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Q: What property management services do you offer?
A: Rent collection, record keeping, emergency maintenance/repairs, and scheduled maintenance/repairs.
Q: What are the fees for your services?
A: Our management fee is for basic supervision of your property. We collect rent. We interface with the City to make sure violations are cleared, inspections are passed, and your property remains in good standing. We interact with rent-paying agencies such as the Department of Social Services (welfare) and the local Section 8 offices. The management fee is 10% of the rent collected. It is important to note that we charge only on the rent collected during the month and not on the rent due. In other words, we get paid based on our performance for you.
We do charge a fee to place new tenants at our rental properties. The tenant placement fee varies according to the monthly rental price of the unit. If rent is $500 per month, the tenant placement fee is equal to $500; if rent is $900, the tenant placement fee is $900. We guarantee our placements too: If your tenant should move out in 6 months or less (for an apartment) or 1 year or less (for a single-family home), we will locate another tenant for you at no charge. |
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To locate a tenant, we begin by saturating the market with advertising both online and with attractive branded signs on the property. We administer a thorough application process including a criminal/civil background check. We verify employment, check landlord references, and contact any rent-paying agencies involved. On move-in day, we execute our standard lease agreement and other documents necessary for move-in. We make sure units get inspected if required and coordinate repairs needed for compliance (DSS and Section 8 both require inspections prior to paying rent directly to the landlord).
We work closely with a maintenance company to perform repairs on your property as necessary. Lighthouse works in the role of general contractor with the maintenance crew, overseeing work and making sure it is done completely and properly. We also keep tight control of the cost of such repairs. In this way, we ensure that your bottom line is protected. In this role of general contractor, we typically charge a 20% markup on the materials and labor consumed by the maintenance company. We are also required to charge 8% NYS sales tax on any repairs. Capital improvements are not taxed.
Q: When will I receive my net rent payment?
A: During the first week of the month following the rent collection, we "close" our books and reconcile and balance our accounts and produce a monthly statement for you. After we've produced your statement and sent it to you, we will process your rent payment. Please note, other managers require a large deposit so they may draw expenses off monthly. We, however, do not, so long as the property has tenants.
Q: Will I receive a year-end statement?
A: Yes. We send a 1099 detailing your rental income for the tax year. You should save and forward your monthly statements to your tax professional along with the 1099.
Q: How often will the lawn have to be cut at my property?
A: Your lawn will be cut 2–3 times per month from May 1st to October 1st of each year. |
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Have more questions about our agency? Contact Lighthouse Management of Buffalo, New York, for a consultation.
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