Property Owner’s Information

When acquiring properties through purchase, foreclosure, estate or a temporary move, consider this: Our proven procedures and experienced staff can make that transition as painless and smooth as possible. By identifying that technology is a moving target, constantly upgrading to more powerful systems and software programs allows the company to provide the latest and most accurate accounting and data information to the owners. Our financial and accounting packages can be customized and adapted to fit the informational needs the of the single property owner on up to the larger multi-unit communities and multi levels of ownership.

Goals for the Investment Property Owners

When residential property becomes an investment property, whether through acquisition or vacating a home, it must then be handled in a strictly business manner.  Rent becomes income, and expenses or losses incurred become tax deductible expenses against the income derived from the property. We counsel property owners to think of their property as a business, not a home, and in turn, determine how the property can best be tailored to suit their needs. Some owners want tax incentives, some want income.  You must determine the end result you desire or need, and we will try to help your property fulfill that need.

Expenses

Under our management agreement, all expenses incurred by the company on the property are the responsibility of the owner. To keep the owner active in the management of the property (a requirement of IRS for certain tax deductions) and to conform to the licensing requirements placed upon this profession (Texas Real Estate Broker) a limit of $250.00 is set as the benchmark on a single repair without consulting with the property owner. Upon execution of the property management agreement, the agent will collect $250.00 from the owner. This sum is placed in a non-interest escrow account under the name of the owner. This account maintains that balance throughout the term of the management agreement until it is terminated and at that time said amount is refunded to the owner in full. The maintenance required on a property through normal wear and tear is the responsibility of the owner. Maintenance due to negligence of the resident is the responsibility of the resident. However, if the resident does not assume the responsibility of the negligence, it falls back on the owner whether it is done at that time, or when the property is vacated, if the security deposit is insufficient to cover such maintenance or expenses incurred.

Responsibilities

Under the terms of the management agreement, we have provided a partial list of services available without any additional fees.

• Advertising in but not limited to the print media, T.V., special promotions and vast exposure on the Internet.
• Market the property for lease, making it available to all real estate agents, rental locating firms and placing a "For Lease Sign" on the property.
• Qualify the applicant.
• Place the applicant on a lease agreement and consult with them on it.
• Make mortgage payments if necessary arrangements are made.
• Coordinate all routine maintenance. Remit owner funds and statement monthly to address stipulated by owner.
• Follow legal steps in securing a property back into possession in case of a defaulted lease agreement.
• Hold the security deposits in a non-interest bearing account, and disburse them as necessary at the termination of the lease agreement, as provided by law.
• Make necessary inspections and complete the make-ready process.
• Report delinquent tenants to credit bureau.
• Pursue collections through collection agencies.
• Provide owner with accounting at year-end for tax purposes.
• Striving to be constantly informed of all laws and rules on the issues that affect the company, properties, clients and customers.
• To this extent we assist our clients in meeting their compliance, whether it be mandatory or suggested.

Insurance

As an investment property, your unit(s) do not qualify for a homeowner’s insurance policy. We recommend a Fire and Extended Coverage policy including Form # 1. This coverage generally provides the owner with the following:

• Actual cash value on loss, less any deductible.
• 30 to 60-day coverage while vacant In some cases.
• Loss of rental income during renovation.