Real Estate Investor Information Regarding Property Management
We would like to welcome you to Harvey Goodman Realtor Property Management. The following information is furnished to you in order to familiarize you with our services and to explain the obligations and duties of a homeowner when placing his/her home into Property Management.
- RENT PAYMENTS
- OWNER STATEMENTS
- IRS FORM 1099
- MAINTENANCE AND REPAIRS
Rent Payments
According to the lease agreement, tenants are required to pay rent on the first day of each month. They have until the fifth day of the month to pay before a late charge is assessed to them. Upon receipt of payment, our management fee, repair and maintenance bills and late fees are deducted. The remaining proceeds are then forwarded to you directly or to your bank, pursuant to your instructions. We make every effort to forward these payments to you on the
20th of each month.
Owner Statement
At any time you can login to www.harveyrentals.com to see an owners statement outlining the financial transactions pertaining to each individual property owned by you and under management with us. The statement will show rental receipts for the current month, as well as commissions deducted and expenses for repairs, utility charges, etc., if applicable. Should any repairs and/or other expenses have been paid for by you, a copy of the invoice for same will be attached to the statements.
The end of year statement is all-inclusive, providing you with the documentation of all expenses incurred on the property during the year. You will need this information for your tax preparation.
IRS Form 1099
In January of each year we will provide you with this form, reflecting the total amount of rents collected by our company in your behalf during the previous year. This form is also essential for your income tax preparation.
Maintenance and Repairs
Should damages occur and after evaluating the circumstances if it is determined that the tenant was at fault and caused such damages, the damages will be repaired and the tenant will be requested to reimburse the owner for the cost of repairs.
In case the total cost of a specific repair amounts to $2500.00 or more, we will whenever possible, notify you of this expense prior to your month-end statement.
Should we encounter a major problem, i.e. a new roof is needed or a new compressor has to be installed for the heat pump or refrigerator, we will coordinate the required repair with you to work out the financing of the repair. Further, all emergency repairs on your property will be handled expediently and in your best interest so as to protect your property from any undue damages.
You should expect having to paint the interior walls of the house every 2-4 years. This is considered fair wear and tear and therefore the owner will be responsible for the cost of painting.
As your Property Manager, we will address and co-ordinate repairs reported by your tenants. We will advise you of the general maintenance and upkeep that we can determine is necessary from a visual inspection from walking around the property when we do our visits. However, we cannot be responsible for hidden damages being caused by termites or moisture / water damage to the property. We strongly recommend that you have the property inspected for termites and water damage at least once a year to protect your home from hidden damages. Also if your home has a septic tank system, we recommend having it pumped periodically to try to prevent back up into the house.
Our personnel has many years of experience in dealing with issues of this type and will hire only reputable and reliable companies to perform necessary repair jobs. Also, please keep in mind that maintenance and repair expenses present a tax deduction to you while protecting and keeping your property in good order.
INSURANCE
When placing your property on the rental market please contact your insurance company in order to change your policy from Homeowner’s Policy to Fire Insurance and General Liability Insurance. The tenant will be advised to take out Renter’s Insurance for the protection of personal property. Your new insurance premium will also be a tax-deductible expense to you.
ADVERTISING
We will advertise your rental property by placing a “For Rent” sign in the yard and advertise online. Our own agents will actively show your property to any of their prospective tenants as well.
PROPERTY TAX LISTING
You should contact the County Tax Office when placing your property on the rental market. You should declare your house as a rental property and report all appliances remaining with the house for taxation purposes.
SHOWINGS
If, at the time of the property is placed on the rental market you are still living in the home, in order to show your property to a prospective tenant, a representative from our company will contact you by phone to schedule an appointment.
VISITS
It is our goal to visit your property annually to insure that your tenants are keeping the property neat and well maintained. We do not want to inconvenience your tenants too much by asking them to take time off from work to be available on a repeated basis to allow us to visit. However, we will do our very best “to keep on eye” on your property throughout various other means such as driving by our rental homes when we are in the neighborhood to see how the tenants are maintaining the yard, which is usually an excellent reflection of the condition of the inside of the house. In case we find the yard in unsatisfactory condition, we will prompt friends and neighbors with our business cards, so they may contact us immediately if they have a concern regarding your property. Our repair people also provide us with feedback on the upkeep of your property.
Also, we are asking our homeowners to vacate their house in the same condition as they would like to find it in, if they themselves would move into the house. For this purpose, our representative provides you with a “cleaning letter” which is also issued to our tenants, when they give their 30-day vacating notice.
Last, but not least, we urge every homeowner to establish a financial reserve containing sufficient funds to meet necessary repair costs and to be able to meet the eventuality of a vacancy in the home. Market fluctuations and economic conditions are beyond our control, but can affect the results of our efforts and subsequently you as the owner.