Property Management Fee Summary
Startup Documents needed: A signed property management agreement, a direct deposit authorization, and Maricopa or Pinal County rental registration are required documents. Most cities require a rental tax license which we will help you obtain. A refundable balance reserve of $300.00 for each property is required to be held in your account with us.
Monthly Reports: We send you a monthly report that shows transactions for rent collected and deposited into our trust account. Proceeds are deposited directly to your bank account on or around the 18th of each month. Monthly reports are accessible on your portal through our website each month. We will also collect and file and pay the city or state rental tax requirements. You will also be sent an annual 1099 form for rental income with your year-end report of income and expenses to file with your tax return.
Management Fees: The monthly agency fee is based on a percentage of the rent collected. We get paid when you do. This includes the routine services of collecting the rent, accounting reports, move out inspections, responding to calls from tenants for repairs, and supervising those repairs. We respond to the needs of your tenants and property 24 hours a day. The monthly management fee for most single-family houses is 8% of the rent collected.
Leasing Fees: Our leasing fee is $500 and paid when we collect the first month’s rent from a new tenant after the lease is signed. This is based on a 12-month lease. The fee for renewing a new lease with an existing tenant is $100.00. Rental rates are reviewed annually, and you can recommend an increase should the current market support it. We guarantee the tenant to remain for at least 8 months of the lease or replace them for no additional fee.
Security Deposits and Tenant Fees: Tenant security deposits are held in our trust account. When the tenant moves out an inspection is performed and any charges for damages will be transferred to your account and sent on the monthly disbursement. We also charge tenants application fees, administration fees and late fees according to the management agreement and lease contract that we keep as fee income. We retain the right to make the final disposition regarding charges for damages and cleaning withheld from tenant deposits based on professional and industry standards of wear and tear and depreciation.
Maintenance: A vacant property needs supervision and maintenance. Depending on the time of the year this varies regarding pest control treatments, cleaning, or landscaping cleanup to keep the property free from debris and to show well. Pre-emergent weed treatment spraying should be done on vacant properties with desert landscaping to prevent weed growth. Appropriate window coverings should be installed on all windows. The kitchen should have the standard appliances included plus a refrigerator. If the property is vacant for more than 30 days, it usually needs to be cleaned before the tenant moves in. Carpeted floors need to be professionally cleaned before a tenant takes occupancy. Tenants will be required to have the carpets professionally cleaned when they move out. We will need an electronic copy of any HOA CCR’s pertaining to the property so that we can have them available to tenants, as they are binding as part of the lease.