Management Fee - 8% to 10% of Collected Rents (typically negotiated based on property rent rate and multiple property discounts)
Tenant Placement Fee - 50% of 1st month's rent
No Renewal Fees
No Site Inspection/Walk-through Fees
No Maintenance Up-Charges
No Termination Fee
All fees are deducted from tenant's rent - owner is not required to send payments
Property Management Process
Initial owner contact: Owner and Manager discuss the Delavan Realty Property Management system and fee structure, typically by phone or email.
Property Visit: Manager and Owner visit property. Manager makes recommendations to make the property rent-ready, if necessary. Manager provides analysis of comparable properties to determine rent amount. Please note that we may decline to manage a property if the property is not clean, safe, habitable and in full compliance with applicable laws.
Management Agreement: Manager and Owner execute Property Management Agreement. The Management Agreement discusses in detail the rights and obligations of the Manager and the Owner.
Initial Inspection and Photos: Manager performs property move-in inspection. Manager provides a detailed written report, with photos, to owner. This report doubles as the initial tenant's move-in inspection report. Manager takes listing photos. Manager installs sign (as necessary) and lockbox.
Advertising: Manager advertises the property for lease (Zillow, Trulia, Hotpads, other syndicated sites and social media).
Tenant Showings: Manager answers tenant inquiries and shows the property to prospective tenants. Manager collects online tenant applications.
Screening: Manager screens tenants. Manager reviews eviction and criminal history and credit history, veri es employment/income, and con rms reference with current/previous landlord. We pride ourselves on our ability to nd highly-quali ed tenants for our rental properties. Our screening process complies with all state and federal fair housing laws, which prohibit discrimination on the basis of race, color, pregnancy, sex, sexual orientation, religion, national origin, disability, age, source of income, and family status.
Lease Signing: Manager approves a tenant application. Tenant pays security deposit (to be held by property manager in a trust account) and first month's rent. Manager retains 50% of first month's rent as tenant placement fee. Tenant and Manager sign lease.
Tenant Move-in Process: Manager and tenant walk through property. Manager demonstrates smoke detector testing for tenant. Manager and tenant discuss maintenance policy and procedures. Tenant moves in.
Rent Collection: Manager/Bookkeeping staff collects rent by ACH payment to Manager trust account. Manager pays all rents to owners by ACH transfer, less management fee and any other expenses such as repair invoices for the month. Books are settled by the 10th of each month and direct deposits are initiated to owners, hitting the owner account with 1 to 3 business days of the 10th.
Tenant Software Portal and Accounting: Manager/Bookkeeping staff utilize rentmanager.com professional Management software and web portal. This software allows manager to generate real-time statements and reports for owners and CPA/tax advisors at any time throughout the year.
Late Notices: If rent is not received by the end of day on the 5th, a late fee is included with rent due. On the 8th, Manager posts 72 hour notice to pay-or-quit, in person and by certified mail. If tenant does not pay in full within 5 days after notice, Manager initiates eviction proceedings. Postage fees, court ling fees, and attorney fees are paid by the tenant if they correct arrears amount as a fee. If not recovered from tenant, the fees will be paid by Owner, but no additional fees are payable to Manager in the late notice or eviction process.
Minor Repairs: When minor repair issues, or emergency issues arise, Manager schedules the repair to be made and notifies owner. Tenant is invoiced for damages caused by tenant. Owner pays for systems repairs, wear-and-tear items, capital expenditures and other repair expenses. Manager has discretion to make minor repairs (under $500, but can vary by owner) to be reimbursed out of the next rent payment.
Major Repairs: When major repairs arise, Manager consults with Owner to determine the best solution. Manager has discretion to make emergency repairs when tenant safety is at risk (such as mold removal or a damaged stair railing), or when further property damage is at risk (such as a plumbing leak or roof leak).
Periodic Inspections: Manager inspects the unit at least twice per year, providing a full inspection report with photos to Owner.
Move-Out Process: When a tenant moves out, Manager inspects the unit to determine damages. Manager provides a full inspection report with photos to Owner. Damages and any unpaid rent or late fees are deducted out of security deposit and sent to Owner for approval before issuing final security deposit refund to tenant. Tenant receives the remaining balance of the security deposit.
Re-Leasing Process: After a tenant has moved out, Manager will recommend any necessary repairs and cleaning to make the property ready for the next tenant. Owners should expect that some expenses will be incurred whenever a tenant moves out. Even with excellent tenants, some wear-and-tear will occur.