- Can I request not to allow pets?
- What does Mavi charge for management fees?
- I purchased a Blue Ribbon Warranty that covers all of the appliances, the hot water heater, and the furnace. Can I mandate that Mavi use the warranty when a repair is necessary?
- Can Mavi help me to find other quality investment properties?
- What will you do if my tenants don’t pay their rent?
- How much maintenance will need to be done at my rental?
- How much does maintenance cost?
- How long will it take to find a tenant for my vacant rental?
- How long will it take to find a new tenant for my rental property?
- How much can I increase rent by every year?
- What if my tenant only pays a portion of their rent? How will you collect the rest?
- Why does it take so long for Mavi to disburse my rental income?
- Why do I need to pay for repairs caused by my tenant?
- Once a tenant leaves, can Mavi get my tenants to reimburse me for damage they caused my rental?
- Why do I need to pay for repairs once my tenants leave?
- Why does Mavi insist on holding my tenant’s security deposit?
- What sort of criteria does Mavi take into account when approving or denying a potential tenant?
- Can I use my own contractors to do work on my rental property?
- What is involved with an eviction and what are the costs?
- What happens if our property receives a violation from the city for trash, weeds, grass in need of mowing, etc.?
- How do you handle calls about excessive noise or other complaints about my tenants from their neighbors?
- What if the rent does not cover the cost of the monthly mortgage?
- I have a beautiful yard and garden, how do I make sure it stays that way?
- If the lease states that the tenants are responsible for mowing the lawn, what happens if they do not mow?
- How often do you do have issues associated with Methamphetamine manufacturing or other drug related issues?
- Are most tenants bad?
A: Deciding to allow pets or not is your decision. In a perfect world of rental management, we would also choose not to allow pets, even though we love dogs and many of our employees own them. But if you advertise “No Pets”, you are going to eliminate about 50% of the rental pool. There are certainly occasions where there is pet damage, but there are many more instances where tenants with pets take better care of the property than non pet owners. Also keep in mind that the pet deposit will usually cover any extra damage.
A: While that will most certainly give you more tenants to choose from, it is not a wise move. First of all, if they cannot afford the entire deposit, the chances that they will not be able to afford the ENTIRE rent amount in the future greatly increases. Also, 50% of the security deposit never seems to cover all of the necessary repairs upon move-out.
A: We charge 10% for 1 unit, 9% for 2, 8% for 3 to 20, and 20 and above is determined on a case by case basis.
A: Our owner is an investor himself, and understands the importance of minimizing the expenses associated with an investment property. That being said, it is of equal importance to make sure that the item in need of repair is done by someone that we trust will do the job correctly. In addition to that, it is not the best idea to send someone into a rental that we have never met, so the answer to this question is NO.
A: Yes, Mavi is a full service real estate brokerage firm specializing in real estate as an investment vehicle. Real estate investing is our specialty because it is our passion. We don’t just look for property based on what you can afford, we run all of the numbers that are critical in the purchase of investment property, i.e. market rents, sub market drivers that may effect rental rates in the future, maintenance and repairs that will be necessary to bring it up to rental standards, jobs and transportation in the area, crime rates, return on investment or ROI, appreciation rates, etc.
A: If tenants do not pay rent in a timely manner, we will initially post their rental (on the front door) with a “3 Day Demand for Rent or Possession.” This notice gives us the legal authority to evict after three business days. We will begin charging any applicable late fees as soon as the tenant’s lease allows us to do so (i.e. on the 3rd of the month if the tenant is on a Mavi lease). We will notify you via email that the rent has not been received, and will fill you in on your options regarding eviction.
A: This can differ greatly depending on the type of dwelling (A 4 bedroom single family home will typically require more upkeep than a studio apartment.), age, and level of past deferred maintenance. The important thing to keep in mind is that maintenance is a normal part of being in the rental business. Routine maintenance should be expected and budgeted for.
A: Again, this will differ greatly on the scope of work, but in general, a handyman will cost around $45/hr, HVAC will cost around $80, and a plumber will cost around $50/hr. Please remember that Mavi will contact you for approval on any repairs exceeding the limit stated in your management agreement (with the exception of a true emergency).
A: Again, this will differ greatly from property to property, but generally speaking, if the rental is 100% move-in ready, there is a direct relationship between your willingness to drop the rental price and the amount of time it takes to locate a tenant. Take our advice, we will let you know what we think a reasonable rate to advertise will be, and if we aren’t getting interest in your property, it makes more sense financially to consider a small discount vs. waiting an additional month, hoping to grab a higher rent.
A: This will vary on a variety of factors. The best advice we can give is take our suggestions on pricing and tenant approval seriously. 99% of the time, a lack of interest in a rental property is due to pricing issues. As a landlord, your monthly mortgage payment should not be what determines your rental price. Rent should be based on what the market will support, and unfortunately, tenants do not take your personal finances into account when deciding how much are willing to pay in rent.
A: This answer will depend on a number of factors:
How is the economy/rental market? If housing is plentiful, and the vacancy rate is high, a tenant will have very little incentive to pay an increased rent. During periods of very low vacancy rates, a tenant’s options will be very limited, and a rental increase can be appropriate. For the most part, during a robust economy, we suggest an increase of between 4-7% depending on the location. At the same time, many owners will choose to level the rent untouched for a quality tenant that does not require a lot of maintenance costs, etc.
A: If your tenant only pays a portion of their rent, Mavi’s possible actions can be very limited. Our only way to enforce payment is the threat of additional late fees, and ultimately, eviction. If your tenant’s rent is say, $1000, and your tenant only pays $800, you will need to decide if it is worth evicting your tenant over this $200. More than likely, it will be more financially sound for you to allow Mavi to work with your tenant on getting caught up rather than immediately evicting your tenant, and facing the extra court costs.
A: While we typically disburse funds between the 15th and the 25th of each month, our management agreement states we have until the last calendar day of each month to give you your money. We do this for a couple of reasons:
- It allows us to have sufficient time to pay any bills associated with your rental.
- It gives us time to track down late rent from your tenants.
- It gives us time to ensure that your tenant’s check clears the bank before we cut you a check.
A: Tenants will cause some level of damage to your rental, it’s inevitable. The question becomes how much damage they cause. If a tenant calls us for a repair and we discover that the damage was done by your tenant, we will enter the amount of the repair in their ledger. This amount will be added to any money owed for rent, late fees, etc. and your tenants will be made aware that their account is deficient. At the same time, we realize that tenants will not necessarily send us a check simply because we ask for one. Our vendors expect to be paid within a reasonable time frame, so we will first pay for the repair out of your account, and seek reimbursement from your tenant later on.
A: We will first turn to your tenant’s security deposit as a source of reimbursement…..this is precisely why we collect them up front, before a tenant moves in. Any money owed for damage above and beyond this security deposit can not be guaranteed to be collected, but we will make our best efforts to do so, usually through an outside collection company.
A: Similar to our problem of repairs caused by tenants, we will require you to pay for any invoices initially, and we will then reimburse you the appropriate amount out of your tenant’s security deposit. Any amount owed above and beyond your tenant’s deposit will be left up to our collection companies after giving the tenant an appropriate amount of time to pay.
A: A few reasons:
- The Colorado Real Estate Commission requires us to notify tenants of who is holding their money, so if one of our clients chooses to keep a security deposit, we will be required to give your tenants your home address and any contact info (phone numbers, email, etc.).
- In our experience, most owners receive a deposit from their tenants, and then spend these funds. Often, once a tenant moves out, the owner of the property does not have the funds to pay back the security deposit (which should not have been spent in the first place).
A: We take into account a variety of factors:
- Credit – A potential tenant’s credit report is the quickest and easiest way to see how financially responsible a person may be as a tenant. Someone with multiple late payments or collections from credit card companies has a history of not paying on time, and there is no reason to assume that they will be more responsible when dealing with their rent payments. Collections from other management companies or apartment complexes show a willingness to leave a residence before making good on monies owed, and if this has happened once, there is a strong possibility it will happen again to you.
- Work history and Income – Does this person make enough to afford your place? If you have two tenants, what would be the outcome if one of them lost their job? How long have they been employed? Someone who skips around from job to job may be more likely to experience unemployment than someone with a proven track record or stability.
- Rental history and evictions – current landlords are a great reference, but sometime previous landlords are a better one simply because they have no incentive to tell you things that are untrue (if you have a bad tenant, right now, an easy solution may be for you to tell a new potential landlord that sure, this tenant is great, pays on time, etc.). If a landlord tells you that their tenant left owing a balance on rent, or heavily damaged the place, this will usually be a good indication of how quality of a tenant they will be for you.
A: Although we would prefer that you did not, we understand that clients are looking to save money sometimes, and they may want to rely on cheaper labor than we can provide. Our only requirements will be that:
- Your contractor must be able to effectively communicate with us (i.e. if we ask for a status update, and your contractor is not able to return a call/email to us, this is a problem.
- Your contractor must carry liability insurance. We do not want to allow any vendor into one of our rentals
without the appropriate insurance.
- If we are paying your contractor, they need to understand that we will not pay them upon completion. They must adhere to Mavi’s 30 day billing policy.
A: In order to start the eviction process, we have to send a copy of the lease, and the 3 day posting to our attorneys. Our attorney then calls with a court date and post the court notice on the door of the rental property. If the tenant shows up in court, the judge will make their decision. If the tenant(s) do not show up, the judgment is automatically with us.
The cost associated with an eviction is $235.00 for attorney’s fees, $150 for sheriff’s fees, and then the cost of removing the items remaining in the property, which is $35.00 per hour. The sheriff determines how many people need to be involved in the move out based on how much is left and will affect the cost hauling fees.
A: Mavi has a 3 step approach to this problem….once a violation for the city is received we will:
- Forward the violation on to the tenant (they will receive a copy taped to their door by the city as well) and call the tenant to let them know a violation has been received. We will give the tenant a firm timeline to handle the issue.
- Contact the city inspector who issued the citation and see what we can do to extend the timeline/be granted an exception.
- Monitor the timeline given to the tenant and verify ourselves that the violation has been handled. If the tenant has not taken care of the issue, we will send a contractor out to handle the problem, and charge this invoice back to the tenant (you will still need to pay initially).
- If for any reason a fine is incurred despite our efforts to mitigate the problem, we will charge this fine back to the tenant (you will still need to pay the invoice initially). We will leave the option of evicting for the balance of this violation up to the client’s discretion.
A: Once a complaint is received, we will call your tenant, and send out a warning letter as well. If complaints continue to be a problem, we can attempt to eviction based on the client’s preferences.
A: While we will do our best to bring in the highest dollar amount the rental market will bear for your rental, your mortgage payment will not necessarily coincide with the rent a potential tenant is willing to pay. Consequently, your expenses should not be reflected in the asking price of your rental.
A: For clients that have put a lot of sweat and money into a meticulously manicured lawn or landscaping, this can be a real issue. Clients should keep in mind that tenants are temporary fixtures to a rental, and will most likely not be permanent residents. That being said, tenants will inherently not have the desire to care for a lawn the way an owner of the rental would…if a tenant is only going to be living in a rental for 6 or 12 months, they will simply not have the incentive to water appropriately, monitor for weed growth, etc. If there is a legitimate concern about landscaping being exceptionally cared for we recommend that clients offer to pay for landscaping and pay for the water bill (or ½ of the water bill) during the spring/summer to entice the tenants to water more often.
A: We first call the tenant and also send a letter giving them 3 days to mow. If they have not mowed by the 3rd day, we post them with a 3 day notice again mandating that they mow by the specified date. If they have not complied by the specified date, we send our landscaper to mow the lawn. The tenant will be billed for the invoice but some refuse to pay. Our options are to evict, or the owner pays the invoice. At the end of the invoice, we pull the mowing invoice(s) out of their security deposit and reimburse the owner.
A: While we have been fortunately enough to never have to have dealt with a meth lab in one of our rentals, drug issues will certainly come up. The recent influx of medical marijuana cards, etc. makes this more and more common. For our part, all of our leases have a “Drug and Crime Free “lease addendum signed by all tenants that prohibits the use, distribution, or manufacturing of any illegal substances. If a problem with a tenant is brought to light, we would immediately pursue eviction.
A: This somewhat of a loaded question…..while all tenants are certainly not bad, owning rental property entails dealing with a variety of tenant issues. Mavi’s goal is to provide a clean, safe, and functional environment for all of our tenants. If our clients are taking our advice, and doing everything within reason to ensure our rental properties meet these three conditions, then we can rest easy on the fact that we are doing everything possible to create a happy and welcoming environment for our tenants.