What are the 3 questions homeowners ask property managers?
In this video, Matthew walks through the most common questions we hear from new clients.
Three Questions Homeowners Ask Property Managers
There are usually 3 questions homeowners ask property managers when they call. In this video we walk through the most common ones.
Hey everyone, I’m Matthew Whitaker with gkhouses. Today 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?
- Pricing – how much do you cost?
Let’s take a look at them.
Questions Homeowners Ask Property Managers #1
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, you should start receiving rent within five weeks. 100% marketed means pictures, a good description, and everything pushed out to the Internet,
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.
Questions Homeowners Ask Property Managers #2
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 your home. That you don’t have evictions and 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.
The 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, 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.
Criminal Background Check
And then the last thing is the 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.
Questions Homeowners Ask Property Managers #3
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 gold package, we have an investor package, and we have a platinum package.
The gold package is kind of our standard rate. You’re going to get just kind of basic property management out of this. There’s nothing wrong with the gold 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 gold package.
For those of you who are considered investors, you might want to go with the investor package (surprise, right?). This package has all of the gold package features but we charge 8% instead of a flat fee.
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. When you have this package, you won’t miss a rent payment.
So what do we charge? Take a look at those packages and we’ll be very transparent about what we charge.
- Management Fee – $89 to $109/mo depending on the city
- Leasing Fee (paid after a tenant is placed in a vacant house) – Half of the 1st Month’s Rent
- Lease Renewal Fee – $200 Lease renewal fee
- Management Fee – 8% of rent collected
- Leasing Fee – Half of the 1st Month’s Rent
- Lease Renewal Fee – $150 Lease renewal fee
- Management Fee – Starts at $199 to $219 depending on the city
- Leasing Fee – $0
- Lease Renewal Fee – $0