Owner Information

We don't "push" you to buy or sell:

We center our primary business around property management. Our owners like that because with many alternative offices, they are more inclined towards sales and consequently will bombard a person with requests and opportunities to buy and sell your investment, especially when you are not interested.

However, having said that, it doesn't mean that we do not handle purchases and sales. We just don't "push" you into doing anything. We are licensed Realtors and handle purchases and sales strictly for our owners that want to get involved in a transaction. < /p>

Using us gives you several advantages:

Our office provides our owners with some big advantages when it comes to buying and selling that other "sales" oriented organizations can't. First of all, we don't "need" the commission from the sale to survive. That alone brings an atmosphere of trust to the transaction. People who "need to make a sale" to meet their daily financial needs, are more prone to bad judgment calls and decisions that may not always be in the best interest of their clients... in order to "close the deal".

In addition, if you list your property through us we can potentially save you commission dollars or at the very least make the commission split more attractive to outside offices. First of all, if we were to sell your property to the tenant that we put into the property, we would handle the transaction for 4% instead of 6%. That's a 33% reduction in commission. Secondly, if we put it on the market like normal at 6%, we only take 2 1/2% and offer 3 1/2% to outside brokers. That prompts the other 11,000+ agents in town towards your property.... yes, just for the extra half point they will make on the transaction.

Finally, if you are buying, we have a better understanding what to look for in a rental. We know what type of real rent you are going to get. You would be amazed at what "sale oriented agents" will tell buyers, as far as expected rents, to entice them to buy. What do they care, it's not their property, their headache, their monthly negative, when you can't achieve the rents they forcast you could.

Keep in mind that there isn't a perfect type of rental property or a perfect area in which to buy. Every property can be a gold mine if you buy it for the right price. Remember, you make your money when you buy. If you pay too much, it may not matter where it sits or how good it looks, it will never be a good investment.

Widen your opportunities:

Another thing to remember, is that you can always try to do both lease and sell at the same time. Many owners get frustrated with trying to get a renter and then decide to sell instead. Why not do both? Usually an owner is happy as long as they have a tenant. When the property becomes vacant, have us list it for sale and for lease. Then, which ever happens first is the way you go.

We receive calls almost every day from people wanting to invest in rental properties. Their questions are almost always the same. What type of property is best for a rental, and what area of the city should they be looking in? The best advice we can offer is... Invest in a property where the numbers are right and you're going to meet your objective(s).

You Make Your Money When You Buy!:

Ok, so what does that really mean? Well there are two well known axioms in real estate. They are ... Location, Location, Location and You Make Your Money When You Buy! Lets take the second one first, "you make your money when you buy." You see, as long as the property can be used for its intended purpose, and isn't worthless, then as long as you buy it for a low enough price to where you will be able to make money off it, you've probably got a good deal. What type of property might be worthless or almost worthless. How about a condemned property that was used as a toxic dump site. Or maybe a property that gets flooded frequently and at times is "underwater". A rental property that could be almost worthless would be one that butts up against an extremely loud and smelly manufacturing facility. There are plenty of properties that really do not make good rental investments.

What is the Best Location?:

So that leads us back to location. Again, from a rental standpoint you want a property that will be 'liked" by as many people as possible. You also want a property that is going to be "seen" by as many people as possible. Why? Because the more people that see it, or know that it is available, the faster you will likely get it rented. At the same time, most people usually do not want to live on a busy street, especially if they have children. So where is there a lot of traffic that is not on a commercially busy street. There is only one place that fits that criteria in almost every community.... near a school. Schools are traffic magnets for short periods of time each day and yet many are not on commercially busy streets, they are buried in the middle of neighborhoods. That doesn't mean that properties that are not located near a school will not rent. However, given a choice, the property near the school will normally rent faster because it will get more exposure.

What Amenities to look for:

Another thing to keep in mind when selecting a property, strictly for rent, is not to impose your own personal likes and dislikes into the decision process. Try to be objective from a renters point of view. You may like two story homes, you think they look cool and usually on a per square foot basis they are cheaper. From a tenants standpoint they may not be as great. For one thing older tenants will not climb stairs. Many parents with infants would like to stay away from stairs as well. There are many medical disorders that may prevent someone from climbing stairs frequently no matter what a persons age is. Consequently buying a two story home may put constraints on who will rent from you. Age restricted communities pose a similar problem. When you buy in an age restricted community, you are really limiting who can rent from you. Here is a pretty safe bet. Most tenants would enjoy covered parking especially in a city where the temperature can reach 120 degrees in the summer. So either a car port or a garage is a good thing to have. We haven't had any tenants NOT take a property because it had a garage or carport, but we have had many not take a property because it didn't.

Imposing your Likes and Dislikes into the decision process:

Let's go back a second about imposing your likes and dislikes. Frequently an owner will tell me how great their property is because it is one of just a few in the entire complex that sits right next to the pool. Unfortunately, there are just as many people, maybe more, that would not want to be next to the pool with all the noise, loitering, and people that can see in at you just as easily as you can see them. Or how about the owner who thinks his unit is better because it's on the second floor... you don't get the noise of someone walking on your ceiling like you do on the bottom unit. We already went over the problem of stairs, how about roof leaks. Downstairs units are rarely affected by roof leaks, or roosting birds and their constant noise making. For the most part, there isn't anything that you think that is great that someone else could not have a problem with. The trick is to find a property that has as few objectionable things associated with it as possible.

LOCATION, LOCATION, LOCATION - Where is the best area of town to buy a rental property? The answer is simple anywhere you can make money. It really doesn't matter if you are in a statistically high crime area or not, as long as the price you pay for the property allows you the opportunity to meet your financial objectives. Everyone has to live somewhere.

Keep in mind I'm speaking from a strictly "rental" aspect. We are not talking about appreciation, maintenance, age, future resale, etc. When you bring in those other factors, along with your personal investing preferences, then where you buy may be more difficult to pinpoint. You see it's hard to foresee what any one neighborhood or market will do over the next 20 years or so. I can guarantee that all properties will get older and as they do will require more and more maintenance.

The two things that eat into rental profits are vacancy and maintenance. So buying a new property in a newer area of town that is near a school might be a good way to go. The problem here is that you pay a premium for this type of property and unless you either get a terrific price or you put a lot of money into your down payment, you could possibly have a negative cash flow every month.

PROPERTY TYPES - Another question we get constantly is which property type is better? Here again, any type where you can make money. Every property has it's advantages and disadvantages.

House - Your average house needs to have the lawn and or landscaping cared for. Houses are normally larger than most condos, which means there is physically more area a tenant can potentially damage. If your house sits vacant you are 100% vacant. Also, you normally continue to incur other costs with a vacant house. There are electrical, water, and landscaping requirements. However, you do have the advantage that you are not directly competing with all the apartments, condos, townhomes, and plexes on the market. Also, people who rent houses, as compared to other housing types, stay longer and move less.

Condo/Townhouse - These properties especially in a gated community can be difficult to rent. First of all the only people that are going to see your sign in the window, assuming your community even allows a for rent sign, are people that already live there. If it's a gated community, it's even more unlikely that a potential renter will see your sign. Why is signage such a big deal. Because most people drive the areas they want to live in, looking for available properties. Condos, have to compete with every apartment complex or townhome as well. On the plus side, an owner usually doesn't have to worry about the exterior of the property, and has a smaller interior to fix should it get damaged. Tenants in condo's however, as a demographic group, as compared to people that live in houses, have a tendency to move more often.

Plexes/Apartments - Duplexes, tri-plexes, fourplexes, multiple units and apartment buildings, you say! There really isn't much new property in this category, here in Clark County, for the most part, as compared to all other forms of construction. Consequently, these properties are normally older, and are found in the center of town. Your price per unit is usually less than compared to a condo, but your overall investment is much higher simply because of the size of the project. Depending on the building size, having one or a few vacancies may not kill you. Your overall cost per unit to maintain the building is less, you just have more maintenance to do. However, every major repair is initially much more cost intensive. When you replace the roof it might run $15,000 - $30,000. But on a per unit basis, it's a third of what it would cost to do a house.

The bottom line is that every property has it's advantages and disadvantages. If you buy an older property because it's cheaper than a new one, then you will probably be paying way more for maintenance. If you buy a new property, in order to avoid potential maintenance problems, but don't put much down when you purchase, you will probably be upside down in your rental income and mortgage payments. There is no perfect solution. It is what ever you are comfortable with. Just remember, you make your money when you buy.

1. Acquire tenants in a rapid and aggressive manner.
2. Qualify prospective tenants with complete credit, employment and rental history
3. Perform timely rent collection and if necessary initiate collection efforts
4. Pay mortgage, homeowners association dues, utilities, property taxes, sewer etc. as requested/needed
5. Effect any necessary repairs in a timely and professional manner. All repairs are done by a pre-qualified licensed, bonded and insured contractor.
6. Send monthly statements to all clients promptly, complete with copies of all invoices/expenses paid.
7. Handle any and all property/tenant problems. Interface with insurance companies, City Departments, police etc.
8. Effect evictions, go to court, handle and monitor forced move-out proceedings.
9. Perform normal move-outs. Make determination of Security Deposit refunds according to Nevada Revised Statute guidelines.
10. Complete property renovation, cleaning, repairs, and begin process again.

Rates

Our rates vary from 5%-15% depending on several factors... property type, scheduled rents, services requested, location etc. Below is a generalized estimation of our rates. They are subject to change without notice and will vary with other factors taken into consideration that may or may not be listed here. The average property is usually managed at a 10% commission.

• 5% Apartment Complexes over 50 units at one location with onsite managers.*
• 8% Multiple Units 40 or more- Multiple Buildings/Locations.*
• 9% New Single Family Homes, Condos, Townhomes for the first year
• 10% Older Single Family Homes, Condos, Townhomes, Duplex, Tri-Plex, Four-Plex's, smaller Apartment Buildings*
• 11%-15% Properties that are up for sale through someone else. Small, single units under $400 per month, or any property needing special attention.*

*Rates and fees on all property types are subject to change without notice. Properties with special conditions, circumstances or needing selective attention will be charged a higher rate.**

Fees

• Start-Up - We have no start-up fees.
• Renewal - We have no Annual renewal fees.
• 1099 - We have no 1099 fees.
• Monthly - We only charge our fees based on collected rents.
• Placement -Tenant placement fees will range from $75.00 - $500.00 excluding any fee being used to pay an outside broker, for a referral of a qualified tenant (should there be one). In addition, we guarantee the placement of the tenant for up to 1/2 of their lease term. Should the tenant vacate during the first half of their lease, we would not charge you again to replace the tenant. Of course there may be an outside broker involved, or additional advertising etc. that you would still need to pay.
• Advertising - All advertising costs are passed through to the owner. We attempt to customize each advertising program to each owners wishes and property type. Some owners want constant newspaper advertising, while others do not want any at all. Most owners want some. We have found that serious tenants look for affordable housing seven days a week, not just on the weekends. Consequently, we recommend a program of advertising M-W-F in the second half of the month when more tenants are "searching". Advertising during the week is cheaper than on the weekend and concentrating in the 2nd half of the month reaches more potential tenants per ad displayed. Initial advertising funds will need to be placed into an Owner's account prior to an ad being placed. Owners are given a copy of the bill after it is received from the newspaper, and deductions are made from the funds in their respective accounts. Owners can place the ads themselves, however, the Nevada Real Estate Division requires that our name and phone number be placed in the ad. Otherwise it could be conceived as "bait and switch". Some tenants, because of their rental history, do not want to deal with a property management company. They know their only chance at getting a property is through an individual that probably does not have the resources to research their history or is out of state and would have trouble evicting them. We attempt to use free advertising when possible. When a generic ad that covers several properties can be used those charges are shared by all of the vacant properties to which the ad applies.
• Repairs - On occasion, an owner will call us and need our office to manage, handle, and complete thousands of dollars in repairs and clean-up of a property BEFORE we ever manage it, or make it available for the first time to the renting public. In this specific instance we charge 15% of the repairs made for handling these repairs.

Screen, Interview and Select New Tenants: We do the best we can through the interview process and accumulation of rental and credit history to make a judgment as to the character of the tenant. That's what you are really renting to. There is one constant in the universe and the rental industry as well, and that is "change". Our goal is to guess how a tenant will cope with the changes that happen in their lives and how their attitude will effect your property and investment.

You may find this hard to believe, but not all tenants tell the truth. Oh, and by the way, many landlords have been known to twist the truth as well, especially if they want to get rid of a problem tenant. Probably the single most important asset we bring to an owner, when it comes to selecting a tenant, is experience. Yes, we do credit checks, verify their employment, and check with their previous landlord. But, what's more important, is knowing how to read and interpret all the information you have received from completing this process to determine a renters character. The problem most new owners have with this process is relying to heavily on a tenants past performance, whether good or bad and not "reading" it. As an example, someone with a couple of pages of bad credit due to a bankruptcy, may be a great risk and a good tenant. Remember, they had to have been a good risk at one time to get all of that credit. More than likely something life changing put them in a situation where they had no other choice but to file bankruptcy. Maybe death of an income producing spouse, possibly a divorce, maybe a layoff due to downsizing of a company. Those situations do not necessarily make a bad tenant, but it makes for a poor credit report. We look more for "attitude" and taking "responsibility" in the credit report. An example might be someone who has one open current charge account, but shows a collection account for a cable bill totaling $28 and a utility bill totaling $45. Most of the time the reasons we get for these problems is that a relative wanted the service and they opened it for them or the relative was supposed to pay it.... We find this type of attitude questionable at best. Why would you allow a balance of $28 to mar your credit, no matter what the reason?

We get this question a lot from new owners too... "Don't you check with their current landlord to guarantee they are going to be good tenants?". Yes we check. However, sometimes the landlords lie, especially if they want to make their problem go away and become your problem. What if these tenants are always having the police over, are regularly late with rent, and generally are causing you enough problems that you wish they would go away. Then, you get a call from a property manager that informs you that these tenants are looking to move into one of their properties... what might you do? I have yet to hear from an owner in this situation that these are the tenants from hell, they're nothing but trouble, and you would be wise not to take them. That type of honesty just doesn't happen.

Negotiate Contracts and Rental Agreements: One of the keys to good tenant relations is a clear understanding of what is expected of both parties at the beginning of the leasing/renting process. Having a detailed agreement is the first step, spending the time to go over it and answer all the questions a new tenant may have is the second step in preventing future problems. The third step is follow through. Retaining good tenants is fairly simple.... respond to their requests quickly, and accommodate them within reason.

Screen, Interview and Select New Tenants: We do the best we can through the interview process and accumulation of rental and credit history to make a judgment as to the character of the tenant. That's what you are really renting to. There is one constant in the universe and the rental industry as well, and that is "change". Our goal is to guess how a tenant will cope with the changes that happen in their lives and how their attitude will effect your property and investment.

You may find this hard to believe, but not all tenants tell the truth. Oh, and by the way, many landlords have been known to twist the truth as well, especially if they want to get rid of a problem tenant. Probably the single most important asset we bring to an owner, when it comes to selecting a tenant, is experience. Yes, we do credit checks, verify their employment, and check with their previous landlord. But, what's more important, is knowing how to read and interpret all the information you have received from completing this process to determine a renters character. The problem most new owners have with this process is relying to heavily on a tenants past performance, whether good or bad and not "reading" it. As an example, someone with a couple of pages of bad credit due to a bankruptcy, may be a great risk and a good tenant. Remember, they had to have been a good risk at one time to get all of that credit. More than likely something life changing put them in a situation where they had no other choice but to file bankruptcy. Maybe death of an income producing spouse, possibly a divorce, maybe a layoff due to downsizing of a company. Those situations do not necessarily make a bad tenant, but it makes for a poor credit report. We look more for "attitude" and taking "responsibility" in the credit report. An example might be someone who has one open current charge account, but shows a collection account for a cable bill totaling $28 and a utility bill totaling $45. Most of the time the reasons we get for these problems is that a relative wanted the service and they opened it for them or the relative was supposed to pay it.... We find this type of attitude questionable at best. Why would you allow a balance of $28 to mar your credit, no matter what the reason?

We get this question a lot from new owners too... "Don't you check with their current landlord to guarantee they are going to be good tenants?". Yes we check. However, sometimes the landlords lie, especially if they want to make their problem go away and become your problem. What if these tenants are always having the police over, are regularly late with rent, and generally are causing you enough problems that you wish they would go away. Then, you get a call from a property manager that informs you that these tenants are looking to move into one of their properties... what might you do? I have yet to hear from an owner in this situation that these are the tenants from hell, they're nothing but trouble, and you would be wise not to take them. That type of honesty just doesn't happen.

Negotiate Contracts and Rental Agreements: One of the keys to good tenant relations is a clear understanding of what is expected of both parties at the beginning of the leasing/renting process. Having a detailed agreement is the first step, spending the time to go over it and answer all the questions a new tenant may have is the second step in preventing future problems. The third step is follow through. Retaining good tenants is fairly simple.... respond to their requests quickly, and accommodate them within reason.

What is the charge for?

The Tenant Placement Fee is used basically to cover the costs of showing the property... time, gas, wear and tear on the car etc. We guarantee the tenant up to 1/2 of their lease term. What this means is that if they were to sign a years lease and stay only 3 months, then we would put in a new tenant without charging an additional Tenant Placement Fee. Of course, there could be an additional Referral Fee because this is paid to outside agents not affiliated with our office. If the tenant were to stay 9 months of a 12 month lease, then we would charge the Tenant Placement fee again when a new tenant was found. We figure that if the tenant only stayed a couple of months of a year term, then they probably were evicted, and possibly it was something we could have foreseen. On the flip side, things happen, and if they are in the property for at least 6 months, their departure was probably something that nobody could have forseen, and that's just part of the land lording business.

When is it paid?

This is probably the most confusing "accounting" issue that new owners have. Usually, the biggest reason for the confusion is because owners forget that there is going to be a one time initial charge for getting them the tenant. The payment for this comes out of the tenants initial rent money and shouldn't be confused with a "Referral Fee" which is money paid to an outside broker that brings us a qualified tenant that is accepted.

APPLIANCES - Probably the best course of action if you have older appliances is to get a Home Warranty Protection plan that covers them. Otherwise, be prepared to fix them when they breakdown.

We had a tenant once that was retired, single, and on the senior pro golf tour. Being on tour, he rarely stayed in the three bedroom condo he rented from us. He always paid his rent early, and never missed a beat during the previous 3 years. One weekend he was home and was doing his laundry when the dryer froze up. We sent out a technician who found 5 socks in the motor mechanism. The tenant determined that one of those socks was his but the others were from previous residents. The bill came to $70.00. The owner refused to pay it, stating that the tenant caused the repair. The tenant paid for the repair and immediately gave his notice. He moved and it took us 90 days to get the unit re-rented. The unit was renting for $850.00 a month. That $70.00 repair, that the owner refused to pay, cost him an excellent tenant and over $2,500.00 in lost rent.

When you have a good tenant, they rarely ask for much, and they take care of the place. Good business sometimes means that as an owner you pay for the repairs no matter who or what caused them. UTILITIES - Several of the utilities like trash collection and public sewers attach themselves to the property, not the person who orders the service. What does that mean to you. That means that even if the trash bill is in the tenants name, if they do not pay for it, it attaches to the property and becomes your responsibility.... be prepared. Also, you need to keep enough money in your account, especially when your property is vacant, to cover the necessary utility bills like water and power. If not, we will have to turn them off, and then you'll be upset when you didn't have to be.

The most common reason is expenses. Normally when we take over a new property and put in a tenant for the first time, there could be as many as three separate reasons why your check would appear to be short. First of all would be that we charge a Tenant Placement fee for getting you a tenant. Secondly, there could be a referral fee to an outside broker if indeed another office supplied us/you with a qualified tenant that was accepted. And finally, there is the Owner Reserve amount that is kept in your account for expenses that may occur between receiving rents.

The most common reason is expenses. Normally when we take over a new property and put in a tenant for the first time, there could be as many as three separate reasons why your check would appear to be short. First of all would be that we charge a Tenant Placement fee for getting you a tenant. Secondly, there could be a referral fee to an outside broker if indeed another office supplied us/you with a qualified tenant that was accepted. And finally, there is the Owner Reserve amount that is kept in your account for expenses that may occur between receiving rents.