Property Management Services for Agent Partners
Edinson Property Management LLC is a Houston-based property management company. We have been in business since 2006 and understand the different aspects of property management from a broker’s perspective. Our goal is to be an extension of your Real Estate Business Services through Tenant Screening Services and Property Management Services. We have experience managing properties for local, out-of-state, and international clients seeking full-service property management services. We have a deep understanding of the level of maintenance required to maintain investment portfolios. Our goal is to provide our Agent Partners with a high level of customer service during the property management process.
ONLINE PORTALS AND OWNER DRAWS
Rent is collected from the Tenants through their Tenant Portal, an online portal that allows Tenants to Pay Rent, review their Lease Ledger, submit Work Order requests, and send us notifications via a built-in messenger chat system. We create Owner Portals for Owners which allow similar functions. Rent is collected electronically from the Tenants through ACH/ePayment and we pay the owners via ACH for proper tracking and accounting. Our cloud-based system allows Owners and Tenants to see their respective portals and ledgers from anywhere in the world via the internet. Owners can approve any Work Order online via their Owner Portal. Rent payments are received from the 1st to the 6th of the month and post to our account from the 4th to the 8th. Owner draws are sent to Owners from the 7th to the 10th of the month once we have confirmed that the ACH/ePayment has settled into the account. Texas has a 3-business day hold on electronic transfers, which behave similar to checks. Consumers in Texas have three days on all check transactions to stop payment. Once it clears, the amounts cannot be reversed back into the tenant’s bank account and we consider the amount funded and ready for Owner Draws. We email out monthly statements to the Owners and post the statements in their Owner Portals. We send out yearly statements for tax purposes and send out 1099's for all the portfolios in January.
TENANT SCREENING PROCESS
Our Tenant Screening Process is a bit more thorough than most Property Management Companies. Some companies make the mistake of using mortgage companies to run rental screenings and miss out on a lot of critical information that can make all the difference to the Owner. Our screening process runs Credit, Criminal, Background, Social Security Verification, and Eviction Searches. We also send out Verification of Employment and Verification of Rental History. When you are the Lease Listing Agent, we partner up with you to process Tenant Screening on behalf of the Owner. As the Listing Agent, you will verify that the Lease Application is complete and that there is no missed or incomplete information. This will delay the Tenant Screening Process. If we are working with your Client as a Property Management Client, we create a Tenant Selection Criteria for the property and provide it to you so that there are few misunderstandings on lease expectations from Applicants. We ask Applicants for copies of their social, driver's license and supporting documentation such as paystubs and bank statements to establish affordability. We require our tenants to make three times the lease amount. The Applicant is charged $65 per Adult so that there is no cost to the Landlord for this service.
We utilize a leading online property management software called Propertyware for our management company. This online system allows us to provide a higher level of service and accessibility. We provide advanced reporting and tools that set us apart from the competition such as document repository, image/photo repository, instant messenger offered to our Owners and Tenants, electronic payments, Tenant Screening and more.
We require all Tenants to maintain Renter's Insurance for each property we manage. The Tenant can elect to get it through a third-party company of their choice, or we can recommend one. We require Tenants maintain a $100,000 liability policy as part of their Renter's Insurance Policy. This is to protect the property and cover Tenant-related damages or damages from their guests during their tenancy.
Our fee for property management is 10% of the monthly rent. The management fee might seem like a lot of money at first, but the cost-benefit analysis of such an arrangement can be more attractive than the headaches that come with Owners managing a unit themselves or with a discount company. We do not charge a management fee when the property is vacant. The management fee is assessed the day the Tenant moves in and is reflected as a deduction on the first Owner Draw Statement. This is done for accounting purposes to allow the portfolio to fund itself and minimize Owner Contributions.
NEW CLIENT SETUP
We do not have a Setup Fee. Once we have a signed Property Management Agreement, we will set up the Owner Portal and setting up the ACH/EFT portal to enable electronic Owner Draws. Once the setup process is complete, we upload PDF versions of the Property Management Agreement as well as Lease Agreement paperwork into the Owner Portal. We also keep electronic copies of your paperwork via Dotloop, an online transaction management system. We maintain our files for 7 years to maintain proper compliance for file repository.
PROPERTY CONDITION EVALUATIONS
Once a Property Management Agreement has been signed, the Owner has the option of a Free Basic Report or Paid Detailed Report.
Free Basic Property Evaluation Report is at no cost to the Owner. We perform a Property Manager's Inventory and Condition Report that we share with the Owner via Dotloop. This report documents a checklist of items through a visual inspection of the property. There are no photos with this report.
$100 Detailed Property Evaluation Report is an in-depth property evaluation report with photos of the property with notes relating to the property condition. A report is generated through our system with pictures and comments for documentation purposes. The report is hosted through our provider during our management period and emailed to Landlords and Tenants as a PDF. We offer full site reports at any time during the tenancy at a cost of $100.00 to the Owner. These reports can be performed as often as the Landlord wants to order them. Some Owners request to have them quarterly and some in six-month intervals. The charge would be reflected in the Owner Statement.
LEASE LISTING SYNDICATION FOR OUR AGENT PARTNERS
Our partnership with our Agent Partners allows us to provide a broader marketing exposure. The lease listing fee is procured by the Agent Partner and paid to the Listing Broker. If we partner up with one of our Agent Partners while they have a lease listing, we offer our complimentary listing exposure to them as long as we have a signed Property Management Agreement. We showcase our managed properties through ListHub to a large base of syndication website partners. We also feature the property on our property management website, www.EdinsonManagement.com for additional exposure. We provide additional exposure through rental-specific websites: Rentals.com, Rent.com, RentalHouses.com, RentPath.com and LiveLovely.com through an exclusive marketing account we have with Rentals.com at no cost to the Agent Partner or the Owner.
If we are able to get the Existing Tenant to renew their lease for a minimum of one year, we have a Lease Renewal Fee of 10% of one month's rent. This allows the Owner the security of keeping good tenants under contract without having to pay another Leasing Fee of one month's rent. We prepare the lease documents and coordinate with Landlord and Tenants usually 45 days in advance. There is no renewal fee charged if the Tenant goes month-to-month or if we do not have a one-year lease extension. Lease Extensions for less than one year are done via a Lease Extension at no cost to Owner.
COMMUNICATION WITH TENANTS
We maintain a low vacancy and have good track records on renewals. We have learned that if the property is a desirable property in very good condition, we tend to retain good tenants in the property. Our online platform facilitates communication with Tenants by allowing them to create their Work Orders in minutes and upload photos or comments. Once received, our system notifies the Owner for approval. Unlike most managers, we don't start a repair without the Owner’s consent and are very diligent in trying to notify the Owner as soon as we are made aware of repairs.
We do not require our Owners to maintain a reserve account unless they want to have one. Many property management companies require Owners to provide an Owner contribution towards a Reserve Account to the tune of $250 to $500 on average. What they fail to inform the Owners is that a Reserve Account grants the property manager the ability to approve repairs up to that amount and replenish those funds from the Owner Draws owed to the Owner. This allows for little in checks and balances for repairs that may be charged without the Owner's approval. Our Owner Portals have been customized for our Owners to contribute funds to their portfolios with the simple click of a button in the event of any approved repairs by the Owner.
PROPERTY SALE DURING MANAGEMENT
Our Property Management Agreement is for one year and automatically extends unless either party provides written notice of termination within a 30-day period. In the event of a sale during the property management term, we notify the Agent Partner so they can list the property for sale. As a courtesy, we can terminate the Property Management Agreement at Owner’s request before or during the sale listing term. Upon Owner approval, we can provide a copy of the Lease Agreement to Agent Partner. Our management agreement terminates at the sale of the property and the Owner does not owe us anything after it is sold. The management fee is pro-rated for the month that it is sold. We coordinate with the Owner and with the Listing Agent to provide the Security Deposit to the title company so that it doesn't have to come out of pocket from the Owner at closing. We do this as a convenience to the Owners and our Agent Partners to help expedite the sales process while we are managing the property. We can also refund the security deposit to the Owner or transfer the funds to the new Owner if we have a written confirmation by the parties. We then notify the Tenants of the sale of the portfolio and disclose the change in management as well as let them know who has their security deposit.
My Team and I welcome the opportunity to partner up with our Agent Partners with our Property Management Services. Our goal is to return the property to our Agent Partner when it comes back for New Leases and/or For Sale. We become a resource to you on what is expected of a Landlord and what the property must have to be able to comply with the Texas Property Code. I know you have other options for property management companies and hopefully we can earn your business as the property management of choice. Should you have any questions, feel free to contact us at 713-970-1038.