.
Other Questions
If you have any questions not answered above, or wish to further discuss anything listed above, feel free to call us at 866-767-2392 or email us at info@JMBGroupLLC.com