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Property Management in Austin TX - Frequently Asked
Questions
(and detailed answers)
Looking for a property manager and a property management company in Austin Texas? This FAQ section is designed to help you decide if our property management company is right for you. After all, you need a property manager who takes good care of your interests but different property managers have different property management styles. We believe that there should be a good fit between you, your property manager and your property management company. After all, every property manager is not right for you and you are not right for every property manager!
Provided below are answers to some common questions about our Property
Management services in Austin TX. Click on any line to see the answer for that
question or just scroll down the page.
Our goal on this page is to provide a clear picture of what you can expect
if you hire us as your property management company.
What type of rental properties
do you manage?
What areas do you handle?
What property management
experience and credentials do you offer?
How big is your staff?
Why should I hire you as my Property
Management company?
How much will my home rent for?
What will you do to rent
my house?
What,
specifically, do you do to qualify a tenant after they have applied to rent
my house?
How do you make sure
the tenant is taking good care of my home while renting?
What do you do if
they are not taking care of my property as they should?
What happens if the
tenant does not pay their rent?
How informed will
I be about what happens with my property?
How do you handle maintenance
requests?
Do you use the
cheapest maintenance people you can find?
Do you hold some of my money for
repairs? How much?
How do I know you
won’t spend money on large repairs without my approval?
What if I want
you to use my plumber, A/C company, etc.?
Will you use my American
Home Shield or other Home Warranty?
My home has a pool or spa, how do you handle that?
You guys seem sort of picky about the
properties you take, why is that?
When do you mail the Owner's checks?
Can you put the
money directly into my checking account?
What will I
receive with my monthly statement each month?
How much do is your monthly property management fee?
How much is the leasing fee?
Are your property management fees negotiable?
Are there
administrative fees or other service charges?
Does your
property management agreement give you exclusive right to sell my property?
Is the property management
agreement a standard, widely used form?
Who holds the tenant's security
deposit?
How much security
deposit do you charge the tenant?
Are you a licensed Property Manager?
How soon can you start
managing my home?
What
type of rental properties do you manage?
We specialize in single family homes in and around the
Austin TX area. We are not currently accepting any new management properties
that are 4plexes or
apartments.
We will consider select, quality condos and duplexes in some areas.
What
areas do you handle?
Our Property Management
service area is roughly North to Round Rock, Northwest through
Cedar Park up to Leander,
West out to the Lakeway/620 area, Southwest to Oak Hill and into the eastern
part of Dripping Springs, South to Buda and Kyle, areas west of
IH35 and the central east Austin neighborhoods.
What Property Management experience
and credentials do you offer?
Crosstown Properties offers
you the level of experience and expertise you should seek from any property
management company you hire. See the About
Us page,
if you haven't
already,
for
a complete
introduction to our property manager and professional team.
How big
is your staff?
Our team consists of two licensed Realtors, administrative staff and a core group of highly qualified vendors.
Jim Wilson, President,
Realtor - Property Management, Leasing and Sales.
Debbie Jackson, Realtor - Leasing Specialist with the
company since 1998.
Our property management clients appreciate the
small office atmosphere and personal service we deliver. We have none
of the employee and personnel hassles that can plague larger property
management companies.
Your property manager is available to you.
Why
should I hire you as my Property Management company?
You
should
hire
us
only if you think we
are the best match
for
your
property management needs. Frankly,
we are
not
a perfect
fit
for
every
property owner and it would be arrogant and wrong for us to simply
proclaim "we
are the
best, hire us!".
We may
be the best property manager for some owners and properties but not for others.
That is why this FAQ
page exists so that you can learn about us and and
the guiding principles we will employ in the management of your property.
Turning over your rental property
to the care
of an unknown property manager
can be an emotional and frightening experience. Talk to at
least
three property managers before hiring one, and ask questions. You
want to be able to trust your
property manager so that you won't be worrying
about
your
home. The more research and information you gather, the
better you will feel about your final decision. Of course, we'd
love the chance
to earn your trust and manage your property, so please read
on.
How much will my house rent for?
We are asked this question more than any other by new owner
prospects. Of course it depends on a lot of factors, but in general, most
homes in and around Austin are currently renting for about 0.5% to 0.8%
of the home's market
sales value.
The more expensive your home, the lower
the ratio of sales to rent value. For example, a $120,000 three bedroom
home may rent for $800
to $1100 per month in Austin depending on the neighborhood, the competition
and the condition, while a $240,000 home may only rent for $1400 to $1700.
This
is
a very
generalized range but will in fact hold true in most instances.
Sales values raced past rent values in the mid to late 90's in Austin.
Many owners who have purchased in the past 8 years, and made a small down
payment, cannot lease the home for an amount that will
cover the carrying costs - especially in newer neighborhoods that are
not yet
built out. You also might not have enough equity to sell without bringing
money to the closing table. If you are in this situation, you are not
alone.
Some of our new clients are "involuntary landlords", forced into
leasing their home by market conditions. The good news
is, if you can ride out the market,
you are likely to be much better off in a few years than if you sell your
home now at a deeply discounted price.
This in fact is why many out of state investors have been buying inestment homes in Austin
for the past three years, expecting the long term gain to offset the short term
cash flow loss.
The
most important thing to know is that the rental market is indifferent to
your mortgage payment amount. The rental market does not care that you might
have a negative cash flow, and will punish with extended vacancy owners who
overprice their rental homes. When you hire us as your property manager, we will look at the rental
market in your particular area, survey the competing homes, and make sure
your home is priced so that it will be viewed favorably against the
competition.
What
will you do to rent my house?
We give it maximum
exposure while it is for rent and we carefully scrutinize all interested parties.
FOR RENT SIGNS - Posted at the property with our website and phone number clearly displayed. Prospective renters can find out very easily - even at 7PM on a
Saturday - the price and size of your property and when it will be
ready for move-in.
MLS - Your rental property data is entered in the Austin Multiple
Listing Service giving access to over 8,000 other
Realtors and Renters.
All Austin MLS for rent listings are now available to home searchers through
the various public gateways, such as the Austin StatesmanClassifieds.com
website and AustinHomeSearch.com as well as others.
INTERNET LISTINGS - Our available
homes for rent in the Austin area are posted online complete with photos, maps and property details for the conveneince
of
those searching for a new home.
LEASING
LOCATORS - We make all of our listings available to
the many Lease Locator companies in Austin. These non-Realtor
companies specialize in helping
tenants find apartments, duplexes and homes for rent in Austin.
WORD OF MOUTH / REFERRALS - Current and past tenants, friends
of our tenants, referrals from other agents that we network with.
CORRECT
PRICING - Even the best and nicest homes will
not lease quickly if overpriced. We make
sure your rental home is priced according to current market conditions.
THOROUGH
PREPARATION - Even the best located and
well priced rental homes will not lease quickly in our current
Austin market if the rental home is not in top showing condition.
Homes for rent in Austin TX absolutely must show
well and have an attractive "curb
appeal" or they may sit empty for extended periods.
Part of our job as property manager is to make sure your rental home
is presented in a clean and attractive condition so that it will attract
a good
tenant.
What,
specifically, do you do to qualify a tenant after they have applied to rent
my house?
This is the most important aspect of the successful
management of rental property. Application processing is typically done by
us in-house. We don't send the application to a third party for processing
as do most other property managers. In general, we look at an applicant's
past behavior and assume their future behavior will be the same. An applicant
must demonstrate a history of
being a good, responsible tenant or homeowner as well as meeting credit standards. Nobody in Austin screens their tenants as our property management team.
LANDLORD
REFERENCES - We personally talk to past landlords and ask
detailed, open ended questions about the applicant's past performance.
CREDIT REPORT - Our property manager and leasing agent has a direct connection with the Experian
credit reporting service. We obtain a credit report which tells us the applicant's
current and past performance toward meeting their financial obligations.
It also tells us their monthly debt, credit score, and shows their previous
addresses (which we
compare to addresses listed on the application). An applicant must meet
established credit standards.
DRIVER
LICENSE VERIFICATION - We pull a copy of the applicant's
public drivers license data. This tells us not only if the addresses given
on the application are consistent but also when and what the last
drivers
license activity was, such as a renewal or change of address. This is
important because if someone says they have been living at a certain address
for the past three years, but then we see they renewed their drivers
license
a year ago at a different address, a red flag goes up and we often find in
that situation that the applicant is trying to conceal bad rental
history.
PROPERTY
TAX SEARCH - If a private individual is listed as
previous or current landlord, we will pull the tax records and verify that
the person listed actually owns the property.
The property
tax record crosscheck, along with pulling driver license data, is what
reveals most of the fraud attempts that we encounter
and is a level of scrutiny that most other property management companies
do not
even perform.
EMPLOYMENT/INCOME -
We contact the employer to verify length of employment, status, and
income. An applicant needs to earn at least 3 times
the monthly rent in gross income to qualify for rental and we will want to
see a copy of their pay stub.
PETS -
We don't generally permit animals/pets into managed properties unless you
allow us to do so, however, 50% to 70% of renters have pets. When we make the decision to accept an applicant with pets, we minimize your risk by limiting the breed, age, number and size of the pets. We also use a special pet addendum for your protection. We are careful in selecting tenants who wish to bring pets with
them.
OTHER
FACTORS - Many of our managed properties
are subject to Home Owner Association restrictions such as no boats or trailers,
and limits on the type and number of vehicles. An otherwise qualified
applicant may be unable to lease a property if, for instance, they own a
boat and want to park it in the driveway. We make sure issues like that are
covered up front to avoid surprises after move-in.
How
do you make sure the tenant is taking good care of my home while renting?
There
are several ways your property manager has to know this. Above all, careful tenant
selection from the outset protects your property from being rented to
irresponsible people. During the lease term, we may have occasion to enter the
property for repair or maintenance reasons and will use that opportunity to
have a look. If we are fortunate enough not to have any repairs or maintenance
at your property over an extended period of time, your property manager will schedule a
preventative maintenance walk-through to make sure the air filter is being
changed, that the smoke alarms have batteries and that there are no unreported
problems at the property.
What
do you do if they are not taking care of my property as they should, or you
discover unauthorized pets?
Your property manager gives the tenant an opportunity to correct the
situation and usually they will. If a problem persists, we will make a
decision based on that specific situation.
What
happens if the tenant does not pay their rent?
About the 4th of each
month, we send late notices to all tenants with unpaid rent. We will post
an eviction notice about the 12th day of the month if payment is not received
by
then. Whether or not we eventually have to proceed with a formal eviction
depends on the specific circumstances. It is always financially better for
all involved if a solution can be worked out. If the tenant has experienced
a
one-time event which is causing them a financial hardship, and we have had
no previous problems with them, it is better for you and the tenant if we give
them a chance to catch up - if there is reason to believe they can do
so. If the tenant has demonstrated an ongoing pattern of late payments, broken
promises about payments and/or evasiveness, we know from experience that eviction
is the best course of action.
Each case is
unique and the property manager will make a decision based what is best for you and your home
in the long run. That said, we always proceed with the
legal notices required for eviction regardless of any other factors. We
will
simply postpone the actual filing of the eviction if the tenant is showing
favorable effort toward resolution. Eviction for non-payment of rent in Texas
is a slam dunk and there is no way a tenant can prevail in court if
they have
not
paid
rent
and
the landlord has properly executed the notices and filing process. Full
evictions,
when necessary, can often be completed by the third or fourth week
of the month.
How
informed will I be about what happens with my property?
Absent any
special considerations unique to you or your property, our rule of thumb is
this: If something may cause a potential interruption in your ordinary cash
flow (loss of tenant or non-emergency repair in excess of $300), we will let
you know about it right away. Other than that, the saying "no news is
good news" is
most appropriate. Non emergency items will be communicated along with your
monthly
statements and, of course, we encourage you to contact the property manager anytime
you have a question or wish to discuss something.
We know some
owners desire a level of involvement that our
property management system
is not designed to accommodate. We try our best to make sure you are
a good
match for our style of property management. Part of that process is this
Question and Answer page so you can obtain a sense of how we think and
how the manager will manage your investment property.
If you are
a worrisome property owner or "Nervous Nelly" who needs constant
communication from the property manager, such as a phone call before
any repairs are completed, we are not a good
match for your needs. The property owners who appreciate us the most
are those who truly want
everything handled for them turn-key and don't want to be bothered unless
something important is happening. That is the type of property management
service we offer.
How
do you handle maintenance requests?
Tenants may fax or mail
their requests to us, but most fill out an online form on our website.
After we receive a repair request, we
may contact the tenant and ask them questions which will help us determine
the exact nature of the problem before sending a service technician. We also
make
sure it is not something the tenant can fix themselves (ex: reset button on
the disposal, tripped breaker) before your money is spent on a service call.
After
determining that it is a legitimate problem, we will send the appropriate
service vendor to make the repair.
We
tell our tenants that we are able to handle most repair requests within
1 to 3 working days, and in fact are usually
able to
do so. Comfort items such as Air conditioning, no hot water or heat, receive
highest priority and are usually attended to the same or next business day.
Do
you use the cheapest maintenance people you can find?
No. Our people
are middle of the road in price and are competent and reliable. We also have
two dedicated all-around maintenance sub-contractors who are capable in a
wide
range of home repairs including air-conditioning, light plumbing and
electrical. Our main "go to" guys charge $35 to $40 per hour.
Our other vendors range in price from $35 per hour to $75, and sometimes
more
for conditions
such as an after-hours emergency
sewer backup. We try to have our main guys handle most of the multi-trade and
make-ready tasks and use other vendors when we are backed up. This saves
our owners a lot of money on multi-trade repairs by cutting down on the number
of service calls to the property by different vendors. It also means that
if
we are called out on a dishwasher repair, we are going to be checking the
a/c filter, sink drains, smoke alarms and general condition of the property
- something that a single trade vendor will not do for you.
We think we
have developed a very sensible approach to handling maintenance and repairs
and that you will realize cost savings that other property managers simply
can't deliver.
Do
you hold some of my money for repairs? How much?
We will hold back $300
per unit in your account so that we always have funds to pay our vendors
quickly.
How
do I know your property manager won’t spend my money on large repairs without my approval?
This is a legitimate fear. We promise in writing
not to do that. For ordinary maintenance and repairs
of
less than
$300, we take care of
it without notifying you. You will find out when you receive your monthly
statement. If we think a repair might exceed $300, we will call you and let
you know what is happening, what we think should be done, and what the
estimated cost might be.
Sometimes
expenses such as a replacing a bad water heater, a
roof leak that needs patching or repair, or emergency A/C and furnace repairs
are unavoidable. In those cases where
1) the health or safety of a tenant is an issue, or 2) in instances where
there is only one option to consider or 3) the property will incur damage if
immediate action is not taken, the property manager will initiate the repair work, even
if it is
higher that the $300 limit, and then let you know
of the situation and what we are doing about it. Mainly, we don't think important
repairs should be delayed while we try to contact you for
permission
to do the obvious.
What
if I want you to use my plumber, A/C company, etc.?
We
already have a stable of very qualified and reasonably priced vendors that
we have used for many years. If you would like to nominate a service company to
be added to our vendor list, they can contact us and we will interview them
and let them
know what documentation and references we need, what our invoicing and payment
policy is, etc. We cannot guaranty however that your favorite company will
be sent on all service
calls
to your
home.
Our concern is always to resolve repair problems in the most efficient way
possible with the best available vendor at the time. We can't keep track
of
a pre-established roster of vendors assigned to certain properties
- it would be a cumbersome and inefficient property management system and would not achieve the best
service to the tenant and your investment property.
Our professional
reputation as property managers, both with tenants and owners, is largely,
if not almost entirely, determined by the effectiveness with which
we handle maintenance. We follow a
practice
that
is most
likely to insure the best possible response and resolution to maintenance
and repair problems for your property.
I want you to use my American Home Shield warranty for all covered
repairs, is that ok?
No. Sorry, but we won't use American Home Shield or any other warranty
company to make repairs at your home. The logistics and communication problems
we
have
encountered with past attempts to use the warranty companies are not
acceptable for the level of property management service we strive to
achieve.
American
Home Shield once left our tenant without air-conditioning for 9 days
in August (100+ degrees) while
they
went through their ridiculous "second opinion" process. We
finally had to call out our regular people who had the problem fixed
in two hours. We vowed never again to be hamstrung
by that
sort
of bureaucracy
and lunacy.
We hold
all of the
home warranty
companies in extremely low regard and believe, overall, that their plans
are a rip-off (read the fine print in your service contract) and border
on fraud. If you want
your
home warranty company to be used for the repairs and maintenance of your
rental property, we are unfortunately not the property management company
you
should hire.
My home has a pool. How do you deal with
that?
We no longer accept properties
with pools or operational spas. The liability scares us. If your home has a spa,
we will have it winterized and shut it down, therefore not including it with the use of the home while rented. It must also have a hard surface cover that can be latched down.
You guys seem sort of picky about
the clients and properties you take, why is that?
Well, we've been property managers long enough to have seen and experienced everything imaginable, and we
prefer to anticipate and avoid common problems rather that deal with the
same ones repeatedly.
We believe you and your investment property are best
served by a property management system that is as free of problems and chaos
as possible. Hence, we don't handle pools, don't deal with Section 8 housing,
don't work
with
home warranty companies, don't take run down properties, don't rent
to large groups of roommates, etc., because we know those things consume
a
disproportionate amount of a property manager's time and distract from the
care and attention that your good property deserves.
We strive to maintain a group of "like-minded"
clients with properties that are at the same time diverse, yet homogenous
enough that
our
systems, methods and style can be applied uniformly across all properties
we manage. The worst property manager you can hire is one who good heartedly
tries to accommodate every special circumstance or request from his various
owners until his operational system is so scattered and ill defined as to
be
dangerous. We like the consistency and predictability that comes with
welcoming owners and properties that are compatible with our system of property management.
If you think about it, when you hire a
property manager, you are for better or worse, employing that property
manager's system (or lack thereof). We promise you our system
of property management is mature, stable and time tested. We will make good
decisions for you. Your property will receive professional care and
maintenance. Your lease agreement with the tenant will be enforced in a cordial
businesslike manner, and we will always act in your best interest while at
the same time insuring that your tenant receives fair and ethical treatment.
You can expect also that we are always looking for ways
to improve our service.
We do want you to thoroughly examine our company,
ask for references, ask any questions that are not answered for you on this
website, and make sure that ours is the property
management system you want serving you and your property.
When
do you mail the owner's checks and statements?
Owners checks are mailed
out on or after the 10th of each month but no later than the 15th for that
month's activity. Most months, you will have your check and statement in hand
by the 15th.
Can
you put my rental proceeds directly into my checking account?
We will be
happy to send your check directly to your bank for immediate deposit while
sending the statement to you. This is not an electronic transfer, but rather
we mail the check directly for deposit.
What
will I receive with my monthly statement?
The monthly statement showing all
income and expenses for the accounting period and the original receipts for
any repairs. We don't mark up repair invoices and we send you the original
copy so you'll see what was done.
How
much is your monthly property management fee?
Our usual property management fee is 8 percent of the monthly
rent, with a $75 per month minimum. If your home rents for less than
$937 per
month, or is vacant for a period of time, you will be charged a flat $75
per month.
How much is the leasing fee?
The leasing commission is 70 percent of the first full month's rent for
new tenants, with an $800 minimum. A renewal fee of 10% of the new monthly
rent is charged for retaining current residents and executing a lease renewal.
All classified advertising costs
are passed through to
owners,
and we absorb
all other costs
of leasing the property including MLS fees, internet marketing, for rent
signs, lockboxes, etc.
Are
your property management fees negotiable?
No. We don't try to compete against lower priced property
management companies or Realtors who practice property management as a side
business. Frankly, we know you can find a cheaper property management company
in Austin TX. We just don't think price
should
be
the
determining
factor
in deciding which property manager you hire to manage your home.
The
ultimate cost of using a
property manager is determined by many things other than the fee
charged. The efficiency and manner in which maintenance and tenant
relationship problems are handled, and the attention to detail during the leasing process are two of many areas in which we excel. We
feel that our set of services, our systems, and the experience and expertise
we offer are a good value at the fee structure we have established.
Are
there administrative fees or other service charges up and above the property
management and leasing fees?
There are no
administrative fees or start-up costs. We don't charge for copies, long
distance calls, mileage, or other incidentals. We don't mark up maintenance
costs or nickel and dime you with petty fees as do some property management
companies. The only other expenses you could incur would be for services
which fall outside
the normal scope of our property management
agreement (such as contracting a major renovation, restoration or remodel, assisting
in sales efforts for which we are not otherwise being paid). These scenarios
are all outlined in the Property Management agreement but rarely come about.
Does
your property management agreement give you exclusive right to sell my property?
No. We can sell your property if you would like us to, but
we don't bind you to that in the management agreement. This is another trick
that discount property
managers use. They manage your home at little or no profit
knowing they have you locked into an eventual sales
listing. We think, at the time you decide to eventually sell, you should be
free to
decide
who
the
best listing agent will be for your property given its location
and characteristics. Most of our owners choose a full time sales agent to sell
their home and we encourage them to do so in most instances.
Is
the Property Management Agreement a standard, widely used form?
Yes. We use the Texas Association of Realtors Property
Management Agreement. If you have Adobe Acrobat Reader you can
view a copy of our property management agreement and review
it. You can also take a look at the
Residential Lease
Agreement we use with tenants.
Sample Property Management Agreement
Sample
Residential Lease Agreement
Who
holds the tenant's security deposit?
All security deposits must be held in our deposit
trust account.
How
much security deposit do you charge the tenant?
As a general
rule of thumb we usually get around 70% of one month's rent for deposit,
rounded up to the nearest hundred. This is what will be asked for by most
property owners and property managers in Austin.
Are
you a licensed Property Manager?
We are licensed Realtors and Jim Wilson
is a member of the
National Association of
Residential Property Managers. There is no "Property Management
License"
requirement in Texas, but
professional property managers must have a Texas real estate license in order
to charge commissions.
How
soon can you start managing my home?
We can start the
process immediately. We will start by obtaining some information about you
and your property and helping you decide if we are a good fit for your needs. Contact
us online or call Jim Wilson at 512-328-8500 Office, or
512-560-6881 mobile during business hours.
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