How We Manage the Money
California Real Estate law governs how real estate brokers and property managers handle other people’s money. We must adhere to a strict set of money handling rules and we don’t have options.
Depositing Rent into our Trust Account
All monies we receive on your behalf are deposited into a trust account. Every property has its own trust account record. We will report and disburse those monies to you monthly along with invoices from contractors, copies of property visits, contractor reports on your property, and newsletters from KTB Property Management.
Disbursing to Owners
We can disburse to you by electronic funds transfer the preferred way or by check. We will notify you by email when your monthly report is ready. That online report will have all the backup, for your permanent records. We also keep our records for four years.
Meet with your accountant
We are not accountants, CPA's or Financial Planners but we understand real estate taxation and a lot about how owning real estate affects your tax return. We know how to maximize the tax benefits of your deductions and we know many professionals who can assist you with your needs.
Year End Reporting/1099
Our year-end escrow account report is exactly what your accountant needs to prepare your tax return. The IRS makes us their watchdog for rent collected each year. We are required by federal law to send a 1099 on rents collected on your behalf.
We Represent You – Not the Tenant
We represent you as the owner through our Agency Relationship. We can handle all the interactions; we are under contract with you to do so... Whether we are dealing with Tenants, Credit Bureaus, Process Servers, Judges, Sheriffs, Utility Companies, Insurance Agents, Home Warranty Companies, Appraisers, Fair Housing Authorities, or Homeowners Association Managers, we always represent you.
Authorities We Answer to and Trade Associations We Are Members of
We are members of many organizations that regulate our business and hold us to a high standard of behavior and ethics
- National Association of Realtors
- California Association of Realtors
- Sacramento Association of Realtors
- Sacramento Multiple Listing Services
- National Association of Residential Property Managers
- California Association of Residential Property Managers
- Sacramento Association of Residential Property Managers
- California Apartment Association
- Federal Fair Credit Reporting Act
- Federal Lead Based Paint Laws
- State Flood Disclosure Laws
- California Fair Housing Laws
- Federal Discrimination Laws
We are a highly regulated industry & we have successfully maintained one of the highest standards in the industry for over 25 years.
How Can We Help You?
what makes ktb different from other property managers?
experience [over 20 years]
The biggest decision in choosing a Property Manager is: what are they going to do for me and how are they going to protect my investment? With over 20 years of real estate experience and assisting over 1,200 investors with their portfolios we are in a very good position to assist you with yours. The one major thing you will hear from KTB Property Management is "we are going to tell you what you need to know, not what you want to hear." We represent you as your agent and we will look out for your best interest. This is a long term relationship and we want you to be every bit as successful as we are in making your investment profitable.
We are always learning! We attend local, State and National events to obtain the latest and greatest information which we can then apply to your investment. Book smart is good but so is actual hands-on day-to-day experience. We have seen things from major break-ins, to pot farms, to homes which needed to be stripped to the studs and rebuilt. At the same time in those 20 plus years we have had numerous quality tenants. We have learned what to look for and how to obtain the best tenant possible. You pay KTB Property Management no more than you do other managers in the Sacramento region, but you will get a lot more experience, and that means more protection for you and your investment.
KTB Property Management is associated with National Tenant Network, a Nationwide Background and Screening Specialists. Not many Sacramento Property Managers can say this plus it is a big benefit to you. Most property managers get their credit reports off the Internet - that's pretty standard. But very few of them do a full blown Nationwide Background Check and Eviction Report. These are critical in obtaining and verifying the best possible tenant for your investment. Few property managers have a system to obtain these types of reports, a benefit to KBT and a bonus for you. The right tenant for your investment.
We obtain the right tenant for the right property. Sometimes we need to ask for a larger security deposit due to a credit issue we know about the issue and can work with the tenant in advance of signing a lease. People make mistakes and many of them are trying to correct them. Those are the tenants we are looking for, proactive responsible tenants.
If the tenant leaves owing money, we will go after the tenant with every possible means available to us. Many tenants try to get the manager to apply the security deposit to cover the last month’s rent. We will not do this, their lease states that is not allowed and we go by the lease. This could become an issue, and most property managers have no way to stop it. KTB does! We aggressively go after these tenants with employing legal means. This is powerful; we can affect their credit and their ability to rent another property.
Other managers do have this power but it takes time and many just give up when tenants move out owing you money. If we can’t collect it, you don’t get it.
KTB Property Management and its principals have earned numerous designations and accreditations from the Real Estate and Property Management Industries. Many property managers see their property management business as a sideline to doing Real Estate Sales, which is fine. We see it as a real estate profession and have used our time to get the education, training, legal expertise and the working knowledge to perform the management of your investment correctly. Only one person will suffer with a Property Manager who has little to no education, understanding of the law or basis training, you.
- We have earned our Residential Management Professionals (RMP) Designation. This designation usually takes 3 to 4 years of study and hard work (there are less than 200 in the country).
- We have earned our Certified Residential Specialist (CRS) Designation. This designation will take over 3 years of study and experience to obtain (Less than 5% of all Realtors in the country have this designation).
- We are also Graduates of the Realtor Institute. Again numerous years of study and experience is needed to be a graduate of the Institute.. Bob Thomas the Owner of KTB is a California Real Estate Broker.
- We pride ourselves on our level of education and knowledge of the industry. Our education and expertise places KTB Property Management in the top 1% of all Property Managers nationwide.
- The principles of KTB Property Management also own many rental properties throughout the state, making the company sensitive to the issues investors are concerned about.
Most local property managers do not attend the Local Multiple Listing meetings due to the fact it is time consuming, expensive to be a member and a bit of a hassle from time to time. Over 6,000 area agents are at some time looking for a rental property for their client. The Sacramento Multiple Listing Service does not provide a list of rentals so these agents turn to and rely on us.
Here is how this helps KTB lease your house:
- Area real estate agents know KTB Property Management and look to them for assistance.
- We pay a referral fee to our fellow Realtors. Cooperating with area agents is very productive.
- We also get tenant referrals every day from other agents because we are out there shaking hands and networking.
- Most property managers don’t even let area agents show their listings. We are one of the few Property Managers who will allow Realtors to assist in leasing your investment.
It’s one thing to say, “We manage rental property.” There are a lot of property managers who will say that. It’s quite another to have an organization with the above list of accreditations looking out for your investment. This is what you get with KTB Property Management. Sure you can have it done for less but remember it’s your investment why not get what you pay for!
There are many other things that make KTB Property Management different from other property management organizations; time and space prohibit a complete list. But remember we are striving for Excellence in Property Management through Integrity in Service.
what’s right for you?
ktb management vs. the competition
- KTB Property Management has been providing Property Management services to the greater Sacramento region for nearly 25 years. Our knowledge is unparalleled, we even teach our Property Management companies how to run their operations.
- We specialize in residential single-family homes, duplex, four unit builds and smaller apartment communities. We do not dabble in commercial management. We pride ourselves on being the best at what we do-investments just like yours.
- KTB Property Management will minimize your rent loss by getting your investment to re-rent faster than anyone else. As soon as we receive a notice to vacate, we begin marketing your investment. Nearly 25% of our available properties do not make the market due to our pre-marketing strategies. Many management companies wait, costing you money.
- KTB Property Management guarantees our service and our tenants. We guarantee our tenant and their payment of rent for the full term of the lease, not just half the lease or the first 90-days. If the tenant vacates at ANY time during their tenancy for ANY reason, we will re-lease the property to no charge to you.
- We are the go-to source for all things Property Management needed by the Sacramento Association of Realtors. We even teach other Property Management companies the ropes in starting and operating a property management company.
- We are actively involved nationally, state-wide, and most importantly locally in all the laws and regulations concerning property management. Other Property Management contact us when they have questions on laws and regulations.
- All of our owners have direct access to their property manager and even Bob Thomas, the Owner. No passing you off to someone else. We can all answer any and all of your questions.
- If you have an internet connection, you have 100% access to all of your information at any time. By being a completely computerized and cloud-based company, it gives you the access you need for your investment. We even deposit your monthly funds into your designated bank account.
- KTB Property Management loves California, and we are protective of the environment. All our leases and lease documents are electronic and even electronically signed by our tenants. These documents are available for you to view at your convenience through your owner's portal.
- After each and every service call to your investment, we survey the tenants on their satisfaction of the service call. Our average score is over 4.5 on a 5.0 scale on every call.
- KTB Property Management provides you with annual inspection reports with photos and comments. The average report is over 30 pages long versus the two-page report most property managers provide.
- Anyone can collect rent and pay bills and service the investment. At KTB Property Management, we understand all the risks associated with investment real estate and how to manage those risks to keep you, the owner, out of harm’s way.
- By experiencing on-going education and keeping pace with all the regulation and laws, places KTB Property Management ahead of everyone else.
What value does KTB Property Management provide that is not paid for?
Let’s say you have a legal question and you wish to speak with a general partner or even just the senior partner of a law firm. How easy do you think that will be? Well, with KTB Property Management you can speak with the owner of the company anytime you wish. A simple phone call or email, even a text, will get you a response within an hour.
Anyone can collect rent and pay bills; we all do that each and every day. But by consistently providing timely maintenance on service calls and staying abreast of the ever-changing landscape of the regulations, that is a risk that should be left to a professional property management company who focuses and specializes in residential property management. Preserving the integrity of the investment along with protecting you, the landlord, is what we specialize in.
One of the costliest expenses you have with your investment tenant turnover and vacancy can be caused by tenants not renewing. KTB property Management has processes in place to care for the tenant as well as the property. How many other property management companies provide HVAC Filter to the tenant to keep their utility cost down and to preserve the integrity of your heating and cooling system. Who else requires the tenant to perform task upon their move out, which will allow for the fastest turn around of tenants in the industry?
Processes, procedures, systems, communication, and cooperation: all things performed behind the scenes to make your experience with KTB Property an enjoyable and profitable one.
self management vs. professional
Are you ready to self-manage your investment…?
If you have the time, and understand all the laws, regulations, registrations, required inspections and rent control laws, you can certainly save time managing the property yourself. Please be aware, you don’t know what you don’t know. Tenants in California have more rights than property owners.
Please review our eBook, “Common Tenant Issues and Everyday Solutions for Real Estate Investors”. The book will give you an excellent overview of what exactly you need to be a good self-managing landlord. It educates you on the differences and importances between self-management and professional management.
Here are a just a few topics in the book:
Self-managed landlords are fearful of the cost of professional management. They think they can save a few hundred dollars by doing things themselves.
- Most self-managed landlords tend to not increase rents for fear of tenant moving out. Lost revenue: over $1,200.00 a year by not increasing rent.
- Most self-managed landlords are not ready for turnover and re-leasing the investment. Lost revenue: over $2,000.00 due to not wanting to hold the tenant accountable.
- Most self-managed landlords are not aware of the state-wide rent control laws and how easy it is to fall victim to rent control. Lost revenue: over $2,000.00 a year.
KTB Property Management has the privilege of managing properties that real estate professionals own. They know they cannot keep up with the ever-changing landscape of local and statewide regulations and law changes. That is why they trust their investments with KTB Property Management. We hope you will too.
Rental Licensing and Inspection Requirements
Throughout the greater Sacramento region there are numerous Licensing and Registration of Rental Property requirements. Nearly every municipalities, and even Sacramento County, has some sort of rental licensing requirement/registration which involves an application, paying a rental license fee and/or Rental Inspection service fee. In addition to this, each of the municipalities inspect your property for Health and safety compliance.
The inspection fees, when performed by the Municipality, can range from $225 to $321 per inspection. Fortunately, KTB Property Management is Certified by both the City and County of Sacramento (along with other cities) to perform the inspection on their behalf at a greatly reduced fee. We even assist with the preliminary inspections to make sure everything is good from the very beginning.
To assist you with the process we have attached the registration forms for the Sacramento Rental Housing Inspection Program, city and county, at the end of our eBook, “Common Tenant Issues and Everyday Solutions for Real Estate Investors” (Chapter 9: Rental Licensing and Inspection Requirements) which you can download and fill out at your convenience.
In that same chapter you will also find websites links where you can register the property online. This includes the actual Inspection Forms used by the municipalities.
It is very important to register your property; the fines are steep and very few slip through the cracks.