Owner Resources

Frequently Asked Questions

• Do you have electronic and automated systems set up? E.g., online portal.

  Yes, not only do our owners each have access to an online portal, so do our residents. This makes things like document signing, fund transfers, maintenance requests, and owner statements so much easier and transparent between all parties.

• Who holds the security deposits?

  We hold onto all security deposits on the resident’s behalf. We hold these in a dedicated trust account as required by law. At the time of move out we will assess the home for any damages or cleaning fees and disburse the remaining funds back to the resident as necessary within the mandated timeframe for our state.

• What is your philosophy on repairs and replacement? Do you try to find the least expensive solution or do you prefer a more expensive option to create a repair or replacement will last?

  We have found in our professional experience that it is best to use mid-level parts for our repairs. We found that using the least expensive products led to the item ultimately costing more with more frequent replacement. However, we assess each situation and make sure any repairs being made make sense to both save cost and protect the asset.

• During the pandemic, how successful have you been at rental collection?

  While there have been moratoriums in place that have allowed some residents in hardship to delay their rent payments, we have stayed on top of all government regulations and guidelines so that we can be as proactive and informative as possible with all our clients and customers.

• When do you suggest that I have an occupied property evaluation performed by your office?

  We suggest an occupied property evaluation be performed every 6 months at a minimum to verify the condition of the property. This provides a proactive approach so that we can catch any potential issues before they turn into more costly repairs.

• Does your office solely decide on the price of the rent or is it something we work on together?

  We will provide you with our suggested rent price based our professional knowledge of the area coupled with analysis of the market rental rates. If you do not agree with the pricing, we will create a marketing plan which may include a plan to assess and lower the rental amount as needed. Please keep in mind that choosing a rental price that is contrary to the PMI Beverly Hills recommended rate will opt you out of the 30-day rental guarantee.

• If I am purchasing a property with a resident already in place, how would the transfer of the documents and funds look?

  At the time of closing, all deposits, prorated rents, and any other resident funds should be surrendered to you. We will need these items as well as any lease agreements, ledgers, keys, remotes, or other details for the property forwarded to us at our office. You can either arrange for those items to be delivered to us or we can make arrangements to retrieve them.

• How many evictions do you have each month?

  Due to our extensive resident screening process, we are proud to say that we deal with below average number of evictions annually. It is uncommon that we have an eviction on a monthly basis.

• What is the average length of time a resident stays in a property once your team places them in the home?

  Our average residents stay in a property for 2 to 2.5 years. The type of property, location, and how the property maintenance is managed are all contributing factors when it comes to resident retention.

• How do you screen prospective residents?

  All occupants 18 and older must fill out our online application. Applicants are approved based on a scoring process that is fair and consistent to comply with Fair Housing regulations. We perform credit check to detect any collections, bankruptcies, and assess credit worthiness. Employment and Previous Rental History are verified by contacting their present employer and previous landlords. We also perform criminal background checks on all prospective residents.

• How do you handle maintenance request from residents?

  Work orders can be submitted electronically through our resident portals. Our maintenance coordinator will then assess the request and proceed with troubleshooting the issue with the resident and determining if a repair is required. If it is deemed that a technician is needed, the maintenance coordinator will contact the appropriate party to make the repair. If the repair is above the reserve amount that we agree to in your management agreement, you will be notified prior to the repair being authorized. If additional funds are needed to complete the repair we will request those in advance.

• Do the damage costs charged to the Resident at move-out include all repairs, damage fees, and maintenance that the Resident is responsible for?

  Yes, when we perform the move out inspection we will compare it to the move in inspection and charge the residents for any damage, not including any wear and tear. We will then deduct that from the resident’s security deposit. If the damages exceed the amount of the deposit we will also attempt to collect additional funds to cover the cost. If the tenant does not pay the excess amount, we will pursue them in collections.

• Do you have any resident fees that are charged during the occupancy? If so, are they shared with the owner?

  Yes, we do have resident fees that are charged directly to the residents for services and programs that they obtain from our office. These are fees that we retain to offset the cost of managing the property and auxiliary programs so that we can keep more of your funds in your pocket.

• The current resident lease is currently in a month to month status. Do you recommend negotiating a lease with the tenant?

  Yes, we have found that it is best practice to have your resident under a formal agreement with a set length of lease. We make our recommendations based on the resident history and market situation. However, we do look at each situation on an individual basis and ensure that we are aligned with your goals for the property.

• Can you assist in utility setup for my property? If yes, what if any cost is associated with this service?

  Yes, we can assist you in setting up the utilities for your property. We have a utility set up cost and require additional funds in your reserve account to cover all deposits and fees that may be required by the utility companies.

• Is your property management licensed and insured?

  Yes, PMI Beverly Hills is insured and licensed with California Bureau of Real Estate. We have a general liability policy, errors and omissions, worker’s compensation, and all state requirements.

• What are your property management fees?

  Generally, there are two fees we charge owners: fees for leasing and fees for management. You can hire us for either or both. The leasing fee is a fee that is charged to advertise, screen, and place a new tenant and is charged every time a new tenant is placed. The other fee that is charged is a management fee. This is the fee to handle the management of the property, everything from move-ins to move-outs and everything in between such as repairs, maintenance, inspections, a collection of rents, paying bills, complaints and emergencies. We don’t charge a fee unless the tenant pays so we don’t get paid unless you get paid! Please submit a rental analysis for a free quote.

• How much will my property rent for?

  You may submit your address for a free rental analysis. We will gather the history of nearby rentals and send you a detailed report.

• I am renting out my property for the first time, how does property management work?

  Our property manager will hold your hand and walk you through the process. We handle everything from rent collection, maintenance, eviction, marketing, leasing, screening prospects, and etc.

• How do you handle property maintenance?

  Our property manager will diagnose the problem before contacting the vendor. PMI Beverly Hills hires only licensed and insured contractors to maintain and make repairs on all managed properties. A member of our team is also on call after hours and on holidays and weekends to handle maintenance emergencies.

• How is rent collection handled and when am I paid?

  PMI Beverly Hills accepts rent payments via our online payment partner Propertyware, by personal check, money order, or certified check. We do not accept cash. Late rent payments must be paid via certified funds.

   

  Management will pay all authorized payments relating to maintenance and etc and disperse to the owners between 8-12th of every month.

• How soon can you start managing my property?

  Management begins when the management agreement has been signed both by the owners of the property and our agent. We can manage your property almost immediately.

• What type of reports will I receive and how often?

  Owner clients receive a monthly financial statement and a statement at the end of each calendar year. Property condition reports are generated just before tenant move in, following each routine inspection during the tenancy, and after each tenant moves out.

• What is your pet and smoking policy?

  We do not allow smoking inside our properties. All pets must be approved by the owners and screened by petscreening.com

• What do I need to do to prepare a property to be rented?

  Tenants expect all major systems to be in operating condition, all health and safety issues to be addressed, and the property to be ‘move-in’ ready. This may include painting, carpet cleaning, interior cleaning and minor repairs.

• What happens if my tenant doesn’t pay the rent?

  Although we screen carefully to be sure we are only placing qualified tenants in your property, there is always the possibility that a tenant may fail to pay rent. PMI Beverly Hills enforces a very strict rent collection policy to protect our owners’ interests. All rent payments are due on the first of every month, and late on the third day. If unpaid after the fifth day of the month, we make contact with the tenant, and a late charge is assessed. At this time, we contact the owner to make them aware of the situation and explain options; serve a notice of breach of the lease for non-payment of rent or make additional attempts to collect. It has been our experience, that most tenants will pay before the expiration of the notice or make contact with our office to explain the delay. If the tenant does not pay or vacate within the five days prescribed, the next step is filing an eviction complaint in Small Claims Court. This is a process we handle for you (court fees will apply).

• What is California FTB Tax Withholding?

  If you are not a California Resident or a corporation or is not LLC qualified to conduct business in California, property management companies must withhold and transmit to California Franchise Tax Board 7% of the gross payment for an out-of-state owner and 30% for an alien individual, a foreign entity, or non-U.S. person. If eligible, you may file a CA FORM 588 (Nonresident Withholding Waiver Request). PMI Beverly Hills can walk you through this process.

• What type of clients have you worked with?

  We work with clients from all walks of life, large and small. Our clients include first time landlords, domestic investors, foreign investors, asset management companies, HOA board of directors, real estate agents, brokers, and other management companies.

• My property is affiliated with an HOA. How do you deal with them?

  Our company also manages Homeowners Associations and we are familiar with CC&Rs and Bylaws. You will have to clarify with the HOA that you are permitted to lease your unit/property. We will handle the rest and make sure the tenant abides by all rules and regulations.

• I already have a property management company but I am looking to switch. What do I do?

  In most cases, all you have to do is give your current property management company a 30-day notice. Our company will be in touch with your current management company to obtain keys, lease agreements, deposits, etc.

• When do you perform inspections?

  When you sign up with us, the first thing we do is visit the properties so we can inspect and learn about them. One of our managers can meet with you or your tenant and answer any questions you may have. We will take photos and make recommendations on preventive maintenance. We perform routine check ups every 6 months after that or quarterly if needed.

• What accounting or software are you using?

  We utilize Propertyware which is the best software available in the industry. It provides complete transparency. The tenant will be able to pay rent and submit work orders online from their portal. All work history and invoices will be uploaded to the owner portal to review and you can track all income and expenses.

• When do you start marketing and how fast can you get it rented?

  Once we have a fully executed agreement and photos, we can begin immediately. PMI Beverly Hills syndicates your listing to over 30 of the largest rental sites such as Zillow, Trulia, Hotpads, Westside Rentals, Zumper, Lovely, Apartments, and ETC. If the rental property is priced properly, it may be rented as early as that same week.

• What lease contract do we use?

  PMI Beverly Hills is a member of AAGLA. We use the Apartment Association of Greater Los Angeles lease contract. State and local laws are constantly changing, and we use AAGLA’s contract to stay ahead of our competitors. We also include an addendum which provides additional terms to protect your asset.

• I want to hire PMI Beverly Hills. What’s next?

  We can set up the initial appointment at the property which normally takes between 45-60 minutes. Our manager will bring a complete proposal and management agreement for you to review. If you are from out-of-state, we can meet over the phone and email. Our management agreement can also be signed digitally.

• How do you screen tenants?

  We run a full credit and criminal background check for everyone over 18 years of age. We will also verify their proof of income and previous rental history. Quality tenants are one of PMI Beverly Hills’ Professional Guarantees.

• Do you charge management fees when a property is vacant?

  No. We do not charge until the rent is paid and we believe this should be the standard for all property management companies.

• How much should we collect for a security deposit and who keeps it?

  Generally, we require a minimum of one month’s rent and an additional $350 for a pet deposit. However, California law allows a maximum of 2 month’s rent for an unfurnished property and up to 3 month’s rent for a furnished property. Either the owner or management can keep the deposit but we recommend that you keep the fund in our broker’s trust account. If you wish to retain it, we may not be able represent you if tenant files a small claims court lawsuit because you have the fund on hand.