Frequently Asked Questions

For Property Owners

For Tenants

The following are Frequently Asked Questions (FAQ’s) regarding the process of property management. As with most questions, the short answer is rarely a complete answer. If you are interested in more detail regarding your obligations, your Property Manager’s (PM) Obligations, possible applications of Landlord/Tenant Law (NOT legal advice) or any of the processes that are mentioned in this document, please feel free to contact us. We would be happy to discuss such issues in detail.

Getting Started:

Q: Why should I hire a property management company?

A: Great question! Managing a property can be time-consuming and complex. We take care of everything from finding and screening tenants to handling maintenance and legal compliance. This frees up your time, reduces stress, and often leads to better financial outcomes. Plus, with our years of experience, we know how to maximize your property's potential and avoid common pitfalls.

Q: What types of properties do you manage? 

A: We're versatile! We manage a wide range of properties including single-family homes, multiplexes, apartment complexes, small office and retail spaces, condominiums, and even homeowners associations. Each property type has its unique challenges, and we've got the expertise to handle them all.

Q: How do you determine your management fees? 

A: We believe in transparency. Our fees are competitive and straightforward - no hidden charges! We typically charge a percentage of the monthly rent, which varies based on the type and number of properties you own. We'd be happy to provide a detailed quote tailored to your specific situation.

Q: Can you help me if I'm new to property investing? 

A: Absolutely! We love working with new investors. Our team can guide you through the entire process, from finding the right property to understanding the financials. We'll help you avoid common rookie mistakes and set you up for long-term success.

Tenant Management:

Q: How long will it take to rent out any vacant space? How much rent can I charge?

A: When possible Markus & Associates, Inc. likes to Pre-Rent vacancies (meaning rent the space before it becomes vacant). We will often leave 1-2 weeks for cleaning, painting, repairs and upgrades between tenants. When pre-renting is not possible we begin advertising as soon as we know when the space can be made ready.

We screen applications on a first come, first serve basis. Rent rates are usually determined by the property manager. Typically we will advise an owner regarding our opinion of what rates are reasonable for a given space, and will determine a starting rate.

As with any product, it will often sell faster at a lower price, so if the space does not rent fairly soon it may be cost effective to lower the rate and have it rented for more weeks out of the year.

Markus Properties regularly researches the specific neighborhood or area for comparable rental units and will base rates on what the competition is doing. This is an effective means of determining market value.

Q: How can I be sure I get GOOD RENTERS in our investment?

A: Tenant Screening is the process that both insures a new tenant has the capability to pay the rent required, and that they have a history of stability and good tenancy. Markus Properties will screen every application it receives to insure that they meet with our approved rental criteria.

Remember, nobody can guarantee that a tenant will perform on the terms of the rental agreement or lease. It is also important to remember all of the factors that attract good tenants. A clean, nice, updated home will attract more applicants than one that unkempt or in various stages of disrepair. Lower rates attract more people, higher rates tent to attract persons in a higher income bracket. Allowing pets and/or smokers will also attract more potential applicants. Longer leases typically attract fewer people, and shorter leases (1 year or less), or month-to-month tenancies, are typically more attractive. The more restrictive the rental criteria are the fewer people will be attracted to rent your property

Q: How do you screen potential tenants? 

A: We take tenant screening seriously. Our process includes credit checks, employment verification, rental history review, and personal references. We're thorough because we know that good tenants are key to a successful investment.

Q: What's your policy on late rent payments? 

A: We have a clear, consistent policy on late payments that we communicate to all tenants. We'll enforce this policy firmly but fairly, always aiming to maintain good relationships while protecting your interests.

Q: How do you handle tenant complaints or disputes? 

A: Communication is key. We act as a buffer between you and the tenants, addressing issues promptly and professionally. Our goal is to resolve problems quickly and fairly, maintaining a positive landlord-tenant relationship while protecting your property and interests.

Q: Is the Property Manager responsible if they don’t collect the rent, or if the tenant damages my property?

A: Your property manager has no control over what a tenant does or does not do. A PM is responsible for insuring that a tenant knows what is required, and for assisting the tenant in the performance of those requirements, but the PM cannot MAKE the tenant do anything. Your PM can negotiate with tenants, remind them of legal obligations, file on them with the courts and so on to pressure them into conforming to the terms of their agreement.

Further, remember that the short and long term benefits of investment property ownership are the Owners, not the PM’s. The tax benefits, cash flow, appreciation and equity enjoyed by the owner are completely unavailable to the PM. They are paid for their services based on the terms of the management agreement- are hired by the Owner to do the day-to-day work of managing the property. Because an Owner stands to make a considerable sum from an investment property over time, it only makes sense that the Owner is the one who should financially maintain the investment.

Q: If a tenant does not pay on time, what will the PM do?

A: Every management company has different procedures, but most follow these general steps. First, the tenant is informed that payment was not received and that the rent is late. Usually this is in the form of an eviction notice for non-payment (which gives the tenant some time to correct the problem). If the tenant responds and has a reasonable problem, the PM may negotiate a payment schedule and continued tenancy. If the problem is not reasonable, or if the tenant does not respond, the PM will file with the court system to start eviction proceedings.

Q: How will I know that my investment is not being “trashed” by tenants?

A: Markus & Associates, Inc. will screen potential tenants, we will drive by the property monthly and we will do interior inspections annually. Further, if there is any cause to believe that a serious contract violation is occurring (such as drug or gang issues, unauthorized residents, unauthorized pets or so on) we will arrange for more frequent inspections. Although some companies charge extra for these services, Markus Properties typically includes them in your base monthly management fee.

There is no guarantee that tenants will abide by the rental agreement, or that a property manager will detect issues in time to prevent damages or problems. We have found that the above measures often prevent serious problems and minimize potential physical and financial damages from inappropriate behavior.

Q: What happens if the tenant is evicted? Will I ever see the money they owe me?

A: Though any number of things might occur during the eviction process, typically the tenant moves out or is locked out by the sheriff. In many cases the unit or home will require a considerable amount of work including trash hauling, painting and cleaning, often some minor or major maintenance. Typically it takes 3-5 weeks to evict a tenant, then plan on some additional time to make the unit rentable again.

There is usually plenty of documentation supporting the claim of the landlord against the tenant. Some companies will pursue tenants for a short while, then transfer the account to a collection agency. Or, an Owner may take the file to small claims court (or civil court). However, the sad truth is that Owners rarely see payments from past tenants, and it is usually a small enough amount that owners often decide not to pursue legal action.

Q: Can I instruct the PM to do or not do specific things with my property or the tenants?

A: Yes. Your PM is your agent, and they have an obligation to assist you in meeting your needs. However, keep in mind that they are also required to follow the law, that they are regulated and overseen in ways an Owner is not, and that they have a reputation of their own to maintain. If you insist that they do something that is against the law or is detrimental to their own business, they will most likely refuse or even terminate the Management Agreement.

Property Maintenance:

Q: When I hire a Property Manager, will they do everything to take care of the investment?

A: The short answer is “they can”. The scope of the Property Manager’s authority is usually negotiated between the Owner and the Management Company, and is reduced to writing in the Property Management Agreement. This is the basis from which all future actions are based and is a very important document. Typically an Owner will pre-authorize most actions, sometimes with spending limits, that are required for the successful operation of an investment property.

Q: How does maintenance get done, and who pays for it?

A: Typically maintenance is either reported by the tenant or is discovered during an inspection. Markus & Associates will assess the problem then determine how best to approach it. In many cases a maintenance resource will be scheduled to repair the issue. Sometimes outside vendors will be hired if it is determined they can do the job better or faster.

On larger projects (usually if estimated over $1,500) Markus will solicit bids. We will usually choose the bid that offers the best value, not necessarily the lowest bid. Many factors go into these decisions. Can our maintenance resources complete the job more efficiently, faster or work within our preferred time frame? Is the vendor or contractor licensed, bonded and insured? Do we have any reason to believe the estimate or bid is too low, or that they will attempt to renegotiate once the job is started? Will the vendor or contractor still be around in a year or two if the project fails at a later date? All of these factors and more are an important but indirect part of the decision making process.

The cost of all repairs, from mowing the lawn or fixing the door knob to replacing tub surrounds, remodeling kitchens and installing new roofs, is the owners responsibility. Markus Properties will make spending decisions as closely in line with the owners objectives as possible, but by signing the management agreement you are authorizing your PM to make those decisions within the spending limits described in that agreement.

Q: Do you conduct regular property inspections? 

A: Yes, we do! Regular inspections are crucial for maintaining your property's value. We typically conduct inspections at least annually, or more frequently if needed. We'll provide you with detailed reports and recommendations.

Financial Management:

Q: How often will I receive financial reports? 

A: We provide monthly financial statements detailing all income and expenses. You'll always know exactly how your property is performing. We can also provide more comprehensive reports quarterly or annually, depending on your preferences.

Q: How quickly will I receive my rental income?

A: We know cash flow is important to our owners. We typically disburse rental income by the 15th of each month, after accounting for any expenses. We can set up direct deposit for your convenience.

Q: How long do I have to provide funds if the Management Company asks for them?

A: That depends on the Management Agreement, but usually they are required on demand, with a reasonable amount of lead time. So, if your PM needs an additional $250 to pay for a repair bill, an owner might have 3 days from the date of notification to deliver the funds to the management company. It is important to remember that additional funds are usually required only when the property is in need of something. You are typically not paying the management company more- you are only repairing or improving your investment property.

Q: Is the Property Manager financially responsible for making the home or apartment ready to rent, and for all advertising costs?

A: These questions should be answered in the Property Management Agreement, but usually the answer is No. The PM is responsible for making sure the home is rentable (maintenance, cleaning, safety and habitability problems and so on), for insuring that the bills are paid and that the rent is collected. They are NOT responsible for the financial requirements to make these things happen. In short, the PM will do the footwork and make sure the issues are resolved, but the Owner is responsible for the financial burden.

Legal Compliance:

Q: How do you stay updated on landlord-tenant laws? 

A: We take legal compliance very seriously. Our team regularly attends training sessions and stays up-to-date with all local, state, and federal regulations. We ensure that all our practices, from lease agreements to eviction procedures, are fully compliant with current laws.

Q: What is this “Property Management Agreement”? Is it really important?

A: The Property Management Agreement is the document that authorizes your agent (the property management company) to work on your behalf. This is the document that describes what they can do for you, what decisions they are authorized to make, how much they can charge you and what your obligations are. This is a very important and legally binding document. Read it carefully and understand the terms and conditions of this employment agreement.

Q: Do I give up my authority when I sign a management agreement?

A: Typically you do not “give up” your authority, you confer the authority to the PM to make decisions and act in the best interests of you and the property. Your Property Management Agreement is the basis for the PM’s authority, so you should read it carefully.

Most of the time you can be as involved with, or as distant from, the investment as you want to be. However, the ultimate responsibility for dealing with the investment property is always squarely on the Owners shoulders. Some management companies will require that an Owner handle making units ready to rent, others can provide that service. Often a Property Management Agreement will define spending limits that the PM will use as a guide for getting an Owner involved.

Renting a Property:

Q: How do I apply for a rental property? 

A: We've made it easy! You can fill out our online application form on our website. You'll need to provide some basic information, employment details, and references. Don't forget to gather required documents like proof of income and photo ID - it'll speed up the process.

Q: What's the typical lease length?

A: Most of our residential properties require a 12-month lease, but we sometimes offer shorter or longer terms depending on the property and owner's preferences. We're always happy to discuss your specific needs.

Q: Can I have pets in my rental? 

A: Pet policies vary by property, so it's best to check the listing or ask us directly. Many of our properties are pet-friendly, but there may be restrictions on size, breed, or number of pets. There's usually an additional pet deposit or fee.

Moving In:

Q: What do I need to do before moving in? 

A: Great question! First, make sure you've signed the lease and paid your security deposit and first month's rent. We'll provide a move-in checklist to help you note the condition of the property. Don't forget to set up utilities in your name before your move-in date. We're here to help if you have any questions!

Q: How do I pay rent? 

A: We offer several convenient options for rent payment, including online payments through our tenant portal, which is our preferred method. We also accept checks or money orders, and we have a night deposit box at our main office location. Just remember, rent is typically due on the 1st of each month.

Maintenance and Repairs:

Q: How do I report maintenance issues? 

A: We want to keep your home in top shape! The quickest way to report non-emergency issues is through our online tenant portal. For emergencies that can't wait (like major leaks or no heat in winter), we have a 24/7 emergency line.

Q: How quickly will repairs be made? 

A: Our goal is to address issues promptly. Emergency repairs are handled as soon as possible. For non-emergency repairs, we typically respond within 24-48 hours and complete the work as quickly as possible, depending on the nature of the repair.

Q: Can I make improvements to the property? 

A: We love tenants who take pride in their homes! However, any changes or improvements need to be approved in writing first. Reach out to us with your ideas, and we'll work with the property owner to see what's possible.

Lease Terms and Policies:

Q: What's your policy on subletting? 

A: Subletting isn't typically allowed without express written permission from us and the property owner. If you're considering subletting, please contact us to discuss your situation.

Q: How do I renew my lease? 

A: We'll typically reach out 60-90 days before your lease ends to discuss renewal options. If you know you want to renew earlier, feel free to contact us! We love keeping great tenants.

Q: What's the process for moving out? 

A: When it's time to move out, give us written notice as required by your lease (usually 30-60 days). We'll provide a move-out checklist to help you leave the property in good condition. After you've moved out, we'll conduct an inspection and process your security deposit refund within the timeframe required by law.

We hope this FAQ helps answer your questions! Remember, we're always here to help, so don't hesitate to reach out if you need more information. At Markus Properties, we're committed to making property management and renting a smooth, positive experience for everyone involved.