In my last article, I went deep into how a professional property management company like Rentwell can help turn your home into a rental property.
If you're wondering how to start the process, I recommend you check out that article before continuing. In it, I explained:
- How we determine if your home is rentable
- How we determine your ideal rental rate
- How we ensure your home is taken care of
- Our tenant screening process
- What your onboarding process will look like
- Our pricing and contract structures
- How we find the ideal tenant for you
- What sets us apart from other property management companies
- And much more
Today, I will explain how we manage your property once you've converted it into a rental. I'll tell you exactly what to expect from us while your tenants are in your home and the four possibilities that can unfold once their lease period has ended, including lease renewal, placing new tenants, preparing your home for your return, and preparing your home for sale should you choose to sell.
My intention with these articles is to answer your most pressing questions about our management responsibilities, provide you with complete transparency, and gain your trust. Please don't hesitate to reach out if you have any additional questions after reading. Let's get into it.
What do property managers do during the lease period?
Once we've successfully found and screened a great tenant for your property, our job is just getting started.
We handle all the details during the lease period, so you don't have to. Some landlords want to be more involved than others. You will be assigned an individual property manager with years of experience. They will learn your involvement preferences and work with you accordingly.
Our willingness to tailor communication based on your preferences makes our property management services unique and competitive. You can be as involved as you'd like without worrying about things slipping through the cracks. Here's what you can expect from us:
How do you handle rent collection?
We make sure your rent is collected on time each month. Your tenants can pay online using our resident portal, making the process quick and easy.
Our rent collection statistics are very high. If there are late payments, we handle the follow-up and apply any necessary late fees automatically. We consider rent to be late on the 5th of the month. If payment is not received by the 7th, we post a notice to the property and contact the resident.
If the problem continues, there's no need to worry. We are very well-versed in landlord-tenant law and know how to navigate the local court systems to get your property producing again as quickly as possible.
During onboarding, we'll collect your banking information for your owner payout and deposit your rent into your account once it has cleared and we've deducted our property management fees. Once we've collected your rent, we send owner payouts on the 15th and the last day of each month, along with a statement of the month’s activities.
Rentwell Field Team Vehicle
How do you handle maintenance and repairs?
Poor property maintenance is the number one thing that causes you to lose money, so preserving, maintaining, and repairing your property is a top priority.
If we need to fix anything in your home, your residents can submit maintenance requests through our resident portal. We'll coordinate with trusted vendors to get the repairs done quickly.
We'll contact you to discuss your options if the repairs are major.
We complete all daily work orders within five days or less and address all emergency work orders in 24 hours or less.
Additionally, we employ Field Managers and Field Support who conduct on-site visits and follow up with vendors.
Once the work is completed, our field team will take photos of the work and corresponding invoices and share them with you directly.
How do you handle tenant communication?
Tenants have questions from time to time, and we act as their primary point of contact. They may have questions about their lease, or their living situation could change, including wanting to find a roommate, getting married or divorced, job relocations, military deployment, etc.
Regardless of their questions, concerns, or need for assistance, we're here to help. We form a bubble around your property and ensure all their communication comes to us. Then, we leverage our expertise and network to resolve the issues, keeping you informed about what we know you want to hear.
How often do you conduct property visits and inspections?
Regular property inspections are vital to maintaining your investment.
We schedule and conduct these inspections to catch potential issues early, ensuring the property is well-maintained and complies with all safety standards. At the same time, we do our best to respect your residents' privacy by keeping these visits and inspections to a minimum while keeping a close eye on your home.
To accomplish this, we thoroughly inspect your property's state immediately before residents move in. After three months, we perform our first property inspection to ensure your resident is treating the property well. Then, we perform another property inspection four months before the lease expires and a final inspection upon move-out.
We document these inspections using video and photographs and share them with you to keep you updated.
How do you handle lease enforcement?
We ensure your resident abides by all your lease terms. If there are any violations, like unauthorized pets or noise complaints, we address them promptly and take appropriate action to resolve them.
Who handles the financial management?
We handle all the financial aspects, from rental income to daily or seasonal maintenance and our property management fee.
We also provide many services that you wouldn't necessarily have if you were self-managing, including bookkeeping, tax preparation, and accounting reports that set you up for success at the end of the year. Plus, we'll handle all 1099s for vendor work at the end of January.
The only things you need to pay yourself are your mortgage, taxes, and insurance. However, we can handle mortgages, taxes, and insurance for larger landlords.
You'll receive detailed monthly financial statements that look like bank statements, with money in and money out, so you always know where the money is going and how your property is performing.
Our concierge team will provide a video walk-through of your first statement so you can get a sense of how our accounting works. From that point on, we will always be available to answer any questions you might have.
How do you keep records?
All interactions, payments, and maintenance activities are documented and stored in Appfolio. This thorough record-keeping helps us provide excellent service and gives you peace of mind knowing that everything is tracked and accounted for.
On that note, let's discuss Appfolio and how it will serve as the central hub for all your property's activities.
How will I stay informed about my property?
One of the first steps we take after you've signed as a Rentwell client is connecting you, your property, and your resident to Appfolio. We use Appfolio to enhance every aspect of the management of your property. It's the central hub for all things related to your rental property and one of the best property management softwares on the market. As a property owner, here's what you can expect when we connect you to Appfolio:
How does Appfolio help with my financial management?
- Online Rent Payments: Your tenants can easily pay rent online, ensuring timely and secure transactions. This reduces the hassle of handling physical checks and late payments.
- Comprehensive Accounting: Appfolio's integrated accounting system tracks all financial transactions. You can access detailed financial reports, track income and expenses, and manage your budgets.
- Chart of Accounts: Over the years, we’ve built a a really nice chart of accounts that makes it very easy for you to track and understand the money your property is earning and how that money is being spent to maintain it. It’s one of my favorite reports within Appfolio, and your bookkeeper will love it.
How does Appfolio improve communication?
- Owner Portal: You can access a dedicated owner portal to view real-time updates, financial statements, and important documents. If you have more than one LLC or ownership group, we can set you up to access everything from one portal. This transparency ensures you are always informed about your property's performance.
- Streamlined Communication: Appfolio facilitates smooth communication between you, your property manager, and your tenants. This includes email and text capabilities for quick and efficient exchanges. Plus, you are welcome to pick up the phone and call us anytime.
- Mobile App: Appfolio's mobile app allows you to access important information and manage your property from anywhere. This means you're never out of touch with what's happening with your investment.
How does Appfolio help with property and resident management?
- Maintenance Tracking: Tenants can submit maintenance requests online, which we can promptly address and track through Appfolio. This ensures issues are resolved quickly and efficiently.
- Tenant Screening: We use Appfolio's tenant screening tools to ensure we place reliable tenants in your properties, reducing the risk of late payments and other issues.
- Lease Management: From online lease applications to electronic lease signing, Appfolio simplifies the leasing process, making it faster and more convenient for you and your tenants.
What kind of information can I pull from Appfolio?
- Reporting and Analytics: Appfolio provides a range of reports that offer insights into various aspects of your property's performance. Whether it's occupancy rates, financial summaries, or maintenance histories, you will have all the data you need at your fingertips. A report is only as good as the data that’s put into it, we make sure that every data point is entered so you can get straight to the heart of the metrics that are important to you.
- Performance Tracking: Regular performance metrics help you understand how well your property is doing and where there might be room for improvement.
- Document Management: All important documents, such as leases and contracts, are stored and managed within Appfolio, making it easy to access and review them at any time.
What happens when my resident's lease is about to expire?
This is an essential part of this process.
As your resident's lease ends, you and your property management team will meet to determine the strategy for the property moving forward. At this point, four scenarios can occur:
- Your current resident renews their lease
- We find you a new renter
- You choose to move back into your home
- Or you decide to sell your home
Our best-in-class practice is knowing three months in advance whether your residents will be renewing their lease or moving out for whatever reason.
Three months gives us enough time to prepare for any scenario and ensure your home is ready for the next step.
What happens if we choose to renew the lease?
If you and your resident choose to renew, we will ensure they receive and sign the new lease, and then it will be business as usual.
Our primary job is to keep the flywheel of renting well moving. That's why our slogan is lease, manage, maintain.
What happens if my current tenant needs to leave?
This is a primary motivation for the property inspection we complete four months before the lease expires.
Before offering a lease renewal, we want to ensure your residents care for your property. This is one of the primary reasons we have a field support team. These are our employees, not outsourced contractors, which means your property inspections are thorough and accurate.
If there are any issues or if your resident chooses to move out for whatever reason, four months gives us time to pre-marketing the property, find a new qualified resident, and prepare your home for their move-in, including
- Reviewing your rental rates
- Scheduling the move-out inspection
- Scheduling any needed maintenance
- Handling the security deposit
- Updating you on any charges (anything above normal wear and tear is the resident's responsibility)
- Switching out utilities
- Changing locks (if you’re on our rental lock system, there’s no charge for this service)
- Handling the accounting and reporting
- Scheduling the next tenant's move-in
- And then continuing the lease
How quickly can you place a new tenant in my home?
A common question homeowners ask me is, "During turnover, are there any periods when I won’t receive rental income?"
The answer depends on your property needs.
Sometimes, there are only a few hours of cleaning between one resident's move-out and a new resident's move-in. Other times, it could be a move-out on a Friday and a move-in on a Sunday. Still, other homes require more of a gap.
If your home needs more extensive repairs, it is best to take care of them while the house is vacant. For example, suppose your house will need a new roof in the next six months. Ideally, we don't want that to interrupt or inconvenience your new resident, so we would replace the roof between leases rather than when the repair is due during the new lease period.
This is all part of the strategy you will cover with your property management team once we know your resident is not renewing.
What happens if I want to move back into my home?
If you want to move back into your home, we do the same thing we would do for any renter, and likely more, to ensure your home is like-new and ready for your move-in.
What happens if I want to sell my home?
We'd love to participate in the process if you want to sell your home.
After managing your home for at least an entire lease period, we know your home better than anyone, and sometimes, we can help you sell it while it's still tenant-occupied.
If you were referred to us by a realtor, we recommend contacting that realtor again and giving them a heads-up to start the process. We'll collaborate with them to ensure you get the desired price in as little time as possible.
If you weren't referred to us by a realtor, we're happy to search our database of trusted local real estate agents and recommend an agent.
If your house is more of an investment property, we often work with other landlords who want to buy rental properties, and we can connect you with them. Additionally, we sometimes purchase rental properties ourselves, so if we're interested in your property, we'll make our offer.
One way or another, we will help you sell your home.
Schedule a Complimentary Owners Consultation to Learn More About Our Management Process
So, there you have it, a complete overview of how we manage your property once it’s been converted into a rental property.
I hope you found this article helpful. If you have any questions or would like to learn more about our management operations, I’d love to meet with you personally and complete a complimentary owner’s consultation at your convenience.
Until next time, and thank you for considering Rentwell as a trusted source of property management information.
