Property Management Explained
Our North Carolina Property Management Company Offers:
30 years of experience in all aspects of Greater Fayetteville Property Management
Advertising and procuring of tenants to include:
- Credit Reports
- Statewide Criminal and Eviction Checks
- National Sex Offender Database Checks
- Rental History and Employment Verifications
- Collecting, Processing and Distribution of Proceeds of Monthly Rent
- Monthly and Annual Reporting of Expenses from our in-house accounting department
- Legal Processing if rent is not paid on time
Maintenance Requests including:
- Furnishing Estimates through outside contractors
- Supervision and Scheduling of Maintenance Repairs
- Follow Up for Lease Renewals and Expirations and Move-Outs
- Move-Out Inspections with Photos and Reports
The most important thing homeowners should know is that in the State of North Carolina, leases are governed by North Carolina Landlord Tenant Law. This is a large accounting of laws that all landlords, individuals, and a licensed property manager must follow. Team Harris is a licensed North Carolina Real Estate Company specially trained on these laws. To ensure your rights and the rights of your tenants, call us today.
Your rental home is one of your most important investments but it does not have to be one of your most exhausting. Call us to discuss how we can make owning a rental property an enjoyable experience for you.
This information goes through everything from the initial signing of the Property Management Agreement to lease renewal and collection procedures. The information is broken down into 5 parts:
- Renting and Moving In
- Renewals and Move Outs
- Work Order Procedures
- Collection Procedures
- Receiving Payments & Planning Ahead
Rest assured that our Team will do our utmost to make sure that your experience as a rental property owner is a smooth one.
At our initial meeting, we will review the Property Management Agreement with you. Once we are hired, we will go to immediate work to find a suitable and qualified tenant for your rental. We will set the rental listing up in our systems.
We will conduct a walk-through to determine what repairs should be made in addition to what is listed on the Owner Rental Preparation Checklist (see below).
We will begin by listing your property in the MLS. This will make it accessible to all agents who may have a client looking for a rental. Your property will also be available for viewing by anyone visiting the MLS rental page via our website or any other firm’s website with an IDX link. We will run incentive programs for agents offering up to ½ month’s rent to be paid to any agent that finds a qualified applicant and the applicant, in turn, signs a lease. (A similar incentive may be offered to agents recommending their listings into Team Harris Property Management.)
A professional sign will be placed in your front yard. You will show your house while it is occupied, and key will be signed out once it is vacant (the same is true for tenant-occupied homes). You will always be notified in advance of someone wishing to see your home while you occupy it.
Rental ads will be placed on www.TeamHarris.com, the MLS, Zillow, the military website homes.mil and any other websites relevant at the time. This marketing is included in your fee.
Monthly fees are 10% of collected rents.
The first month’s rent of all lease signings will be paid to Team Harris Rentals. This includes initial setup and document preparation, marketing as mentioned above, and the offering of any incentive programs to agents. This fee also includes the setup of the Home Warranty (not the cost of it).
If at any time we contract out estimates for work over $1,000 or any work that requires us to visit the property to verify quality and/or completion, a 12% fee will be added to the cost of the work.
If you desire an enhanced marketing package for multiple photos, virtual tour, and advertising on www.MilitarybyOwner.com, you will be charged an additional $100.00. (Please be aware, if you choose to run these ads yourself, by NC law you must only put our contact information in the ads.) If you post your rental property on Craig’s List, you will be charged $400.00 for the manpower to field the calls.
Owner Rental Preparation Checklist
- Give agent all keys to every door and lock.
- All remotes, fobs etc. left in a kitchen drawer and inventoried for agent.
- Insurance Information per Property Management Agreement provided to agent.
- Carpets Professionally cleaned (with receipt for file)
- House Cleaned to Team Harris Standards (see move-out inspection guide)
- Home Warranty Information Provided to Team Harris, if already in place (there is a $10 surcharge per incident if Team Harris does not set up or manage the Home Warranty).
- Copy of Association Docs to Team Harris.
- Walk-through report complete by owner.
2. Renting and Moving In
All Prospective tenants will fill out an application. Upon receipt of that application, we go to work to determine if the applicant is qualified. We run a credit report, criminal checks, and check the national sex offender database on all applicants over the age of 18. If the tenant does not meet or exceed our leasing criteria, then we will confer with you whether to accept or deny the tenant. You will sign an authorization of any tenant who does not meet our criteria.
The deposit is due and lease is signed upon acceptance of the applicant. Tenants will be indoctrinated as to policies and lease conditions. We will upload a copy of the lease to your online portal. We will collect, process, and hold the security deposit in a compliant North Carolina Trust Account.
Rent payments will be collected and direct deposited into your account. You will receive your funds days earlier via this method. If you request hard checks be mailed, you will do so in writing prior to the tenant’s first rent payment.
The day of move in, the tenants pay their rent or pro-rated rent, are given the keys, and a 7-day Move-In Inspection form. This form is for them to document anything that is not working properly or is damaged.
3. Renewals and Move-Outs
Approximately 90 days prior to lease expiration, the sales department will do a market analysis of your home to provide you with up-to-date sales information and rental recommendations. We will contact you to discuss renewing the current lease and any rent increases that we deem appropriate. We will then send a notice to the tenant explaining to them what has been decided.
If a renewal is decided upon, then a lease renewal signing and walk-through are scheduled. If they decide to terminate, we go back through the pre-rental steps. A notice of intentions to move out is required 30 days prior to the move-out date. If the lease is terminated, then a final walk-through will be conducted and any damages will be deducted from the tenant’s deposit.
4. Work Order Procedures
From time to time work order requests are sent in from the tenants. North Carolina requires that non-emergencies are received in writing. Upon receipt of a work order, you will either be notified OR previously agreed upon protocol will be followed. Please be mindful that in the best of circumstances you will be notified in advance of repairs however there will be no guarantee of notice.
The bill is then deducted from the next proceeds payment and a monthly statement will be uploaded to your owner portal. Actual invoices are only available upon request and will not be provided as a regular service. Original invoices are not needed for tax filing as we will provide you with year-end statements and 1099s.
5. Collection Procedures
Rent is due on the 1st and considered late if not received by the 5th of each month. If we do not receive the rent, then the tenant is contacted and a demand for the rent is made. If we do not have the rent by the 10th, we will file paperwork with the Magistrate and Sheriff’s Offices for eviction. You will be contacted if your tenant does not pay rent by this 10th day.
It is our experience that thorough applicant screening and maintaining a great relationship and open communication with homeowners and tenants cuts down on our need to enforce collection procedures. We believe in solving the issue before it escalates into a larger problem whenever possible.
6. Receiving Payments
On-time rents arrive to us by midnight of the 5th of each month. Final deposits are made the first banking day after the 5th of each month. The following 3-4 days are spent processing invoices and bills due, reconciling accounts, and preparing owner proceeds to be sent. Due to processing time, we promise our homeowners that if the rent payment is received by us on time, then you will have your rental proceeds on or before the 15th of each month (if you are receiving direct deposits).
Being a landlord requires some solid fiscal budgeting. We recommend a 3 month supply of mortgage payments set aside to cover any vacancies, unforeseen repairs, etc. Remember that we are required by NC law to keep your house in fit and habitable condition, whether or not you authorized the repair or correction. Having a funds reservoir will reduce your stress if issues arise while your property is being rented.
We also recommend that you have an account to pay your mortgage out of that does not require the income rent. You should not rely on the rent of any given month in order to make your mortgage payment.
Please do not call our office prior to the 15th of the month, if you have not received your rental proceeds. These phone calls slow down every homeowner from receiving their rental proceeds.