Property Management: Community Ques
COMMUNITY QUESTIONS
This page is made up of the different questions we have received over the years.
If you don't see your question, PLEASE EMAIL US.
I FOUND OUT THAT MY PROPERTY MANAGER IS NOT LICENSED, DO PROPERTY MANAGERS NEED TO BE LICENSED?
We have heard this story too many times to count. There are always going to be those individuals out there that try to make a buck. Each story is different, but the basic ideas are the same. You buy a property and start looking for a property manager. Low and behold someone comes forward claiming to be a property manager. You hire them and then the next thing you know your property is never rented and the person is nowhere to be found.
When we are asked “do property managers need to be licensed?” we tell them ‘You don’t need to have a property management license to do property management. You only need a real estate license that has been issued by the State.’ Lesser Associates LLC employs licensed realtors with the Arizona Department of Real Estate. The duties of property management are to know what the law is when it comes to renting your home. Any one claiming to be a property manager and says that they have a property managers license is not telling you the full truth. Word of advice … ask the person if you can see a copy of their license. If they fail to provide you with or give you an address that you can access and see their license then they’ve already failed to fulfill their property management duties. Just walk away. You will save yourself valuable time and money.
What makes Lesser Associates different from other companies?
Lesser Associates LLC looks out for you, our client. We will never give your personal information out to any vendor nor will we in any way attempt to force you to do something. There are other companies that we work with in the Phoenix Metro Area that (according to previous experiences from our clients) tell you that you must do X, Y, & Z. They attempt to make you spend more money on your unit when you don’t need to. Yes, from time to time we may recommend that you update your sheets, towels (for our Furnished/Vacation rentals) or a fresh coat of paint. We attempt to find the best prices for you. Below you will find a copy of our most recent company shopping report. It is amazing how much some companies get when you add everything up. The chart is based on a $2000 per month rental.
| LESSER ASSOCIATES | COMPANY A | COMPANY B | BREAKDOWN OF COSTS |
| $65.00 | $75.00 | 8% | MONTHLY MANAGEMENT FEE |
| $780.00 | $900.00 | $1,920.00 | TOTAL MANAGEMENT FOR THE YEAR |
| $2,400.00 | $2,400.00 | $2,400.00 | COMMISSION @ 10% |
| $65.00 | $100.00 | $100.00 | START UP FEES |
| $200.00 | $300.00 | $275.00 | YEARLY FEES CHARGED ONCE PER YEAR |
| NA | NA | $395.00 | INTERNET ADVERTISING FEE |
| NA | NA | $25.00 | MLS LISTING FEE |
| NA | NA | $720.00 | ADDITIONAL COMMISSION TO TENANT’S AGENT |
| $175.00 | $200.00 | $275.00 | STATUTORY AGENT FEE |
| NA | $35.00 | $40.00 | EARLY MAILING FEE |
| $3,620.00 | $3,935.00 | $6,150.00 | TOTAL PER YEAR BASED ON $2000 PER MONTH RENTAL |
| $24,000.00 | $24,000.00 | $24,000.00 | TOTAL GROSS RENT |
| $20,3800.00 | $20,065.00 | $17,850.00 | TOTAL AFTER EXPENSES |
| 15% | 16.4% | 26% | TOTAL PERCENTAGE |
Are there any “hidden fees” or MLS Listing Fees?
We do not charge any “hidden fees”. All of our residential property management fees are spelled out in our management contract. From time to time the contract is updated and fees may change, but you as the residential owner will be notified of any changes in property management fees. MLS Listing Fees is a very interesting concept that was brought to our attention. There are some companies that charge you a fee to list your property in the MLS. The agent might say something along these lines: “My broker requires that I collect a fee because we are charged a fee to put our listings in the MLS” or “As an agent we are charged for each listing that we put into the MLS by the MLS.” This is clearly a situation where your agent has manipulated you. The Offices of Lesser Associates is not going to charge you a fee to put a property in the MLS. As a member of the MLS, we are able to put as many listings as we want into the system for one yearly fee. Our yearly fee is part of our expenses.
Why should I hire a property manager?
The real question to ask yourself is do you want to be available 24 hours a day 7 days a week? If you answered yes to that question then you don’t need Lesser Associates LLC. If you answered no then we are the complete realty property management you need. We are available 24 hours a day, 7 days a week and even on holidays. It could be Thanksgiving or Easter or even Labor Day and a tenant could call with a problem. Many of the problems can be handled over the phone. While some require a visit from one of our vendors (AC, Heating, Pool, or Electrical we do it all, complete service).
We do a complete walk through with the realty tenant, collect the property rents, and our management professionals make sure the tenant pays. We run the credit and reference checks on all tenants. Sometimes it is a little harder to find out if a person truly works for the company that they state. Through our contacts over the years we have been able to find the back doors to get the best possible information. Our monthly management fee includes the sending of owner’s checks, monthly statements, year-end statements, and don’t forget those fun Tax forms. The second question should be “what will I gain?” not how much is it going to cost me? You will regain your peace of mind. Our costs are very competitive for what we do. They vary depending on which program you choose to place your property in.
Lowest Monthly fees and Affordable Commission Rates…
A residential monthly management fee of $65-100 is well deserved to our licensed broker s. How does $2.17 a day sound to you? You can’t even by a cup of coffee for that price, but you can retain good property management professionals. For the most part, residential property management fees vary, ranging between a good 4 to 15% monthly rent. A property management professionals’ worth is in his or her commission rates.
What about commissions?
Commission is a very interesting aspect of a good Real Estate & property management Market. For leasing our commission is 10%-20% depending on the program. If you want to sell your home we offer two different commissions. If Lesser Associates is the only agency involved the charge to you is only 3.5%. If another office is involved then Lesser Associates charges 6%.
Do I have to set up a owner’s account?
Yes, the owner’s account is used to cover charges from your property. We set our owner’s reserve between $500-$750 per property (raised to $1000 once property is rented). If we have to dip into your reserve for any reason it will be replenished when the property is rented.
My former or current management company never charged me a reserve fee. Why do you?
We have found it necessary over the years that having a reserve fund that is held here in the office. Imagine that something happens at your home and a repair is needed. If we had to call you at 2am to ask that you send us funds to cover the repair you would not be happy. By having funds at our office we can take care of the repair without having to wake you up.
Is there a start up fee?
Yes, our start up for the office is $65 (equal to one month’s management fee). This is per property. If you decide to place your property into our vacation rental program then there is an additional $200 start up fee.*Prices may change from time to time*
How long do I have to keep my property with Lesser Associates?
We hope that you will keep your property with us till the end of time. However things change and people decide to go in different directions. We ask that you agree to allow Lesser Associates at least 1 year. You can of course have your property listed for however long you wish to. We have a very simple cancellation policy written into your contract. In the event that your property is rented by a tenant that was placed by Lesser Associates a renewal commission may be required based on your contract with our office.
How long does it take to sell my home?
If we could tell you that then we would not be in real estate. It could take a day, a week, a month or longer. It all depends on people looking at the home.
Where do you advertise?
Besides lessermeansmore.com we also advertise on Realtor.com, the Multiple Listing Service, as well as in a number of different publications. A lot of our advertising is done by word of mouth.
I want to have a furnished rental. Do I need to have top of the line furnishings?
No, we suggest that you put what you are comfortable with in your rental. You don’t want to spend a lot on the items, but you don’t want to buy items that you are going to need to replace every year.
I got a great deal on some used mattresses. Can I place them in my unit?
We would say no. You got a great deal, but do you know what was done on those beds? A stain on any visible area of a mattress could be a turn off for a rental.
Do I need to supply all the utilities?
If you are providing a furnished or vacation rental the answer would be yes. However on a furnished rental rented during the non season you can make the tenant put the utilities into their name. It is your choice.
I have High Speed Cable at home. Should I put it in my vacation rental?
It is the way of the future. More and more of our vacation rentals are going this way. Look at the hotels. They are all starting to offer high speed internet either wirelessly or by cable in the rooms.
A copy of our management agreement is available via email
How do I get my money?
All rents are processed by the 15th of the month. After the 15th checks are either mailed or deposited in the next month. We offer three different services for our clients to get their funds. Mailing a check, direct deposit, or depositing into your check by going to the bank for you. Some of these options carry either a monthly/yearly fee and require forms to be filled out.
My property is already rented, but I want you to take care of it. Is that okay?
Yes, we can do that. If you already have your property rented we can handle the collecting of rents and all calls that may come from your current tenants. The charge for this service various based on the monthly rent.
Are there any other fees?
There are some other fees. We currently charge you a $250 fee per year. This fees covers a number of different charges to your account and are covered in our management agreement. Please contact us with further questions.
We have a copy of our contract ready for your viewing.
*Viewing of our contract and receiving of our contract does not constitute an executed contract. If you are already working with another property management or leasing office, our business ethics require us to contact them in order to look at property and discuss our services.*
We offer sample contracts for your our visitors to view. Please click here We will send you a sample copy.
*Receiving a contract does not constitute an agreement with Lesser Associates. If you are currently working with an agent that does not handle rental property or property management please ask your agent to contact us directly.*
I am a licensed realtor myself. I am tired of taking care of my own properties. Can you help?
Yes, we are always available to help our fellow realtors with their investment properties. Please give us a call so that we can see what kind of services we can offer you.