In today's video we discuss why it is so critical to make sure your property is "Rent Ready" and the various steps to become rent ready. We discuss inspection, cleaning and repairs that may need to take place between tenants to get your property in the best condition possible.
Property Management Blog
In today's video (Part 4 of Rental Owner Frequently Asked Questions) We discuss how we keep you informed, our communication, how the tenant screening process works and our property inspections. Don't forget to check out Owner FAQs, Parts 1, 2 & 3 for more information!
Today we focus our video for DIY Landlords and Independent Rental Owners (IROs) - we discuss several techniques to establish a maintenance budget for your rental property and common preventative maintenance topics.
In today's video (Part 3 of Rental Owner Frequently Asked Questions) We discuss our educational background, our memberships in professional organizations, and how we keep up to date on new laws at the local, state, and federal level! . Don't forget to check out Parts 1 & 2 - and stay tuned for more in this series!
Hello, and greetings from Colorado Springs. My name is Lance Kohler and I'm the managing broker of the Cornerstone Real Estate Team. Today I'd like to discuss some rental owner frequently asked questions. This is Part Three in a series. In Part One, we discussed questions about our Property Management Services. In Part Two, we discussed questions about our Accounting Procedures and how and why we conduct Full-Month Accounting. So please check those out if you haven't already.
Today I'd like to answer four more questions that are commonly asked by owners who are considering hiring a property manager. The first of those is, “What education do you have backing your property management services?” For us at Cornerstone, all of our property managers are licensed as required by Colorado State law. So the first step in their education is getting their real estate license. That's 168 hours of study and a test, both at the state level and the federal level.
Secondly, there is continuing education. As a requirement to keep that real estate license, we're required to take several credits per year of continuing education. We're able to take education on real estate in general, and also specifically in property management.
Thirdly, we are members in several national and local organizations; two of which I'll talk about. One is NARPM, which is the National Association of Residential Property Managers. As the name says, it's a national organization, but it has a local chapter. So they have meetings once a month. They provide education related to property management. For some of those we get continuing education credits; for others we do not, but there's a good discussion and lots of education in the organization.
Secondly, we also belong to the National Apartment Association, which has a local chapter here -- the Apartment Association of Southern Colorado, which is based in Colorado Springs. They are multifamily focused, but in our portfolio, we manage both multifamily rentals and single family homes. So we belong to both organizations. The Apartment Association again provides education, continuing education, and seminars to keep us on the cutting edge of education with property management. And we've been in the property management business for over eight years.
The second question is, “Are you currently active in the real estate market?” Yes, we are. Several of our team members own investment properties, so that keeps us very tied into the market. We deal with investment properties every day. We're also tied in with the market not only just by renting or leasing those properties, but by maintaining them, preparing them for sale, and helping investors buy additional properties. We do have a Sales Team and they are actively buying and selling investment properties with new investors (new to our company) and with our current investors.
The third question is, “How familiar are you with the federal, state and local laws regarding landlord-tenant laws?” I would say very -- not only through the education that I discussed on the last slide, but also through our involvement in the organizations that I discussed. We're very involved. All of our team members are members of those organizations and that keeps us up to date with all the laws that are either presented or passed in any given legislature session. (I would also mention -- if you're interested in the legislation or new laws, landlord-tenant laws, relative to Colorado -- we have several videos, four in a series that cover laws that were introduced in the last 12 months in Colorado. Please check those out.) We also have the opportunity for legal review of our documents, legal review of any questions we may have, any type of legal assistance through two different law firms that we work with here in Colorado.
Fourth question: “Do you know the proper steps to evict a tenant?” Yes we do. I want you to know that we do know the proper steps. I want you to know that we do have a process in order to evict somebody, if they haven't paid rent or if they're violating their lease. We have an internal process for our steps within the company. And we also have a process that includes our legal assistance (the law firm, one of the law firms I mentioned earlier) that takes the eviction to court for us. So I want you to know that we do know how to do it. We do have a process. But I also want you to know that we don't have to do it very often. In the last six months, we've only done one. And we average over the last two and a half years, less than one a month across 430 units.
I hope this was a value to you. Thank you for your time. If you want to find out what your property might bring for rent in the rental market, you can get a free market analysis off our website at callcornerstone.com. If you have any questions, you can reach us there at our website or on our main number at (719) 243-6400. Or you can follow us and like us on our social media accounts for more videos like this. Again, thanks for your time. Have a great day!
Today's video covers a popular topic for DIY Landlords and Independent Rental Owners - Tenant Screening. We discuss how we conduct tenant screening in four easy steps, and provide suggestions on how to improve your process.
Hello, and greetings from Colorado Springs. My name is Lance Kohler. I'm the broker-owner of the Cornerstone Real Estate team. Today, I'd like to talk about a common landlord topic and that is tenant screening and how do you conduct tenant screening. I'd like to walk you through Cornerstone's process of how we do tenant screening in four easy steps.
The first step is to pre-qualify interested prospects before you show them the property, before you move forward with any steps in the application process. We do that in a couple of different ways. One, we have a list of all our minimum criteria on our website, and we also post that on each property listing. So if we're listing your property for lease, we're also including the minimum qualification criteria for that property along with the listing. That's always found on our website. Sometimes it gets lost when it goes to the second or third tier websites, but we can always refer back to the website for anybody who's interested.
We use an online scheduling process where a prospective tenant can schedule a showing at a property without picking up the phone or without calling on the property. They're able to schedule a showing in a vacant time slot. And they also have to go through some pre-screening questions on the online scheduler so that they know what the requirements are for the property. And then thirdly, if they call us on the phone or reach out to us on email, we can also provide them the minimum leasing criteria for that property before we even set up or schedule a showing. So that's the first step.
The second step would be screening prospective applicants at the property. So if you're showing the property, if one of our leasing agents or property managers is showing the property, we can review the leasing criteria with the prospective applicant face to face. So that gives us an opportunity to again go through it. We don't want to waste their time or ours, making sure they're qualified for the property that they're looking at. The showing also gives us a time when we're face to face with that prospect to kind of go over our expectations for leasing the property, what they might be required to maintain. If it's a single family home, we can discuss lawn care. We can discuss shoveling the sidewalks. If it's a townhome, there may be different trash requirements or again, snow removal sometimes comes up so we can cover those things while we're in the property with them as well.
Thirdly is through our online applications. We do all our applications online. Those can be reached from our website. We discuss that with any tenant who is interested in the property. It's an easy link on the front page of our website. Based off the information the tenant provides and the property they're applying for, we conduct a 12 point check off of their information through the application. Obviously, we're looking at income, employment, FICO score. We screen for sexual predators. We screen for criminal background and seven other points that we take from the information they provide us. So that's leading up to the application.
If they've met the application requirements, if they’ve met the minimum leasing requirements and their application is approved, and then they move into the property, the last step we do is we go back and we survey that property 45 to 90 days after they move in. So that gives us a chance to do a couple things. One, it's an opportunity for us to answer any questions they might have about the property while we're in the property with them. Maybe they moved in August or September and now it's October and they're having problems with the thermostat, or they're not sure how to set the settings on the thermostat, or maybe they moved in in the spring and now it's summer and we want to make sure that the sprinklers are set up to run correctly.
It also gives us an opportunity to review with them how to change the furnace filter. How do you know what to do if there's a leak in the property; where the main water shutoff valve is for the property, in case they have a leak so they can minimize damage to the property. And it also gives us a chance to look at the property, look at how it's being maintained and provide recommendations back to them, if that's required, to keep the property up to the standard that we expect. So we're reviewing expectations on maintaining the unit.
Thank you for your time. Thanks for watching today. I hope this was of interest to you and of value to you. If you want to see what kind of rent your property could be bringing in, we have a free market analysis on our website. It's listed as a Free Rental Price Estimate. You can get that from our website at callcornerstone.com. Feel free to reach out to us. If we can help in any way, you can reach us here at the office, you can reach us off our website, or you can check us out on our social media accounts. Thanks again. Have a great day.
In today's video (Part 2 of Rental Owner Frequently Asked Questions) we discuss our accounting procedures - why we conduct Full Month Accounting - and what the benefits are to our owners.
Don't forget to check out Part 1 - and stay tuned for more in this series!
Hello, and greetings from Colorado Springs. My name is Lance Kohler. I'm the managing broker of the Cornerstone Real Estate team. Today I'd like to cover another rental owner frequently asked question -- Part Two of our series. Today's question is, “Why do you conduct full month accounting?” When we're interviewing potential clients or talking to our new clients, they often have a question, that is, “Why do we do full month accounting?” The technical term is full-cycle accounting. And that cycle for us is one month. What that means is, at the end of each month, we close out all our accounts.
We manage several accounts: we have a rental income account; we have a security deposit account; a sales account; et cetera. Those are all escrow accounts because we're holding other people's money. So it's very important that we keep track of those and that those accounts are accounted for correctly, as you can imagine.
We conduct a monthly close-out, and that is a series of steps that we conduct at the end of each month on each of those accounts to make sure we review, record, and reconcile any transactions in those accounts. We look at all income, we look at every expense and we make sure that our accounting ledger matches our bank ledger and make sure that everything is accounted for.
What that means for you the owner is that the first month that we rent your property there will be a delay (in you receiving an Owner Draw) because we're going to rent that property and close out those income and expenses at the end of the month, and then send your owner draw. For example, if we rented your property for the first time in the month of June, for Cornerstone, rent is due on the first we provide a grace period until the fifth. So that tenant pays us on the 5th of June, pays the rent for the month of June. We take that, and we're going to hold that and close out that account at the end of the month of June. And then we're going to send you your owner's statement for the month of June and your owner draw for the month of June no later than the 15th of the month of July.
What are the advantages of that? Well, one of the advantages to you, the owner, is that expenses are not often out of pocket. In that same example, the tenant pays us on the 5th of June for the month of June. If, on the 15th of June, we have to replace the oven in your property, we already have funds that belong to you in your account at Cornerstone; we don't have to call you or reach out to you to send us a check so we can pay for that oven. We have funds on hand. We can go ahead and take care of that expense, nothing out of your pocket. That again is then reconciled at the end of June and the remaining funds (the owner draw) will be sent to you no later than the 15th of July.
Another advantage is that our accounting is a hundred percent complete. It's a hundred percent correct before we send any funds out. So we are, again, closing out that account for the month of June, just like you would, if you were balancing your checkbook. And it's transparent to owners after that first month. So the first month, like I said, there'll be a delay, but after that, like clockwork, you'll be receiving your owner's draw every month to include the month after we stopped managing your property, for whatever reason. You'll still receive an owner draw that following month, if there are funds in your account, of course, but you know, the tenant pays rent. We'll send you those funds that following month. A disadvantage would be that delay in payment – but for that first payment only. Like I said, after that, it runs like clockwork every month, but there is that delay in that first payment.
Thank you for watching. Thank you for your time. I hope this was of interest and value to you. If you're curious what your property would bring in for rent, we do have a free market analysis on our website. It's listed as a Free Rental Price Estimate. You click on the front page of our website. We'll send that to you free of charge. If you have any questions, please feel free to reach out to us. You can reach us on our website, here at the office, or you can reach us on our social media accounts. Thanks again. Have a great day.
Today we address Owner Frequently Asked Questions (FAQs) concerning Cornerstone's Property Management team. How long have you been in business? How many properties do you manage? What fees do you charge? All very good questions for potential Owner/Clients to ask.
This video is the first in a series of FAQs in which we will answer commonly asked questions. Stay tuned for Part 2!
Hello, and greetings from Colorado Springs. My name is Lance Kohler and I'm the broker-owner of the Cornerstone Real Estate team. Today, I'd like to cover another addition of rental owner frequently asked questions. We'll say part one of a series of frequently asked questions and hopefully we can address some of your most common questions.
Today I'd like to talk about how long we've been in business. That's a commonly asked question by an owner who's interviewing a property management company, and I understand why. The investment property owner wants to know how long we've been in business because the longer we've been in business, or the longer we've been involved in the business, the more experience we're likely to have and the more likely we are to remain in that business.
So me personally, I've been in the property management business for over eight years and Cornerstone Real Estate team has been active under my ownership for five years. Another question that we get asked often in the interview process is how many properties do you manage? And I understand why that's important to an owner because a company that may manage 20 single family homes would not have the level of experience or the level of experiences that a company that manages a hundred or 200 or 300 properties would have. Each of those comes with different challenges, but a company that's managing more properties has more experience in different situations, may have dealt with a little more chaos, a little more chaotic events, emergencies; they may have dealt with fire, flood, etc. Whereas a company with a fewer number of doors wouldn't have that wealth of experience.
So at Cornerstone, today we manage 423 units. We manage a mix of multifamily and single family homes for residential lease. So our portfolio today is 181 single family homes, and the remainder are multifamily units and apartments. We manage two small apartment complexes. We manage several duplexes, multiple fourplexes, etc. We manage a six-unit apartment complex. So about two thirds of our portfolio is on the multifamily side and roughly a third is on the single family side.
So I tell you that and I want to follow up with the staff that we have to support that. We have five licensed property managers, we have two assistant property managers, and we have a support staff that works behind the scenes to assist us in managing those properties. We have a full time admin assistant. We have a bookkeeper that works for us. We have an accountant. So we have that support staff to assist those property managers and we have property managers to make sure that we're taking good care of your properties, if you were to join us at Cornerstone.
Another valid question is: What are the management fees? Our management fees are 10% of the collected income for the unit or property monthly. For the most part for a single family home, that collected income is the rent. For a multifamily unit that may include some utility payments or other payments that come in in addition to the rent income. So that's 10%. We do charge a leasing fee. That's a new lease, putting a new tenant into a property. We do charge a lease extension fee, and that's a fee to extend a tenant who's already in place. With a second lease, we'll do another inspection. We do the paperwork. We extend that lease, you know, provided the tenants are taking good care of the property, etc.
And we do charge a small monthly technology fee per unit. And that's just to assist us with the rising costs of marketing, etc. Several websites we use now are charging marketing fees and the rising cost of our software and accounting systems, our property management software system and our accounting system.
What I would like to also cover is that we don't charge an onboarding fee. We don't charge a new account fee. For a new owner joining us, we don't charge an onboarding fee for bringing you on board. We don't charge a new account fee for establishing a new account with us or if you brought on a second property, we don't charge a fee for that. And we also don't charge any markup on invoices. So if we had a vendor go to your property and replace the garbage disposal, because the disposal is expired, it's beyond its useful life and it stopped working and it costs $90 to install that disposal. That's what you will get charged. The owner would get charged $90. We don't mark that invoice up to cover our costs of coordinating all that.
And then another common question is what will my property rent for? What will I get for my property? If I decide to lease my property, what can I expect to receive for rent income? And so first I'd like to point you to our website. We have a free market analysis tool on our website that you can fill out and they send you a complete report on your property, which is fairly detailed; it'll break it out by zip code.
It'll show you comparable properties to your property based on size and based on location, typically by zip code. But often if they can, they'll narrow it down to neighborhoods. It'll also give you a common rent rates and a plus or minus variance that you expect based on the current marketing conditions. So that's a great tool. Feel free to use that if you'd like. We use that when we do assessments for new owners, or if we have a property that we're managing and we want to make sure we're keeping up with the market rents and maybe the lease is being renewed or putting it back on the market, we'll use that tool.
And then we'll also use several other reports. So we'll look at the multiple listing service (the MLS) in our area. We'll pull some other internet reports. We use the free market analysis. And then we also look at market trends because what somebody paid to rent a property, a similar property, or a property similar to yours in your neighborhood six months ago may be quite a bit different. Over the last several years, we've seen incredible growth in the rental market here in Colorado Springs. There's been a lot of demand. That may change and there may not be as high demand. So we want to adjust that and make sure that we're giving you the best recommendation on a listing price for your property.
I hope this was of value to you and that I provided you some answers to some common questions that rental owners have regarding a property management company and how things operate within the property management company. If you have any additional questions, please reach out to us on our website or on our social media platforms. Thanks for watching. Have a great day.
In today's video we answer another frequently asked question: What property management services do you provide?
Cornerstone Property Management has three levels of service. We describe each level, and provide you details on what is provided in each level in this video.
Hello, and greetings from Colorado Springs. My name is Lance Kohler. I'm the broker-owner of the Cornerstone Real Estate Team. Today, I'd like to talk to you about another rental owner frequently asked question and that's, “What property management services do you offer?”
At Cornerstone, we offer three levels of service. We have a Maintenance-Only option, which is a flat monthly rate with the charge for any additional tasks. We have a Tenant Placement (sometimes called Leasing-Only) option. Again, that's a flat-rate fee. And then we have our Full Service Property Management. I'll go into each of those three here as the slides progress.
Our Maintenance-Only service is typically for an owner-managed property, where we just provide maintenance service for them. So the tenants would be provided contact info for our company and they'll be able to submit work orders through our system. And then we'll assign a vendor to complete that repair. We'll track the completion, coordinate with the tenant to get the vendor and the tenant linked up. And then, once the work is complete, we'll go by and inspect the repair and make sure it's done correctly. And this includes emergencies, after hours, and weekends service.
On our Tenant Placement service (or Leasing-Only, as we often call it), we'll do everything: meet you at the property, advise you on market rent rate, get photos of the property, and create the listing. We put the listing on our website. We'll also send it out through our management software system to other websites to include Zillow, Trulia and Hotpads, which are the three big ones that we see the most traffic on. We'll answer any inquiries, whether it's email, text, or phone calls on the property. We'll set up showings, we'll conduct the showings, we'll screen the tenants. Once we have an approved applicant, we'll meet with them, fill out the lease, have the lease signed and then hand the home back to you for management. That's our Tenant Placement service.
And then our Full Property Management service. We charge a fee of 10% for full property management -- 10% of the monthly income from the property. Really, the full property management would take me another video or two to cover. I've got a list of tasks here we use for our property managers, it's two pages long with the more than 60-something tasks that are involved in managing a property full time. But it'll include everything I've just discussed with the maintenance-only and the tenant placement service. And then we’ll also do rent collection, maintenance and repairs, tenant coordination, and all the bookkeeping and accounting that goes with that.
We'll send you monthly reports. We'll also send you yearly reports and end-of-the-year tax documentation. And what about inspections? We'll do a move-in and move-out inspection as those are required. We typically do an inspection 45 to 90 days after a tenant moves in. We do an inspection before we do a lease renewal if the tenant wants to stay in the property, et cetera.
So that's what's involved in the full property management and those are the three levels of service that we provide. Hopefully this has been of some value to you. I appreciate you watching. Thank you for your time. Have a great day!
In today's video we discuss a question we frequently get from Investment Property Owners: Do I have to Accept Pets? We discuss pets, Emotional Support Animals (ESAs) and Service Animals in rental properties, and our Pet Guarantee. This video is one in a series of answers to Frequently Asked Questions (FAQs) for our Client Owners, Independent Rental Owners (IROs) and Do-It-Yourself (DIY) Landlords.
Hello, greetings from Colorado Springs. My name is Lance Kohler and I'm the broker/owner of the Cornerstone Real Estate team. Today I'd like to talk to you about one of our Owner Frequently Asked Questions and that is: Do I have to accept pets in my rental property?
We often get asked this when on-boarding an owner or discussing potentially taking over management of a rental property with a new owner. “Do I have to accept pets?” “I don't want to accept pets.” Or “I don't like cats” or “I don't want any big dogs.” All of those are reasonable considerations. So in short -- do you have to accept pets? No, you don't have to. But there's often a “but”, or a caveat, that goes with a statement like that. In Colorado Springs, 70-80% of rental applicants have pets. So if you are not accepting pets, you're discounting a large portion of the rental market here in Colorado Springs.
The second thing to consider is that an emotional support animal or a service animal are not considered pets. So if someone presents themselves to apply for your property and they have a service animal, they might have a German shepherd that performs some tasks for them. We cannot prevent them from renting your property by law. They are allowed to rent it. So, even if your policy is no pets in the property, you still may end up with an animal -- an emotional support animal or a service animal -- in the property, regardless of your restriction.
And so with regards to emotional support animals and service animals, we use a third party vendor to verify that. That takes some of the legalities off of our personnel, our property managers. We send it to a third party and essentially someone who has an emotional support animal or service animal will fill out an application for that animal through the third party. Very similar to what they're doing with us as they apply for your property.
Another consideration is retention. Tenants with pets typically stay longer, not always, but that's generally the rule; they're going to stay in a property longer. And when I started in property management, my mentor always said that people take care of their pets, like they take care of their credit score. So we're already screening the tenants for their FICO score (for their credit score) before we allow them to rent your property. So we keep that in mind. Someone with a
high credit score, most likely is taking good care of their animal. And by taking good care of their animal, they're going to take good care of your property and not let their animal destroy your property.
You're the property owner, and we're going to abide by your wishes. We do have a few properties in our portfolio that we manage that do not accept pets, but we always recommend to owners that they accept pets in their property and just consider it a cost of doing business.
As I mentioned before, we have a screening process. I used it in relation to emotional support animals and service animals, but that screening process applies to anybody with a pet. So anyone with a pet or a service animal or an emotional support animal fills out an animal profile, essentially an application for that animal, which we keep on file and we use to approve the animal and the applicant. And that part is done through Petscreening.com, which is a company -- that third-party service that I mentioned earlier. And we also offer a Pet Guarantee.
The Pet Guarantee is really to remove some of the risk to you, the owner, and we will take some of that risk on ourselves. Cornerstone will pay up to $2,000 towards damages caused by a pet that we approved. So that's an additional benefit to you.
Contact us if you'd like to get your property enrolled. It's a new program. We've been rolling it out for our new clients as we're bringing them on. But we're also reaching out to our current clients or current owners. I did a short video just on the Pet Guarantee. So if you check back through our video blogs on our website, you'll be able to see that and get some more details.
Hopefully, this was of value to you. I appreciate you for watching. Thank you for your time. Have a great day!
We are often asked "Why Should I Hire a Property Management Company?" or "What Benefits Would I See by Hiring a Property Management Company"? In today's video, we discuss how a Property Management company can get you more time and money - and provide two examples where we did just that.
Hello, and greetings from Colorado Springs. My name is Lance Kohler. I'm the broker-owner of the Cornerstone Real Estate team. Today, I'd like to talk to you about a few of the benefits of hiring a property management company.
Often, we hear owners of investment properties ask us, “Why should I hire a property management company? I'm managing it myself and I'm doing fine.” Or, “What benefits would I see from hiring a property management company? Again, I'm managing it myself and I don't have to pay anybody to do it.” So some common concerns are that hiring a property management company will be expensive or the owner won't make as much money or they won't make any money at all because the property management company is going to charge them fees for doing something that they're already doing themselves.
I understand those concerns. So today I'd just like to talk you through two examples of properties that we took over management and show you how hiring a property management company can actually make you more money. The first example we're going to use is a duplex. The owner had been managing it for five years. So it was owner-managed for five years, and rent was $700 per month per unit. The owner had not increased the rent during those five years because he had good tenants that paid on time and took care of the property. And he was concerned that raising the rent would cause them to leave. So he didn't keep up with the market increases. During that time in Colorado Springs, the market in some areas was going up 10% per year on rent rates. And the owner paid the utilities.
The utilities were not separately metered. The owner got one bill for the utilities and he was paying that himself. So what that looks like on a yearly basis is $1,400 a month equals $16,800 gross income, minus the utilities ($1,800) as an expense to that owner. So he's making $15,000 a year on the duplex. Two units rented at $700 per month. So after he turned over management to us it took us a few months to get everything turned over, meaning the leases that are in place were still in place. So we have to wait until the lease expires or comes up for renewal. And then we can adjust the rent rate and we can adjust the lease terms, like charging back utilities, et cetera.
So when we did our market analysis, we found that the market rent for these units in this duplex were really $900 a month per unit. So we changed the rent to $900 a month and the tenants are now paying utilities. It's billed back to the tenants. So we get the bill, we break it up based on square footage (typically), and we charge that back to the tenants. So now he's making $1,800 a month on those two units ($21,600 gross annual income), and no cost for utilities because we're charging the utilities back to the tenants. He does pay our 10% management fee, but now he's making $19,440 annually off of those same two units. So when you compare that year over year -- a year under his management vs. a year under our management -- it was costing him $4,400 per year to self-manage. And he was taking care of everything. It took his time. He was answering tenant phone calls. If there was a change in tenants, he was doing the leasing and he was filling out the leases. He was doing showings. He was responding to any repairs that were necessary. He was paying the bills. Now we do all that. He got all his time back AND he's making more money than he was when it was under his management.
The second example I have is a fourplex. Again, the owner was self-managing this fourplex. We took over management in August, and the total monthly income was just over $2,000 a month. And again, no income from utilities. The owner was paying the utilities bill. Again, they were not separately metered. There was one utility bill and the owner was paying it. So he was making an average of $531 per month per unit, giving him a gross annual income of 25,500. And the owner's concern was the cost of our management. So if he hired us to manage it, he was afraid he wasn't going to make any money and it was going to cost him money.
So let's look at the statistics of that for one year. So after one year of our management, (again, it takes some time to get the leases turned over and to get the rent rates up to where it's a market rent rate) he’s now making $2,500 a month in rent, and he's got income of $215 a month from the charge-back for the utilities, giving him an average of $697 -- almost $700 -- per month per unit.
Now let me flip back really quick. He was making $531 per unit when we took over management. Now he's making almost $700 per unit -- just over $33,000 annually income -- minus our management fee. He's now making $30,123 per year off of the same fourplex, one year after we took over management, compared to the 25,500, he was making under his own management. So he made more money ($4,623 during that year) even after paying us management. And again, he didn't pay any bills. He didn't have to answer any phone calls. He didn't have to do lease renewals or sign paperwork. We sent him a monthly report and sent him an EFT deposit to his checking account each month.
Just to follow up on that fourplex statistic. After two years, now rent income is up another $500, utilities are now up to 250, to on average $731 per unit. So let me flip back: $531 when we took over. So now he's making $200 a month per unit, more than he was making under his own management, giving him a gross annual income of $35,000, almost $10,000 more than what he had been making two years prior.
So I wanted to present those as two examples of what hiring a professional management company can do for you. We'd be happy to take a look at your property. If you're interested, we'll do a free market analysis, run through all the numbers like we did here with your property and show you what we could do for you.
I hope this was of interest and of value to you. If you have any questions, please reach out to us. We'd love to connect. Thanks, and have a great day!