Financial and Marketing Obligations of a Property Management Company

When a property management company is hired by a property investor or a landlord to take care of certain rental properties an agreement is entered into which spells out the obligations of both sides. Here are some of the functions expected of a property management company.

Budgeting Operations

The company should prepare a detailed budget of cost of operating the rental home or condo. This function encompasses all of the envisaged tasks and apportions funds for their execution. The budget must include income from rents and an estimate of costs for the three main functional areas. These are repairs and maintenance to the property and the cost of tenant services. Administration charges will also have to be approximated and included.

Budgeting Capital Expenditure

As a property becomes older some deterioration is inevitable. Consequently it is likely that the rent for this property will have to be marked down in proportion and therefore provide less return on the owner’s investment. A property manager should develop a long-term budget to cover renovation and capital improvements. Remodeling, renovating, and installing contemporary appliances will increase the rental income or at least help to maintain it. Improvements could also command a rental on par with similar properties which are newer.

Capital improvements are generally provided for in depreciation, a head which an accountant will incorporate, amortized over the estimated useful life of the property. Depreciation attracts certain tax advantages.

Budgeting for Marketing and Advertising

When a property falls vacant, word gets around and attracts prospective tenants. But a property manager cannot rely on the grapevine as a form of advertisement. The manager must have a marketing plan which will need an advertising budget. It pays to advertise periodically in certain media publications which people looking out for rental properties refer to. A more vigorous marketing effort will be needed when a property falls vacant. When advertising, it’s a superlative idea to announce improvements and renovations. Expenses associated with an advertising effort have to be catered for.

Getting their Act Together

The property management company represents the owner, where the owner’s interests are paramount. Both should work closely to maximize income from rents and optimize the return on the money invested in the property. The first step in that direction is to prepare a comprehensive and realistic budget, which should become the operative guideline.

Talley Properties Inc.

Talley Properties is one of the oldest property management companies in the Charlotte region of NC. It has been in the business for over 30 years during which it has built up an unmatched reputation for excellence of service. This property management company, which handles mid-range to high-end commercial and residential properties, provides the full range of property management services. It knows its area of operation intimately so is able to judge with remarkable accuracy just what the earning capacity of a rental company is. The company also has close associations with local builders and tradesmen so is able to keep maintenance costs to the minimum. Because it is known to be one of the leading property management companies in the region, properties managed by Talley Properties have an enviably high occupancy rate.

Your Agreement with Your Property Management Company

When you appoint a property management company to take care of your rental property you are placing your trust in that company. It’s a big decision to make, but a wise one when you are not able to look after the property yourself and take care of the day-to-day operations which include caring for the properties and addressing the problems of the tenants who occupy them. A huge advantage in hiring a property management company is that they are better equipped to handle the management in a more professional manner than you could, and have the contacts and resources to do so. A good property management company ensures that your investment provides you a positive and splendid return and runs smoothly.

On the Same Page

A little care with the agreement you sign with the management company pays considerable dividends. It ensures a cordial working relationship where both you as the landlord, and the company representing you are clear about your responsibilities toward each other, and what each expects.

Such agreements invariably have some standard clauses but as far as possible you should ensure that all ambiguities are covered to avoid future misunderstandings.

Management Duties

A standard contract will spell out that all tasks and duties pertaining to tenant requests and needs, as well as the maintenance of the property whether it is a rental home or condo, rests with the property management company. Other duties would include advertising when the property is vacant, screening, and interviewing of prospective tenants and collecting rent from them. The management company will also take care of break-downs and routine maintenance, and other little details related to daily operation. It also falls to the management company to evict tenants should that need arise.

Property Management Company Fees

In most property management contracts the agreed fee is generally a percentage of the gross rent collected. In addition, some companies charge add-on fees which should be clearly stipulated and quantified. Much of the fee structure will depend on the nature of the services required. Some landlords or investors require the whole package while others may ask for only a restricted number of services. Whatever is agreed to should be incorporated in the agreement.

Manager’s Liability and Owner’s Responsibility

The management company and owner have responsibilities toward each other. There should be no ambiguity about these which should be clearly listed in the agreement.

Finally the contract must have a specified tenure with clear starting and termination dates. There should also be an exit clause which allows both sides to terminate the agreement at an earlier date if things don’t work out.

Property Management in Charlotte, NC.

Arguably the oldest and best-established property management company in the Charlotte region of NC is Talley Properties, which specializes in high-end to mid-range commercial and residential properties. Over the years, and to cope with a rising demand for its services, Talley Properties has expanded its range of operations and now manages rental properties in many of the surrounding counties.

This is a full-service property management company but is amenable to providing only specific services as required. To learn more about Talley Properties, click on http://talleyproperties.com/.

Five Points to Include in a Lease Agreement

A rental or lease agreement is a legal contract which defines the rules which landlords, property managers, and tenants agree to abide by during their rental association. Here are some critical points which you should cover in your rental or lease agreement:

All tenants should be named: The name of every adult who will be living in the rental home or condo should be listed as tenants and should be signatories in the agreement even a married or unmarried couple. With this every tenant becomes legally responsible for the rent, the proper use of the premises and all terms in the agreement. This provides you with additional cover since each tenant is independently responsible for payment of the entire rent, should the others not be in a position to pay. Further, if one tenant breaks an important term of the agreement you are able to terminate the rental or lease agreement which is binding on all tenants.

A limit on occupancy: In your agreement you should clearly mention that only those adults who have signed the agreement and their minors will reside in the rental unit. This gives you the right to decide who lives in your rental property and to restrict the number of residents. This term allows you to evict a tenant who sublets the unit or who moves in a relative or friend without your consent.

Period of tenancy: Your rentals document should clearly state if it is a fixed-term lease or a rental agreement. Rental agreements typically run from one month to the next, and unless terminated by any of the signatories, renews itself. Leases generally last a year. The choice is yours and will depend on for how long you want to rent your premises or how flexible you want your agreement to be.

Rent: Your agreement must clearly stipulate the amount of rent payable, when it is to be paid and how. Spell out what payment methods are acceptable to you. If you are OK with a grace period be clear about the number of days, and if you are going to impose a penalty after that, mention the amount. Mention charges in case of a bounced rent check.

Fees and Deposits: Security deposits are a cause of much friction with tenants. To avoid this, in your rental agreement clearly state:

The amount of the security deposit

How you may apply it – to damages etc., or how the tenant may apply it – toward the last month’s rent.

How and when the deposit will be returned and details of deductions.

Any non-returnable fees like for pets or cleaning

Where the deposit is being held and whether interest on the deposit will be paid to the tenant.

Take the Burden off of Your Hands

Landlords and property investors of rental properties in and around the Charlotte region of NC can avail of property management services from Talley Properties Inc, the oldest property management company in the area. The company offers a slew of services which are more fully listed at http://talleyproperties.com. Its area of expertise is in mid-range to high-end residential and commercial properties.

What Talley Properties can do for Your Rental Investments

 

Talley Properties of Charlotte NC is one of the oldest and most trusted property management companies in the Charlotte region. Over the 30 years it has been in the real estate business it has provided outstanding service to thousands of landlords and property investors in the area. Its reputation for reliability and performance has enabled it to expand to now manage rental properties in many of the surrounding counties.

A Dedicated Business

Talley Properties is no armchair management company. It has built up a formidable and efficient support staff through which it is on call 24/7 for all emergencies, a service which has endeared the company to tenants as well. This property management company has established a reputation for fair dealing and keeping up to its obligations to its tenants. It is proud of its response time which ensures comfortable living for tenants.

Talley Properties Knows this Arena

The company provides management service to high-end to mid-range commercial and residential properties. For rental property owners and landlords here are some of the services Talley Properties offers:

Advertises your property and escorts prospective tenants on inspections

Keeps you posted of the condition of your property, and advises what maintenance is needed to keep your property at peak level for optimal rental rates

Finds reliable occupants to tenant your property and conducts appropriate checks

Prepares and executes the necessary lease agreements on your behalf

Relieves you of the stress of dealing with tenants and attending to the problems they face

Manages all aspects of your property and ensures compliance with state and federal regulations

Manages vendor relationships with maintenance workers, suppliers, contractors, vendors, and tradesmen

Attends promptly to routine maintenance and ensures this is done to a satisfactory standard

Conducts routine inspections and submits reports

Collects rents on stipulated dates and manages outgoings

A Reputation that Precedes It

Talley Properties takes pride in providing services that extend well beyond the purview of a conventional property management company. It strives to forge lasting relationships with its clients which it has been successful in doing. A significant percentage of its new business is through word-of-mouth recommendations.

Every Relationship Counts

While many of the other property management companies overextend themselves and are unable to provide the necessary time and effort to each of the rental properties it manages, this is not the case with Talley Properties. The company has grown in a systematic manner and has always established an infrastructure before taking on new commitments in terms of rental homes and condos.

The company organizes its time methodically so that its various teams are able to dedicate appropriate time and focus to each rental property it manages. Whenever you need information, assistance of advice, the company is there for you.

Delivering the Appropriate Information

One of Talley Properties’ strongest features is to reflect the true potential of your property so that the return on your investment is optimized. Prospective tenants are always escorted on property inspections by a company representative so that it can be displayed in its best light.

While this is a full-service property management company, Talley Properties is flexible enough to accept customized contracts and provide only the services you need.

What if a Property Manager has to evict a tenant?

When you invest in property, especially rental property, it can be a rewarding decision. But it can also be challenging with many routine tasks which are necessary but cumbersome. Maintenance is always a problem which has to be done on an ongoing basis if the property is to retain its value. All features of the rental property must be in good working order for the satisfaction of the clients. This is an obligation the property owner has to fulfill.

The Last Recourse

But there is an even more disturbing side to rental property ownership. This is when a tenant breaches the rules and regulations of the lease agreement leaving the owner of the rental home with no option but to go through an eviction process. The Landlord and Tenant Act clearly define what both parties must abide by, and when the tenant does not comply with the terms the landlord is forced to exercise tenant eviction.

Tough Situation

Many property owners who buy rental condos and homes as an investment prefer to leave the management to professional property management companies. There are certain very distinct advantages to this arrangement because a fabulous property management company takes care of all routine tasks associated with the property including those less pleasant tasks like tenant eviction.

The Full Gamut

A property management company which is well-established and has earned a reputation is a distinct asset to a property owner because it is able to ensure optimal occupation at the best rental rate. It also operates through a skilled staff and could well have an in-house maintenance department who looks after day-to-day maintenance where speed is of the essence. The property management company takes care of advertisements in the right locations, screening of prospective tenants, and concluding lease agreements. It also takes care of tenant eviction keeping the landlord insulated.

Lack of Respect

An eviction process starts with a verbal warning and providing adequate time for the tenant to remedy the problem. The most common issue which landlords and property managers face is failure by tenants to pay the rent. If the tenant is habitually late the manager will first warn the tenant verbally. If that doesn’t work the next step is to issue a written warning by registered mail which provides proof of delivery even if the property owner/manager resides in the same building. If the tenant still defaults then tenant eviction is the next step.

Notifying the Sherriff

The property manager will have to file an eviction case in the appropriate court. During the hearing, both sides will be asked to present their respective argument. If the case is held in favor of the landlord or manager, the tenant has wait 2 to 5 days to vacate the premises. If the tenant still does not vacate, the town sheriff will have to be approached to enforce the court’s order.

Protocol

Self-eviction is not allowed by most states. A proper legal process has to be followed or else the tenant might sue for wrongful eviction in a civil court. An eviction process could take anywhere from 1 to 7 months and does not absolve the tenant from back rent. The legal fees will have to be borne by the party found to be at fault.

Keeping their Hands Clean but not Unwilling to get them Dirty

Talley Properties Inc. of Charlotte, NC is a property management company now in its fourth decade of service to the community (many of them). This property management company which specializes in mid-range to high-end residential and commercial properties in and around the Charlotte region is meticulous about the screening process to avoid having to seek recourse to tenant eviction. Landlord satisfaction is highest on its agenda followed by tenant appreciation which is why the company’s track record on evictions is well below the industry standard.

If you are looking for a top-quality property management company to take charge of your properties call Talley Properties at 704.332.2203 and check the company out at http://talleyproperties.com/.

The Cost-Benefits of a Property Management Company

A property management company takes most if not all of the hassle in renting out a rental home or apartment. Managing your own rental properties is all very well if you have the time, resources, and expertise. What many landlords, especially new landlords, fail to realize is that managing a property is a full-time, multi-faceted occupation where you have to be on top. Many first-time landlords have started off bright, enthusiastic, and optimistic but have soon realized just what it takes and turn to a property management company to look after their rental investment. Amateur landlords find a property management company the perfect solution which enables them to make this real estate investment work.

Vital Aspects

What many first-time landlords do not appreciate is that there is more to property management than merely advertising a rental condo or home and screening potential tenants. The company has to execute the lease and later collect the rent. During the term of the lease the company is responsible for coordinating repair work and routine maintenance. Most provide 24-hour emergency service and document cash flow statements on a monthly basis.

Fee Charges

For their services, property managers charge their clients a fee which typically is a percentage of every monthly rental payment. In addition to the monthly fee, most management companies charge a leasing fee which typically amounts to a month’s rent.

What this means is that depending on the company the property owner might have to pay as much as two months’ rent in the year in exchange for which the property company takes care of the management and all issues arising from it. While at first glance this does appear to be a considerable amount to part with, many landlords reckon that the cost-benefit which accrues from such an arrangement is well worth it. Many landlords might not have the time or the inclination or for that matter the expertise to manage their rental property themselves. This is especially true for landlords who reside some distance away from their rental properties.

All Aspects Marked Off

Rent collection, repairs, and maintenance are the main issues which a property management company faces. Management companies are of tremendous help when it comes to delinquent tenants and the litigation involved in evicting tenants who have fallen behind in rental payments. Since the fees to a company are paid as a percentage of the rental that is collected, a marvelous management company is on top of rent collection.

A Company that Knows this Domain

Talley Properties Inc. is a reputed professional property management company which manages commercial and residential rental properties in the Charlotte region. It has rendered over 30 years of service during which time it has expanded its area of operations to the surrounding counties. This in itself speaks for the success and attributes of the service it provides.

Talley Properties is a full-service management company but remains flexible and will accommodate a property owner who needs only specific services. The company is on call 24 hours a day and prides itself on the swiftness of its response time. The company strives hard to render the best possible service to its clients.

Indicators of a Good Property Management Company

Landlords, especially those away, are always concerned about their rental homes and condos, and whether the managers whom they have appointed are committing any mistakes for which they could be held responsible. There are indicators however through which a landlord can recognize a fantastic and reliable property management company. When those indicators are evident the landlord should relax knowing his rental property is in steady and stable hands. There’s no worse nightmare for a landlord than to have to fire a property management company for incompetence and appoint another. Here are some indicators of a fantastic property management company.

  • A flexible approach to win you over as a client. Quite often property management companies try to sell themselves too hard and count on the naivety of new landlords to win their business. Landlords don’t need to be tied down to packaged prices. A sterling property management enterprise should adopt a flexible attitude which demonstrates an eagerness to work with a client.

  • Hidden costs and add-on fees. Many property management companies look to make a quick buck at every opportunity. Landlords are suddenly hit with unanticipated add-ons such as marketing, occupancy, advertisement fees, and other little additional hidden costs that certainly add up. A property management company filled with integrity is one which is upfront with all the costs so that the landlord is able to choose what services are required, wanted, and can be afforded. The management company should then stick with these costs; an attitude which creates a mutual trust.

  • Communication is critical. Nothing upsets a landlord more than not being kept informed about what’s happening with the property. A magnificent management business will keep the landlord posted with regular updates or reports. If there are any issues likely to evolve the management company should keep the landlord advised and what control steps are being taken. The company should be accessible to the landlord 24/7.

  • Financial reporting at regular intervals is vital. The landlord owns the property as an investment and would like to be kept informed about the income it generates and any problems that are likely to pose a threat. A property management company that wants to attract more customers and retain the ones it already works with would keep the landlord posted with a banker’s diligence about financial generation and the fiscal status. A flourishing company will keep the value of the investment safe and demonstrate transparency in all financial dealings.

  • The company’s management skills should match the property’s needs. Needs will vary from a residential to a commercial property and within the grouping itself. Steady and judicious property management is manifested by a company that has the capacity to meet these needs and be sufficiently resourceful to meet contingency situations should they arise.

  • Capacity to provide a range of services. Landlords, especially absentee landlords, often need full-service management capabilities. This might encompass multiple services beyond the mere rent collection duties and ensuring optimum occupancy.

 

Rewarding Fantastic Work

 

Salient property management services are hard to come by. When a landlord senses the right indicators a full-service, outstanding property management company should be rewarded with increased business and referrals.

 

Still Blossoming

 

Talley Properties Inc. is a full-service property management company with expertise in mid-range and high-end commercial and residential properties in and around the Charlotte, NC region. The company is now in its fourth decade in property management during which time it has forged enduring relations with a host of investors and owners whose rental properties it manages and cares for. The fact that Talley Properties has significantly expanded its sphere of operations since inception speaks for itself.

What can Talley Properties do for you?

Talley Properties is arguably the leading property management company in Charlotte, NC. Its specialty is the management of mid-range to high-end residential and commercial rental properties, a service it has been rendering in and around Charlotte for over three decades.

Hard Work has Paid Off

When it comes to real-estate and property management in this area, Talley Properties Inc. is a byword. Its name is synonymous with trust and efficiency. These are the qualities that have made this property management company the preferred choice of investors and landlords.

Talley Properties is a full-service property management company but is flexible in its outlook. It offers its clients need-based services as well. But if you are an investor, or planning to invest in and around the Charlotte region, or already own property there, consider what this company can do for you.

Maximizing the return on investment is something Talley Properties is renowned for. It always has the best interests of the owner at heart. As far as possible it ensures maximum occupancy of your property at the optimum rate. Talley Properties can do that because of the reputation it has painstakingly built up over 30 years. It is where new arrivals to Charlotte and its environs gravitate when looking for rental homes and condos.

Squared Away and Professional

As much as it protects the interests of its landlords, Talley Properties is aware of its obligations to its tenants whom they have sourced. It strives to address their problems in a timely and courteous manner. Talley Properties has a trained staff that is versed in day-to-day maintenance problems and is able to resolve issues with the least amount of inconvenience to tenants.

The company collects rent on a fixed day so the tenant is aware of his/her obligations. That apart, Talley Properties lives up to all the clauses in the lease agreement. All facilities and amenities are kept in perfect working order, to the best of their ability and within reason, for the tenants’ comfort and ease of operation.

Four Salient Characteristics

There are four ingredients an investor or landlord should be looking for when considering a management company for their rental property. These are marketing, occupancy, operation, and facility.

Knowledge of the local real estate market is critical for a management company to be able to assess a property and know its rental worth. The company should keep itself informed about competitive properties so as to establish the best possible rental rate. Proper marketing of a rental property is a must to minimize vacancy, and in this Talley Properties scores highly because it is a local icon.

Operating expenses are closely controlled so that profits are maximized. Owners are kept updated about their investment with relevant financial statements at regular intervals. Every event of significance pertaining to the property is carefully recorded and readily available to the owner.

Attention to Detail

Maintenance is always at the forefront of concern. Repairs are monitored to ensure that they are of the expected quality. Outdoor areas are also maintained so that they present a pristine and appealing appearance.

Minimizing Risk

Finally if eviction of tenants becomes necessary, the company handles it diplomatically with the least amount of attention and without concerning the owner in any way. Evictions are the exception because pre-rental screening is scrupulously conducted before signing a rental agreement.

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