Landlord FAQ What services will I receive for the management fees collected on my rental income?

• Advertising of the vacant property.
• We will perform a credit background check, check previous rental history, and check to see if the applicant is employed.
• On the landlord's behalf we will negotiate rental agreements, collect rental fees and deposits, issue keys to the tenants and make sure the keys are returned once the tenant leaves. We will also perform drive by inspections of the property on a monthly basis.
• We will perform interior and exterior inspections of the property on a quarterly basis.
• Upon the tenants moving-out and before new tenants move-in we will contract house cleaners and re-key the door locks.
• Tenants will be served with late notices as required.
• Arrange, manage, and pay for all required repairs and maintenance (all costs over the owner's reserve fund must be authorized and paid for by the owner). Each month you will receive an itemized statement and copies of all work orders and invoices associated with your property along with your monthly check.
• For additional fees, we will pay your mortgage, property taxes, and home insurance (fees will be negotiated depending on owner's requirements).
• At the end of each year you will receive a 1099 and an income statement.
• All tenants will be provided with a 24-hour emergency number.

As an owner, what other expenses will I be responsible for separate from the management fees?

• Initial reserve fund setup of $300.
• Maintenance, utilities, and cleaning costs that might occur while the property is vacant.

Why does CENTURY 21 Butler Realty, Inc. want an owner's reserve fund?

• The owner's reserve fund is used to cover repairs, cleaning and maintenance as required. We recommend the amount of $300. This allows us to perform repairs, cleaning and maintenance up to this amount without having to bother the landlord. We will negotiate for more or less, depending on the landlord's opinion.
• CENTURY 21 Butler Realty, Inc. must receive the money when the property management agreement is signed.

Why do I pay one month's rent for tenant placement only?

• This percentage covers our cost of advertising your property, screening the tenant, photographs, placing it on our website, drive time, and the general administration costs associated with this package.

Are there any advertising costs that I will be expected to pay?

• CENTURY 21 Butler Realty, Inc. advertises your property on our website, on the Multiple Listing Service, on Craigslist and The News Press. Color fliers will also be located in our office.
• Any additional advertising will be at the owner's expense.

What if I need my mortgage payments made?

• For an additional fee CENTURY 21 Butler Realty, Inc. will pay your mortgage, property taxes, and home insurance (fees will be negotiated depending on owner's requirements and a special reserve fund must be in place for the amount of the first month's expenses).

Who will perform maintenance, repairs, and cleaning?

• We have a comprehensive list of contractors and service providers, who have proven their reliability, to ensure every detail of your property is handled quickly, efficiently, and cost effectively.

Will I be contacted if my property is in need of repairs?

• The owner's reserve fund gives us permission to conduct repairs up to the full amount of the funds in reserve as written in the management contract. The reserve fund will then be reimbursed from the monthly rental receipts.
• Any cost over the amount of the reserve fund will require CENTURY 21 Butler Realty, Inc. to contact the owner, unless the delay in repairing the property will cause harm to the tenants or nearby residents.

What deposits will you collect from tenants before they move into my property?

• Prior to move-in the tenant(s) must provide first months rent and a security deposit equal to one mothns rent (security deposits are refundable upon move-out unless repairs are to be made), and a pet fee if required.

Where are security deposits placed?

• By law, security deposits must be placed in a federally insured financial institution. No interest may be earned on these funds by CENTURY 21 Butler Realty, Inc.
• Security deposits are used to make repairs caused by the tenants during their stay in the rental property. The funds are returned to the tenant if no damages occur as a result of the tenant's actions.

What happens to tenant late fees?

• All late fees are held by CENTURY 21 Butler Realty, Inc. as management fees.

How does CENTURY 21 Butler Realty, Inc. determine the rent for my property?

• We determine the rent for your property by knowing the local market conditions and by comparing your property to like properties (that is, properties of similar size and location).
• One may consider it ideal to have your rental income cover your mortgage, insurance, taxes, maintenance costs, etc. Your rental income may not cover this amount due to the market conditions or the condition of your property.

Do I have to rent my property to smokers?

• We strongly encourage a non-smoking policy for rental properties. Cigarette smoke tends to linger for a long time and may make your property less attractive to future non-smoking tenants.
• Legally we cannot say No Smokers, but it is legal to say No Smoking in this dwelling.

Will I be required to allow pets?

• Allowing pets is at the landlord's discretion.
• We will meet the pet so that we know its size, the nature of its temperament, and the breed.
• We will collect an additional security/pet deposit from the tenant for pets.
• If the landlord allows pets, it is up to the landlord to specify the type of pets,the size of the pets, how many pets are allowed, and the amount of the pet deposit.

When will I receive my rental income?

• Rent is due on the first of the month regardless of the date the lease is signed by the tenant.
• All checks and monthly statements will be sent to the property owner by the 15th of each month.
• We can also deposit funds directly into your bank account but we will need you to give us deposit slips for the account.

As a property owner what are my responsibilities?

• You must maintain the inside and outside of the property for the duration of the tenants lease.
• You as the landlord are responsible for all repairs and maintenance due to general wear and tear, old age, etc. The tenant is of course responsible for damages caused by the tenant.
• We also recommend that you put aside each month a percentage of the monthly rent to cover future maintenance and repairs (painting, leaking roof, carpet, flooring, etc.) or any unforeseen problems that may occur.

How long does it take to place a tenant in a property?

• Finding the right tenant, and qualifying them, may take time.
• The time will also depend on the market conditions, location, size, age, condition, price, etc. of your property.

How is my property kept clean?

• CENTURY 21 Butler Realty, Inc. will arrange for all cleaning prior to move-in and after move-out. This will be paid for out of the owners reserve fund, or the previous tenants security deposit; depending on who is responsible for the cost.
• While the property is being leased, the tenants are responsible for keeping the property clean and for general yard maintenance.

What are the risks in renting my property?

• At some time during the rental of your property there may be a need for a major repair or the eviction of a bad tenant. There is no guarantee that there will be no problems. However, we feel with our management strategy your risks should be minimal.

What do I do if the tenant leaves before the lease expires?

• According to the California Landlord Tenant Laws, a tenant who leaves before the lease expires is required to continue paying until the property is re-leased or the lease expires.

Copyright © 2003 CENTURY 21 Butler Realty, Inc. All Rights Reserved. Information Deemed Reliable But Not Guaranteed. Neither CENTURY 21 Butler Realty, Inc. nor its service providers are liable for any errors or inaccuracies in the information provided through this website. © 2008 Century 21 Real Estate LLC. CENTURY 21© is a registered trademark licensed to Century 21 Real Estate LLC. Equal Housing Opportunity. Each Office is Independently Owned and Operated.. "Average A Home A Minute" represents an average based upon all homes bought or sold through CENTURY 21© Franchises during 1996. Equal housing opportunity.