Awning: A Guide to Property Management
Awning’s job does not stop once we’ve helped you close on a great investment property. Our team has vetted hundreds of reputable property management companies and partnered with the best to ensure that your investment will be well taken care of by experts on the ground.
Together with our partners, we help get your property move-in ready by making minor repairs, finding tenants and dealing with the day-to-day operations of your investment.
Will Awning introduce me to property managers once my offer is accepted?
Absolutely! Awning involves the property management company immediately after an offer is accepted to ensure the client is confident in the investment they are purchasing. We make sure the property management partner will rent your property at or above the rate that we have projected. Once the inspection period is complete and the client has decided to move forward, Awning will make a warm intro to the property manager. Upon closing the property management partner will visit the property, collect keys, and begin marketing and/or initial maintenance.
How did Awning vet these property management companies? What is great about them?
Awning has talked to hundreds of property management companies filtering down to those that….
- Are price competitive
- Have efficient systems and processes
- Can scale with customers that want to grow their portfolios
Can I find my own property management company or manage the property myself?
Yes! Awning will work directly with your desired property manager if you have one in mind. If you do not wish to have your property professionally managed, you can also choose to manage it yourself.
What is the role of a property manager?
- Marketing the property — Your property manager will make small cosmetic renovations such as painting your home, fixing lights etc. before listing it on on rental marketing websites such as apartments.com, zillow.com, etc.
- Conducting Showings —When prospective tenants are interested in touring the property, your property manager will schedule and show the property.
- Running Applications — The property management companies we work with screen every applicant using strict income and credit guidelines.
- Creating the lease agreement— The property management company will typically put together an attorney-reviewed lease and go over it with the tenants. They will also collect the security deposit which they would reimburse to the tenant if no terms of the lease was broken.
- Performing Inspections — Before a tenant moves in and at the time the tenant moves out, the property needs to be inspected to document its condition and state. Your property manager will handle this and make sure to document the condition of every room of your home.
- Handling Turnovers — If tenants decide to leave, the property management company will handle their move out notice and begin the marketing process over again for your property,
- Coordinating Routine Maintenance — If something breaks, your tenant will reach out to the property manager to fix it. Your property manager can involve you if the repair requires your approval regarding price but most likely they will handle all repairs through their local contracting partners.
- Property Accounting — Your rental income won’t always be straight-forward — with tenant placement fees, property management costs, miscellaneous repairs, etc. the actual amount you receive from your property manager will sometimes vary by month. Luckily, your property manager will keep track of it all and keep you in the loop.
- Annual Tax Prep — One of the reasons to own real estate is that it offers many tax advantages (read more here). Your property management company will help prepare your tax return through their accounting work and receipts they will have kept for any items that can be deducted.
What do they charge per month on average?
Most property managers charge 10% of collected rent, or less. Awning’s partners range from 4%-10% monthly. Tenant placement fees range from 50–100% of the first month’s rent. You can expect the total management fee (including the tenant placement fee) to equal 8% of your total rental income every month.
What do they charge per maintenance request on average?
These vary by maintenance item and market rates. Awning’s property management partners can negotiate discounts with their vendors to keep costs low.
How long does it take them to get a property tenant ready?
Most states require security deposit settlements be returned to tenants within 21 to 30 days, meaning turnovers and rent-ready maintenance should be completed within this timeline. This can vary based on property condition.
How long does it take them to find a tenant?
In a healthy rental market 21 days is a good rule of thumb. This can vary based on property condition, rent amount, and market dynamics.
If you have additional questions about Awning’s Property Management partners, please reach out to your Awning Advisor by scheduling a call here.