FAQ’s (entirely worth the read)
How is my property being marketed?Marketing is primarily done online and originates from our CRM, Propertyware, which launches syndication. We broadcast to all of the major home search sites such as Trulia, Zillow, Homes.com, Hotpads, Craigslist, Rently, our Reedy and Company website, etc. Further, we place your home in the MLS system for Realtors looking to place their rental clients. Professional photography is done, at owner cost of $100, as outlined in our management agreement. This sets our marketing apart from other homes in the rental marketplace. Our tenants are always grateful for having the chance to see the home at its best, assisting them in making a decision more quickly. While we have strong success with marketing online, we also place a FOR RENT sign in the yard of the property to monopolize on drive-by traffic. In-house lists are customized and prepared on a daily basis for prospects to pick up or receive by email based on their specific search parameters. On occasion, after an extended vacancy period (60+ days) specials may be offered. Owners will receive a notification when their property is included in this special with rent concessions up to ½ month rent, based on the specifications of market conditions at that time. The cost of offering the special is the owners and is deducted from portfolio income in the appropriate month. If you are opposed to offering specials of any kind please communicate this in advance so that we do not implement such targeted plans after extended vacancy periods.
How long will it take to find a tenant for my vacant property?The average vacancy is 45 days, this includes some properties that are rented day 1 and others that are vacant for longer periods of time. There is no real rhyme or reason to the variables of time, vacancy is affected by a number of conditions to include but are not limited to: location, comparable and other available properties in the area, price, size, layout, yard, mechanicals (central heat and air), the condition of the property, whether or not a property can be rented by section 8 according to the condition for inspection, season (weather, holidays, school dates, etc.) Generally speaking, we are not concerned until a property has been vacant 45 days or more at which point, we will review all of the above-mentioned factors unless a visible trend in feedback is present beforehand.
What is the tenant screening process?Each tenant 18+ is required to apply and to meet the following criteria:
- Financial verification of net income with a minimum of 3x the rent
- Tenant must show proof that they can get utilities in their name (this would not be possible with outstanding utility judgment or delinquency)
- Rental history verification (no recent evictions, judgments, housing delinquency)
- 1st-time renters will be required to pay an additional month’s deposit
- Reference check (5 unique references for each applicant 18+)
- Criminal background check
- Credit check - the score is not the ultimate determination but is based on an evaluation of their overall spending and payment history
What is the pet policy and associated fees/pet rent? How will I know if the tenant has any?Pets are defined as cats and dogs. Other animals require written consent, in advance. There are breed restrictions and limitations on # of pets as shown in the lease, uploaded to your portal. Tenants are required to register each pet and a $300 non-refundable pet fee is required, per pet. This fee will be split with you, the property owner. Additionally, the tenant will pay a $25 pet rent/pet/month for the term of the lease(s) or until the pet is no longer on-property. This income will be visible on your monthly statement less management fees. Details of this policy and agreement can be found on the lease, on your portal.
How will I know if my home is rented?
This is one of the many notifications you will receive by email from our Client Services team. We will be excited to share this news with you once the deposit is paid and a move-in date has been determined. The lease is not signed on this date, the home is secured with a security deposit and move-in agreement.
The lease is signed on move-in day and will be uploaded to your Owner Portal within a week after move-in.
When will the security deposit be deposited in my account?
The tenant pays the security deposit to Reedy and Company and the funds are held in an escrow account for the duration of the lease. The deposit is only paid to the owner if there is a balance due at the termination of the lease for unpaid rent, damages, other and will be reflected on the owner’s statement after processing, within 1-2 statement cycles depending on the move-out date and how it coincides with month-end.
What do I need to know about Section 8?
There is a great deal of information to share with you about this subsidy program. Please see ‘Section 8 101’ in the Documents section of the owner portal. We believe this program can be a viable and worthwhile program to owners and tenants alike but there are added risks and reduced overall control. Please take the time to read the Section 8 101 for full understanding.
When will I receive my statement and rental income?
Statements and owner deposits are initiated on the same day, on or around the 6th business day of each month, for the month prior.
Example: April income and statements are released on or around the 6th of May.
Your property management income will begin in the month following your closing and the income for the month you closed in will be included on the HUD-Closing Statement, handled by the closing attorney and your realtor.
Example: You closed on the property April 27. The HUD should reflect income for 4/27-4/30 paid out to you, reducing the amount received by the Seller. Reedy and Company will not report this transaction on the statement for April, your 1st statement will be in June for May income.
When is rent due, and what happens if my tenant does not pay?Rent is due on the 1st of each month and is considered late on the 5th. Between the 5th and 15th of each month, our collections team works tirelessly to reach the tenant through all available communication. If collection or arrangements are not made by the 15th (or Monday following if the 15th falls on a Sunday) we will seek legal action to collect or regain possession of the property, whichever comes first. There is no required action by you as the owner. We will ensure that you receive notification of all payments received, continued balances, and if legal action is required. Please note: you may receive multiple notifications of payments received as some tenants pay in increments. Section 8 payments will always come separate from the tenant’s portion.
What if legal action is required?You will receive a notification that the legal process has started. We will manage this process entirely on your behalf and the process can take up to 60 days. (Section 8 tenants or those who file bankruptcy could take longer and additional costs for bankruptcy will be incurred by the owner) Initiating legal counsel (filing the FED) does not mean that eviction is imminent, it does, however, ensure that we properly position you as the owner to claim possession of the property if the tenant does not do as instructed by the court to include clearing the delinquent balance. There is a $350 legal and professional fee for the above-stated process, charged at the time of filing, whether or not the tenant is actually physically evicted. This fee is billed to the owner but is ultimately the responsibility of the tenant to reimburse the owner. If the delinquency is not cleared, and the tenant is physically evicted there are additional costs involved. The set-out process is managed by a third-party and fees are based on how long it takes to remove the items left in the property for the actual set-out. Generally speaking, these fees do not exceed $250 though there is no way for us to gauge this in advance and will again be billed to you with the intention of reimbursement by the tenant.
What if the tenant vacates and the security deposit does not cover the balance?We will forward the final balance to an outside collections attorney who works independently to garnish and collect. This does not always yield a full collection nor is it a quick process but there is a reasonable return on this effort. The fees associated with this process will be taken from the amount collected and you will receive the difference.
What is the renewal process for occupied properties?Approximately 120 days prior to lease expiration, a full market review is done to evaluate the viability of increasing the target rent for renewal. It is always our goal to increase the market-declared rent without creating a financial hardship for the tenant. At this time the tenant will receive an invitation to renew with the new rental amount and a request to establish an agreeable date with the tenant to perform an occupied home inspection. The tenant’s renewal is contingent upon allowing us to complete this inspection, for the benefit of our investors. We believe that an agreeable tenant is indicative of a tenant who is proud of how they are caring for the home. One that refuses us entry may have something to hide from us. The inspection report will be provided along with any recommendations within 2 weeks following the inspection. Additionally, the renewal lease, once signed, will be added to your owner portal documents for you reference. Please note: If the tenant is Section 8 and decides to renew, we will submit the documents with the suggested rental amount however, we cannot guarantee that they will approve the increase as they conduct their own market analysis and renewal inspection, according to their schedule.
What happens if my tenant decides not to renew?You will receive a notification from us stating that the tenant has provided their notice to vacate (generally 30-60 days) in accordance with their lease. On occasion, the tenant will revert to month-to-month first and then proceed with a suitable notice. Upon receipt of the notice, we place the property on the coming soon list in hopes of pre-leasing the property before it is vacant. For the safety of all involved (current and prospective tenants), we do not show occupied property. Photos and information will be provided but viewing the property, in person, will only be permitted after the property becomes vacant. Many times, after placing notice to vacate, a tenant will rescind and decide to renew instead. We will let you know if this occurs in your portfolio.
What happens when my property becomes vacant?Once the property becomes vacant, we will immediately begin full-fledged marketing as described above. Within the week, our maintenance team will inspect the home and determine what work needs to be done in order to make the home rent-ready for the next tenant. You will receive a scope of work along with photos for approval. Please keep in mind that your timely correspondence in this is key to turning the home quickly, and full payment is expected in order to begin. Please note: Pre-inspections for scope purposes are not offered as occupied properties are not suitable for doing so. Scopes of work can include mechanicals, roof, wall repair and paint, flooring, countertops, cabinetry. It is often difficult to get a true sense of what is needed while a property has personal belongings and furniture in place - the results can be vastly different.
Who manages my utilities?There are differences in how utilities are managed based on whether they are located in Tennessee or Mississippi. In Tennessee, Reedy and Company will manage utility connection for vacant properties and bill the owner accordingly. Keep in mind that MLGW (Memphis, Light, Gas, and Water) requires a $200 Security Deposit and a $42 connection fee for all properties with next day connection ($52 if same day connection is available). This is non-negotiable. When the property becomes occupied, the tenant is required to transfer utilities into their name and MLGW will issue a refund of the $200 deposit to Reedy and Company on your behalf within 60 days. In Mississippi, Reedy and Company will manage water connection year-round, regardless of whether or not the property is occupied or vacant. Walls Water Association and Horn Lake Utilities requires that the owner is listed as the responsible party at all times; we will manage this connection and bill you accordingly, deposits vary based on the company. In order to connect new service, we will need for you to provide us with a copy of the recorded deed. Other utilities will be managed similarly to TN with varying deposits, as assigned by the utility company per property. It is important that you let us know, when you are transferring a property to us from another management company/owner, whether you currently have the utilities in your name, the tenants, or the prior property manager. If it is in another property manager’s name or utilities are off: We will add your property to the Owner’s Reconnect Program offered by the Tennessee utility company to ensure that transferring between tenants upon move-out is managed by us and utilities are easily transferred to an incoming tenant. If in your name (single-family home or duplex): If the utilities are in an owner’s name, the utility company will not allow it to transfer to the property manager. So, we will need for you to complete a designated agent form listing a number of our staff as designated agents on the property. Without this, the utility company cannot provide us access to the bills, shutoff, transfer, or other imperative actions. If you wish to have us pay the bills on your behalf, we are happy to do so, you will simply update the address on the account to 4701 Summer Avenue Memphis, TN 38122. Alternatively, you can continue to receive and pay the bills directly, if you prefer. Once the tenant moves in, the utilities will transfer to the tenant. When the tenant moves out, we will add your property to the Owner’s Reconnect Program, in our name where it will remain any time the property is vacant. IMPORTANT: Our lease allows 3 days for the tenant to transfer utilities into their name. Please do not disconnect service from your name before the 3 days, we would then be in violation of the lease agreement. If you have a multi-family property (5 or more units in one complex): We will especially have interest in knowing who’s name the house account is in. Is the property already on the Owner’s Reconnect Program? Copies of the house bills are extremely helpful, please ensure these are provided to Mallory, Onboarding Specialist, by email firstname.lastname@example.org. We will work out the details of the transfer according to the current set up. IMPORTANT: There is a great deal of information that we must provide along with a bond instead of the above-mentioned security deposit when setting up a multi-family property on the Owner’s Reconnect Program. We will provide you with all of the necessary forms and ask that you complete them thoroughly to help us expedite the set up. It does take patience, and a notary, but it is a one-time thing and will be worthwhile in the end.
Who is responsible for paying insurance, my mortgage, taxes, HOA, etc.?It is the owner’s responsibility to ensure that all costs associated with home ownership are paid independently. As outlined in the management agreement, there are times where we can pay such expenses (for properties that we manage) on an emergency basis for a fee of $50 per transaction, assuming your portfolio has the funds to cover such expenses.
Who is responsible for making sure my property is insured?The owner is responsible to ensure that the property is insured at all times and that Reedy and Company Realtors, LLC is listed as additionally insured/interested party as described in the Management Agreement. It is imperative that you provide Mallory, Onboarding Specialist, with a copy of your initial policy declaration page and upon renewal email@example.com. While we will notify you in advance of the upcoming expiration, failure to provide proof of insurance could result in held funds and eventual termination of management. The safety of your property, tenants, and our company is our primary concern. Please note: Reedy and Company offers a master policy through Lipscomb and Pitts. This policy offers outstanding coverage at a reduced cost and is available to all managed owners. If you have interest in comparing coverage or in getting a quote from Lipscomb and Pitts please correspond directly with the insurance agency (901) 321-1136 / email firstname.lastname@example.org.
What if I want to add more properties?Reedy and Company has an in-house acquisition team that can assist you in purchasing more property; we are always ready to grow your portfolio! We will gladly connect you upon request. If you would like to transfer a property that you have recently purchased or that is managed by another property manager, we have a very simple process in place. Email email@example.com to get started. Many of our investors purchase properties in a variety of ownership names, including personal, LLC, corporations, etc. The process remains the same for onboarding these properties with regard to the required paperwork. There are a few things of significance to note, as follows:
- If you are purchasing the property in your personal name(s) as shown on the HUD, the tax documentation and the management agreement must match, in keeping with state and federal regulations. Meaning, an EIN is generally used for LLC or other organizational ownership and cannot be used in place of your SSN unless a deed is provided showing transfer from personal ownership to the organizational ownership. A deed showing transfer can be provided to Reedy and Company at any time during management and we will prepare a quick addendum to move ownership from your personal name(s) according to how the transfer deed is written. At that time, an EIN can be used instead of the SSN as it coordinates with the LLC, corporation, trust, etc.
- Your accountant is the best resource in confirming what ITIN should be used according to how you purchase the property and if/when you transfer via deed.
- Propertyware, our software for managing your properties and the host of your owner portal, requires a unique email address for every bank account entered within your portfolio. So, if you purchase more than one property (at one time or separately), and wish to have deposits made to separate bank accounts you will be required to provide a unique email address for each.
- To avoid having multiple Propertyware logins you will need consolidate bank accounts.