Prospective Owner FAQ's
Answers to your common questions
What do I need to do next if I am interested in obtaining your services?
Well the next step will be for us to set an appointment to meet and view the property. At that time, we will review our management agreement, our marketing and screening programs along with viewing the home for readiness for a tenant.
What happens if the tenant breaks the lease?
Unfortunately over the course of a year things happen that we cannot control. One of those things is a tenant deciding to break the lease. The upside is that early termination does not release them from their legal responsibility of the Rental Agreement. Per our rental agreement, we charge the tenant, who is breaking the rental agreement a re-renting fee along with holding them responsible for the utilities, rekeying the property and a few other expenses. They are responsible for the terms of the agreement and maintenance of the property until the lease term expires or per California law, until we can put a new tenant in place, whichever comes first. We will do everything possible by working with everyone involved to place a new tenant as quickly as we can.
When should I start marketing my property?
Time of year is a major factor in marketing your property. Different parts of the year in Sacramento are better times to market a home than others. Folsom, is better in the summer due to the schools. Midtown is better in the fall when the interns are coming to town for Medical training. We will always suggest giving us at least 30 days to begin the marketing process.
How long will it take to rent my property?
As stated above, the time of year will have a direct relationship to the marketing time. In Sacramento during the holidays it takes a bit longer than in the summer. The different parts of town are also factor we need to consider. We normally have a turn time of less than 25 day from when we place the home on the market to the time we place a qualified tenant into the property.
Do you hold reserve money for the property?
No, we typically do not hold any of your funds. You receive the total amount due you buy the 10th of each month. If your property is in need of future or anticipated repairs we will work with you on obtaining an amount that will work for you and our vendors. We do pay our vendors on the 8th of each month from your month rental income.
When do I receive my proceeds each month?
We pay our owners by the tenth of the month but your banking institution may hold the funds for a day or two. It just depends on your bank. Our funds are sent to you electronically via direct deposit. Statements are email to your monthly.
Who pays the HOA fees?
We can assist you in paying the HOA fees. We will need all the payment coupons and payment dates. We will require at least two months of advance HOA fees to open the account. We do charge a check processing fee for paying the HOA fees.
Who maintains the pool?
We require our clients to provide pool service for the tenants. The main reason being we want to make sure the pool is serviced correctly and maintained to your standards. Costs for the pool service will be charged to the owner and offset by rent revenue.
Who maintains the yard?
We like to have the owners provide lawn care services. This will give you, the owner the piece of mine that the yard is being properly maintained. Tenants at times get busy and the yard may suffer. It is better to have lawn care than not. The cost is off set by the additional rent charge.
Who pays the utilities while the property is rented?
Typically in the greater Sacramento region the Water, Sewer, and Trash are paid by the owner. There are some cases when the tenant pays all of the utilities but these are on a case-by-case situation. We will go into more detail at our meeting.
Should I allow pets in my property?
The choice is yours, but highly recommend that you allow pets. The reason for this is that over 60% of U.S. households have pets. If you do not allow pets, you are eliminating over half the potential rental market from the very beginning. We do charge additional Security Deposits for pets and will have you involved in the process.
How is maintenance handled?
KTB Property Management was a wealth of Vendors and Contractors who we outsource our incoming maintenance requests. We have established relationships with reliable vendors and contractors that we have worked with for years. Per our management agreement, we handle all maintenance items that are under $300.00. We have found this to be a good limit for the day-to-day maintenance requirements. Any maintenance item over $300.00 will require your authorization before we proceed. In the event of an emergency to protect the property or health and safety of the tenants, sewer issues, tree damage to the property during the winter, we may handle these maintenance emergencies prior to obtaining your authorization. We will have you involved as soon as possible.
Can I do my own repairs?
If you are of the mindset and have the time we encourage you to do the repairs at the property while the property is vacant. However, once the property is occupied, we ask that only professional contractors be used. This helps us protect as well as you from the possible pitfalls of speaking with and dealing directly with the tenants and the possibility of being accused of completing work in an unprofessional manner. We are looking out for you and want to protect you from any situations which could turn against you.
Can I choose the company that does the repairs for my property?
Yes you may provide us with the name and number for the service provider. We will always call them first, but if they cannot take care of the situation in a timely matter we reserve the right to send out our vendors to handle the situation and keep the tenant happy. If we use your vendor we will require that they fill out our Vendor paperwork and carry the proper licensing and insurances.
How often will you inspect my property?
We will be inspecting the property at various times during the tenancy. From drive-bys to annual inspections we will keep a set of eyes on the property. For example when the tenancy begins, we will complete a detailed pre-move-in evaluation to document the initial condition of the property. We do this with a software program which takes about 1.5 – 2 hours. The report will be somewhere between 16-25 pages long with photos to document the condition of the property. During the tenancy, if there is a red flag such as a concerned neighbor calling, an abnormal HOA violation or some other warning sign, we will plan a visit to the property to confirm that all is well. In addition, we will conduct one walk through evaluation per year again using the same software program to compare the move in to the annual inspection. At the end of the tenancy, we will conduct the move-out evaluation which takes us about 1.5 – 2 hours. Again, we will to an inspection with the same software comparing all the reports. If there are any tenant caused damages that must be deducted from the tenant’s security deposit we now have the documentation.
How do you find and keep good tenants?
We find tenants through our combination of a strong marketing presents on over 35 different website. Along with a strong Realtor relationship in the market. Sacramento has a little bit different way of doing property management so having a relationship with Realtors gives us an edge on finding quality tenants. We keep good tenants by being responsive to maintenance requests and other legitimate tenant needs. We answer our phones and call all tenants back the same day, not 24-48 hours.
What happens if the tenant doesn’t pay his/her rent?
Although this has not happened to us in over 5 years, it is always a possibility. Downside is you will not receive rent revenue. But because we placed the tenant in the property we KTB Property Management will incurred all of the cost to evict the tenant. Yes we will pay for the eviction of a tenant for the failure to pay rent. We will handle the entire process form posting the notice to appearing in court.
How long will it take to evict a tenant for non-payment of rent?
In Sacramento County, evicting a tenant for non-payment of rent is a very challenging process. Tenants in California have numerous rights and we must play by the rules. We will typically have a non-paying tenant out of the property within 45-60 days from the first of the month that they do not pay rent.