Investor FAQs
How much rent can I get for my property?
How long will it take to rent my property?
What do your designations mean?
How do you screen for good residents?
How is advertising handled?
What should I do to my property to prepare it for a new resident?
What length of lease do you recommend?
How is maintenance handled?
Who handles problems during the night, on weekends, and holidays?
What about habitability requirements?
What happens if the resident does not pay the rent?
What happens if th tenant bounces their rent check?
Can you help me if I already have a resident?
Who pays for repairs after a resident moves out?
What bills can you pay and when?
Do you hold funds in reserve?
How can I get my statements online?
Who holds the residents security deposit?
When do I get reports and when do you send me money each money?
What if the resident breaks the lease?
How often do you check on my property?
Does retaining a management company mean I won't have any problems with my property?
How much rent can I get for my property?
Factors that influence what a property will rent for include size, location, age, condition, features and amenities, time of year, supply and demand, etc. As professionals in the industry, we can provide for you a comprehensive market analysis for your distinct property that compares recently rented properties with yours to pinpoint the correct price range. It is a fact the neither the owner or the property manager determine the rental rate. The rental rate is determined by market demand which is ever-changing and one good reason for hiring a professional property manager who is well versed in market indicators.
In order to obtain the highest possible rent for your property, we will start the asking price on the high end of current market rates. Then our staff meets weekly and discusses every available property to determine changes in marketing mix, strategies, and opportunities until the property is rented.
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How long will it take to rent my property?
Our goal is to rent your property within 30 days. By following our pricing strategy that should be achievable. An overpriced property may never rent. Your property manager is the best person to talk to about how to get the job done in 30 days. To achieve the best rent and shortest vacancy, your property needs to be in good, clean condition, and priced right because every day it sits vacant costs YOU money!
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What do your designations mean?
Rocky Mountain Property Management, Inc. is one of four firms in Colorado (and only 35 nationwide) to have achieved the Certified Residential Management Company (CRMC®) designation which symbolizes the successful completion of a rigorous audit of policies, procedures, and business methodology through the National Association of Residential Property Managers (NARPM).
In addition, Susan Albern, the principal broker, has earned the Residential Management Professional (RMP®) and Master Property Manager (MPM®) designations which attest that the designee has accomplished extensive continuing education and service requirements in the field of property management. The designee demonstrates high ethical standards and a commitment to excellence in this field of real estate.
Education is a core value of our firm, and our staff members regularly attend a variety of training opportunities.
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How do you screen for good residents?
We require a detailed written application from each person over the age of 18 who will occupy the property. We then collect data on the following:
Previous landlord references:
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Income source and level: Legal and verifiable monthly income should be at least 2.5 to 3 times the rental amount. Ideally, we want to see 2 years employment stability in the same job or field. Housing assistance programs may be used to income-qualify an applicant. |
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Credit report: We use the credit report to tell us if an applicant has a history of honoring contractual agreements and paying bills on time. Applicants with low credit scores will likely need to pay a higher security deposit or have a co-signer. |
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Court/criminal actions: If there is a felony, drug conviction, or eviction within the past 5 years, the application will be automatically denied. |
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How is advertising handled?
We start the marketing process at the time we receive a 30-Day Notice from your resident or at the time we sign you up for management. Your property will appear on our vacancy list as well as on our website. We can also put a sign on your property giving drive by rental prospects access to text messaging about your specific property. We will also advertise your property using a marketing mix of local and national rental advertising sites as well as in the local newspaper. The cost for internet databases and newspaper advertising is much less than you would pay if you did it yourself as we pass much of the discounts we receive for annual contracts on to you. Most owners should budget to pay approximately $125 per month. Please note that unless you specify you want us to use ALL of these sources at a higher cost, we will mix it up and when callers call from ads on your property or others that are similar, we will tell them about all properties that may match their needs and wants. This helps contain your costs which could be as much as $250-$300/month!
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What should I do to my property to prepare it for a new resident?
After price, the most important controllable factor in renting a property is condition. The bottom line is that your property will get what it attracts, so it needs to be safe, clean, and in good condition to attract the best quality tenant. The walls should be freshly painted (or appear freshly painted), carpets clean with no tears or loose areas, clean appliances, clean kitchen and bathrooms, and clean or new blinds. Finally, the yard should be in good condition in both front and back. We are happy to inspect the property for you to help get the most out of your renovation dollars. Our company is full service and can provide all vendors needed to get your property "rent ready" quickly and for a good price. Any discounts we receive from vendors, we pass on to you.
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What length of lease do you recommend?
We normally recommend a one year lease; however, during the slower winter months, we may consider shorter terms.
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Residents are instructed to call, email, or write to us with their repair requests. We will then compare the request to our history of maintenance on your property. We also keep on file your dollar limits for repairs as well as your contact information. Most callers need routine assistance and we are able to help them either by walking them through a simple procedure or by scheduling one of our technicians or vendors. Our company has made the extra effort to obtain a General Contractors License. This complimentary services allow us to quickly address most of your property's needs without have to make a phone call to a 3rd party vendor, and all of our technicians are trained to identify repairs caused by normal wear and tear versus tenant negligence or neglect. We are more efficient and we know that the proper licensing and insurance (worker's compensation and liability) are in place at all times for both our services and the services of specialty subcontractors like plumbers, carpet cleaners, electricians, and roofers.
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Who handles problems during the night, on weekends, and holidays?
Don’t worry, you won’t be getting the 2:00 a.m. calls! Our 24-hour emergency service technicians will take the residents call. We will then talk with the resident to determine how to proceed. If a reported problem is causing a health/safety risk or is risking severe damage to your property, we will be there, no matter if it is day or night! If it is something that can be addressed during regular business hours for the sake of lower costs, we will handle it the next business day.
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What about habitability requirements?
They are requirements to which all owners of residential rental property must adhere. They are enforceable by the local city or county building department. Failure to maintain your property to these standards may subject you to fines, lawsuits, or the shutting down of your rental. As professional property managers, we know the federal, state, and local laws of each community we serve, some of which are very detailed and complicated.
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What happens if the resident does not pay the rent?
If your resident does not pay rent as agreed we will make contact with them soon after the rent due date. For our leases, rent is due on the 1st of the month and considered late after the 3rd of each month. If we have not received rent by the 4th of the month, we post a Demand for Rent or Possession. This will start a process known as an unlawful detainer which unless rent is paid, may include a court trial, but normally does not. The resident may move at any time, we may obtain a court order to move the tenant with the assistance of the local law enforcement, or we may obtain a stipulated judgment where the resident is ordered to pay back all monies owed, including future rents that come due during the payment schedule, or face an eviction without another judgment. You are responsible to pay for all legal costs unless you purchase "Eviction Insurance" as a part of your management fees with us.
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What happens if the tenant bounces their rent check?
As soon as we determine a rent check has bounced we will process it and notify the resident that the rent is now owed along with a processing fee and a late fee. If necessary we will serve the notice that starts the eviction action and pursue any and all legal means to collect. In Colorado, check fraud can result in a treble damage award to the payee of the check. Most residents end up clearing the check, but it may delay your statement and funds.
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Can you help me if I already have a resident?
Yes. We may have to continue using your lease until it concludes, or we may be able to sign your current resident onto our lease. In cases where the resident is behind in their rent we can take the necessary steps to either get them to pay or evict if we cannot obtain payment. Many residents will suddenly find a way to pay the rent or move as soon as they hear that we are in place to follow through with all collection issues.
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Who pays for repairs after a resident moves out?
After the move-out inspection, we will determine who is responsible to pay the bills to bring the property back to the condition it was in prior the resident moving in. You are allowed by law to charge the resident's deposit for rent, damages above normal wear and tear, and cleaning. If the have dishonored the lease, costs for utilities, lawn care, and advertising may also be added through the lease expiration date or the date on which the home was re-rented whichever is shorter. We will charge the resident for everything that they should be charged for. We will compare the move in condition (we do a written move in condition report) to the current condition. We want you to know that we consider this an important time in the management cycle, and we will protect your interests. We can use the resident's security deposit to pay for all or part of the bills. If the resident's deposit does not cover the costs, then you will have to pay the balance. In that event, we will bill the resident and turn them over to collection if the amount due is not paid promptly.
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What bills can you pay and when?
We can pay bills associated with your property including maintenance bills, utilities, taxes, insurance, and mortgages. After the rents come in we pay mortgages and utilities first. Then we pay any other bills and begin sending owner proceeds checks.
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Do you hold funds in reserve?
All accounts are required to maintain a reserve amount. This is to cover any charges or maintenance bills that might be incurred when we do not have rents to cover those costs. The amount is determined depending upon the monthly requirement for routine bill paying.
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How can I get my statements online?
We can upload your monthly statement online in PDF format and provide you with a login and password. Once in the system the online instructions will explain how to see your past reports and invoices from each month. The reports are inserted as they become available each month from our accounting department. We are not putting our internal database online so your funds with us are secure. If you choose to receive your funds via ACH (wired directly into your checking account) then we will have eliminated the mailman and saved you both time and money.
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Who holds the residents security deposit?
We hold the resident's security deposit in our trust account until it is paid back to the resident or used for rent, cleaning, or repairs upon their move out.
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When do I get reports and when do you send me money each month?
Funds are disbursed and reports sent no later than the 10th of each month (weekends and holidays can delay owner proceeds checks to the next business day).
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What if the resident breaks the lease?
If the resident moves without notice we will retake possession and contact you. The remaining time on the lease will be billed to the resident as it comes due. You are required to rent the property at the same rent rate in order to mitigate the past resident's liabilities and enforce the lease they signed. If no funds are paid by the moved out resident, we will turn the amount owed into collection.
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How often do you check on my property?
Even with the best screening techniques, the greatest ‘unknown’ is how a resident will care for your property. That is why we schedule an interior visit about 90 days after the resident moves into your property. In addition, we have a routine schedule for interior visits to change furnace filters, activate irrigation systems, and maintenance checks. In all instances, our trained maintenance technicians report any concerns.
In the Colorado arid climate, it does not take long for a lawn to deteriorate, so we are by every property we manage every two weeks during the growing season and once per month during the late fall, winter, and early spring months. At every visit, we enforce the lease to the best of our ability so that the security deposit is intact when a resident moves. If we find something as minimal as a damaged or missing screen, we notify the tenant to correct problems or we fix and backcharge the resident right away. That way the security deposit is intact upon move-out. Our staff uses a checklist, and if any risk factors are noted, we take immediate action to ensure that your investment is protected.
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Does retaining a management company mean I won't have any problems with my property?
Probably not. If you own rental property then over a period of time you will have problems of one sort or another. Whether the problems are related to maintaining the property or dealing with the tenant, there will be problems that need to be resolved. We do the best we can to protect your investment with careful screening and monitiring, but sometimes even the unexpected happens. Our experience will help reduce the number of problems related to rental property. We can't keep all bad things from happening but we can handle solving the problem for you so that you don't have to handle it yourself.
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