Here is a sample of some frequently asked questions we often recieve from investment properties owners about our rental property management services.
Why should I use a professional property management company?
There are many advantages in utilizing a professional property management company:
- Our expertise and experience will ensure that your investment is looked after professionally
- Suspicious or criminal tenants (grow ops, prostitution houses, drug dealers, etc) will generally avoid renting through professional agencies.
- Your identity is kept completely anonymous allowing us to maintain an arm's length control.
- The best tenants feel more comfortable renting with a professionally managed property as it gives them peace of mind that the owner is serious about the rental of their investment.
Should I rent my apartment as an unfurnished or furnished rental?
In our experience, we always recommend renting a property as unfurnished for the following key reasons:
- You can generally secure a longer term tenant who will take much better care of the property as if it was their own, thus preserving the condition and value in the long run.
- Furnished rentals tend to be shorter term, resulting in more tenant turnover and hence, more wear and tear leading to increased maintenance costs
- An unfurnished rental provide predictable and stable rental income whereas furnished rentals will encounter periods of vacancy (30% annually).
- With an unfurnished rental, you do not need to pay for utilities, linens, cutlery, etc.The maximum damage deposit is half month rent which may not amount to very much if you need to replace damaged furniture or electronics
How long does it take to find a tenant?
In most cases, it will take roughly 1 full calendar month to successfully place a new tenant. The reason for this is simple: as a tenant, you are required to provide your existing landlord with 1 full calendar month notice by the last day of any given month. Most tenants will either look for a new place to rent just before they decide to give notice or start looking right after they give notice. The good tenants (those who are prepared and organized) will find new places very quickly. As the month progresses, the number of available tenant prospects goes down and by mid-month, most will have all ready found new places rent. Therefore the best time to list a new property is 4-6 weeks before your desired tenancy start date.
What if my tenant breaks the lease agreement?
All leases signed through Urban City Rentals include a standard "Liquidated Damages" clause that simply states that should a tenant need to break their lease prior to the expiration of the fixed term (typically 1 year), then they would be liable to up to 1 months rent to cover your cost (the owner) to re-lease the property. Essentially, your costs is our lease up fee plus any miscellaneous charges that may be incurred in order to secure a new tenancy (ie. credit checks). Assuming that we are able to re-lease the property immediately right after the tenants move out without any loss in rental income, there would be no financial loss (or gain) for you as the property owner.
What happens if I decide to sell my property during the tenancy?
Should you decide to list the property for sale during the fixed term portion of the tenancy agreement, the tenant will have legal rights to stay at the property during this time, even if ownership is transferred to a new owner unless a "Mutual Agreement to End Tenancy
" is agreed to by the tenant. If the lease is a month to month term, then you must provide the tenant with 2 full calendar month's notice and also compensate them 1 month's rent for terminating the tenancy - unless the tenants agree to a "mutual agreement to end tenancy".
How are applicants screened?
All tenant applications are screened and processed through Tenant Verification Services
which is the #1 leader in North America in providing landlords and property managers with credit reports through both Equifax and Transunion. We strongly believe that a successful tenancy is created through the initial tenant screening and selection process. Through an exhaustive background check, that includes reference checks, employment verification, criminal records search, past landlord references, etc - we are able to ensure that your property is leased to responsible, financially stable and qualified tenants.
Do I have input into who is selected as tenants?
Absolutely! For every application that we receive, we will review them directly with you. We will either recommend or suggest alternation options in every case and the decision will be reached mutually to ensure you are comfortable with the decision and tenant selection.
What is the best price I can get for my rental property?
Every property and owner is unique and the we will review your specific rental objectives directly to ensure that the best possible rental income is achieved. Most importantly, our goal is to ensure that the best possible long term tenant is selected for tenancy at your investment. Pricing strategy is a crucial component as a completive yet aggressive price will attract a larger pool of tenant prospects, which in turn will allow you to select from a pool of the best candidates.