Property Management - Frequently Asked Questions
What type of properties do you manage? We specialize in Single-Family homes, Duplexes and Town Homes.
What type of properties do you not manage? We don’t manage anything larger than a duplex, such as 4-plex properties or small apartments. We don’t manage commercial properties. We don’t manage homes with chronic repair issues or conditions that might adversely affect the health or safety of an ordinary tenant. An example would be a home with a rotted 2nd story deck that an owner “can’t afford” to properly repair.
Are you licensed? Yes. We are licensed REALTORS ® affiliated and licensed by the Texas Real Estate Commission. We are also members of the Texas Association of Realtors and the San Antonio Board of Realtors.
What do you do to get my property leased? Renting homes is a merchandising rather than a selling effort. Many tenants find their homes by scrutinizing the outer appearance of properties in neighborhoods where they desire to live. The placement of signs with our company name and telephone number is one of our best means of attracting potential tenants. We also acquire tenants through the Multiple Listing Service, Internet web searches, other Real Estate companies, Military Housing Office, rental agencies, walk-in business, and referrals from satisfied clients.
FOR RENT SIGNS – “For Rent” signs are normally placed on a rental property thirty (30) days prior to the property’s availability date. For new property, the sign is placed on the date the unit first comes under our management or, if necessary, when the property is in a showing condition. Unless restricted by Neighborhood Associations or City Ordinances, signs are placed in the yard where they are visible to traffic.
NEWSPAPER - If requested, classified ads are placed in the San Antonio Express News and/or other publications. You are only billed for advertising that you request.
MLS - Your property data is entered in the San Antonio Multiple Listing Service giving access to over 6,500 REALTORS®. We pay a $200 leasing fee to the agent who brings us a qualified tenant, whether the agent is from our office or from another company.
LEASING LOCATORS - We make all of our listings available to the many Lease locator Companies. These non-REALTOR® companies specialize in helping tenants find apartments, houses, and duplexes.
WORD OF MOUTH / REFERRALS – We regularly receive referrals from our current and past tenants, friends of our tenants, and from other Broker’s agents.
INTERNET LISTINGS - We have developed a web page, which provides information on rental homes to families that are planning to relocate into the San Antonio area.
CORRECT PRICING - Even the best properties will not lease quickly if overpriced. We analyze the market to be certain your home is priced according to current market conditions.
THOROUGH PREPARATION - The most desirable properties, priced well, will not lease quickly if they are not in top condition. Properties must show well and have “curb appeal". We make sure your property is presented in a clean and attractive condition so that it will catch the attention of a good, qualified tenant.
WE SHOW YOUR PROPERTY PERSONALLY - We have motivated leasing agents, who are all licensed REALTORS®, who personally show your property.
Normally, there are three factors that make a property difficult to rent - undesirable neighborhood, it does not show well, or the rent is not competitive. If one of the last two problems appears to be a factor in marketing your property, we will make suggestions to correct them. We do our utmost to keep all properties rented, not only for your benefit but also because our income is based on a percentage of the rental income.
Some Rental Facts -
- Monday is the busiest phone day.
- Renters visit three to five properties before making a decision.
- It usually takes two visits for a renter to make a decision.
- Over 75% decide to rent in the spring or summer.
- 58% of the prospective tenants use the Internet.
- The female is the primary decision maker.
What do you do to qualify a tenant after they have made application to rent my property?
This is one of the most important aspects of the successful management of rental property. We look at an applicant's past behavior and assume their future behavior will be the same. An applicant must demonstrate a history of being a good, responsible tenant as well as meeting our financial criteria.
APPLICATION - After a prospective resident has been shown a property and has expressed a desire to lease it, our Rental Application must be submitted . The prospective tenant must also submit a nonrefundable Application Fee. The application fee is retained by the company to defray the cost of processing the application. Upon approval of the application, Larsen Properties will collect the Security Deposit for that property.
SCREENING - We pull a credit check and go over the results personally with the owner to present them the information they need to make a good decision.
LANDLORD VERIFICATIONS – We contact past landlords to verify rental history and ask detailed questions about the applicant's past performance.
EMPLOYMENT / INCOME VERIFICATIONS – We verify job title, job status, salary and prospects for continued employment. An applicant needs to earn at least 3 to 4 times the monthly rent in gross income to qualify for rental.
EVICTION & CRIMINAL REPORTS – We pull a background check that has access to public records that tell us if the applicant has ever been evicted. This is a level of scrutiny that most other property management companies do not perform.
What is the Duration of the Lease? All leases are in writing and normally cover a period of one or two years. Longer leases are approved after discussion with the property owner. With the owner’s approval, during slower rental periods, we accept leases for less than one year in order to have the lease expire during a more active rental period. On occasion we may elect to place a tenant on a month to month or 6 month rental lease to accommodate sale of the property by the owner, a tenant’s pending departure, or moving the property into a more active rental period.
How do you make sure the tenant is taking good care of my property? First, careful tenant selection protects your property from being rented to unqualified people. During the lease term, we may have occasion to enter the property for repair or maintenance reasons and will use that opportunity to examine the property. In addition, upon request, we can schedule a 6-month property inspection to see how the tenants are maintaining the property. We make sure the air filter is being changed, that the smoke alarms have batteries, and that there are no unreported problems at the property. The right for us to make routine inspections of the property is part of the tenant’s lease agreement
What do you do if they are not taking care of my property as they should? We give them an opportunity to crrect the situation, and usually they will. If a problem persists, we will make a decision based on that specific situation.
What happens if the tenant does not pay their rent? If payment has not been made by the 5th – 6th day of the month, we send an eviction notice. Whether or not we eventually have to proceed with a formal eviction depends on the specific circumstances. It is usually financially better, for all involved, if a solution can be worked out. If the tenant has experienced a one-time event which caused them a financial hardship, and we have had no previous problems with them, we will normally give them a chance to catch up, if there is reason to believe they can do so. If the tenant has demonstrated an ongoing pattern of late payments, broken promises and/or evasiveness, eviction is usually the best course of action.
Each case is unique, and we make our decisions based on what is best for you and the property in the long run. We always proceed with the legal notices required for eviction regardless of any other factors. We will simply postpone the actual filing of the eviction if the tenant is showing favorable effort toward resolution. Evictions in Texas are a simple legal matter as there is no way a tenant can prevail in court if they have not paid rent, and the landlord has properly executed the notices and filing. Full evictions, when necessary, can usually be completed in five to eight weeks.
How informed will I be about what happens with my property? We believe that you hire a property manager to manage the property for you, not to assist you in managing it yourself. We can offer a turnkey style of property management service which is most appreciated by those property owners who prefer to be “out of the loop” on all but the most important matters related to the management and leasing of the property. We don’t have to pester you with small details, questions, information or “updates” about your property or tenants, except for those matters which will have a significant impact on your monthly cash flow. Instead, we can simply take care of the things you have entrusted us to handle on your behalf.
Under your system of property management, how informed then will I be about what’s going on with my property? Our general rule of thumb is this; if something has happened, or is about to happen, that will disrupt your ordinary monthly cash proceeds by more than $200 per repair - we will let you know about it. An example would be that we receive a 30-day notice from your tenant, and therefore a turnover, along with related expenses, is pending and we want you to be informed and prepared for it. Another example would be that your A/C unit has failed during the middle of a hot summer; we have determined that the 12 year old compressor needs replacing and have initiated the work to replace it. We will call to let you know
what has happened and the expected financial impact on the following month’s statement.
Aside from any special considerations unique to you or your property, our rule of thumb is this: If something may cause a potential interruption in your ordinary cash flow (loss of tenant or major repair), we will let you know about it right away. Otherwise non-emergency items will be notated in your monthly statements. Of course, we encourage you to contact us anytime you have a question or wish to discuss something.
How do you handle maintenance requests? Tenants may submit requests though our website, email, or mail their requests to us. After receiving a repair request, we will contact the tenant and ask them questions in order to help us determine the exact nature of the problem before sending a service technician. We make sure it is not something the tenant can fix themselves (ex: reset button on the disposal, tripped breaker etc.) before your money is spent on a service call. After determining that it is a legitimate problem, we will send the appropriate service vendor to make the repair. We tell our tenants that we are able to handle most repair requests within 1 to 3 working days, and, in fact, are usually able to do so. Comfort items such as air conditioning, no hot water or heat, receive highest priority and are usually attended to the same or next business day.
Do you use the cheapest maintenance people you can find? We do not! We do not employ nor do we profit from any maintenance people we use. They are competitive in price, competency and reliability. We have access to “all-around” maintenance technicians who are skilled in a wide range of home repairs including air-conditioning, light plumbing and electrical. We save our owners money by using these technicians for the majority of multi-trade and make-ready tasks. Another benefit of using these technicians is the opportunity for checking out the general condition of the property - something that a single trade vendor will not do for you.
We believe we have developed a very sensible approach to handling maintenance and repairs, and that you will realize cost savings that other property management companies simply cannot deliver.
Do you hold some of my money for repairs? How much? We do not require a reserve per property in your account, but we feel it is a good idea so that there are always funds available to pay the vendors quickly. A typical reserve is $250 per unit.
How do I know you won't spend my money on large repairs without my approval? This is the greatest fear of most new owners. We promise in writing not to do that. Ordinary maintenance and repairs of less than $200 can be paid out of your account, and you will see this in your monthly statement. If we think a repair might exceed $200 and if we are unable to reach you, we may initiate repair work even if it is higher than $200 as stated in the management agreement; for the following cases: (1) the health or safety of a tenant is an issue; (2) the property will incur damage if immediate action is not taken, (3) In instances where there is only one option to consider. We will not leave a tenant waiting in 90+-degree heat without A/C or without hot water, or a leaking roof while we try to contact you for permission to do the obvious.
Sometimes an owner will complain that we spent $285(for example) when it was not an emergency. The simple explanation for this is that the company that went to the property charged a $45 service call (for example) to go out to the property whether they fixed anything or not. Therefore, instead of having the owner incur a $45 service call just for us to get an estimate and then having to send the company back out to do the repair and the owner having to incur another $45 service call, the owner saved $45 by having the repair done the first time.
We always tell the maintenance companies to alert us if the repair is going to be over $200. Sometimes the maintenance company may think that the repair will not go over $200, but after they get working on the repair, they find that there is more to fix than they could see before they started the job. It would not make good sense and it could be a safety issue if the company had to leave an air conditioner or dishwasher, etc. torn apart while we waited for your permission to ok the additional $50.00(for example) and then the maintenance company could charge another trip charge on top of the extra money for the repairs. This would not be in your (the owners) best interest.
Larsen Properties does not make any money on maintenance and any discounts that we receive are always passed on to the owner.
My brother-in-law is fairly handy; will you use him to perform repairs? Yes! If an owner has a particular vendor they would like to use – we can accommodate those requests. We request that they be licensed at the trade, and carry insurance.
What if I want you to use my plumber, A/C Company, etc.? We will be happy to invite them to join our vendor list if they are qualified and insured, but we cannot promise that a specific vendor will be dispatched to your home for certain repairs. We already have very qualified and reasonably priced vendors that we have used for many years. However, we cannot guarantee that your favorite company will be sent on all service calls to your property. Our concern is always to resolve repair problems in the timeliest way possible with the best available vendor at the time. We cannot keep track of a pre-established roster of which vendors are assigned to certain properties - it would be very cumbersome and inefficient and would not achieve the best service to you, the tenant, or your property.
I want you to use a Home Warranty for all covered repairs, is that ok? We prefer that the owners do not use a Home Warranty Company to make repairs at their rental property. It is possible for us to accommodate a home warranty – but read this first!
There is a HUGE problem in the home warranty industry, and the public is becoming savvy to it.
Try searching Google with the name of your favorite home warranty company and the word `complaints' or `fraud'. You will be amazed. Find out how many people feel like they got burned, turned down wrongfully, or got seriously bad service. Furthermore, feel free to visit www.my3cents.com for even more examples of this currently growing problem THERE ARE MANY OTHERS.....
Almost Every time we call a home warranty company for a problem, they deny the service either on grounds of lack of maintenance or abnormal wear and tear. How do you define abnormal wear and tear and lack of maintenance? When it comes to exclusions and small print, Warranty contracts say a claim can be denied for lack of maintenance, improper maintenance, improper installation, pre-existing problems, code violations and numerous other reasons.
Warranties are typically purchased by home sellers or their real estate agents to avoid lawsuits if something breaks in the first year.
Not to be confused with a builder's warranty, a so-called home warranty -- Actually a service contract -- is typically purchased for existing homes, especially homes sold by real estate agents. These service contracts generally cost $300 to $600 for a year-long basic-coverage plan that includes items like ceiling fans, water heaters and furnaces.
The contracts come with loopholes. You need to carefully read your service agreement to determine what is and what isn't covered. Coverage for plumbing, for example, typically ends at your home's foundation, so leaks or breakages beyond that would be your responsibility. "Pre-existing" problems typically aren't covered, nor are breakdowns that result from poor maintenance or improper installation. The contract also may require that a system be upgraded to current building code standards -- at the homeowner's expense -- before they agree to consider repairs. People who have had problems with the home warranty companies say that the more expensive the repair or replacement, the more likely home warranty companies are to invoke these exclusion clauses.
You don't have control over who does the work. The home warranty provider contracts with local service companies to perform the actual inspections and repairs. You don't get to choose, and scheduling repairs can sometimes be a trial.
The service technician may also try to sell you unneeded services.
So what is a homeowner to do? Many consumer advocates would say it's better to "self-insure" -- setting aside a reasonable sum each year to cover routine maintenance and finding reliable local contractors to do the work. You can't shift all the risk of home repairs to a home warranty company because, as noted above, many repairs won't be covered by your agreement.
So when might a home warranty make sense? If you are trying to sell a house, a home warranty can give buyers some peace of mind and may reduce the chances of your being sued should an appliance or system break down after the sale.
We have had hundreds of problems with home warranties.
An example: we had a bathroom faucet go on the blink; we called the Home Warranty Company. After paying the $55 deductible, their contractor refused to make the repair. So we had our plumber go out and they made the repair for $65. We have experienced this over and over where the owners are spending money on deductibles and then we have to send out our maintenance people to fix the problem.
Our next problem came in the form of a malfunctioning air conditioner. After 2 days with the tenants having no A/C and paying a $50 deductible, The service technician reported that there was lack of maintenance and therefore it had to be replaced and cannot be covered under the Home Warranty. They gave us an estimate of $4,000 to replace a 6 year old A/C system. Also the tenants are staying in a Hotel and want to be reimbursed for their expenses. We sent out our A/C vendor and he said the A/C unit is perfectly fine except that a small part had to be replaced; total cost from our vender was under $200.
On another property, a dishwasher repair was needed. The home warranty company took 3 months and had make 15 trips out to the property to repair the dishwasher. If you were the tenant how would you feel?
On one property the A/C went out in the summer and it took 21 trips and 3 months before the warranty company finally replaced the A/C. You can be sure the tenants moved as soon as their lease agreement was up. Other tenants would have gotten an attorney and been suing the owner.
Often they will leave tenants hanging without heat or A/C for days while they go through their "second opinion" process.
If, as a property management company, we wanted to damage our reputation with as many tenants as possible by providing the lousiest repair service possible, there is no better way to accomplish that than by using a warranty company on all service calls. They simply are not compatible with the level of service we demand of our vendors.
Our owners have been burned so many times in years past that we finally decided we had enough, and said “no more”. Nothing affects the reputation of a property management company more than the manner in which repairs are handled. Tenants judge us by almost no other measure. It therefore makes little sense to entrust vendors we don’t know, whom we have no relationship with or control over, with the reputation of our company and the relationship with your tenant. Instead, when repairs are needed, we will send our trusted vendors with whom established relationships exists, and they will provide the quality service we require in a professional and timely manner. That said, if we determine through our own vendor that a covered mechanical item in your home has failed, or is in need of costly repair, we will endeavor to get whatever Home Warranty company you have out to honor the warranty, provided that they accomplish the service call and repair in a timeframe and manner that is reasonable and just to all parties.
Take a look at Paragraph 18 section F of the tenants lease agreement 18. REPAIRS:
F. NOTICE: If Landlord fails to repair a condition that materially affects the physical health or safety of an ordinary tenant as required by this lease or the Property Code, Tenant may be entitled to exercise remedies under §92.056 and §92.0561 of the Property Code. If Tenant follows the procedures under
those sections, the following remedies may be available to Tenant: (1) terminate the lease and obtain an appropriate refund under §92.056(f); (2) have the condition repaired or remedied according to §92.0561; (3) deduct from the rent the cost of the repair or remedy according to §92.0561; and (4) obtain judicial remedies according to §92.0563. Do not exercise these remedies without consulting an attorney or carefully reviewing the procedures under the applicable sections. The Property Code presumes that 7 days is a reasonable period of time for the Landlord to repair a condition unless there are circumstances which establish that a different period of time is appropriate (such as the severity and nature of the condition and the availability of materials, labor, and utilities.)
Tenants have more rights now than they ever have had in the past and Judges are normally on the side of the tenants and if repairs are not made timely, owners can find themselves on the wrong side of the legal system. It is hard enough to try to use a home warranty on the home that you live in. It is not cost effective or practical to use a home warranty on a rental property.
My home has a pool. How do you handle the maintenance? Unlike other property management companies – Larsen Properties CAN manage your home that has a swimming pool. We suggest building enough cash flow into the lease to provide a regular professional pool cleaning service to ensure the pool is being maintained correctly. This service will be contracted by the owner or property manager and access will be granted by the tenants.
When do you disperse the owner's funds and email statements? Frequently, we get asked why owners have to wait so long to get their rent proceeds when rent is due on the 1st of the month. We think that it is a good question!
Yes, our lease agreement states that the rent is due on the 1st of the month. Texas law says that we have to give the tenants a grace period. Therefore, the tenants have to midnight on the 3rd before they are considered to be late with their rent.
So consequently, when we open our office on the (4th), we have a lot of rents that were dropped off late on the night of the 3rd. If the 4th falls on a Saturday or Sunday, or a holiday, in which case we are closed, this will further delay the process. The checks that we receive on the morning of the 4th, we have to post into the property management software. Then we have to do deposit slips for the bank, so then on the afternoon of the 4th, if all goes smoothly, we can take the deposits down to the bank. The bank then has to post these deposits to our account, which again, if it falls on a weekend or a holiday, does not happen until the following Monday, or workday for the bank. Therefore, if the funds for us to send you your money are not credited or put into our account before we send out checks then some of checks we send out could be returned for Nonsufficient funds, causing numerous other problems for all of us.
We process statements and rent proceeds between the 7th and 10th of each month. You should receive your statement and rent proceeds no later than the 12th to the 15th providing the property is occupied and the rent has been paid on time.
Disbursements are made by ACH direct deposit into the owners' accounts and statements are emailed the same day.
Can you put the money directly into my checking account? Yes! We can deposit your proceeds directly into your bank account. We will email you your monthly statements. Also you may login to our online portal to view your monthly statements.
What bills will you take care of getting paid for me, related to my rental property? We will pay your lawn service and any other bills or invoices generated as a result of repairs, utilities or other services to your property. We are not able to pay mortgage or insurance payments on your behalf. We strongly recommend that owners pay their own HOA fees in order to avoid the possibility of fines and fees or other legal issues that could arise. Please see our information about Keeping Your HOA up-dated
There must be sufficient cash flow from the property to cover such expenses, and sometimes we must set up an additional reserve fund for this purpose, which will allow us to make prompt payment for you without waiting for the rent to arrive.
What will I receive with my monthly statement each month? Statements include all income and expenses for the accounting periods. We request that any unpaid balance be brought current within thirty (30) days. Accounts in arrears more than thirty (30) days will be charged 10% interest on the unpaid balance.
What is your Monthly Management Fee? Our management fee is one month’s rent equivalent for a 12 month lease agreement. Once this is paid – there is NO monthly fee! There is no monthly fee if the property is vacant.
Do you Pro-Rate your Management Fee? Yes! If we end up with a military tenant who stays for only 9 months out of a 12 month lease, Larsen Properties will pro-rate our management fee and credit your next lease.
What is the Leasing Fee? In order to have our homes competitive in the rental market, we offer a $200 leasing fee to agents who can bring us a qualified tenant. This fee is paid out once the home is occupied.
We list our rental properties in the Multiple Listing Service, which is accessed by several thousand real estate agents. This greatly helps minimize the vacancy time of your property on the rental market.
Are your fees negotiable? Our fees are the best in the Industry! We do not have any room to negotiate and are very confident you will not find a better property management company for what we charge. Most other property managers will charge you 50% up front, and then 10% a month for as long as they manage your home. Those property managers have kept the same tired business model for the last 100 years! Larsen Properties takes into account the modern world of doing business to include emails, internet, electronic signatures, and online banking. It makes you wonder how the old-school property management companies can get away with charging you what they charged people 50 or 100 years ago, but can accomplish anything they need to do in a fraction of the time is used to take. Do you want your mail delivered by Pony Express or Email to your smart phone? The other property managers are charging you for delivering Pony Express because that is when they established their rates! Larsen Properties charges you for the modern way of doing business. We encourage you to do the math and decide for yourself.
Are there administrative fees or other service charges? There are no start-up costs. We do not nickel and dime you with charges for long distance calls, or mileage, or copy fees, or any other fees that can be dreamed up. Nor do we inflate our maintenance costs at any time as some Property Managers do routinely. The only other expenses you should incur would be for services which fall outside the normal scope of our Management Agreement and for duplication of services.
Here are some examples that fall outside of normal management service:
Example (1). When an owner wants to use a company like Sears to deliver a new stove to a vacant property, and we have to meet Sears at the property, there is a service fee of $35 per hour - minimum $35.00.
Example (2). If the owner is refinancing the property, and we must meet the appraiser or other person at the property, there is a service fee of $35 per hour - minimum $35.00.
Example (3). Sometimes an owner wants us to take pictures of a new fence, new roof or a repair that has been done on the property. We are happy to do this for owners, but it is very time consuming, therefore there is a service fee of $35 per hour - minimum $35.00.
Owners often ask us to do things that are outside our normal management services, and we try to accommodate our owners whenever possible.
Can Larsen Properties help me sell my property? Yes! We are a full service Real Estate Brokerage. Naturally, Property Management is 100% in the loop of real estate on a daily basis….so selling homes is right up our alley!
Is the management agreement a standard, widely used form? Larsen Properties took the standard Texas Association of Realtors Property Management Agreement which was 11 pages of fluff and condensed it down to less than half. There were things in there that did not apply to how we do business and we wanted a form that was easier to understand. If requested, we can still use that form but we feel that once they are compared side to side – you will see the similarities.
Who holds the tenant's security deposit? It is the policy of Larsen Properties to make this a flexible point. Normally, it would be in the best interest of the owner to allow Larsen Properties to hold that deposit. If requested, all deposits can be forwarded to the owner. In doing this, the owner should be aware that at the end of the lease, they will be obligated to refund the deposit in a timely manner with the guidance of Larsen Properties. Failure to do this could cause the outgoing tenant to file a legal claim against the owner. Here is another dirty little secret other property managers don’t want you to know --- if the outgoing tenant wants to pursue legal action for that deposit through the local justice of the peace (small claims court)….they have to sue the OWNER and not the agent. This is why Larsen Properties give you the option because in the end, you would be legally responsible for the refunding of that deposit or face a civil action from the tenant.
Why won’t other property managers allow me to hold my deposit? Other property managers want to hold your deposit as a way to make additional income, make their company look better to their bankers, and as emergency money to draw from when they are too lazy to contact you about a repair. In the old days when interest rates at banks were at a decent mark, property managers were making sometimes thousands of dollars a month in interest on YOUR money! Who wouldn’t want that sort of free income?
How much security deposit do you charge the tenant? We typically require one month’s rent equivalent for a security deposit. In certain circumstances with marginal tenants, it is common to ask for 2 or 3 times the one month’s rent in security deposit. This allows the marginal tenant to get a chance to rent the home and prove they can be good tenants. This is only done with the owner’s approval after consultation with Larsen Properties.
What should I do if the tenant calls me? Responsible tenants are valuable assets to both of us. A satisfied tenant can bring us referral business and will be more inclined to care for your property as if it was their own. As the owner of the property, it is best that you avoid direct communication with the resident and refer all inquiries to our office. We maintain a diplomatic relationship, between you and your tenant.
Can I go by and view my property? Yes. In fact, we recommend owners view their property at least once every year or two years. Owners should give Larsen Properties at least three to four business days worth of notice, so we can make arrangements with the tenants. Often the trip to view your property is tax deductible! Please check with your tax advisor.
How soon can Larsen Properties start managing my property? We can start the process immediately. Contact us so we can find out more about you and your property and see if we would be a good match for your wants and expectations.
Property Management Policies
Breaking the Lease: A lease normally contains only one provision by which a tenant can terminate his or her lease without penalty.
A Military Clause permits military personnel to terminate the lease when they present proof of a transfer outside the San Antonio metropolitan area. They are required to provide thirty days written notice prior to vacating the house. If orders are not available, a letter signed by their Commanding Officer will suffice.
Occasionally, a tenant’s civilian employer requires them to transfer to another city. In this case, the resident may terminate their lease by following the EARLY TERMINATION procedures in their lease agreement.
The tenant will bear all expenses normally experienced with re-renting the home, and pays the rent until the property is re-rented, tenants may be released from their obligations upon successful completion of the early termination and paying all associated fees involved.
Decorator Paint in Home:
Although the decorator paint colors you used in your bedroom, bath or living room is enjoyable and pleasing to you that is not necessarily true for the prospective tenants.
We consistently find that having even one wall that is maroon or green or one bedroom that is blue or pink can greatly increase the time it takes to rent the property each time it becomes available. We strongly recommend that all walls and ceilings be painted an off white or neutrally light color.
Equal Housing Opportunity: Larsen Properties is committed to the Equal Housing Opportunity Laws, and we do not discriminate against anyone on the basis of Race, Color, Religion, Sex, Handicap, Familial Status, National Origin or Age.
Eviction Procedures: Eviction procedures are initiated against the tenants if they have not paid their rent by the fourth (4th) & the sixth (6th) day of the month. The provisions of an eviction notice can vary. Some give the resident three days to move, while others allow the tenant to remain in the house if they pay the full amount due, including any late fees.
This first step is called a Notice to Quit or Vacate (NTQ). If, after approximately ten days, the tenant does not respond to previous notices, we ask the court to proceed with the second step of the eviction process, a Forcible Entry and Detainer Notice (FE&D). The FE&D demands that the resident appear in court on a certain day. At that time one of our staff members appears in court to represent your interests and will make a claim for all monies due. The third and most sensitive step of eviction is what is known as asking the court for a Writ of Possession or simply a Writ. A Writ is required when a resident fails to comply with the FE&D ordered by the court. The Writ process requires us to hire a crew to set a tenant’s belongings at street side or, during inclement weather, in storage. When you have monetary damages as a result of this process, a judgment is issued by the court. We file the judgment in the applicable county records and with the Credit Bureau. On the average it takes about forty-five days to evict a tenant, and hopefully this will not happen with your property. We do very few evictions thanks to our strict tenant screening.
Inspection of Property:
Larsen Properties recommends PMIS Inspections – www.PMISInspections.com
Larsen Properties offers their owners an option to use a very effective and inexpensive service to have their property documented with pictures and a clear, concise report. This service is recommended before any renewal of a current tenant, and also encouraged after a tenant vacates a home. If the owner desires, an inspection can be ordered every 6 months in some circumstances. This is the best money an owner can ever spend for the following reasons:
1) It clearly documents what the home looks like during the inspection with 60-80 color photos.
2) Air Filters are Checked.
3) Home is checked for unauthorized pets.
4) This holds the tenants accountable as they know up front inspections will be very detailed and routine.
5) It helps eliminate any legal recourse a tenant may pursue over a security deposit. Often times, if a tenant disagrees with the amount of security deposit refunded it is because they claim they left the home in "perfect" condition - when that may not be the case. Having this document in hand can eliminate any legal disputes very quickly by providing hard evidence to back up any withheld deposits.
Please check out the company we use - PMIS Inspections - 210.807.8774 - www.PMISInspections.com
Professional Inspections: Property Management Inspection Services
$69.99 per inspection - Click for Sample Report
Insurance: You must advise your insurance company that the property will be a rental unit, and Texas insurance regulations require that any existing Homeowner policy be cancelled. You will need to take out ‘Fire and Extended Coverage’ and also notify your agent the property will be a Rental Property. In order to protect your investment the amount of insurance should equal the replacement cost of the property.
Also, be certain that you have adequate Property and Liability Insurance coverage.
The Residential Property Leasing and Management Agreement requires the owner to carry insurance adequate to protect all parties.
IF YOUR RENTAL PROPERTY IS VACANT BEYOND 60 DAYS, REQUEST THAT YOUR INSURANCE AGENT ADD A VACANCY CLAUSE TO YOUR POLICY. WITHOUT THIS CLAUSE YOUR INSURANCE IS INVALID.
Have your agent name Larsen Properties as an additional insured, or property manager in your liability policy. We need this proof of insurance in our files. We must be provided copies proving coverage no later than thirty (30) days after signing the Residential Property Leasing and Management Agreement.
What is ‘Additional Insured’? Often, we are asked what is “additional insured” and why the owner should name the management company as additional insured.
The First and best line of protection an owner has in the event of a lawsuit brought on by a tenant being injured on the property by faulty wiring or a faulty appliance or anything else is to carry adequate insurance. Additional insured is a person or organization not automatically included as an insured entity under an insurance policy, but for whom insured status is arranged, usually by endorsement.
A property owner’s reason for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party (e.g., employees ) or to comply with a contractual agreement requiring the named insured to do so (e.g., Property Management Agreement or others working in behalf of the owner).
The Property Management Agreements requires the owners to name the property management company as additional insured because the management company does not hold title to the rental property that they are managing and cannot acquire general liability insurance on property that they don’t own to cover the management company. Ordinarily there is no extra premium charge to the property owner to add the management company as additional insured.
Key Control: We have strict control of all keys. The keys for each property are locked in a steel wall cabinet and are assigned a control number (i.e., they are not labeled with an address). All keys issued to tenants, repairmen or agents are documented. We need at least four sets of keys to each property – One to the Owner, One to Larsen Properties, and Two for the tenants.
Mandatory Re-Key of Homes: Part of the Texas Property Code is to have all locks rekeyed to a home when taking the home back from one tenant and turning it over to a new tenant. This expense falls on the owner and is against the law to charge to the tenant. When Larsen Properties takes over a home directly from the owner, re-keying the home is not required.
Maintenance: The actual maintenance expenses for the home are the responsibility of the homeowner. Every effort is made to control maintenance costs while maintaining the integrity and value of the property. While the property is occupied, the tenants are required to notify our office of any problems. If the estimated cost to repair exceeds the maximum that is allowed in the Residential Property Leasing and Management Agreement, the owner is contacted for permission to make the necessary repairs. (Except as outlined in the agreement)
We realize it can be rather upsetting when you receive an unexpected bill from us for repairs made to your property; however, some repairs are urgent and must be corrected immediately. Emergency repairs are made in accordance with our Residential Management Agreement. Normally, the tenants pay a portion of the repair expense but if, in our opinion, the expense was due to their negligence, the tenant will be billed and become liable for the entire amount. We do not do bids or estimates on repairs under $200.00. We normally, on any major repair, obtain at least two bids from reliable contractors. The bids will be sent to you, or we will call to discuss them. Due to the fact that the bids take time to be completed and in order to eliminate further delay, we ask that you make a timely decision or provide our staff with firm guidance. You will be asked to forward a check for the cost of the repair before the work is started.
It is our policy to use only reliable contractors that do professional work at a reasonable cost. We have used most of the contractors for several years and have found their prices very competitive.
Some Property Management Companies charge owners a service fee based on a percentage of the total cost of any repair. We do not!
Billing for repairs will be made directly to our company. We then bill only that amount to the owner’s account. As tenants are billed and reimbursements are received, the owner’s account will be credited with the amount of reimbursement. This will appear on the statement. We ask that owners deposit $200.00 for a maintenance reserve upon signing the Residential Property Management Agreement. A copy of any bills will accompany your statement explaining the type of work/repair accomplished on the property and posted to the owner portal.
Maintenance Charges & Late Charges: When a tenant owes a maintenance or late charge, our policy is to withhold from their regular monthly rent payment any amount that is owed. Tenant’s failure to pay the lease payment prior to 12:00 p.m. on the 3rd day of each month requires them to pay the late fee, as stated in their lease, which is collected at the same time as the monthly payment. If the tenant fails to include the late fees with their rental payment, your income for the month will be short because our procedure is to credit all payments to non-rent charges first, including late charges. The Justice of the Peace (JP) court system only permits us to evict for nonpayment of rent. Because of this eviction restriction, we must collect any delinquencies first which causes the unpaid amount to be for rent only. Hopefully, you will receive the balance of your income in the next monthly collection cycle.
No Smoking!!! Smoking is not allowed inside any of the homes Larsen Properties manages. We will rent to tenants who smoke, but we require them and their guests to smoke outside. We make this very clear to them; they are required to sign that they fully understand this at the time of their application, and it is also part of the lease agreement.
Occupants: Everyone who lives in the property must be named on the Lease Agreement. It is our Policy that a guest staying with the tenant longer than 30 days is no longer considered to be a guest but a roommate, therefore, if the person is Eighteen (18) years of age or older, he/she must fill out and submit our Rental Application for approval by Larsen Properties. Tenant(s) must abide by the decision of Larsen Properties whether another person or persons can be added to the Rental/Lease Agreement. Failure to do so may result in termination of their lease.
Pest Control: Owners have an obligation to provide a residence that is relatively free of pests upon occupancy. If not, the owner is responsible for treatment(s) during the first 30 days after the tenant’s original possession date. The owner is responsible for maintaining the residence in a reasonable rodent-proof condition and rectifying any condition that would allow squirrels, birds, etc… to enter and nest. Infestations of mice, squirrels, vermin, and or poisonous insects need to be taken seriously, as they can cause damage to a property and can be a health risk to people. Infestations of this type are treated at the owner’s expense. This does not release the tenant from their obligation to keep the property in a clean and sanitary condition so as not to promote the attraction of rodents and or pests.
Pet Control: No pets may be kept on the property without Larsen Properties written authorization. Pets include birds and fish in aquariums larger than ten gallons. Our properties have restrictions on number, size and type of pets. We recommend, due to the fact that 70% to 85% of today’s renters have pets, that owners allow pets – or be open to negotiation with a tenant who may have them.
We require a refundable pet deposit of $300 - $500 for each pet. Of course, the tenants are liable for any damage caused by pets. Unauthorized pets found on a property can result in eviction and/ or an initial $1000 charge, and an additional $20 per day charge per pet.
We are extremely careful when selecting tenants who wish to bring pets with them. If you do not allow pets, it may double or even triple the time it takes to rent your property. If you will not allow pets, please let us know in writing, or we will assume that pets are allowed and follow our normal pet policies.
Rental Payments: Rent payments are due on the 1st day of each month. If a tenant moves into a property during the middle of the month, rent for the month will be pro-rated, and the rent for the ensuing months will be due on the 1st.
Rental Increases / Lease Renewals: Unless we receive specific written instructions from an owner at least 45 days prior to a lease expiration date, rent increases (if any) and lease renewals will be solely at the discretion of Larsen Properties.
When making the decision on whether or not to increase rents, we consider market conditions, neighborhood conditions, resident payment history, length of occupancy, property condition, time of year and anticipated expiration date of any renewal.
There are times after the tenants initial lease agreement, where the tenants needs to stay on a month-to-month lease agreement or renew their lease agreement for a shorter period of time because of pending job transfers, purchasing a property, financial reasons, etc... Unless the owner is moving back into the property or putting the property on the market for sale, we will allow shorter periods.
Once a lease is signed, it cannot be changed, so it is very important for you to notify us well in advance of your desire to make any changes.
Rental Rates: Prior to placing a property on the rental market or renewing a lease, we do a comparative market analysis and determine the most economical and profitable rental rate that can be charged. After a property has been exposed to the market for two weeks without renting, we look into the possibility that the asking rent is too high. We will consider lowering the rent so that the property will not sit vacant.
Tenant Purchasing a Home: When tenants purchase a home prior to their lease expiration, they fall into the same category as a tenant who breaks their lease, and all rules pertaining to breaking a lease apply.
Security Deposits: The security deposit is approximately one month’s rent and is collected when the tenant is approved to rent the property. If the deposit is retained by Larsen Properties, the funds are kept in an Interest bearing account until the tenant departs from the property. Interest accrued on the deposit will be retained by Larsen Properties. Within 30 days after departure, the deposit is returned to the tenant if all provisions of the lease agreement have been met. Payment for damage to the property, due to neglect by the resident, is deducted from the security deposit and credited to your account. Any deductions from a deposit must be supported by copies of bills for the expenditure, or otherwise authorized in the Lease Agreement.
Re-Keying and Security Devices: All rental-housing owners in Texas should have been in compliance with the Texas security device statute as of January 1, 1995. The statute applies to owners of apartments, houses, duplexes, triplexes, condominium units, townhouses, cooperatives, mobile homes, rooms in private dormitories and rooming houses, garage apartments, public housing projects, and all other types of dwellings that are rented.
The safety and security of your residents and their families are at stake - as well as your own potential liability exposure to multimillion-dollar lawsuits. Here is a list of what should have been done: or what will be done when converting a residence into a rental property
1. Keyless deadbolts. You must have a keyless deadbolt on every exterior door, including a door from a garage into the dwelling. A keyless deadbolt is not necessary on sliding glass doors or on doors that open from a garage to the outside.
2. Keyed deadbolts. You must have a keyed deadbolt or a keyed doorknob lock on at least one exterior door. You don’t need a keyed lock on all exterior doors. You need a keyed lock on only one exterior door which is normally used for entry. That lock can be either a keyed deadbolt or a keyed doorknob
lock. Obviously, a keyed deadbolt is far superior to a keyed doorknob lock because of its one-inch bolt.
3. Door-viewers. You must have either a door-viewer (peephole), a clear glass pane or one-way mirror in each exterior door --even if there is a clear glass panel or window right next to the door --and even if the door opens from the dwelling into the garage and even if the door is at the rear of the dwelling or on the second or third story of the dwelling. Door-viewer range must be160o or greater; lens can be made of plastic but glass is better.
4. Pin locks on sliding glass doors. You must have a sliding door pin lock on each sliding glass door.
5. Security bars or door-handle latches on sliding glass doors. You must have either a security bar (sometimes called a "Charlie bar") or a door-handle latch that works, on each sliding glass door. You have a choice of one or the other.
6. Window latches. You must have a window latch on each window. It can be the original latch or an after-market type.
7. French doors. All French doors must have a threshold bolt and upper door jamb bolt (with a 3/4" throw) on one door. The other door must have a keyless deadbolt and either a keyed deadbolt or keyed doorknob lock.
8. Automatic door closers. You must have an automatic door closer on each hinged door that opens directly into a pool-yard or a multi-unit rental complex (defined as "two or more units"). This requirement is in the 1993 pool-yard enclosure statute rather than the security device statute. Door closers on sliding glass doors are not required. Similarly, door closers on doors opening into a pool-yard of a rent house are not required, but they are highly recommended for safety and liability reasons. Spring-loaded door hinge pins seem to be the best and most aesthetic type of automatic door closers.
9. Window screens. Window screens are not statutorily required by the security device statute. But if a window has a screen and the window is in a wall used as part of a pool-yard enclosure of a multi-unit complex, the poolyard statute requires the screen to have a screen latch or be permanently affixed with screws.
• Upper floors: the requirements of the statute apply no matter how high or what story the door or window is on.
1. Good working order. You must have all security devices working properly when residents move in.
2. Rekeying at turnover. At each resident turnover we rekey all keyed deadbolts and keyed doorknob locks on exterior doors if the doors can be opened from the outside by a key. We require owners to use our locksmith. Our locksmith re-keys the property to our key system and makes sure the locks and smoke alarms are up to code.
3. Quick repair. You must quickly repair or replace a security device that you or your employees at any time discover is missing or not working--even if the resident has not asked you to do so.
4. Prompt response. You must promptly respond to legitimate resident requests for rekeying, repairing, installing or replacing--preferably within three days after receiving the tenant’s request, but no later than seven days.
5. Fair charges. You must be fair in billing residents for rekeying, repairs and installations for which they're liable. Even though it is allowed by the statute under certain circumstances, it is recommended that you not require payment in advance. It's too easy to mistakenly require advance payment when you're not supposed to under the statute.
It is illegal for unlicensed locksmiths to install repair and service locks. It also is illegal for businesses needing locksmith services to knowingly contract with an unlicensed locksmith, directly or indirectly through a maintenance company. Both criminal and civil penalties apply. Individuals changing house or personal property locks also are subject to the same law.
Smoke Alarms: All rental units including apartments, duplexes, condos, and single-family homes must have smoke detectors as required by the Texas Property Code HB 1168.
New Legislation Texas law HB 1168 requires at least one smoke alarm to be placed in each bedroom, or in the room used for sleeping in the case of an efficiency unit. In addition, if multiple bedrooms are served by the same hallway, there must be a smoke alarm in the hallway in the immediate vicinity of the bedrooms; and if the unit has multiple levels, there must be a smoke alarm on each level.
Replacement of Smoke Alarms: Unless otherwise recommended by the manufacturer's published instructions, single- and multiple-stations smoke alarms shall be replaced when they fail to respond to operability tests, but shall not remain in service longer than 10 years from the date of manufacture.
Utilities: Unless otherwise stated in the Residential Property Leasing and Management Agreement or restricted by property limitations, all utilities used on the premises are paid for by the tenant. New tenants are advised to notify the appropriate utility companies to have service turned on in their name. During periods of vacancy, utilities can be placed in the company’s name, and the resulting usage will be charged to the owner’s account. Having the electricity on greatly enhances the showing of your property when darkness arrives early in the evening and during hot weather.
Vacancy: While a property is unoccupied, periodic inspections are made to see that lawns and yards are maintained, the property is presentable, and that no vandalism has occurred. During periods of vacancy, it is physically impossible for our staff to accomplish the task of watering the lawn and shrubs. If this service is needed, we will assist in contracting for the service at your expense.
Yard Maintenance: The tenant is responsible for yard maintenance which includes watering, cutting grass, weeding, reseeding if needed, trimming trees and shrubs plus fertilizing the yard, trees, shrubs and flowers. Owners are responsible for trimming limbs that are on or near roofs.
The area around the driveway, sidewalks, curbs and gutters are considered to be part of the yard and need to be kept free of weeds, grass, and leaves. For security reasons, hedges and bushes should be trimmed so they do not to block the view from windows.
WE DO NOT INDEMNIFY YOU AGAINST ANY LOSS OR EXPENSE DUE TO VACANCY (for any reason), UNPAID RESIDENT CHARGES, TENANT DAMAGES, ATTORNEY'S FEES IN THE PURSUIT OF A TENANT, OR THE COST OF MAKE-READY.
Larsen Properties is committed to maintaining at least minimum property standards for all properties under our management. Maintaining these standards will protect our owner’s investments and enhance the living environment for our tenants. It is important that all parties involved with a property maintain compliance with these standards to ensure a successful rental experience.
Exterior Standards:
Structural
Property is to be structurally sound, providing the tenant with a safe living environment.
Roofs and Gutters
Roofs must be free of leaks and in good repair. Gutters are to be clean and free flowing.
Landscaping, Trees, Miscellaneous Appearance
Landscaping is to be well maintained and at all times provide a neat appearance, including mowing and watering of lawns, trimming shrubs and flowers, and pruning of trees as may be required from time to time. All personal property, trash receptacles, and disabled cars are to remain out of sight. All debris is to be removed no less than monthly.
Doors and Locks
All exterior doors are to be in sound condition, securable, and weather tight. All locks are to be re-keyed between occupancies. Also all locks must be operational at all times and be in compliance with the State Security Devices Statutes.
Paint
Siding and trim paint is to remain free of peeling paint. Any homes built prior to 1978 must have a Lead Paint Addendum signed by the owner on file with Liberty Management.
Windows and Locks
All window glass must not be broken or cracked. All windows and window locks must be operational.
Exterior Lighting
Exterior lighting is to be provided on perimeter areas where hazards may exist. All burned out bulbs are to be replaced immediately.
Garages and Outbuildings
Garages and outbuildings may be used for storage, but must remain free of waste and debris.
Interior Standards
Heating System
All Properties are to be equipped with an adequate heating system meeting local building codes at the time of installation and be in good repair at all times. Defects are to be repaired immediately.
Electrical System
Entire electrical system is to remain in good repair and meet local building codes at the time of installation. Any exposed wiring, defective outlets, switches, fixtures, or hazards of any kind are to be repaired immediately.
Plumbing System
All Properties must be supplied with hot and cold running water. Plumbing fixtures are to remain free of leaks and be operational. Water heaters should be set no warmer than 120 degrees and be equipped with a pressure relief valve and appropriate drain plumbing in the event of a high pressure water release.
Appliances
All appliances on the premises supplied by the property owner are to be maintained in good working order. Defective appliances are to be repaired / replaced immediately. (Unless otherwise stated in the lease agreement)
Smoke Detectors
Properties are to be equipped with a minimum of 1 smoke detector per floor, and 1 smoke detector outside of the bedroom(s). The smoke detector must meet current local, state, and federal standards. Any defects in equipment must be repaired / replaced immediately.
Floor Coverings
All flooring materials are to be clean and maintained in good condition at all times. Flooring, including carpet, vinyl, and wood is to remain free of rips, tears, and gouges. We
require that the owners have the carpets professionally cleaned before the tenants move in and we require that the tenants have the carpets professionally cleaned when they move out.
General
Premises are to be clean and free of debris at all times. Property is to be turned over to incoming tenants with the highest standard of cleanliness at all times.