What are the 3 questions homeowners ask property managers?
In this video, Matthew walks through the most common questions. There’s also a transcript below the video.
Hey everyone, I’m Matthew Whitaker with GK Houses, and I’m going to talk about a subject today that potential incoming clients are always asking. It’s the three biggest questions they ask us.
The questions are:
- How quickly can you rent my home?
- How do you keep from renting it to the wrong person?
- How much do you cost?
Let’s take a look at them.
The first one is, how quickly can you rent my home? Right now we’re renting houses at an incredible pace.
I think that’s just because of the size of our portfolio and the numbers that we’re able to generate. Right now we’re actually leasing homes, signing the leases in less than three weeks from the time that we have it 100% marketed.
From a move-in standpoint, we’re actually able to do that in less than five weeks. So once we get your house 100% marketed, pictures, a good description, everything pushed out to the Internet, you should start receiving rent within five weeks.
That’s if we have everything priced appropriately, the house looks great, everything that we need to do. We call that price and product, making sure the price and the product match. That’s what we call market ready.
The second question is, how do you keep from leasing my house to the wrong tenant?
I think this is an important question, because you don’t want to get the wrong tenant in your house. You want to make sure on the front end that you don’t ever get them in, you don’t have evictions, they don’t tear up the house.
So we have a five step process to make sure that we don’t lease it to the wrong person. The five steps we look at from an application underwriting standpoint is…
- credit score
- ability to pay
- rent verification
- work history verification
- a criminal check.
Let’s take a look at those individually. A credit score. A credit score is completely based on the amount of rent for the home. So under 800 has a 520 credit score. Over 800 has a 580 credit score.
The second thing is just income. We want to make sure the tenant makes at least three times gross the monthly rent. If somebody had to ask me what’s the one thing, if I could only look at one thing to underwrite an application that produces a good paying tenant, it’s this metric.
Three is really the minimum. I would never go below three. Once you get to four and five you’re really going to have a successful experience with that tenant.
The next thing is to look at rent history. We want to talk to the landlords that they’ve rented with and make sure that they paid their rent on time, that they’ve taken care of the home, that they’d rent to them again. Those are the types of questions that we ask.
The next thing is we want to make sure that they even have a job today. You’d be surprised how many people apply. They had a job. They were able to submit pay stubs, and now all of a sudden they don’t have a job. The last thing we want to do is move somebody in and have them have just lost a job and not be able to pay.
And then the last thing is criminal background check. Obviously we don’t want violent felons or somebody with a history of multiple violent misdemeanors in the home. We want to make sure that there’s a fine upstanding human being living in that house.
The third question most people ask is, how much do we cost?
Well, one of the things is that property managers are all over the place in terms of what they charge homeowners. I’m going to put at the bottom of this blog article our three packages. We have a silver package, we have a gold package, and we have a platinum package.
The silver package is kind of our base rate. You’re going to get just kind of basic property management out of this. There’s nothing wrong with the silver package. It’s what most property managers do.
That’s obviously us accounting for all the rent, making sure the rent’s paid, underwriting their applications, making sure we get good tenants. You’re going to get a great experience at the silver package.
For those of you that want kind of the step up, you might want to go with the gold package. Now this has some other services that we think are kind of preventive maintenance services. We want to also not just manage in reactive mode. We want to manage in a proactive mode. That’s kind of what the gold package gets you.
The platinum package is kind of the everything package. It includes an extra rent guarantee. That is something that we’re offering that’s something super exciting that a lot of homeowners are excited about the idea of having that as kind of a fallback in case something does go wrong.
So what do we charge? Take a look at those packages and we’ll be very transparent about what we charge.
*The packages described below are for owners of between one and four houses. Investors with five or more houses managed by gkhouses.com have should call for discount volume pricing.
- Management Fee – 10% of rent collected
- Leasing Fee (paid after a tenant is placed in a vacant house) – 1st Month’s Rent
- Management Fee – 9% of rent collected
- Leasing Fee – 1st Month’s Rent
- Eviction Protection Plan, Gutter Cleaning, HVAC Preventative Check-up, Quarterly Inspection – $70per month
- Management Fee – 8% of rent collected
- Leasing Fee – Half Of The First Month’s Rent
- Eviction Protection Plan, Gutter Service, HVAC Prevention and Quarterly Inspection – $70per month
- Rent Protection – 6 months of guaranteed rent should your tenant stop paying and go through the eviction process. You will get paid the monthly rent regardless. – 1 Month’s Rent (prorated monthly)