MANAGEMENT Residential Property Management. Who We Are As - - PowerPoint PPT Presentation

ACTION 1 PROPERTY MANAGEMENT

Residential Property Management.

Who We Are

 As California licensed Real Estate Brokers, Action 1 Property Management (founded in 2006) uses our combined 30 years of experience and expertise into a winning team of professionals providing exceptional service and results.  Our #1 goal is to ensure that we are compliant in all facets of property management statutes, including California Department of Real Estate rules, HUD, local Fair Housing, California state Tenant Protection Act of 2019, and local rent stabilization ordinances.  As licensed real estate professionals we all abide by the Ethics and Code of Conduct rules established by our local real estate board - East Association

• f Realtors - as well as the California and National Association of Realtors.

 Action 1 Property Management is also a member of the National Association of Residential Property Managers and currently serve on board

• f our local chapter, and the Pleasanton Chamber of Commerce.

Cities Serviced

Single family homes, individually owned condo’s & townhomes, and duplex/triplex/fourplex or other small multi-family units in the following cities.  Dublin  Pleasanton  Livermore  San Ramon  Danville  Alamo  Walnut Creek  Castro Valley  Fremont  Hayward  Dublin  Pleasanton

Types of Management Services

 Full-Service Management: For property owners that don’t want the hassle

• f the day-to-day details of managing their own properties. We take care
• f everything for you.

 Tenant Finder Service: For property owners who wish to manage their own properties, but need assistance marketing the property and finding a qualified tenant.  Short-term Full-Service: Our hybrid service for property owners that need full-service management on a short term basis (min 3 months), then will self- mange after the initial term. Great for owners that will be travelling out of country for the summer.

Property Preparation

 We will assist property owner by recommending resources to prepare and ensure the property is ‘rent ready’.  Interior & exterior painting  Yard cleanup  Power washing  Updates  Carpet cleaning  Housecleaning  Window cleaning  Gutter cleaning,  Chimney inspection and cleaning  Compliance with safety requirements such as Smoke Detector. CO Monitors, and Water Heater Bracing.

Documentation

 We provide management agreement, lease listing, and disclosure documentation to owner to obtain as much information about the property as possible as well as any statutory disclosures required by law, prior to listing.  We also prepare and provide all necessary lease documentation to tenant after tenant is approved for leasing.  Copies of all documents are provided to Owner after completion.  Standard California Association of Realtors (CAR) lease documents are used for all parties.  DocuSign is used for electronic signing.

Property Marketing

 Perform initial walkthrough and prepare report of property condition  Photograph entire property interior and exterior for marketing, and to document property condition.  Post “For Lease’ yard sign (if allowed).  Place lockbox on property for showing agents to access property.  Post property ad on Action 1’s website. This listing is then syndicated to 25+ partner website for additional exposure (Zillow,Trulia, Realtor.com, etc.).  Follow up on all prospect leads (emails, calls) to prescreen and schedule showing appointments.  Show property in person by appointment.  Provide link to secure online application

Applicant Screening

 Review incoming applications per Fair Housing & State guidelines  Ensure applicant meets minimum published guidelines  Verify income documentation  Run credit report  Check previous rental history/landlord references  Check for prior eviction  Check for criminal history  Screening can also include checking social media sites, checking personal references

After Applicant Approval

 We prepare all documents for applicants signing  Collect rent & security Deposit  Perform final move-in walkthrough & photos at property  Obtain copy of renters insurance policy  Turn over keys on lease start date  Upload copy of file/documentation to Tenant and Owner Portals.

After Tenant Move-in

 Collect monthly rents  Manage all correspondence from tenant  Prepare and deliver any notices as required  Manage repair requests  Pay vendor invoices on owner behalf (gardeners, utilities, etc.)  Direct deposit owner proceeds to owners checking account  Send monthly income/expense statement  Annually visit property to check smoke detectors/carbon monoxide monitor

• peration, and proper water heater bracing. Also check general property

condition.  (does not apply for Tenant Finder Service)

Owner & Security Deposit Funds

 Funds are maintained in two separate Trust Funds at Heritage Bank of Commerce, Pleasanton.  Rent funds are placed in our Owner Trust Account. Funds in this account are used collected from tenants and used for paying vendor bills, paying management fees to Action 1 Property Management, and paying Owner Proceeds.  Owner proceeds are paid electronically to Owners, and Owner Statements are emailed to Owners on the 20th of each month.  Security Deposit funds are placed in our Security Deposit Trust Account and held there for the tenants entire tenancy. Security deposit funds are not used for any other purposes, funds do not into our out of this account for another other use. At end of tenancy, security deposit funds are transferred to Owner Trust Account for Security Deposit disposition.

Pets & Assistance Animals

 Pets may or may not be allowed at a property. The decision to allow/accept pets is at Owner discretion. Owner is allowed to place restrictions with regard to size & type of pet (example: Cats only, or Small dogs only under 10 lbs., etc.).  An increase to the security deposit can be collected per pet, as long as total security deposit and increased deposit does not exceed the maximum security deposit allowed by the state of California. We recommend a minimum of $500 per pet.  Tenants are required to register and create a profile for their pets on PetScreening.com, and there is a nominal fee to applicant for this service. Any applicant not willing to comply with this process may not be approved to lease.  There are exceptions to the above rules with regard to Assistance Animals (Service or Emotional Support). Assistance Animals are NOT considered Pets and landlord must make reasonable accommodation to allow the animal per HUD & Fair Housing guidelines. No additional security deposit may be collected for an Assistance Animal.  Applicants must request a reasonable accommodation for Assistance Animals and provide proper documentation.  Assistance Animals must also be registered with PetScreening.com to ensure guidelines are being met, but there is no fee to applicants.

Security Deposit Maximums

 In accordance with the State of California law, there are maximums imposed on how much can be collected for security deposit funds. Owner can decide on security deposit amount for property, up to the maximum. We recommend at least rent amount + $1000 (except for active military).  Active Military – Maximum of 1 times rent amount as security deposit  Unfurnished properties – Maximum of 2 times rent amount as security deposit  Furnished properties – Maximum of 3 times rent amount as security deposit.  Security deposits are 100% refundable to the tenant upon move out – unless there are damages or other cleaning charges or fees the tenant would be responsible for.

Section 8 & VASH Vouchers

 Per the new law in effect January 1, 2020, landlords are no longer allowed to deny an applicant on the basis of a Section 8 or VASH voucher.  Voucher value must be considered as qualifying income.  Notice periods for rent increases and termination of tenancy, may extend some notice periods from 30 or 60 days, to 90 days.  Properties under the Section 8 & VASH voucher program may be subject to annual inspections by the housing agency. If deficiencies are found, housing agency will require repairs to be made in a timely manner Non compliance will result in suspension of payments until deficiencies are corrected.

End of Year Accounting

 Action 1 Property Management will provide the following to property

• wners at end of each calendar year:

 1099 for all rental income  Income/Expense Statement showing all income and expenses for the calendar year.  Prepare and send 1099’s to Vendors for all services that exceed $600 in calendar year.  Prepare and send statements for any Franchise Tax Board Withholdings required for out-of-state owners.

Out of State Owners & Withholdings

 The State of California requires an out-of-state property owner to file California State income tax return on any income received on rental property in the state of California. To ensure a property owner claims their California rental income, the Franchise Tax Board (FTB) requires all professional property management companies to be Withholding Agents for the FTB.  Compliance is mandatory, and all parties are subject to fines for non-

• compliance. FTB does randomly perform audits (we have had two since

2011).  Action 1 Property Management must withhold 7% of monthly rental income and remit the funds to the FTB on a quarterly basis as pre-paid state taxes.  There are forms available for exemptions or reduced withholding on the FTB

• website. Action 1 Property Management cannot make recommendations
• n which form you should use. Consult with your CPA or tax-professional to

determine your best options.

Technology for Management Services

 AppFolio Property Management software is used for managing the accounting of the Property, Owner, and Tenants. From listing vacancies to

• nline tenant payments to end of year accounting, AppFolio provides all

the power we need to manage everything on a day-to-day basis.  TenantTurner.com is used for online appointment scheduling for available

• properties. Tenant Turner provides pre-screening capabilities to ensure we

are targeting prospects that will be a potential fit for the property.  PetScreening.com is used for applicants to provide detailed information, vet records, spay/neuter records, vaccination records, photos, and any

• ther relevant information to create a pet profile.

 MyWalkThru.com is an app we send to tenants that allows them a platform to conduct their own walkthrough when taking possession of a property. It is optional on the part of the tenant, but is available to provide an extra layer of documentation of property condition at move-in.

FEES

Full-Service Management

 No up-front Leasing Fee  10% of monthly rent per month  No annual Lease Renewal Fee  No monthly fee during vacancy period  Includes all services mentioned in previous slides  Optional: $300 additional minimum fee to be listed our real estate Multiple Listing Service (MLS). This is not required, but available Owner wishes to be listed on MLS.

Tenant-Finder Service We find tenant, Owner Manages

 Fee is 60% of one month rent.  Includes Advertising, showing property, tenant screening. Lease prep  Includes move-in walkthrough  Includes move-in photos  Includes link to My Walk Thru for Tenant  Optional: $300 additional minimum fee to be listed our real estate Multiple Listing Service (MLS). This is not required, but available Owner wishes to be listed

• n MLS.

 Additional walkthrough (at move-out, or annual) $ 250.00  Provide notices (termination, rent increase, 3-day) $45.00/per  Project Management (oversee major project) $75.00/hour  Management fees during vacancy over 60 days $150.00/month

Full-Service Management, Short Term (3 month minimum)

 Includes all services of Full-Service Management  Upfront Fee of 55% of one month rent  Monthly Management Fee of 6% per month.  Optional: $300 additional minimum fee to be listed our real estate Multiple Listing Service (MLS). This is not required, but available Owner wishes to be listed

• n MLS.

 Additional walkthrough (at move-out, or annual) $ 250.00  Provide notices (termination, rent increase, 3-day) $45.00/per  Project Management (oversee major project) $75.00/hour  Management fees during vacancy over 60 days $150.00/month 

Office Information Office Hours: 8:30am-5:00pm, Monday – Friday, except Holidays Evenings and weekends by appointment only, if available PLM Inc Action 1 Properties Action 1 Property Management Patricia Manzi, Broker/Owner 4695 Chabot Drive, Suite 200 Pleasanton, CA 94588 925-884-3844 info@action1pm.com www.action1pm DRE NO. 01998629 & 01439811