What are your fee’s for management?
Reeder Companies has just two fee’s. A percentage of the rent we collect, and a ½ months rent to lease a property. There are no hidden fee’s, maintenance mark-up’s or “administrative” charges to worry about.
Do you upcharge maintenance repairs or vendor invoices?
No. This service is included in your management fee.
When do I receive the rental income?
We close out each month the first week of the following month. For example, any rent collected and expenses paid for December 1st thru December 31st will be reflected on a month end report, and the net income will be direct deposited into your account no later than January 7th.
Will I receive monthly statements and a year end statement?
What areas do you cover for Property Management?
Please see “Area’s we cover” under Property Management tab.
Who handles the maintenance and repairs for the property?
We have an in-house maintenance team that can handle a wide variety of repairs common with homes/apartments. For more difficult repairs with plumbing, electrical, HVAC, roofs, etc., we have relationships with highly qualified local contractors at discounted rates due to the high volume of business we do with them.
Who pays for maintenance and repairs for my property?
If there are bills for maintenance performed at your property, we pay the contractor using proceeds from the rent collected. If the repair cost exceeds the rent collected, we may contact you to cover the difference. This is typically necessary with roof replacements, new furnaces, etc. If the repair done is determined to be the tenants fault, we will bill the tenant for damages.
Do you contact the owner before doing a repair?
Our standard policy is that we contact the owner if the repair exceeds $1,000. We’ve had requests to contact owners for every expense that arises, and logistically that is not possible. Our property managers are trained to assess every maintenance request to determine the best course of action, balancing a cost effective solution with timely action to keep the tenant satisfied. Copies of invoices and work orders can be provided anytime upon request.
How is the rental rate for my property determined?
A number of factors are taken into consideration. Condition of home and updates that are done. Metrics based on other properties we manage in that area, along with other active listings. Getting the highest rent possible sounds good on paper but isn’t necessarily a good strategy. Pricing a property too high can cost you more in the long run as it can take longer to re-rent, costing you lost rent, and you’ll likely see a much shorter stay from the tenant as they will eventually find a better option for less rent. Location and schools also are important factors.
What happens if the tenant falls behind on rent and you have to file for eviction?
While we do our best to avoid this with quality screening, a small percentage of renter’s do fall behind. Typically on the 3rd Tuesday of each month, we will file for eviction on tenants that are still past due. We handle the filing of eviction and court appearances in-house, eliminating costly attorneys fee’s. This is important and beneficial as a large percentage of tenants we file for eviction on are able to get caught up by the court date, which includes them paying the court filing fee ($235). This is tough for them to do if filed with an attorney as expenses are much higher. So while we may have to file for eviction, this is often just a tool to let the tenant know we are serious while being able to avoid costly turnover. There in no additional cost to you as this is part of our management service.
Who handles the turnover of a unit to prepare for a new tenant?
Whether it’s a unit that we are turning over or a unit that we are taking on as new management, we can handle the work involved with turning a unit. This usually requires paint touch up and deep cleaning, but often times also requires updating flooring, tub surrounds, etc. We do have a set of minimum standards we require before re-renting a property. Some of these standards includes fresh paint/touch-up, quality clean flooring, window blinds, and a deep clean of the unit. We also do a maintenance checklist to ensure everything is working properly and the home is safe. This includes checking and/or replacing smoke/Co detectors, shut off valves, furnace filters, water pressure, and drains.
Who pays for repairs/turnover when the property is vacant?
After a tenant vacates, any damages caused during occupancy by the tenant will be deducted from their security deposit. Standard turnover costs like paint touch-ups, routine maintenance, utilities, and lawn upkeep can typically be covered by us until a new tenant moves in, at which point the rent collected will reimburse expenses. If turnover costs are more extensive, you may be required to cover those costs.
How long will it take to rent my property?
There are a number of factors to take into consideration when determining this but giving you a set amount of days is not realistic. A home that is priced at market value and has marketable updates will certainly rent quicker than an overpriced home with stained carpets and windows that have a breeze coming through. The time of the year is also important, with most demand in the summer months and least demand between October-December. Our goal is to place the most qualified tenant possible, and we do everything possible to expedite that happening. What we won’t do is settle for an under-qualified tenant just so we can have it rented right away as this is only a quick fix and will likely lead to more costly turnover within 12 months.
How and when is my property shown to prospective tenants?
We have a leasing team that is dedicated solely to pre-qualifying leads and scheduling appointments with prospective tenants. We typically show during our normal business hours, but we do accommodate evening and weekend appointments as well.
What type of online marketing is used to market my property?
In addition to marketing your property on our own website that has top local presence with search engine optimization, we advertise on over 50 other websites. These include realtor.com, Zillow, Trulia, and Hotpads. We are also fortunate to receive many of our quality leads through referral from current or past tenants.
What is your screening process for applicants?
Using information from the application, we do a thorough check on their credit, employment, criminal background, and current/past rental references. We won’t share all our secrets, but little things like determining whether or not paystubs are fraudulent are part of our process (yes, fake paystubs are very accessible online).
What is the length of your lease?
We typically do 12 month leases. If the unit is re-rented during the winter, we may adjust the lease either longer or shorter for the initial term to have it expire during a more rentable season. All lease renewals are for 12 months.
Who holds the tenants security deposit?
Security deposits are held in a separate non-interest bearing bank account. If we inherit tenants through new management, the owner has the option to hold the deposit or transfer over to us. We prefer to hold all deposits so the reconciliation can be done seamlessly upon move-out and all accounting is tracked on your monthly report.
Who handles the lawn maintenance?
For multi-unit properties, we hire a lawn care company to maintain it. For single family homes, it is the tenant’s responsibility. We encourage owners to include lawn care with single family homes when possible to ensure curb appeal and happy neighbors but understand this isn’t always in the budget.
Do you allow pets?
Ultimately the decision is left with you. We’ve all heard the horror stories of pet’s destroying rental homes. The truth is, many qualified renters have pets, and allowing them certainly opens up the renter’s pool, giving you more options to find the best tenant possible. If pets are allowed, we do charge an additional $25 in pet rent and $200 pet deposit. More often than not, the extra rent paid more than covers any damages done to the property. We can also place requirements on the type of animal, size, and/or breed (i.e. cats only or dogs under 25#).
Service or Emotional Support Animals must be allowed if proper documentation from a physician or therapist is provided. No additional deposit/rent can be charged but any damages done by the animal can be charged upon move-out and deducted from the security deposit.
Who handles recurring bills for my property?
Part of our management service includes paying recurring monthly bills like gas/electric, water, sewer, trash and lawn care if applicable. We do not pay your Property Taxes, Insurance, or Mortgage.
When will I receive information for my taxes and 1099 for rental income?
No later than Jan 31st.
Will you inspect the property while occupied?
We do not inspect the property on an annual or semi-annual basis, but can do so upon your request. We do routinely drive by the exterior of properties, and if there are any red flags we will do an interior inspection. In addition, our maintenance team will alert us to any issues identified when doing repairs.
What if a tenant contacts me?
This is a common question that comes up with properties we recently take over management of with existing tenants. In our experience, its best to cut all communication with tenants and direct them to us. Confusion is the biggest issue that arises, with tenants being told one thing by an owner and another by our property manager.
Can you help if I want to sell my property?
Were have an experienced team of licensed Realtors that can assist you with selling your home or investment property.
Why shouldn’t I choose Reeder for Management?
A management company isn’t for everyone, and we aren’t a good fit for everyone. While we do heed your concerns, we have a management style and procedures in place that have been fine-tuned over the course of 4 decades. With that said, below are a few reasons why we may not be a good fit.
-If you want quality tenants, you must provide quality housing. If you provide substandard housing, the chances of placing a quality tenant drops tremendously. We do have set standards before leasing a property or taking over management, and will not lower those standards to improve someone’s bottom line. A thorough maintenance checklist is done on every unit to ensure the tenant will be renting a safe and quality unit they will be proud of and maintain as their own. We take pride in the safe and quality housing we provide, and it truly is reflected in the quality tenants we have.
-We do keep your budget in mind, but that cannot affect our ability to manage a safe/habitable property or provide quality housing. If there is a roof leak or the heat goes out, we are going to fix it. We cannot put the tenant’s safety at risk or our reputation on the line because you cannot afford upkeep on your property.
-Communication and transparency are our top priority and we certainly value your input. With that in mind, we are experts in this field. Daily phone calls and weekly inspections not only eliminates the purpose of hiring us, but it takes away valuable time we could be spending on effectively managing your property.
-Owning an income property and owning stocks are two different types of investments. Real Estate is a physical asset. There will be expenses and capital improvements to maintain it, and at times they will exceed your rental income. We keep the big picture in mind, balancing proper maintenance of your asset while getting you the highest return on your investment. We do keep your budget in mind, but at times you must be prepared to have unexpected expenses like replacing a furnace, and we must act quickly at times when it affects the habitability of the home.
-Our maintenance men, painters, carpenters, plumbers, electricians, HVAC, and roofers all have very competitive prices due to high volume of work, but we may not be as cheap as unlicensed and uninsured “Handyman”. While keeping your costs down is a priority, we also take into consideration quality of work, reliability, and that they are licensed/bonded/insured. Our focus is safety & maintaining your asset in the long run. Hiring the wrong person could ultimately cost you more money in the long run while compromising the safety of the tenants, leading to potential civil and/or criminal lawsuits.