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Potential Tenants! Add your name to our waiting list to learn about new rentals as soon as we get them.
1. Who decides on the amount of monthly rent for a property?
2. But my house is really nice…Why do you say the rent is too high?
3. Why did I get more rent with a past tenant?
4. Well, you don’t really care about the rent, you just want to get it rented.
5. As an owner, I want to do the rehab work myself.
6. How do I know that I will get my rent on time?
7. What happens if the tenant pays the rent late?
8. How will I know if the tenants are taking good care of my property?
9. What happens if a tenant damages something?
10. How does Total Management take care of minor repair items?
11. How does Total Management take care of major repair items?
12. How do I get my money from Total Management?
13. How much does this cost me?
1. Who decides on the amount of monthly rent for a property?
The decision as to the amount of monthly rent is always made by the property owner. However, Total Management can be of great assistance in this area by providing the owner with rental comparables for similar properties which have recently rented in the area. Total Management can also help you decide whether or not participating with a housing voucher program would maximize your investment goal.
The goal is to seek the maximum monthly rental without pricing the property "out of the market". 2. But my house is really nice…Why do you say the rent is too high?
The price a unit will rent for has much more to do with the available tenants and the income of those tenants, than it does the home itself.
Yes, if there are two homes sitting next to each other and both priced the same, the nicer one will rent first, but you can have a million dollar house that every available tenant would love to rent, but if they don’t have the income to pay the rent, they can’t rent it.
In some areas, only lower income tenants want to live there. It may be due to the crime rate, appearance of the neighborhood in general, demographics, location, or other factors. But there are other areas lower income tenants remain in simply because the rents are lower. When they earn more income, they might move into a higher-priced area.
We have learned from experience, if the rent is more than 35% of a tenant’s gross income, they will not be able to pay the rent consistently and will fall behind. Most of the tenants we see in lower income areas are single moms with children. Their income can range from minimum wage to $10 per hour.
At $9 per hour, they technically only qualify for $504 per month in rent. They cannot rent a $700 per month house without some major sacrifices. If they did rent higher, they might not have money left over for food, clothing, transportation, entertainment, birthday and holiday gifts. Most of the time, the entertainment and gifts get purchased before rent is paid.
For a tenant to qualify for a $700 per month rental, they need to make about $13 per hour. To qualify for $800, they need to make about $15 per hour For many areas, that is a high income and we don’t see many applications with that income. That is just a fact. 3. Why did I get more rent with a past tenant?
The market drastically changes all the time. It never remains particularly stable for any length of time. In the early 2000’s, there were so many first time homebuyer programs and “no money down” programs that anyone who had a decent job and wanted to purchase a home, could and did. The national home ownership percentage went from in the 40%’s to approximately 74%. That effectively took about 50% of the renters off the rental market! The rental market completely changed within that time frame. Thus what was left were lower-income tenants and tenants with no credit or bad credit.
Yes, there are still a few truly qualified tenants who earn more income and want to live in the area your rental might be in, but they are far and few between. If you want to let your house sit vacant and wait for that tenant to come along, it may happen, but it might not, either. You may lose more money waiting for more rent than accepting less rent and having a good, low income tenant that will stay for a long time. For example, if you go ahead and rent your unit for $550 now instead of waiting four months for that tenant that can pay $750, you have lost money. In the same year’s time, you will earn $6,600 renting the unit for $550 per month, where your rental income for the same year, after waiting four months for $750, would only be $6,000.
In addition, leaving the vacant unit sit, increases your chances of break-ins, theft of plumbing, air conditioners, furnaces, etc. Some insurance companies will not insure rental units that sit vacant. Your chances of a huge loss are much greater with a vacant unit than an occupied one. 4. Well, you don’t really care about the rent, you just want to get it rented.
We are in the same boat you are…we will do the same amount of work for a $550 per month rental that we do with an $800 per month rental. In fact, we would prefer you get $800. But 0 is 0 no matter how you look at it. We know the market VERY well and our predictions are very accurate. We see it over and over again! The last word on what a property rents for remains with you, the owner. However we just want you to base your decision on the reality of the market. 5. As an owner, I want to do the rehab work myself.
If you want to do the work yourself to get a vacant unit ready to rent, that’s fine BUT….
We will have to do a walk-through to check and see that we agree the property is ready to rent.
We have had so many problems moving a tenant into a property where the Owner said it was “ready” to rent, but after the tenant moved in, they found leaking pipes, bare electrical wires, appliances and fixtures that did not work, dirty units, etc. This creates an angry tenant and that creates problems for everyone!
Therefore, we have created the following policy regarding renting units that someone off our approved contractor’s list has done work on:
When you feel your unit is ready to rent, please contact us.
We will then come out and inspect the unit to see that it is up to Total Management’s standards. NOTE: The unit doesn’t have to be immaculate but it does have to be CLEAN, electrical work must meet codes, and be SAFE, appliances must work properly and safely, all plumbing must work properly, as well as have the appropriate number of smoke detectors and meet basic liability and safety concerns. We are not slum lords.
If we find deficiencies, we will contact you with a list of our findings and ask you to make the repairs or if you would like us to do so. If we receive an application that fits your rental, we will make sure that the unit is ready before a lease is signed.
We will not have a tenant sign a lease or move into a property that we have not seen and approved.
We can take care of any issues that you would like us to handle. You are welcome to make some repairs and have Total Management handle other repairs or any combination thereof.
Our main concern is that we do not move a tenant into a property that is not ready to live in. Please keep in mind, if the property is not clean enough to move your family into, then it is not ready for another family to move into. Thank you for your understanding and cooperation! 6. How do I know that I will get my rent on time?
The key to receiving tenant rents on time is to have efficiently screened the tenant's credit and financial background before entering into a lease agreement. It has been consistently proven that tenants who have handled their past credit and rental obligations well will continue to do so in the future. Unfortunately, the opposite of this also holds true much of the time.
Total Management has instant computer access to the major credit reporting bureaus and can review a prospective tenant's credit and other financial history in a matter of minutes. In addition full background checks and verification, including a criminal history report, are also completed. 7. What happens if the tenant pays the rent late?
Total Management has a very strict policy on rent collections. All rents are due on the first day of each month. Tenants have a five-day grace period in which to pay. On day six, no matter what the reason or excuse, the rent is late and Total Management starts a District Court proceeding against the tenant. The local Sheriff then serves the tenant a summons to appear before the Court. The Court hearing usually takes place between approximately fourteen days after the Nonpayment of Rent has been filed.
In most cases the tenant will have made the late rent payment before the scheduled Court date. In the rare event that the Court process must continue, actual eviction will usually take place within 3 weeks from when the Warrant of Restitution has been filed. Once eviction occurs, their name will be reported to the credit bureaus as a bad tenant. 8. How will I know if the tenants are taking good care of my property?
Total Management conducts an in-depth outside and inside, room-by-room inspection of the property prior to the tenant moving in. The tenant is then provided with a copy of this inspection and invited to add any additional comments.
If for any reason, Total Management or the owner feel that there might be a need to have regular inspections throughout the lease period for the property, an arrangement can be set up.
At the time the tenant moves out, Total Management conducts a final inspection to determine if there should be any deductions from the tenants' security deposit for items over and above. 9. What happens if a tenant damages something?
The repair or replacement of an item which is damaged or neglected by a tenant is handled in one of two ways. If damage comes to Total Management's attention by way of the tenant or during a routine inspection of the property, Total Management will arrange for the repair or replacement of that item. Initially this repair will be paid for from the owner's management account reserve fund. However, the tenant is then immediately invoiced for the cost of the repair. In the event the tenant does not pay this invoice in a timely manner, this will be treated the same as late payment of rent.
In the event the tenant-caused damage is not detected until the tenant has moved out of the property, the cost of any repairs will be deducted from the tenant's security deposit. 10. How does Total Management take care of minor repair items?
Typically we would anticipate that the majority of repairs necessary for the upkeep of a property would be of the smaller, routine, "handyman" nature. It is expected that the property owner allow Total Management the leeway to make these smaller day-to-day repair decisions. $250.00 will be set aside from the owner's first month's net rent in order to establish a reserve fund to cover these smaller repair items. Total Management will provide the property owner with a detailed accounting each month of all monies collected and expensed. 11. How does Total Management take care of major repair items?
Almost every property will at one time or another be in need of a repair of either an "emergency" nature, or require a repair or upkeep of an item which does not fall into the normal routine. Repairs of an emergency nature such as burst pipes, water heaters flooding, or anything which would leave the tenant without a vital utility will be immediately handled by Total Management in a way which will lessen any further damage to the property and allow the tenant the continued, uninterrupted use of the dwelling. Total Management will also notify the owner by phone, email, etc.
When larger repair items which are not of an emergency nature become necessary, Total Management will contact the property owner with the nature of the needed repair and obtain bids from the various contractors with whom we deal on a regular basis. The property owner will then make the decision as to when and how to go forward with the needed repair. 12. How do I get my money from Total Management?
Client statements along with checks for the net rent are mailed from Total Management by the last business day of the month. They are normally sent a lot early – usually the 6th of the month if all rent is one time and no outstanding invoices need to be paid. The report will show each units rental income and itemize all expenses. 13. How much does this cost me?
All of the owner services which have been covered in this web site, with the exception of procuring new tenants and any part of the eviction process, are provided for in one low monthly management fee. This tax-deductible fee is 10% of the rent, or $100, whichever is greater.
2. But my house is really nice…Why do you say the rent is too high?
3. Why did I get more rent with a past tenant?
4. Well, you don’t really care about the rent, you just want to get it rented.
5. As an owner, I want to do the rehab work myself.
6. How do I know that I will get my rent on time?
7. What happens if the tenant pays the rent late?
8. How will I know if the tenants are taking good care of my property?
9. What happens if a tenant damages something?
10. How does Total Management take care of minor repair items?
11. How does Total Management take care of major repair items?
12. How do I get my money from Total Management?
13. How much does this cost me?
1. Who decides on the amount of monthly rent for a property?
The decision as to the amount of monthly rent is always made by the property owner. However, Total Management can be of great assistance in this area by providing the owner with rental comparables for similar properties which have recently rented in the area. Total Management can also help you decide whether or not participating with a housing voucher program would maximize your investment goal.
The goal is to seek the maximum monthly rental without pricing the property "out of the market". 2. But my house is really nice…Why do you say the rent is too high?
The price a unit will rent for has much more to do with the available tenants and the income of those tenants, than it does the home itself.
Yes, if there are two homes sitting next to each other and both priced the same, the nicer one will rent first, but you can have a million dollar house that every available tenant would love to rent, but if they don’t have the income to pay the rent, they can’t rent it.
In some areas, only lower income tenants want to live there. It may be due to the crime rate, appearance of the neighborhood in general, demographics, location, or other factors. But there are other areas lower income tenants remain in simply because the rents are lower. When they earn more income, they might move into a higher-priced area.
We have learned from experience, if the rent is more than 35% of a tenant’s gross income, they will not be able to pay the rent consistently and will fall behind. Most of the tenants we see in lower income areas are single moms with children. Their income can range from minimum wage to $10 per hour.
At $9 per hour, they technically only qualify for $504 per month in rent. They cannot rent a $700 per month house without some major sacrifices. If they did rent higher, they might not have money left over for food, clothing, transportation, entertainment, birthday and holiday gifts. Most of the time, the entertainment and gifts get purchased before rent is paid.
For a tenant to qualify for a $700 per month rental, they need to make about $13 per hour. To qualify for $800, they need to make about $15 per hour For many areas, that is a high income and we don’t see many applications with that income. That is just a fact. 3. Why did I get more rent with a past tenant?
The market drastically changes all the time. It never remains particularly stable for any length of time. In the early 2000’s, there were so many first time homebuyer programs and “no money down” programs that anyone who had a decent job and wanted to purchase a home, could and did. The national home ownership percentage went from in the 40%’s to approximately 74%. That effectively took about 50% of the renters off the rental market! The rental market completely changed within that time frame. Thus what was left were lower-income tenants and tenants with no credit or bad credit.
Yes, there are still a few truly qualified tenants who earn more income and want to live in the area your rental might be in, but they are far and few between. If you want to let your house sit vacant and wait for that tenant to come along, it may happen, but it might not, either. You may lose more money waiting for more rent than accepting less rent and having a good, low income tenant that will stay for a long time. For example, if you go ahead and rent your unit for $550 now instead of waiting four months for that tenant that can pay $750, you have lost money. In the same year’s time, you will earn $6,600 renting the unit for $550 per month, where your rental income for the same year, after waiting four months for $750, would only be $6,000.
In addition, leaving the vacant unit sit, increases your chances of break-ins, theft of plumbing, air conditioners, furnaces, etc. Some insurance companies will not insure rental units that sit vacant. Your chances of a huge loss are much greater with a vacant unit than an occupied one. 4. Well, you don’t really care about the rent, you just want to get it rented.
We are in the same boat you are…we will do the same amount of work for a $550 per month rental that we do with an $800 per month rental. In fact, we would prefer you get $800. But 0 is 0 no matter how you look at it. We know the market VERY well and our predictions are very accurate. We see it over and over again! The last word on what a property rents for remains with you, the owner. However we just want you to base your decision on the reality of the market. 5. As an owner, I want to do the rehab work myself.
If you want to do the work yourself to get a vacant unit ready to rent, that’s fine BUT….
We will have to do a walk-through to check and see that we agree the property is ready to rent.
We have had so many problems moving a tenant into a property where the Owner said it was “ready” to rent, but after the tenant moved in, they found leaking pipes, bare electrical wires, appliances and fixtures that did not work, dirty units, etc. This creates an angry tenant and that creates problems for everyone!
Therefore, we have created the following policy regarding renting units that someone off our approved contractor’s list has done work on:
When you feel your unit is ready to rent, please contact us.
We will then come out and inspect the unit to see that it is up to Total Management’s standards. NOTE: The unit doesn’t have to be immaculate but it does have to be CLEAN, electrical work must meet codes, and be SAFE, appliances must work properly and safely, all plumbing must work properly, as well as have the appropriate number of smoke detectors and meet basic liability and safety concerns. We are not slum lords.
If we find deficiencies, we will contact you with a list of our findings and ask you to make the repairs or if you would like us to do so. If we receive an application that fits your rental, we will make sure that the unit is ready before a lease is signed.
We will not have a tenant sign a lease or move into a property that we have not seen and approved.
We can take care of any issues that you would like us to handle. You are welcome to make some repairs and have Total Management handle other repairs or any combination thereof.
Our main concern is that we do not move a tenant into a property that is not ready to live in. Please keep in mind, if the property is not clean enough to move your family into, then it is not ready for another family to move into. Thank you for your understanding and cooperation! 6. How do I know that I will get my rent on time?
The key to receiving tenant rents on time is to have efficiently screened the tenant's credit and financial background before entering into a lease agreement. It has been consistently proven that tenants who have handled their past credit and rental obligations well will continue to do so in the future. Unfortunately, the opposite of this also holds true much of the time.
Total Management has instant computer access to the major credit reporting bureaus and can review a prospective tenant's credit and other financial history in a matter of minutes. In addition full background checks and verification, including a criminal history report, are also completed. 7. What happens if the tenant pays the rent late?
Total Management has a very strict policy on rent collections. All rents are due on the first day of each month. Tenants have a five-day grace period in which to pay. On day six, no matter what the reason or excuse, the rent is late and Total Management starts a District Court proceeding against the tenant. The local Sheriff then serves the tenant a summons to appear before the Court. The Court hearing usually takes place between approximately fourteen days after the Nonpayment of Rent has been filed.
In most cases the tenant will have made the late rent payment before the scheduled Court date. In the rare event that the Court process must continue, actual eviction will usually take place within 3 weeks from when the Warrant of Restitution has been filed. Once eviction occurs, their name will be reported to the credit bureaus as a bad tenant. 8. How will I know if the tenants are taking good care of my property?
Total Management conducts an in-depth outside and inside, room-by-room inspection of the property prior to the tenant moving in. The tenant is then provided with a copy of this inspection and invited to add any additional comments.
If for any reason, Total Management or the owner feel that there might be a need to have regular inspections throughout the lease period for the property, an arrangement can be set up.
At the time the tenant moves out, Total Management conducts a final inspection to determine if there should be any deductions from the tenants' security deposit for items over and above. 9. What happens if a tenant damages something?
The repair or replacement of an item which is damaged or neglected by a tenant is handled in one of two ways. If damage comes to Total Management's attention by way of the tenant or during a routine inspection of the property, Total Management will arrange for the repair or replacement of that item. Initially this repair will be paid for from the owner's management account reserve fund. However, the tenant is then immediately invoiced for the cost of the repair. In the event the tenant does not pay this invoice in a timely manner, this will be treated the same as late payment of rent.
In the event the tenant-caused damage is not detected until the tenant has moved out of the property, the cost of any repairs will be deducted from the tenant's security deposit. 10. How does Total Management take care of minor repair items?
Typically we would anticipate that the majority of repairs necessary for the upkeep of a property would be of the smaller, routine, "handyman" nature. It is expected that the property owner allow Total Management the leeway to make these smaller day-to-day repair decisions. $250.00 will be set aside from the owner's first month's net rent in order to establish a reserve fund to cover these smaller repair items. Total Management will provide the property owner with a detailed accounting each month of all monies collected and expensed. 11. How does Total Management take care of major repair items?
Almost every property will at one time or another be in need of a repair of either an "emergency" nature, or require a repair or upkeep of an item which does not fall into the normal routine. Repairs of an emergency nature such as burst pipes, water heaters flooding, or anything which would leave the tenant without a vital utility will be immediately handled by Total Management in a way which will lessen any further damage to the property and allow the tenant the continued, uninterrupted use of the dwelling. Total Management will also notify the owner by phone, email, etc.
When larger repair items which are not of an emergency nature become necessary, Total Management will contact the property owner with the nature of the needed repair and obtain bids from the various contractors with whom we deal on a regular basis. The property owner will then make the decision as to when and how to go forward with the needed repair. 12. How do I get my money from Total Management?
Client statements along with checks for the net rent are mailed from Total Management by the last business day of the month. They are normally sent a lot early – usually the 6th of the month if all rent is one time and no outstanding invoices need to be paid. The report will show each units rental income and itemize all expenses. 13. How much does this cost me?
All of the owner services which have been covered in this web site, with the exception of procuring new tenants and any part of the eviction process, are provided for in one low monthly management fee. This tax-deductible fee is 10% of the rent, or $100, whichever is greater.
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