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10 Management Professional things agents should know and do | SFPMA

10 Management Professional things agents should know and do | SFPMA

  • Posted: Jan 25, 2024
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10 Management Professional things agents should know and do.

 

  1. Immediate Response: As a real estate agent you need to make your response time, when your prospective buyer calls or emails, as quick as possible. If the buyer doesn’t find you available then he may call somebody else. Buyers want instant response and will not wait for you to call them back or respond to mails only when you are in office.

2. A person he can trust: An agent needs to tell the buyer the truth even if it means losing the sales. While you speak volumes about the virtues of a home, you need to point out the possible defects as well so that the buyer can think twice and not be blinded by only the positive features. The buyer should feel that you are on his side and fluff and untruth will make him lose his confidence in you.

  1. Keep learning on the job: A person is smart when he hires people smarter than he is (Henry Ford). A buyer wants to use your education and experience in order to feel that he has employed the right person to do the job. You should come across as an expert in the field. The best and only way it is done is through constant learning. This can be through trainings and also reading relevant stuff. You should have a ready knowledge about the property that you are highlighting.
  2. Good communication skills: You need to be extremely good at handling your communications. There are all kinds of buyers and while some prefer an e-mail others may like you to call them. The best course is to ask them their preferred mode of communication. Always remember to promise less and deliver more.

 

 

  1. Professional and friendly: Being friendly and at the same time maintaining professionalism is the best way, although a bit difficult. Friendliness is preferred by most buyers as you give out the vibe that you are on their side. At the same time they also want you to be assertive and professional. They want you to handle anything that may come up while they are probably viewing the house or saying €no’ to a particular seller.
  2. Information about the neighborhood: When you are trying to sell a property in a particular neighborhood you should have good knowledge about it in terms of amenities and facilities. Your buyer may be interested in knowing about train stations or bus stops that are close by. The interest could even be a park for children. Make a search and find out all you can about areas where most of the properties that you deal in are located.

  3. Price guide: You need to be the professional who has inside information about the price. The client may be interested in your opinion so prepare yourself well. You need to be careful that you do not quote a price that is too low or too high. You need to be ready with market trends and facts for the particular area and similar properties. Guide them to make an informed decision.

  4. A good inventory: When a buyer visits you he wants to know about as many properties as he can. He expects a wide inventory and you need to be ready with one. Since you cannot predict the kind of home each buyer requires as buyers buy for their own reasons, you need to have all kinds of properties ready. The choice of properties should take care of a wide arena of needs and requirements.

  5. Dedicated time: When a buyer comes to you he expects you to devote all your time to him until he leaves or makes a decision. Remember you may be selling 10 houses in a week but for him it is one single home that he may be buying in a lifetime. You need to show your enthusiasm and zeal and help him to decide on the perfect home. Try and focus on him and the transaction he is going to make and leave all work aside for the time being.

  6. Time saving transactions: The modern real estate buyer is hard pressed for time. He wants the transaction to be fast and take up as little time as possible. And he would like you to handle things in such a way that the total time is cut down and he can proceed with other things. So do your homework and be prepared to save time, both his and yours.

 

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Learn about hiring a professional management company

Learn about hiring a professional management company

  • Posted: Nov 06, 2023
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Search management members working in, Residential, Commercial, Industrial, Single Family and Multi Family.

 

“We give investors and clients the information to make an informed decision about which property management company to use”

  • They learn about how hiring a professional management company helps them.
  • They find out what fees are associated with management.
  • They read and learn about maintenance issues and repairs for their property.
  • Other information including what questions to ask potential management companies. We know that with real estate comes non paying tenants, evictions fees, collecting rents, vacant units, inspections, contracts and leases, payment matters from tenants and your monthly money.

 

Search Management Members

Join and we will give you a florida list of over 3000 member companies to start you with marketing.

learn what to look for in a Property Management company, the benefits, the services they provide, how they collect fees, how repairs are addressed, laws & licensing.

 

Read and learn what our members can do to help you with the management of your buildings. Managing properties can become quickly overwhelming, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand. Hiring a Property Manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

We understand the importance having income real estate to you and your family. We are here to help you with the selection process for hiring the right company for the management of your buildings. Your Property Manager will make critical decisions on your behalf making it extremely important that you do your homework during the hiring process.

Ultimately, your decision to hire or not hire a property management company should hinge on whether or not it is a good fit with your lifestyle, and makes sense financially.  Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.

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Webinar: Upgrading from Self-Managed to Pro Management | Oct. 19 at 4pm Est

Webinar: Upgrading from Self-Managed to Pro Management | Oct. 19 at 4pm Est

  • Posted: Oct 16, 2023
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Webinar: Upgrading from Self-Managed to Pro Management | Oct. 19 at 4pm Est

 

Oct 19, 2023 04:00 PM in 
AKAM will be joined by Lisa A. Magill, Esq., Attorney at Kaye Bender Rembaum and Chapter Delegate Member of CAI Florida Legislative Alliance, to discuss the value-add of transitioning a self-managed community to professional management.
Date: Thursday, October 19, 2023 Time: 4pm – 5pm Please complete the registration form below to confirm your attendance.
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If you’re looking for accurate, timely, and comprehensive accounting and financial services for your property, Seacrest Services is the place for you!

If you’re looking for accurate, timely, and comprehensive accounting and financial services for your property, Seacrest Services is the place for you!

  • Posted: Jul 18, 2023
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If you’re looking for accurate, timely, and comprehensive accounting and financial services for your property,

Seacrest Services is the place for you!

Residential Property Management

Having a residential property manager can make things much easier for both you and your tenants. As a landlord, or someone part of a homeowners’ association or property owners’ association, you’re typically accountable for a lot, but with Seacrest Services, you can take your mind off most of the day-to-day responsibilities.

What We Do

When you turn to Seacrest Services for residential property management, we can assure you that everything we have our hands on will be completed efficiently and professionally. Some of what we take care of for you includes:

  • Landscaping
  • Addressing the needs of your tenants
  • Maintenance and repair
  • 24/7 customer service
  • Our goal is to keep you and your tenants happy by making every process, issue, and task as convenient as possible.

The Benefits of Residential Property Management

Whether you have another job you need to focus on, or you live in a completely different location than the property, sometimes you just don’t have the time or resources to manage a property on your own. Putting trust in a residential property manager can save you from stressful situations. Here are some other great benefits:

  • Happier tenants, meaning minimal turnover
  • Well maintained property
  • No worry about the day-to-day issues
  • Consistency and organization for HOAs and POAs

What Makes Us Stand Out?

At Seacrest Services, we pride ourselves on our experience and skill in maintaining various types of properties. Each one is unique, and we treat it that way through complete hands-on care. We want all parties to be satisfied with our work, making everyone’s lives a little easier.

Searching for Residential Property Management Services?

If you’re looking for a residential property manager to relieve much of the workload associated with your property, Seacrest Services has professionals who can make it happen. Contact us today to get started.

 

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Education: Licensing: Become a Property Management (CAM) in Florida

Education: Licensing: Become a Property Management (CAM) in Florida

  • Posted: Apr 08, 2023
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Property Management Requirements in Florida

State of Florida Property Management Association; On our Website you can find on our Licensing Course Partners the Licensing Courses are offered to you to become a CAM Manager in the State of Florida! 

Find out about Licensing and Board Member Courses

Become a Property Manager – Many Clients wish to become a property manager they will learn requirements, then take their tests online or in a classroom.

Training is offered by SFPMA and our educational members.


Questions and Answers you might have

1. Must a Florida property management company have a real estate broker’s license

YES. Key components of property management (renting and leasing) are considered a real estate activity under existing Florida real estate licensing laws. A property manager needs a brokers license if he or she is paid by commission, and is handling rentals and leases for others.

No license is required for managing personally owned properties. There is a “Property Manager” license or certificate you should have. Also, certain rental properties need a license through the Div. of Hotels and Restaurants.

 

2. Are there any exceptions to the requirement that a Florida property manager have a broker’s license?

YES. For example, if a property owner employs someone to manage their property, and that “employee is paid a salary”, as opposed to being paid a commission or on a transactional basis, a broker’s license is not required.

For more information about these and other Florida property management requirements and exceptions, please contact the Florida Real Estate Commission.

Before hiring a property manager to manage your Florida rental property, you should always check that he or she is licensed appropriately. You can check the license status of Florida property managers at the Florida Department of Business and Professional Regulation’s Licensee Search webpage.

 

3. Must Florida community association managers have a real estate broker’s license?

No. However, a Community Association Manager license is required if someone receives compensation for providing management services for the following types of associations:

  • An association with ten or more units
  • An association with a budget of $100,000 or greater

 

4. Florida Real Estate Broker License Requirements

Florida real estate broker licensing requirements include:

  • Age: Must be at least 18 years of age.
  • High School: Must have a high school diploma or equivalent.
  • Experience: Must have held a current real estate sales associate license for at least 24 months during the 5 year period immediately preceding becoming a licensed broker.
  • Education: Successfully complete a Florida Real Estate Commission approved pre-licensing course for brokers, consisting of 72 classroom hours and covering specified topics. Courses are valid for licensure purposes for two years after completion. In addition, successfully complete a FREC-approved post-licensing course for brokers, consisting of 60 classroom hours before the initial broker license expires.
  • Exam: Pass the Florida Real Estate Broker Examination with a grade of at least 75.
  • Fee: $115 ($20 application fee; $90 license fee; $5 unlicensed activity fee).
  • Application: complete and submit broker license application which is available online.

 

5. Florida Real Estate Salesperson License Requirements

Florida real estate salesperson licensing requirements include:

  • Age: Must be at least 18 years of age.
  • High School: Must have a high school diploma or equivalent.
  • Education: Successfully complete a Florida Real Estate Commission 63-hour sales associate course.
  • Trustworthiness: Must be of good moral character; must have a background check and submit fingerprints.
  • Exam: Pass the Florida Real Estate Sales Associate Examination with a grade of at least 75%

 

6. Florida Community Association Manager License Requirements

Florida community association manager licensing requirements include:

  • Age: Must be at least 18 years of age.
  • Education: Must complete at least 18 hours of pre-licensure education from an approved provider.
  • Trustworthiness: Must be of good moral character; must have a background check and submit fingerprints.
  • Exam: Pass the Community Association Management Exam.
  • Then Pay the License fee in your state.

 


 

With over 15 years of experience, we provide the best professional continuing education in Florida.

More Community Association Managers have gone through Florida’s license training courses than with any other offered,  Whether you are looking for a classroom experience or an online courses, we make sure you are prepared for the exam and success. Our Partners with CAM Pre-licensing and CAM courses, have experienced a 100% passing rate when the course and reviews are completed before the exam.
Long after you have completed your exam, we are behind you with the best continuing education courses in the business.

SFPMA has our Calendar of upcoming events: Each month you will find the top events given by Law Firms, Educators, Service and a great team of Marketing Companies. Find courses for boards, managers, owners and investors. You can also take advantage of our You Tube and Radio Shows by some of the All Stars in out education by: Kay Bender Rembaum, and Condo Craze and HOA’s.

 

Becoming a Property Manager – Many Clients wish to become a property manager they can learn and then take their tests online or in a classroom, Training is offered by educational members of sfpma


 

Licensing requirements for Property Managers

How long has the company been in operation?
The rule of thumb is to look for five years or more experience, but this must be weighed against all the other criteria as there are subpar veterans and excellent startups in many markets. Also, beware of a company that has changed its name to avoid bad past.

Community Association Managers who focus on one property type and/or don’t provide realty services pride themselves on this point. There are definitely benefits to working with a company that has a single focus and specialization, but there are plenty of competent community association management companies who provide realty service and/or manage multiple property types. The main thing to look out for is people who decide to become property managers overnight even though they are unqualified. Although this applies to people from all backgrounds, its worth noting that when the real estate market slows down a good number of realtors moonlight as property managers, some of whom lack the proper licensing and or skills required.

 

How knowledgeable are they?
If they appear to not have the time to answer your questions in the interview process, move on. They either genuinely don’t have time for their clients, or this is a front to mask their lack of knowledge. Try offering them some hypothetical scenarios to see if they offer you solid answers or dance around the question. Quick, clear answers mean there are well laid out processes in place rather than a fly-by-the-seat-of-their-pants, more reactive mentality.

 

Are they licensed to practice property management?
This is a very important point as it is a serious problem when anyone tries to practice property management without being a licensed Community Association Manager and educated in the field. The fact that your community association management company is licensed means they are subject to the ethics and guidelines established by their states governing authority. If they don’t have a broker’s license, they either will likely be operating under another broker’s license or are in a state that does not require a broker’s license. Either way it’s worth checking the laws in your state and verifying things to make you don’t hire a company that is practicing property management illegally. Also make sure to find out if they have a current errors and omissions insurance policy.

 

What certifications does the CAM company and its employees have? Do they participate in continuing education?
This is a good indicator of how seriously the company takes their work. You want to look for companies that nurture their employees professional development by encouraging (or even better requiring) them to attend graduate level courses and seminars. Professional certifications mean the recipient has invested considerable time and money acquiring the skills required to be an expert in their field. Here are some trade organizations and the designations they provide:

  • National Association of Residential Property Managers (NARPM) – RMP, MPM, CRMC,CSS
  • National Apartment Association (NAA) – CAM, CAMT, CAPS, CAS, NALP
  • Institute of Real Estate Management (IREM) – CPM, ARM, AMO, ACoM
  • State of Florida Property Management Association. (SFPMA) (Through our Member Partners)

 

Does the management team dress and act professionally?
First impressions matter. The companies you interview are likely on their best behavior during the interview process so if they don’t look and behave professionally then, don’t expect things to improve. Consider that this person will represent you when dealing with current and potential future tenants; if you don’t find them agreeable what are the odds your tenants will? It’s also a good idea to get a look at their offices as this will provide yet another window into what kind of property conditions they find acceptable.

 

How many properties should managers manage

How many types of properties do they manage? Do they have a specialty?

Generally speaking it is a good thing if they focus on specializing in one area. How many properties are they currently managing? Is the company trying to grow, hold or slim their portfolio? This question is closely related to size which is covered in the next article.

 

Do they manage properties locally, regionally, or nationally?
The conventional wisdom is that a local only is best because is allows for a more singular focus as well as increases managements attention and ability to meet your needs as well as your access to decision makers in the company. That said, this can be an over generalization easily out weighed by any number of the other factors covered in this hiring guide.

 

Do they manage any section 8 properties?
These kinds of properties come with their unique challenges and require specific knowledge to manage. If you own, or think you may consider purchasing section 8 properties in the future you are best looking for a company that has experience in this area.

 

Ask for the addresses of some of their properties so you can do a drive by and if possible get a walk through.
Bear in mind they will select properties that reflect well on them, if you really want to go the extra step you can hunt down one of their other properties by locating some of their listings on there websites. Either way, if you get the opportunity to talk to tenants & owners try to assess their level of satisfaction with the Community Association Management Company.

 

Where is their office located? How far is it from your rental property?
The farther away they are the more likely the level of attention your property receives will suffer. A maximum of a twenty five minute drive is a good rule of thumb. or Find out of they have managers at each property some companies have offices in each building they manage, or an agreement with the building owner placing an apt set as a office.

 

IMPORTANT: This information is intended for informational purposes only and under no circumstances should it be considered legal advice or relied upon without first confirming its contents with your state real estate commission. Laws are updated frequently, and this information may not reflect the current law in your state. To confirm the specific requirements for each state, please contact your state real estate commission.


Property Management Forms

As you become a CAM Manager and start your business, You will need the Forms to help you, Leases, Letters to Tenants, Legal Documents and much more……..

Just some of the essential forms to assist you in leasing your premises, complying with legal requirements, and keeping relations with your tenants amicable. Forms include the 1. Landlord Tenant Closing Statement to Reconcile Security Deposit, 2. Residential Rental Lease Application, 3. Residential Rental Lease Agreement, 4. Commercial Building or Space Lease, 5. Security Deposit Agreement and other forms.

 

We offer Subscriptions – download and get access to

EVERY FORM YOU WILL NEED FROM THOUSANDS OF FORMS

SUBSCRIBE TODAY TO OUR FORM PACKAGE

 

 

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Marketing the property for rent now that you made your selection for a Manager.

Marketing the property for rent now that you made your selection for a Manager.

  • Posted: Nov 17, 2022
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Marketing the property for rent

Now that you have made your selection for the Property management Company, You and the Management Company have to get the property ready for the market and get it rented. some of these are setting rents, creating curb appeal, showings, screening, Lease agreements to name a few.

We can not forget! Any repairs that will be needed for safety to prospective Tenants. This is key, when you make the necessary repairs to properties you can rest assured that many of the small things a renter or Tenant may complain about have been taken care of so the properties are primed for a future of making consistent income. Its not to say that problems will not come up as the rental goes forward but taking care of them and staying on top of them is very important.

 

 

Market the property for rent

  • Prepare home for rent
    • Clean home and optimize interior appeal
    • Manicure landscaping to increase curb appeal
  • Create ads tailored to the property and advertising medium. Some of the mediums commonly used are:
    • Paid and free rental listing websites
    • Print publications
    • Signs
    • MLS
    • Fliers
  • Work with other realtors and leasing agents to find a tenant
  • Provide a 24-hour hot-line where prospective tenants can listen to detailed information about the property
  • Field calls from prospects for questions and viewings
  • Meet prospective tenants for showings throughout the week and weekend.
  • Provide prospective tenants with rental applications that are legally compliant with fair housing laws
  • Collection applications with application fee
  • Perform a background check to verify identity, income, credit history, rental history, etc.
  • Grade tenant according to pre-defined tenant criteria
  • Inform tenants who were turned down
  • Draw up leasing agreement
  • Confirm move in date with tenant
  • Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
  • Ensure all agreements have been properly executed
  • Perform detailed move in inspection with tenant and have tenants sign a report verifying the condition of the property prior to move-in.
  • Collect first months rent and security deposit
  • Receiving rent
  • Hunting down late payments
  • Sending out pay or quit notices
  • Enforcing late fees
  • Filing relevant paperwork to initiate and complete an unlawful detainer action
  • Representing owner in court
  • Coordinating with law enforcement to remove tenant and tenants possessions from unit
  • Advise in the event of a legal dispute or litigation
  • Refer owner to a qualified attorney when necessary
  • Understand and abide by the latest local, state and federal legislation that apply to renting and maintaining rental properties.
  • Perform periodic inspections (Inside and outside) on a predefined schedule looking for repair needs, safety hazards, code violations, lease violations, etc.
  • Send owner periodic reports on the condition of the property
  • Provide accounting property management services
  • Make payments on behalf of owner (Mortgage, insurance, HOA dues, etc.)
  • Detailed documentation of expenses via invoices and receipts
  • Maintain all historical records (paid invoices, leases, inspection reports, warranties, etc.)
  • Provide annual reporting, structured for tax purposes as well as required tax documents including a 1099 form
  • Advise owner on relevant tax deductions related to their rental property
  • Provide easy to read monthly cash-flow statements which offer a detailed breakdown of income and itemized expenses
  • Provide and oversee an in-house maintenance crew
  • Establish a preventative maintenance policy to identify and deal with repair needs
  • Provide an network of licensed, bonded and fully insured contractors who have been vetted for good pricing and good work that is up to code.
  • Assign jobs to different parties (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
  • Maintain outdoor areas
    • Leaf and snow removal
    • Landscaping
    • Removing trash and debris
  • Maintain and monitor a 24 hour emergency repair hot-line
  • Larger renovation or rehab projects
    • Provide recommendations on how the project can maximize rental income.
    • Prepare preliminary cost estimates
    • Get multiple independent bids for the work
    • Act as general contractor overseeing the work
  • Inspect unit and fill out a report on the property’s condition when the client moves out
  • Provide tenant with a copy as well as estimated damages
  • Return the balance of the security deposit to the tenant
  • Forward any portion of the owner’s portion of the tenant deposit to the owner or hold in owner reserves for repairs.
  • Clean unit and perform and needed repairs or upgrades
  • Re-key the locks
  • Put the property back on the market for rent

 

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Next is, Asking the right questions when hiring a Management Company

Next is, Asking the right questions when hiring a Management Company

  • Posted: Nov 17, 2022
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Asking the right questions when hiring a Management Company

Addressing these questions with owners and board members helps them to understand what a manager does, and how important it is to take the time to find the right company that will care for the properties like they would.

Questions to ask so you can learn more about Property Management company services they will provide, benefits, services, how they collect fees, how repairs are addressed, Vacancies, Rent Collection and the Laws & Licensing.

 

Then find out how our members can do to help you with the management of your buildings?

Managing properties can quickly become overwhelming, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand.  Hiring a Property Manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

The importance of having income real estate to you and your family? We are here to help you with the selection process for hiring the right company for the management of your buildings. Your Property Manager will make critical decisions on your behalf making it extremely important that you do your homework during the hiring process, your decision to hire or not hire a management company should hinge on whether or not it is a good fit with your lifestyle and makes sense financially. Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.

 

Benefits of hiring a Property Management Company

A competent manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold. Here are a few ways that a good property manager earns their keep

Getting Better Tenants

Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. a thorough screening process results in reliable tenants that:

  • Pay on time
  • Rent longer
  • Put less wear and tear on the unit
  • Generally cause less problems

An experienced management company has seen thousands of applications and knows how to quickly dig for the real facts about candidates and analyze that information for warning signs. By allowing a management company to handle the screening, you will also be shielding yourself from rental scams directed at owners, and discrimination lawsuits resulting from an inconsistent screening process. This kind of experience takes time, and insomuch as it means avoiding bad tenants, scams and lawsuits it is arguably one of the most significant benefits a property management company will provide.

Veteran landlords & managers know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:

  • Tenant screening
  • Safety and property conditions of the property
  • Evictions
  • Inspections
  • Lease addendums
  • Terminating leases
  • Handling security deposits
  • Rent collection

 

Lower Vacancy & Better Tenants

A Manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:

  • Improve and prepare the property for rent – A Property Manager will suggest and oversee cosmetic improvements that maximize revenue.
  • Determine the best rent rate – Too high and you are stuck waiting, to low and you’re losing money every month the tenant is in the unit. Determining the optimal price requires knowledge of the local market, data on recently sold comparables, and access to rental rate tools.

Effectively market your property – An experienced Property Management company has written hundreds of ads and understands what to say and where advertise in order to get a larger pool of candidates in a shorter period of time. Additionally because of their volume they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are familiar with sales and know how to close when they field calls from prospects and take them on showings.

While its easy to see the effects of lost rent, there are other equally serious problems with a high tenant turnover rate. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing , screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.

A good management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good Property Management company will shine.

Rent Collection Process

The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable. By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the bad guy who has to listen to excuses, chase down rent, and when necessary, evict the person living in your property.

If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many Managers will tell you that it is considerably easier to manage other people’s units rather than their own for this reason.

Regarding evictions, there are strict laws concerning the eviction process, and doing it wrong, or trying to evict a “professional tenant” can be a major fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.

State of Florida Property Management Association has a partnering member www.NationalEvictions.com they can help all landlords with the information needed to understand the Florida eviction process, all members, real estate professionals & building owners can get the required forms for a Florida eviction and help with hiring a lawyer to help with an eviction.

 

Maintenance and Repair Costs

Good maintenance and repairs keep tenants happy and preserve the value of your investment which make them a very important part of land-lording. By hiring a management firm you gain access to both their in-house maintenance staff, as well as their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings compared to going through the yellow pages and hiring a handyman yourself.

*State of Florida Property Management Association has our own Member Directory these members directly aid our Management members giving them cost savings for any work needed in the buildings they manage. This savings means savings for the building owners.

Increased inspections means happier tenants, It aids in the value of your investment

Preventative maintenance is achieved through putting systems in place that catch and deal with maintenance and repair issues early on, before they grow into larger more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits. The management firm can also offer you suggestions and feedback on upgrades and modifications, both how they will affect the rent you can charge, as well as their impact on maintenance and insurance.

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Before you look to hire a Property Manager, you have to ask yourself these Questions

Before you look to hire a Property Manager, you have to ask yourself these Questions

  • Posted: Nov 17, 2022
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Before you look to hire a Property Manager, you have to ask yourself these Questions

How far do you live from your rental property and how frequently can you visit the property?

If you are close you may be able to make the regular visits required for maintenance, inspections, collections, etc., otherwise the further you live the higher your travel time and expenses will be. The larger the distance the more temptation there is to not keep a close eye on things, and that can be a recipe for disaster. You should plan making monthly scheduled visits and there is always the potential for a middle of the night emergency call that requires your immediate attention. In the long run, is this feasible for you?

How do you deal with the of day to day operations yourself?

This is a tough one. we all like to think of ourselves as level-headed and even-keeled, but at the end of the day it takes a special kind of person to deal with the ups and downs of property management. Behind the seemingly simple task of collecting rent every month lie a number of unpredictable problems can push people to their limits. Ask yourself how you would react in the unfortunate event that tenants:

  • Get in fights with other tenants or neighbors
  • Have domestic disputes
  • Conduct illegal business in the dwelling
  • Carry on all night parties and revelry
  • Try to sneak extra people or animals into the home
  • Decide to sue you
  • Trash the property
  • Incite the wrath of the HOA because of repeated deed restriction violations
  • Refuse to pay rent because they are a “professional tenant” and know how to work the legal system for the maximum amount of free housing at the owners expense?

 

How many rental properties or units do you have?

As your portfolio grows so do the management challenges, and it becomes easier for things to fall through the cracks. Investors with large portfolios stand to reap significant benefit by leveraging the efficiencies a property manager can provide. Size can also constrain investors’ ability to consider purchasing new properties if they’re already maxed out managing their current holdings.

 

Do you do all the maintenance and repairs yourself?

If you can’t do it yourself, do you know who to call? Finding reliable handymen and contractors can take a while and in the mean time you may unknowingly hire people that are unethical, uninsured, do poor quality work, over charge etc. maintenance and repairs are a significant component of land lording and if you question your ability to ensure the work is done well and in a timely manner, you might want to consider hiring a property management company.

How quickly are you able to get your unit ready to be rented?

Advertising, fielding calls, and showing the unit can take a considerable amount of time, but are critical tasks as vacancies will quickly eat into your profit margins. If you question whether you have the skills or the time to make this happen, or if you have historically had an unacceptably high vacancy rate, you may want to consider hiring a property management company.

 

Are you capable of handling the paperwork nightmare.?

From profit and loss statements to tax deductions, this area needs special attention and becomes an increasingly larger burden for larger portfolios. some owners (especially those with a back ground in finance) will do just fine, others may opt to hire an accountant to help with the book keeping. If you feel like this might be a weak point you might want to consider hiring a Community Association or Condo Management Company.

 

Are you willing to be on call 24/7/365?

Its important to answer this question honestly, because when an emergency happens at your property you can’t ignore it. Your special event, important meeting, vacation, or personal crisis doesn’t relieve you of your obligation to your tenant. These emergencies don’t happen all the time, but when they do you have to be willing to handle them immediately. can you handle being called at 2 in the morning to fix someone’s overflowing toilet?

 

Are you willing to confront tenants about late payments and if need be evict them from the property?

Many new owners dislike feeling like the bad guy and try to be understanding by making exceptions. The problem is that this only invites additional abuses and excuses by tenants. Late payments must be dealt with immediately, and while sometimes a friendly reminder is all that’s needed, other times, it can be a very confrontational process ending in eviction. Unlike running a charity, running a successful rental business means enforcing the rules even it means evicting a single mother who lost her job and won’t be able to pay rent anytime soon.

 

How well do you understand the laws governing Community Association Management

Ensuring the property is run in accordance with the law is critical in both preventing lawsuits and shielding yourself from liability if you are sued. Familiarity with contracts is also very important as your rental agreement is the only binding agreement between you and the tenant.

 

Many property owners can benefit from hiring a Manager. State of Florida Property Management Association and our Members located all over the State of Florida are vetted holding licensing, Insurances, the leaders in our Industry. You can find many of them listed on our Directory, If you want or need more help with the selection contact us! We are always ready to help.  SFPMA.com

 

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Collection of Fees for Property Managers. How are they determined?

Collection of Fees for Property Managers. How are they determined?

  • Posted: Nov 17, 2022
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Collection of Fees for Property Managers. How are they determined?

 

Rental income and fees are the lifeblood of the business. If the mechanisms are not put in place to bring in the right amount at the right time each month, the business will eventually wither and die. When properly performed, this is what allows top real estate investors to achieve a higher than average return on investment.Here’s a list of issues to review and questions to ask the Community Association Management firms you interview: How do they determine their fees & rates?

There is a science behind maximizing rents for a community association manager to achieve this requires them to have knowledge of the local market and perform solid research on the last 10-20+ most recently rented comparables. Rules of thumb like the 1% rule (charging 1% of the property’s value as the monthly rent) are handy for reference, but can not replace thorough research using current market data. Aside from affecting rental income, your rental rate can also impact the properties value. The goal should be to get the unit rented within a month.

 

How often do they raise fees & rents?

Rental rate surveys should be performed at least annually, and more frequently if there are vacancies or lease renewals. Contractual rent escalators allow the rents to be raised without the need to negotiate, offer an explanation or give notice. Tenants know they have already agreed to it so it doesn’t feel arbitrary, and tenants are actually grateful if the firm decides to not enforce the full rate hike.

 

How is rent collected?

It’s a plus if the management company offers direct debit for tenants. Processing fewer checks improves cash flow and saves time and money. This lets you know as soon as possible if funds aren’t there and eliminates excuses about checks lost in the mail.

 

How do they deal with bounced checks?

This is usually a warning sign of trouble ahead; after the first bounced check tenants should be prohibited from writing personal checks until at least 6 months of good payment history has been established. Additionally, there should be a provision in the rental agreement that says tenants agree to pay the maximum the law allows for all returned checks.

How do they deal with delinquent payments?

Find a Community Association Management company with a process that is firm but reasonable. Tenants & Owners will start paying later and later if the management company lets them, therefore it is imperative they enforce ALL aspects of the lease. Once they identify a tenant with a trend of delinquencies, they should keep a close eye making sure they either get back on track or deal with the consequences. Remember that a strict collections process is only balanced out by the community association manager quickly responding to owners & tenants’ needs with quality service.

 

What is their current rate of delinquency?

Find out if they run a tight ship or allow things to get out of hand. When is rent due? Is there a grace period, if so how long?  Due on the first day of the month (in hand not postmarked), late on the second day of the month is standard. A grace period that extends to either the 3rd or the 5th is also standard. Keeping it shorter prevents it from getting significantly delayed in the event of a holiday or long weekend.

 

How much is the late fee?

While late fees can generate revenue, their primary function is to get owners & tenants back on track to timely payments as quickly as possible. This community association management fee is typically between five and ten percent of rent, sometimes a small daily fee is added to this as an incentive to catch up ASAP. In theory, the late fees are supposed to reflect the penalty the owner would experience in the event of a late mortgage payment.

 

How do they handle evictions?

How quickly do they usually get repossession of the property when an eviction takes place?  Their process should be well documented, and although the best course of action will vary based on the circumstances, they should be able to explain to you the basic checklist they go through each time. You want to deal with a company that acts quickly, documents their actions, and understands your area’s unique laws for this process. Find a manager who excels at containing and eliminating the problem as quickly as possible. This is basically a small monthly fee that insures that the management company will pay for all attorney and court costs associated with evicting a tenant they placed. It’s not a widely offered service, but it’s a valuable service that speaks to the property management companies confidence in their screening process.

 


 

We have a partnership with  www.NationalEvictions.com A Web based Eviction Information Company helping Landlords, Building Owners, Property Managers, and Real Estate Professionals with the Process of an Eviction in their State. Offering Information on Landlord Tenant Laws, Eviction Process, Articles State Specific, Access to All Forms for Evictions along with Business Forms ( ie: Leases Letters to Tenants, Amendments, and many others) Filing Services for Property Managers and much more…

State of Florida Property Management Association Offers this to the Management Members.

 


The State of Florida Property Management Association has partnered with NationalEvictions.com – Many of our Managers are using them for protections and filing of Evictions in Florida. 

NationalEvictions sets their fees accordingly Managers send them a list of who has not paid rents in the month, Letters, Notices to Quit are prepared and served to Tenants and Renters every month. These Notices for Non Payment of Rents have a set time – Usually 3 days Notice, If the Tenant, Renter does not pay, The Property manager must make the decision to go forward with the Eviction.  As a company being serviced the fees are much lower than calling NationalEvictions for one Eviction.  EX: We change from 300 to 450. per Eviction – When a Management company is under contract we charge our fees at 275.00 We prepare and file the evictions for them ( Clerks fee for payments to file are not included in our fees, ( clerks filing fees plus our fees ) ). Serving the Tenant with Notices are also set lower if we are contracted each month to prepare and serve to the Tenant, rather than calling our office to serve one or two in any month. ( We can charge for each Tenant in any month 35.00 for preperation and service to Tenant) with Managers that usually have about 5-7 Tenants that do not pay, this on the 1st of each month comes to  about 250.00 and we follow up and keep track of each tenant’s Time as per the Notices given.

Its really not a lot of money for the services we provide! We get results, When Tenants see that you are ontop of your rents and management! THEY KNOW YOU MEAN BUSINESS.

Find out more about them on NationalEvictions.com


 

Breakdown of fees for a management company

While Community Association Management fees are important they must be viewed in light of what other firms are charging, the scope of services provided and the quality of those services. The company you hire will be stewarding one of your biggest assets and the last thing you want to do is make your decision based solely (or even primarily) on who charges the lowest fees.A lower price may reflect either an acknowledgment they don’t provide top tier service, or an attempt to gain business by undercutting the competition. The problem with the latter is that it leads to slim margins for the firm which lowers the ceiling on the quantity and quality of service they can provide and still remain profitable. If a firm is under-pricing their services across the board it is possible they may try to make up for it by overloading their managers with as many properties as they can (or can’t) handle.The truth is that price is one of the last things to consider. Not because it is the least important factor, but because you should only think about price, and actually hiring an MC after you have determined that they will provide quality services tailored to your needs. What good are low fees if the management company does a poor job?Other common mistakes are failure to identify all the potential fees for Community Association Management, as well as not making a true ‘apples-to-apples’ comparison of costs between property management companies. A lower management fee could easily be wiped out by a lot of expensive back-end charges and vice versa.Remember that all fees are negotiable, so before you make your final decision, you should try negotiating the best rate possible from the firm whom you think would do the best job.

 

Management fee
There is a significant difference between commercial vs residential property management fees but the average management fee ranges between 4-12% of monthly rent. For a single family home you might expect to pay 10% in rental property management fees. This fee will vary based on the number of properties you need managed, the number of units in each property, the location and condition of the property, and most importantly, what services are included for that fee. (Fees also vary market by market, Other pricing models include flat fees, or a hybrid that sets both a percentage and a flat fee and asks you to pay whichever is lesser/greater. Find out if fees are billed or deducted directly from owner accounts.

 

Vacancy fee
Many management companies don’t require this—if they do, pay close attention. Some management companies charge a monthly vacancy fee ($50) that is prorated when a tenant is landed. Other companies expect to collect the full monthly property management fee even though there is no rent coming in. Make sure that the language in the contract indicates management fees are to be paid out of “Collected rent” or “Rent collected” as opposed to “Scheduled rent” or “Rent due”. Ensuring this language is in place will also protect you from having to pay management fees in the event that a tenant stops paying rent.

 

Set-up fee
This fee is for the time invested in setting-up a new account. It ranges from 0$-300$. Find out if the fee is per unit or per property, and if it makes a difference if the unit is occupied or not.

 

Leasing fee
Leasing fees compensate the manager for the time, effort and cost associated with getting you a new tenant. While this fee is common, some owners are opposed to paying it, preferring that it be padded into the management fee so there is more incentive for the management company to find long term tenants.
In truth, a good management company views the management fee, NOT the leasing fee as the primary profit center. This is why leasing fees as a stand alone service (meaning without other property management services are typically much higher (75-100% of first months rent). A transparent fee structure is laid out in such a way that high tenant turnover hurts, rather than rewards the management company. The only time this is not the case is when the fee is excessive, or there are significant vacancy fees. In the event that you are fortunate enough to have a long term tenant, you will benefit by not having to pay a leasing commission that is padded into the monthly management fee.

 

Advertising fee
There are plenty of ways to generate leads using free resources like signs, craigslist, etc. but with vacancies time is money and prolonging the search process to save a few advertising dollars is a bad idea. This fee could be charged in addition to the leasing fee so it’s important to ask who pays and what the typical fees are. The better they are at marketing the less you will pay, if they have a good strategy and use tools should be around $100 and certainly not more than $200.

 

Lease renewals
Some community association managers charge this fee whenever they have to draw up the paperwork to renew a tenant’s lease. The fee typically ranges from 0-200$. The process doesn’t require a lot of work, so a big fee should be a red flag. You should ask if they require lease renewals or if they allow tenants to go month to month after the initial term is up.

 

Reserve fund fee
These funds are used to pay day-to-day operating expenses, making sure that services are performed promptly and bills are paid in a timely manner. A reserve of $200-$500 is normal for single family properties.

 

Maintenance fees
Will they contact you with an estimate before performing repairs over a pre-defined amount? Is this negotiable?

 

Their policy may be to notify you if an expense exceeds a higher figure like $500-$1,000, but you may want to ask if this can be set lower ($100-$200) starting out and increased over time as you become more comfortable with the property management companies judgment. Additionally, if this notification is waived during “emergencies”, ask that they define what qualifies as an emergency.

 

Do they have their own maintenance/repair crew?
Companies that don’t offer this may portray it as an ethical hazard since the company could overcharge, but so long as you confirm that the billing rate and process is reasonable, it should not be a problem. If managed properly, an in house crew is a benefit that can lead to cost savings and a more streamlined process.

Here are some questions to ask:
What services do they perform?
What is the billing rate? ($30-$40/hr is average.) Does it vary based on the work being done?
Is there a trip charge, or a minimum billing time?
Are they available 24/7/365? Is there an extra fee/higher billing rate if they are called on off hours, weekends, or holidays?

 

For larger remodeling/upgrade projects, do they act as the general contractor overseeing the work that is done? Is there a fee for this?
Do they get at least three independent bids for larger ($500+) projects?
Do they belong to a network to get better repair rates on the work they outsources
Do they charge a “mark-up” fee?

This fee is stacked on top of the final bill for the work performed. Not all firms have this fee; if they do it should come in around 10%.

 

Eviction fee
Fee for serving notices, dealing with attorneys, court appearances, evictions, etc. Hourly rates are typically $25-$50 while a flat fee for the whole eviction process usually comes in between $500-$600 (plus court costs). Find out if they typically use an attorney for evictions and what their billing rate is.

 

Unpaid invoice fee
This is a small service charge (typically 1.5%) that is added each month to all unpaid invoices that are past due.

 

Bill payment fee
Fee for making owner payments such as mortgage, insurance, home owners association dues, etc. Some management firms don’t charge a separate fee, while others don’t even provide this service.

 

Sales commission if property is sold
Some management firms require an exclusive arrangement to broker your properties. If this is their policy, find out the brokerage rate and make sure there is a limited term which will allow you to re-list with another firm if the property does not sell within a reasonable period of time. Also, if the firm requires it, how much would the sales commission be in the event that a tenant ends up wanting to purchase the property they are occupying? This is typically 1-3% but we have seen higher, always make sure to check the contract.

 

Other income
Find out if they will be keeping any portion of the following sources of income:

  • Late fees
  • Returned check fees
  • Pet deposits
  • Lease violation fees
  • Interest on security deposits (may not be applicable depending on state laws) and owner funds held by manager
  • Income from laundry and vending machines

Extra duties fee
Some contracts contain a list of extra services not included in the contract along with the billing rate in the event the owner requests any of them be performed. Check to see if this clause exists, what services are listed, and what the billing rate is.

 

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Things work better when everyone understands their role! by Royal Management Services

Things work better when everyone understands their role! by Royal Management Services

  • Posted: Sep 27, 2022
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Things work better when everyone understands their role! Like the King his Court all the way down to the Serf’s and Vassals when each knows where they stand things work better.

CONDOMINIUM, COOP & HOME OWNERS ASSOCIATION MANAGEMENT

Royale Management Services, Inc. is a full-service, Condo Association Management (CAM) licensed, residential property management company, specializing in management, consulting and accounting for Condominium Associations and Home Owners Associations in South Florida: Broward, Dade & Palm Beach County.

We provide the highest quality, most cost effective management services your community and homeowners will find anywhere.

Accounting & Bookkeeping
Financial Management
Property Management
Web Services

Royale Management Services, Inc. has been serving South Florida since 1984. The company was founded to provide high quality management and accounting services for business and individuals, Royale Management Services, Inc. expanded to the Community Association and Home Owner’s Association Management business in 2000.

Our team members are highly trained in all aspects of community association management and customer service.

We take pride in delivering property management services that work!

Royale Management Services, Inc.
2319 N Andrews Avenue
Fort Lauderdale, FL 33311

Phone: (954) 563-1269
Toll Free: (800) 382-1040
Fax: (954) 563-2153

Email: cam@rmsaccounting.com

Members of SFPMA – View our Membership Page.

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Real Estate Agent vs. Broker in Florida

Real Estate Agent vs. Broker in Florida

What is the Difference Between a Real Estate Agent and a Broker in Florida?

by Prolicense Florida

If you are just beginning your Florida real estate career, or coming with experience from another state, it’s important to understand the differences between a sales associate (real estate agent) and a broker. It is also useful to know the required qualifications and duties of these two types of real estate licenses in Florida.

The Sales Associate

Sales associates are most commonly called “real estate agents” by the public. In Florida, a sales associate is a licensed real estate professional who can list properties, carry sales transactions, represent buyers or sellers, and earn commissions. Sales associates provide the necessary information to guide their clients through the contractual aspects of the purchase or sale. They arrange showings and negotiate transactions.

A sales associate must always work under the direction of a broker.

A licensed sales associate is allowed to practice in five (5) main sales specialties of the real estate market:

  • residential

  • commercial

  • industrial

  • agricultural

  • business

They are no additional education requirements to practice in any of these specialties. Once you get your sales associate license, you are free to market your expertise in any of these fields.

To obtain a sales associate license in Florida you must:

  1. Complete a pre-licensing course of 63 hours.

  2. Get your fingerprints taken.

  3. Submit an application to the State.

  4. Pass the Florida real estate sales associate exam.

Florida has reciprocity with 10 states. Mutual recognition means that if you are licensed in one of these states, you can bypass the education requirement.

After getting your license, you will be required to complete post-licensing and continuing education to maintain your right to practice as a sales associate.

The Real Estate Broker

To become a real estate broker in Florida you must first have experience as an active Florida sales associate for at least 24 months or must have held a valid real estate license for at least 24 months in any other jurisdiction of the United States.

Brokers can operate independently, or have sales associates work for them. A broker can list and show properties just like a sales associate, but a sales associate cannot perform the duties of a broker.

Brokers oversee their sales associates, making sure their clients get the best service and that all laws are being observed. Brokers may be disciplined for failing to direct, control or manage sales associates who work under them.

A broker may elect to change her/his license from “broker” to “broker sales associate.” A “broker sales associate” is a real estate broker licensee who prefers to operate as a sales associate in the employ of another broker. A broker sales associate avoids the additional responsibilities and compliance requirements of an actual real estate broker.

To get a real estate broker license in Florida you must:

  1. Complete a Pre-Licensing Course of 72 hours.

  2. Get your fingerprints taken.

  3. Submit an application to the State.

  4. Pass the Florida real estate broker exam.

 

The Pros of Becoming a Real Estate Broker

• More control over your career

• Earn higher income

• Establish and run a property management company

• Use your experience to get leverage in marketing

 

The Cons of Becoming a Real Estate Broker

• More Requirements

• More Responsibility

• More Risk

As you plan your future as a real estate professional, consider your personal goals and how much responsibility you want to accept. The sky is the limit!

 

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