New Client Welcome Letter and follow up items

Welcome to Real Property Management Solutions!

Thank you for entrusting Real Property Management Solutions with your rental property. Real Property Management Solutions is an ethical company and will always make decisions that are in the best interest of our clients, both from a legal and a financial perspective

In the beginning stages of our relationship, much of our time will be spent getting to know each other, getting to know your property, gathering details and setting up systems to ensure a smooth operation.  We appreciate your patience and ask that you understand each piece of information is important in the overall management of your asset.

Managing rental properties can be a complex task. Each member of our team stands by to assist you in their responsibility, not just one individual.  Our marketing department will be your expert in finding a great tenant at the best possible rent price. Our maintenance department will be the experts who coordinate maintenance, work with you to get your home rent ready and answering your questions regarding maintenance.. Our Owner Support team will ultimately be who you interact with the most and in the beginning. As your main point of contact, owner support will work with you in gathering information through the onboarding process and reviewing your first owner statement etc.. 

The following information is intended to set expectations, ensure critical set up steps are completed and proper documentation is established

We are so excited to work with you and look forward to many years of a successful relationship.  We know that when you hand us the keys to your rental property, we are often being handed the keys to our clients most valuable investment asset.  We do not take this responsibility lightly!  We know this work is important and we strive to exceed your expectations.  We also know perfection is not possible, but perfect integrity, doing the right thing and working hard are not. If we make a mistake, we will make it right. If we see something you should know, we will tell you, no matter how difficult the news may be.  We appreciate you giving us the benefit of the doubt until proven otherwise and please know, we are working toward the same goals, maximizing your investment and serving the customer well

Sincerely,

The Real Property Management Solutions Team

Transition to our Client Help Desk System

Up to this point, it is likely you have been communicating with a member of the sales team by cell phone, name specific email address, etc.  Now that we will be managing your rental property, it is critical to transition to our Help Desk system to ensure the right person can help solve your problem or answer your questions. 

Thanks to Help Scout.com, you only need to remember one email address, owner@realpmsolutions.com and one phone number, 503-224-3002.  From this point forward, please address any and all questions, issues, or concerns to this email and phone number. During non-business hours, leave a message and we will return your call the next business day. For emergencies, call and press #9 and you will be connected with our emergency hotline service.

Gather information in preparation for owner and property detail input

In the next few days you will be receiving a series of emails from our Owner Support to assist in system set up and owner onboarding.  Please look for your first email from Real Property Management Solutions with a link to a webform that will allow you to send critical details about you and your property.  Some of this information you have already provided, but this process is important for consistent documentation purposes.  In preparation, you should expect to be asked for the following:

Owner Information:                                                              

        Personal information for 1099 purposes                                   

        Emergency Contact

        Additional Owners and tax ID

        Bank Account info for direct deposit

        ACH Authorization

Property Information

Rental property address, number of bedrooms, bathrooms, square footage and year built

Main water shut off valve and breaker box location

Mail box type, number location, number of keys

HVAC system details, Security system details including operating instruction file upoad

Parking information

Property History Information

Paint condition (interior / exterior)

Storage tank, water source, environmental assessment documentation

Lead based paint disclosure

Third Party and Utility Information

HOA contact information with bylaws and regulation file upload

Insurance policy information, agent contact details with policy upload and additionally insured acknowledgement

Establish and document important policies

As your agent, we represent you when managing your property, but not a guarantee or insurance policy to prevent the potential financial impact of damage.  Although we will apply our experience, knowledge and disciplined process and commitment to greatly reduce your risk, establishing a set of important policies that represent your desires is a critical step in meeting and exceeding your expectation.  The next section of the webform will ask you to establish policies in two of the most important areas; Pet Policy and Landscape Policy

Once you hit the “Submit” button, we will receive an encrypted email with your information and we’ll begin building your profile in our property management software system.

Transfer Utilities and Notify Important Stakeholders                  

it is necessary to transfer over all utilities and the billing information to the care of Real Property Management Solutions and to provide utility company contact information. This gives us the ability to manage the accounts for the owner and to successfully transfer services to the new tenants. Please call each utility company that services your home and request they transfer utilities to:

OWNER NAME

C/O REAL PROPERTY MANAGEMENT SOLUTIONS

0224 SW Hamilton St. Suite 300

Portland OR 97239

P: 503-224-3002 | F: 503-224-9277

Notify your HOA

To ensure a smooth transition and notify your HOA that you have hired a property management service, you will need to contact the HOA and provide them with the following information: (If Applicable)

  • This property will now be used as a rental propert
  • The main contact for the management of this property will be:

REAL PROPERTY MANAGEMENT SOLUTIONS

0224 SW Hamilton St. Suite 300

Portland OR 97239

P: 503-224-3002 | F: 503-224-3002

Please notify your HOA who will be making payments for the HOA fees. If you have Real Property Management Solutions pay your HOA, you are responsible for providing us with the payment instructions

Call your insurance provider

Please notify your insurance company and request thatReal Property Management Solutionsis added as an additionally insured on your policy.

C/O or Attention:     

REAL PROPERTY MANAGEMENT SOLUTIONS

0224 SW Hamilton St. Suite 300

Portland OR 97239

P: 503-224-3002 | F: 503-224-9277   

Register Your Rental Business

If your rental property is located in the City of Portland OR within Multnomah county, you are required to register with the Revenue Bureau.  You are exempt from paying the Multnomah County Business Income Tax if you meet these three conditions

  • You are an individual (sole proprietor)
  • You are the sole owner of fewer than 10 residential units everywhere
  • You have no other business activity.

You are exempt from paying the City of Portland Business Income Tax if

  • Beginning with 2012, your gross receipts from all income sources everywhere is less than $50,000
  • Before 2012, the exemption criteria was the same as Multnomah County

*You must register, even if you expect to be exempt.

For more information, contact your tax professional, visit our website at www.pdxbl.org, or call the Revenue Bureau at 503.823.5157

Be sure to register according to how the asset is held, ie, Sole Proprietor (including single member LLC) or as a multi member LLC.  Just follow the steps as you register

Call your insurance provider

Please notify your insurance company and request thatReal Property Management Solutionsis added as an additionally insured on your policy.

C/O or Attention:     

REAL PROPERTY MANAGEMENT SOLUTIONS

0224 SW Hamilton St. Suite 300

Portland OR 97239

P: 503-224-3002 | F: 503-224-9277   

Let’s Start Marketing!!

RENT HIGH OR RENT FAST?

Which is better, rent for a high monthly amount vs the market or rent the home quickly?  It largely depends on your goals, but if making money is your goal, renting your home quickly is by far your best option

Nearly every property in every neighborhood has solid demand at a price. If your vacancies are consistently high, or it is taking longer than a month to rent your property, you may be doing it to yourself and need to think about your price point.

Every month of vacancy costs you 8.3% of your potential yearly revenue, so you would be better off renting every property one month faster for 5% less rent, two months faster for 10% less rent, and so on.

Another way to think about vacancy is this. If a property does not have some characteristic that sets it apart from the rest and sells itself such as a prime location or a to-die-for kitchen, you can give it one by providing the best value in town.

Figure 1. Cost of vacancy based on an average rent of $1,500 per month

Based on an average market rent of $1,500 per month, you are better off financially to rent your home at $1,425 rather than let the home sit for a month longer than is necessary

IT’S NOT ALL ABOUT PRICE

There are many factors that go into determining rent price, most of which are listed below.  However, if the home is well marketed, the prospect can easily book a showing and the showing schedule is flexible, but the home is not renting, the reason almost always comes down to three barriers:

Marketing Result Reason Action Required
High Lead Volume but low to no Showings Home is Priced Too High You can’t rent a home that doesn’t have showings – Consider a Price Reduction
Receive leads but no applications or an unusually high number of cancellations Location May require a price reduction in order to offset the less than desirable location
Priced at or below Market + Good Location + Showings but no Applications Condition or Function Issue May require cosmetic or functional issue correction such as curb appeal, painting, cleaning, etc.

Marketing and How We Will Communicate our Marketing Efforts

Marketing a home for rent may feel a lot like the marketing process when selling a home and in fact, many of the marketing functions are the same.  However, there are key differences. 

  • We receive feedback based on activity and data, not by an “offer to rent”
  • Back and forth price negotiation rarely happens
  • The vast majority of the leads from prospective tenants come in the first three weeks
  • The process is very dynamic with frequent application complexity

Selling a home is a BIG DEAL and so is renting your home. However, because this rental process is so dynamic with daily interactions with prospective tenants  and the number of showings that far exceed your typical real estate transaction, it is impossible to notify you of all activity as it happens.  Instead you can expect the following:

  • You will receive a weekly marketing update with the previous week showing data recommended actions
  • You will not receive communication after each showing, rather, we will reach out to you between your weekly updates if we need approvals, have questions or have important information to share
  • Of course, you can call and speak to your leasing agent at anytime during office hours and we WILL call you back promptly
  • Your home will be advertised on all syndicated sites, craigslist posting with frequent posting refresh, and our website
  •  For Rent sign(s) (if allowed) marketing flyers inside the home and third party leasing agent notification
  •  Weekly property checks to ensure security, cleanliness and flyer refresh

Applicant Screening

To best protect you from the potential risk of applicant discrimination and to ensure we are following all fair housing laws, credit reporting, and sensitive information gathering rules and regulations, you will not be involved in the direct applicant screening and approval process.  The time to be involved is before we sign the client management agreement by reviewing our screening and approval process and getting comfortable and confident in our ability to properly screen applicants.  We are not able to provide you with specific applicant detail such as credit score/information, criminal background or reference information.  However, we recognize the need for you to know who is living in your rental property and you are entitled to a copy of the lease agreement, which we will provide at your request

Ongoing Communication

The third and final step in these initial stages, will be to connect with a member of our Owner Support Team.  In the next few days, you will receive a call from our office to review where we are in the process and confirm important information such as rent ready preparation and approval of maintenance work. Most of all, this is a chance for you to ask any follow up questions you may have and to make sure you know what will happen next.  We encourage you to make time for this important connection.

Let’s Talk Maintenance (yes, something will eventually break!)

Of all the tasks and issues we will address, coordinating the effective repair of a maintenance issue can become the most complex.  It’s never fun to hear about a costly repair, but as a rental property owner, you must be prepared for the inevitable maintenance issue, both financially and mentally.  To best prepare for, and to properly set expectations, let’s break this topic down into a few big buckets:

Let’s work together to minimize maintenance issues in the first place

Before you move out and certainly before a tenant moves in, complete the Rent Ready Checklist, make necessary repairs and then sign your acknowledgement and provide it to Real Property Management Solutions. By doing so, we can catch many of the maintenance issues and the associated costs before the resident moves in

 As part of the move in process, residents are put on “high alert” in regards to their responsibility, so they are looking for issues that were perhaps not noted or missed during the move in process. Secondly, as they settle in, they are experiencing the home for the first time. Even though a resident rents the home “as is” this unique environment can cause a series of maintenance requests in the initial weeks of a resident’s tenancy.  We ask that you stay calm and know that we have your best interests at the center of all we do. Let’s work together to make the residents’ experience the best it can be while cost effectively maintaining the condition of your investment. Our experience shows that eventually, this will settle down.

Owner, Resident and Agent Maintenance “Bill of Rights”.

Unlike many facets of property management, maintenance coordination involves all four parties in the process and each one typically wants something different.  Owners want the most cost-effective solution, Residents want the repair fixed quickly, and the Agent wants to coordinate a resolution efficiently while satisfying both Owner and Resident,  and the vendor just wants to get in, get It fixed and get paid.  Simply said, it’s complicated!!  We think of this topic in terms of a

Maintenance Bill of Rights

As an Owner, you have a right to:

  • Transparent invoicing and accurate billing.  We will send you the vendors’ invoice and we will correct any invoice mistakes
  • Qualified, licensed, bonded and insured vendors working on your rental investment
  • Ask questions, get answers and have confidence the issue has been resolved
  • Effective communication throughout the process
  • To approve all maintenance expense at or above the agreed upon maintenance limit before work begins
  • 24/7 emergency hotline to ensure your investment value, to the degree possible, is maintained

Residents have a right to:

  • A residence that is maintained in a habitable condition according to State, City and County regulations
  • An effective means to report maintenance issues
  • Effective communication throughout the process
  • An effective repair of items that were working when they moved in
  • Repairs that are resolved within 30 days for non-essential and 7 days for essential services
  • Respect of personal property, space and personal time
  • 24/7 emergency hotline to report emergencies

As Agent, we have a right to:

  • Effective communication throughout the process
  • Pre-approval to repair issues below the maintenance limit as we see fit as outlined in the agreement
  • Quick approval of maintenance above the maintenance limit once owner questions have been answered
  • Payment in full within 30 days of satisfactory repair

Thanks again for your business, we can't wait to get started!

RPM Solutions Team

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