Property Management FAQ

Why should I hire a property manager?

NARPM® property managers have heightened expertise and industry knowledge to assist them in doing the best possible job. They are real estate professionals who know first-hand the unique challenges of managing rental property in today’s constantly changing economic and legislative environment. And they know how to manage those challenges to everyone’s benefit. They can maximize rents and income for you; and they will manage the property efficiently, professionally and economically.

What does Legacy Properties-PM charge?
We offer two types of services for our clients. The first one is full service property management that has two fees, a leasing fee and a management fee. The leasing fee is equal to 35% of the first full months rent and the monthly management fee is 10% of collected rents. In the event that the tenant wishes to renew their lease, we charge $100. The second service that we offer is a tenant placement service, for this we charge 50% of one months rent.
Are there any additional charges or fees?
The only other costs that you would incur would be for repairs, evictions or extra advertising if you choose to have that done. We do not mark up any of our vendors bills or charge you any processing fees.
What am I getting for my money?

The leasing fee covers working with vendors for any needed repairs or cleaning, advertising, showings, tenant verification and lease preparation. For the monthly management of your property, handling all maintenance calls, HOA concerns, property reviews, rental assessments, monthly and yearly financial reports.

Is any of this tax deductible?

This is a question for your tax professional, but for the most part yes, there are many things that you can deduct from your taxes.

I have multiple properties, can I get a discount?
We don’t normally give discounts on our services because we feel that we are already charging fairly for what we provide. However, for owners of 10+ rental properties, we would be open to discussing a discount.
How do I get started?
That’s easy, just fill out the contact us form with as much information as you can and we will contact you to set up an appointment to either meet at the property or have a phone call if you are not in town. Then it is just a matter of a little paperwork and getting the keys from you. We really do try to make this as easy for you as possible.
What if I’m already with another company. Can I switch and if so, how do I do it?

This is your property, and your decision. You will need to look at your contract to see what the requirements are as far as timing goes. Most require a 30 day written notice that gives the date that you wish to terminate your contract and explicit directions as to what they are to do with the security deposit, keys and documents such as the current lease.

How is rent determined?
Rent is based on condition, size and location. We compare your property to others in the area that are similar and have recently been rented to determine the best range to price your home. There are a couple of basic computations that you can do to give yourself an idea of what you could be looking at.

 

 

The first is 1% of the price of your home. So, if you paid $120,000 for your home, your rent should be about $1,200 per month.

The second would be based on the finished square feet of the home. You can figure it at about $1 per square foot. Say you have a home that has 1800 sq ft of finished space, your rent should be about $1800
These are not hard and fast rules, but they are a good general guideline.

How do you advertise?

We use yard signs as well as online advertising to multiple websites such as Zillow, Hotpads, Post-it, Craigslist, AHRN, Padmapper, Trulia and many more.

Who pays the utilities?

The tenant pays for any utilities not covered by the owner or HOA. However, where the bill is sent and in whose name depends on where your home is located. Most water districts are changing how they bill for services. They will no longer put the bill in the tenants name, but most will send a copy of the bill to the property. The same is true for some of the electric and gas providers. Excel Energy will allow you to put your account on a Landlord status so that the tenant can have service in their name, and when they move it automatically rolls back to you. Any bills that come only to you, send us a copy and we will bill the tenant.

How long will it take to rent my home?
This is a difficult question to quantify. There are many variables as to how long it will take. Some of these include; Price, Location, Time of year, Amenities and Type of home.
What are the most desirable areas for rent around Denver?

That is almost as hard a question to answer as what your house will rent for. The factors in this are varied and unique to the tenants. However, some of the most common that we are asked for are Highlands Ranch, Aurora and Wash. Park

What is your tenant screening process?
We require anyone over the age of 18 who will be living in the home to apply, as well as any co-signers. We run credit and criminal background checks as well as verify employment and talk to previous landlords. Once we have all of the information, we use a 100 point scoring system to determine eligibility.
Who shows my home?
We do all of our showings personally, and we don’t have set times or do group showings. We want the one on one interaction with each potential tenant. We also are available for showings when they are. If they can’t get off of work until 6 and need to meet at 7, we’ll be there. Or if Saturday morning at 7 is the only time everyone can be there, then so will we.
When do I get my money?
Unless rents come in late, you money will be sent to you on or about the 15th of each month depending on weekends or holidays.
What if the tenant doesn’t pay?
We set all of our leases to be due on the 1st of the month and late on the 3rd. Unless a prior arrangement has been made, the tenant will be charged a late fee of 10% + $5 per day until the rent is paid. However, a 3-Day notice is delivered or posted to the tenant on the 4th of the month. This is the 1st step of the eviction process in Colorado. If the tenant has not paid, or made other arrangements by the end of the 3 day period, we then contact the law firm of Tschetter, Hamrick and Sulzer to begin the next step of the eviction process.
Is my rent guaranteed?

The short answer to this is “No”, however you may be able get coverage from your insurance company as part of your Landlord policy to cover missed rents.

What happens if the tenants break the lease?
This depends on how they do it and why. If the tenant is active military and they get new orders to move, then we will let them out of their lease without penalty. Not only is it the law, but it’s also the right thing to do. The other possible situations depend on if they give enough notice or not. Our lease states that they will pay a fee equal to one months rent for breaking the lease. However, we have found that it works very well if the tenant can find a suitable replacement before they leave. If they can, you as the owner don’t lose any rent, and we don’t charge you the leasing fee.
What cities do you cover?

We cover everywhere from Castle Rock to Northglenn and Strasburg to Golden/Genesee and everywhere in between. However, we do not cover the city of Boulder due to their leasing regulations.

Do you allow pets?

This is entirely up to you, after all it is your home. We do charge an extra deposit for pets and can, at your request, charge a monthly pet rent. Some things to keep in mind though:

 

 

A large percentage of Colorado residents own dogs, so denying them could severely cut down your available rental pool.

Cats are fine as indoor animals, however, if they have an accident on the carpet, it usually means having to replace the carpet and treat the sub-floor.

If the animal is a service or companion animal, we can not deny them or charge an extra deposit.

How long is the lease?
We typically sign 12 month leases unless there are special circumstances that would dictate otherwise. One example of this would be if the property became available in December, we might sign a 6 or 18 month lease. Doing this will cause the lease to come due in the spring, when more people are looking to move.
What about Section 8? Do I have to accept it?

Section 8 and other housing assistance programs can be good, or bad. Two of the advantages are guaranteed rent and felons are not allowed into the Section 8 housing program. One of the biggest disadvantages is that it can be hard to get the people to move out.

How often do you change the locks?

We change the locks for every new tenant, and to help facilitate this while keeping your costs down, we us Qwick Set’s Smart Key system that allows us to change the locks without hiring a locksmith or contractor. This also allows us to change the locks at the time of tenant move out, so if they still have a key, or have given one out, it won’t matter.

I don’t want people smoking in my home. Can I say no to that?
Yes, you can say no smoking in the property, there is a special place in our lease for allowing it. It is hard to enforce, but not impossible, and we can’t keep them from smoking outside.
What about marijuana smoking/growing?
All of our leases have a drug free/crime free addendum that addresses this. Even though marijuana is legal in the state of Colorado, it is still your property. So we do not allow it in any of our homes unless the owner specifically approves it.
How do I know that the tenants aren’t destroying my house?
We drive by your property once a month to do an exterior review and address any issues that we see. These are completely random so the tenants can’t just rush out the day before to try and get everything cleaned up. We also do quarterly interior reviews that are scheduled with the tenant, usually 24-48 hours in advance. This gives them enough time to clean, but not enough to do any major repairs. On top of that, any time our vendors are called out, they will report to us anything that they see as needing to be addressed. Once we have these reports, we give the tenant 7 days to remedy any issues that we find. If it hasn’t been done, we will send out the proper vendor and bill the tenant for the repairs.
What if something breaks, who pays for it?

This all depends on what broke and how. If it is something that has simply worn out through normal wear and tear, then the bill will go to you. However, if it is something that was caused by the tenant, either through neglect or misuse, then we will bill them.

Who does the repair work on my property?
For your protection and ours, we only allow licensed, insured and bonded companies to do work on your property.
Can I use my own people or family?

If they are licensed, insured and bonded and will accept 30 day billing, then the answer is yes.

What if something happens at night or over the weekend?

We have contracted with NightTenders to handle all evening, weekend and holiday emergency calls. They already know what qualifies as an emergency and who we want them to call for each type of issue.

What if I want to sell my home, can you help me with that?

Of course we can. While our primary focus is property management, our goal is to be of service to you in any way we can.

Do I have to use you to buy or sell?

We would never force or require you to use us for any service. Even if you choose to use another agent to help you, we will still be happy to answer any questions that you may have.

What if I want to buy more properties?

We would be more than happy to help you in selecting a good rental property at a good price.

I’m not an American citizen, is there anything special that I should know or do?

Yes, we are required to withhold 30% of your rental proceeds for tax purposes. We would recommend that you talk to a tax professional that specializes in this area.

How do I determine if I should rent my house or sell it?

There are a few considerations to take into account with this question. First and foremost is, can you afford to. You have to assume that you will have vacancies and repairs that have to be made. If you will be counting on the rent every month to make your payment or risk going into foreclosure, then sell it. If you can afford the payments without the rent for at least a few months, then the question becomes what do you want your end result to be? Do you want to get out of it and move on, do you want to hold onto it to pass down to your children, or do you just want to hold onto it until the value increases. These are questions that we can’t answer for you, but we can help you with them.

Will the tenants be able to contact me directly?

While we can’t guarantee that a tenant won’t find out how to contact you, most of the time they are perfectly happy contacting us directly and leaving you to enjoy your life.

Can I decide what type of people live in my home?

Under the fair housing laws there are 11 protected classes in Colorado. These are: Race, Color, Religion, National Origin, Sex, Disability, Familial Status, Creed, Sexual Orientation, Marital Status and Ancestry. This is one of the main reasons that we use our 100 point scoring system. There is almost no chance of anyone accusing us or you of discrimination.

Are you a licensed real estate agent?

Yes, in the state of Colorado, you are required to have your real estate license in order to manage another persons home.

What kind of reports will I get and how often?

You will get both financial and property reports. Your financial reports will come each month about the same time as your payment. You will also get a year end report that you can deliver to your tax professional. We also send out a report after each of our interior reviews, and exterior if there is an issue. Most of these reports will be short, simply stating that we have been there and everything is fine. If there is a problem, you will also get a follow up when it is resolved.

How do I get my home ready to rent?

This is something that we can go over with you when we meet. We usually recommend having a professional cleaning company and carpet cleaner come out so that the home is in perfect, clean condition for the first renter. Our vendors know what our standards are and leave their business card behind for the tenant to reference at the time of move out. This usually results in the tenant using them as well and the home being returned in the same condition that it was delivered in.

Do you have any references?

Yes, although our company itself is young, we do have references from previous clients upon request.

What Are The Benefits Over Time Of Having a Property Manager?