Frequently Asked Questions - Property Management
Q: What services does 85 & Sunny Property Management provide?
A: 85 & Sunny Property Management provides Unit Intake and Tenant Acquisition (TA), Monthly Property Management (PM), and Snowbird Management Services.
Q: What do you mean with Unit Intake?
A: This is initial inspection of the property, photos, gathering marketing material, placement of lockbox and sign (if allowed by association), and marketing the property (not included on MLS unless this service is paid for separately).
Q: Can I only do Unit Intake & Tenant Acquisition (TA)?
A: We recommend that you do Unit Intake & Tenant Acquisition in combination with Monthly Property Management for your leased unit; however, you can select to do TA only, Property Management only, or the full service for long-term rentals. For short-term properties, we combine TA and PM services into one rate.
Q: How do you screen prospective tenants?
A: We run a credit report and criminal/background history, verify employment and landlord history, and check at least two non-relative references. We also search local court records for recent evictions that wouldn't show up on the credit report.
Q: Who approves the Tenant?
A: Based on specific tenant selection criteria given and approved by you, 85 & Sunny Property Management will approve the tenant. If this tenant does not fulfill the requirements given and approved by you in the tenant selection criteria, you will be notified and you must approve or disapprove the tenant. If this is the case, we will provide you with all the information that is available from the tenant to you.
Note: We cannot provide you with the tenant's SSN or credit report itself, but we do tell you their credit score and if any problems exist in the credit report. Once you have all your questions answered, you will be the one who approves or disapproves the Tenant. May owners ask us for our suggestion and we'll happily give it to you.
Q: What is your cost for Unit Intake & Tenant Acquisition (TA)?
A: We charge one month’s rent for TA for long-term leases. This includes all expenses including marketing and MLS. This fee is earned at contract signing whether or not tenant is placed in the property.
Q: What is your cost for Property Management (PM)?
A: If we locate, place the tenant and our lease is used the cost of PM Services is 10% of the rental amount per month. Management starts in the first month of the lease.
Q: What if I already have a tenant in place?
A: The fee for our services is half-a-month’s rent. If you already have a tenant in place, this fee includes unit intake, read the new lease, have our attorney review the new lease, do a walk-through with the tenants, and ensure compliance with all the terms of the lease you have used for your own tenant acquisition. This fee is due at time of contract.
For short-term rentals, the cost is 20% of total collected rent. This is for both TA and PM. We do not separate these services in short-term rentals.
Q: Who signs the lease, you or I?
A: In the property management contract, you will decide who will sign the lease. Our suggestion is that if the tenant is approved, you give us the right to sign the lease in your behalf as it has been our experience that lease will go unsigned if left to owners. You are bound by the lease, same as the tenant, whether or not you sign the lease or delegate that to us.
Q: What is the maintenance reserve for?
A: The maintenance reserve is used primarily to complete minor repairs that are necessary to maintain the property in a first class condition. Repairs over $250 will be approved by the landlord prior to commencing work as long as it is not an emergency (lost of life, property, safety or health code issues) and we can reach the landlord.
Maintenance under $250 the Property Manager will use their judgment in approving the work to be done. All repairs must be paid from the maintenance reserve or paid directly by the owner to the vendor providing the service. 85 & Sunny Property Management does not lend money. We recommend a minimum of $250 to be held in reserve. The owner can request additional monies held if they believe that more will be necessary to complete repairs.
Additionally, owners of multiple units can give us permission to co-mingle reserve funds and allow us to apply those reserves to any/all of their properties.
Q: Can I use my own maintenance person or contractor?
A: Yes. But, if not licensed or insured we can't facilitate the work. You, the owner, will have to work directly with the vendor.
We prefer to use our preferred vendors whom we have a relationship with, understand their fee structure and the quality of their work.
Q: What happens if there is a maintenance emergency?
A: We are on call 24 hours a day, 7 days a week. During business hours, we send a vendor out once a tenant calls into our office. If call comes after hours, the call goes to our 24-hour answering service. After evaluating the call, we either take action immediately or call a vendor first thing the following morning.
Q: Do I get copies of all invoices for maintenance done?
A: Yes. Copies of invoices are uploaded to your Owner Website.
Q: Do you profit from any of your vendors by receiving referral fees or kickbacks?
A: No. We use vendors that continue to provide excellent and prompt service along with the best rates available. In some cases, we have negotiated a discounted rate for our clients. This discounted rate is passed DIRECTLY to you as a benefit for using 85 & Sunny Property Management.
Q: When do I pay any money?
A: At contract signing, a fee of one-half of one month’s rent is due and payable to 85 & Sunny Property Management. If we are contracted for TA services, we will collect this fee upon placement of a tenant into your unit. If we are contracted for assumption of an existing tenant, we will collect this fee at contract signing. If we are contracted for TA services and the contract is terminated before tenant is placed, one-half of the starting month’s rent is due within 5 days of termination of contract. Any collected amounts will be used to offset this fee.
We collect the $250 maintenance reserve when you sign the PM Contract. This enables us to maintain, repair, and prepare your property while we are working to place a tenant. It also allows us to respond immediately to any issues that may come up. Management fees will be collected from tenant rents for each month we are managing the property.
Q: Who keeps the security deposit and last month's if applicable?
A: 85 & Sunny Property Management holds the deposit and the last month in a trust non-interest bearing account. 85 & Sunny Property Management complies with Florida Statutes. By law, any escrows are to be held in a trust account whether it's ours or the owners. The problem arises when owners hold the escrows and don't have the money available when the tenant gives a 30-day notice to vacate.
Q: What happens if the tenant is late with rent or doesn't pay rent?
A: If late, being after the 2nd of the month, we give a courtesy call to the tenant to find out why the rent is late. There is also a late fee that is charged. If no response from the tenant or paying rent late becomes a habit, we serve a 3-day notice to pay rent or vacate. If no response, we will consult with owner but recommend eviction of the tenants. Monthly management fee is still due to 85 & Sunny Property Management for as long as the tenant is in the property.
Q: Do you provide a report about the condition of the property before and after the tenant vacates?
A: Yes. We do a move-in/move-out walk-through report. We also take pictures of any previous or current damage to the property. These will be uploaded to your Owner Website.
Q: What if there is a damage caused by the tenant?
A: As long as it's documented and can be proven that the damage was caused by the tenant, we can assist you to put a claim on the tenant's security deposit for the cost of the repair.
Q: Can Security Deposits be used for last month's rent?
A: No. Security deposits are to be used for repairs or damages caused by the tenant to your unit.
Q: How does the rent check get disbursed?
A: Rent check collected from tenants will be disbursed as follows:
1) Any fee due to 85 & Sunny Property Management
2) Payment of any outstanding invoices to contractors or demand for payments (i.e Condo Associations).
3) Replenish Maintenance Reserve - $250 min.
4) Directed payments – per owners' direction (association, utilities, etc.)
5) Balance to Owner
Q: Do you offer direct deposit and is there an additional fee?
A: Yes, we offer direct deposit and there is no additional fee. Rents are deposited into your account between the 10th and the 15th of each month. All owners MUST be paid via direct deposit. If a physical check is required, a $5.00 per check or $50.00 per year (paid in advance) fee is due.
Q: I see that you charge 3% if the tenant buys my place. Why is that?
A: Unfortunately, some people offer their place to rent through a management company but really are looking to sell their property. They sometimes made “back-room” deals with tenants to purchase the property without paying a real estate commission. This clause is intended to stop this practice. If the current tenant that 85 & Sunny Property Management places in the unit purchases the property a 3% commission will be earned and due to 85 & Sunny Property Management.
Q: Can I make changes to the Property Management agreement?
A: We do not alter the agreement. If you have a concern, we will be happy to listen to it and take it under advisement. This contract has been used in a number of transactions and reflects the agreement we want to have with our owners.
Q: What if I'm unhappy with 85 & Sunny Property Management, can I terminate the agreement?
A: If you are unhappy with 85 & Sunny Property Management for any reason, please contact the Owners/Brokers - Patricia Lorenzo or JR Fuller to discuss your concerns. We will do everything in our power to address your concerns. If we are unable to and you would like to cancel your contract, you may do so with 30 days written notice. If you cancel prior to us obtaining a tenant, a management fee equivalent to one-half of the starting rental price will be due.
Q: How can I help 85 & Sunny Property Management rent my unit?
A: There are many things that an owner can do to facilitate the rental process. It is important to keep your unit looking (and smelling) good. It is important to price your unit appropriately. If we recommend lowering the rent, the quicker that you do it, the quicker we will rent the property. Allowing us to put in on an electronic lockbox and fully advertise your property will allow it to rent faster.
Q: How will you help me determine how much I should rent my property for?
A: We will complete a rental analysis for you. This is our recommendation as to the market price for your property. It will also give you an idea how long it will take to rent your property. You are responsible for setting the rental price. The market will determine the price that people are willing to pay for the unit.
Q: How do I get started?
A: To start to market your property and begin service you need to complete and deliver to 85 & Sunny Property Management the following:
- Completed Property Management Agreement and paperwork
- 4 Copies of all Unit entrance keys
- 2 Copies of any additional keys (mailboxes, pool, etc.)
- Garage Door Openers, Key Cards, Access Codes, Security Codes applicable to unit
- $250.00 Maintenance Reserve / Authorization for Direct Deposit.
- Copy of your Condo / Home Owner’s Association Documents (preferably in electronic format)
Q: What is my Owner Website?
A: Each owner that does property management with us will get a private Owner Website set up where all of their information will be accessible 24 hours a day, 7 days a week. All invoices, photos, contracts and inspections for each property will be put in this one location. Notification of payment will also be put there.. This is secure and private and only you and 85 & Sunny Property Management have access to the information contained there. You will receive an invitation to your website after you have hired us. You can use any email address you wish, but GMAIL works best for access to the website.
Q: How do I access my Owner Website?
A: You can access your website at: Sites.85andSunnyPropertyManagement.com. Click on theDon't have an account at 85andsunnypropertymanagement.com? Sign in with a different account button and enter in the email address that you provided to us for access. (Hint: This works BEST with a gmail address). Hit GO and enter in your password used to create your gmail registered account. This will provide you access to your website. Contact our office if you are having issues.
Q: What's the 85 & Sunny Tenant Guarantee?
A: 85 & Sunny Property Management charges a month’s rent for tenant acquisition. ½ of that money is the cost of the services for 85 & Sunny Property Management. The other ½ is used to market the property and provide commissions to agents in the MLS.
If your tenant moves out during the first 6 months of tenancy either by abandonment of the property or through eviction for lease violations, you will not have to pay 85 & Sunny Property Management for an additional Tenant Acquisition charge. You will still be responsible to pay cost for marketing and agent commission (1/2 of month’s rent). There are certain conditions. See our 85 & Sunny Tenant Guarantee brochure.
Thank you and have and 85 & Sunny Day!
If you have any questions, please contact us at: 321-254-1353.