FAQs Of Property Management
Below you'll find frequently asked questions and answers regarding our property management services. To see the answer, click on the plus sign at the beginning of the question.
How does Old Newport Realty find clients and what screening measures are used?
We have past and current renters contact us often to rent another quality, well managed home that better suits their current needs. New clients are attracted to us by our professional photos and massive online presence to over 200 website syndication partners. We keep showing your property until we find the best clients that are screened for employment, income, credit, background, criminal history, past rental history as well as social media inquiries and local personal references.
What if the client breaks the lease and moves out 2 months into a 12 month lease?
Any client that does not complete their full lease term will be charged penalties pursuant of the lease contract. Immediately after a breach of lease we guarantee to replace them with a new tenant, free of charge. Even though we go to great lengths to follow the highest standards in choosing the best applicants, major life events such as layoffs or divorce can force responsible clients to break their lease. In this situation, we are often notified weeks or even months in advance. As this is the case we're able to successfully replace clients seamlessly without any disruption of the monthly rental income sent to our property owners.
What do I get for my monthly management fee?
Old Newport Realty’s all-inclusive management fee includes a well-managed program which provides you piece of mind. Much like an insurance policy, no matter what damage may occur to the property, our team of skilled tradesman will restore it back to its original condition. The lease guarantees that the costs will be deducted from the occupant’s security deposit. Your monthly management fees also include the following:
- Rent collection by check, credit or debit cards
- Your rent disbursement deposited directly into your account by the 7th of every month
- Monthly statements delivered by e-mail or first class mail, as well as year-end 1099 summaries
- Late pay fees collected for delinquent tenants
- Processing of insurance claims and full restoration of your property in the event of damage or loss
- Preferred pricing with proven service providers and contractors
- The best pricing on all appliance repairs and replacements with free installation
Can I make more money by offering my unit as a furnished rental?
Not necessarily. The only person that will make more money renting this way is your leasing agent. The best way to maximize your rental income is by finding clients that treat your property as if it were their own and don't plan to move for years to come. Furnished units are famous for attracting short term clients looking for lease terms from 1 to 3 months. While you may get 20% more in rent, you will have to pay a 1 month leasing fee every couple months to secure a new client. Vacancies will also be higher. It’s difficult to keep a furnished property rented continuously. You will also incur additional maintenance and turnover costs from inevitable wear and tear on both the property and the furniture inside the unit.
Will Old Newport Realty find a client and then allow me to manage it myself?
Unfortunately, no. Our rental management services come in a full package. If we were to rent a property to a tenant without guaranteeing the highest quality leasing experience we would be liable. Licensed Newport Beach real estate agents acting on behalf of property owners are required to manage the properties as well.
How long will it take to rent my property?
The answer depends on the properties location, lease rate and condition. For the majority of our existing clients, though, their property is vacant for only about one to two weeks while necessary repairs are being done. Our policy is to market your Newport Beach homes for rent before the previous tenant moves out. For new clients, if you provide us 30 to 45 days-notice of the vacancy and follow our recommendations on pricing and unit preparation, we can usually have a new tenant for you when the property becomes available.
I interviewed several managers and found a lot of variation in fees. Why is that?
Real estate companies are independent and often compete against each other. They set their fees according to what they consider reasonable returns for their efforts, and what they think clients will pay for. Most of the big name brokers, though, have to pay high licensing fees to headquarters on every dollar earned. Thus, they tend to charge more without really providing any additional services. It’s important to know that there are no “standard” fees for particular services. When comparing management firms, make sure to compare the total long term costs - including fees for additional services such as managing insurance claims, collections and repair expenses, and vacancy costs. But most importantly, it is the cost of leaving money on the table when not realizing the full market potential of your rental that incurs long term losses. Be wary of low upfront fees that often turn into excessive repair rates and extra costs for services down the line. Old Newport Realty provides full service including all inclusive management for a flat fee with no additional charges. All our repair costs are market-rate expenses from our collection of trusted, discounted preferred vendors. We have no need for hidden fees.
Are property managers required to be licensed?
Yes. Old Newport Realty is a fully licensed Real Estate Brokerage and Property Management Firm in Newport Beach, California. Property managers must be licensed and insured with proper E&O (Errors and Omissions) insurance. Newport Beach property managers must work under the supervision of a licensed Newport Beach real estate broker firm and complete continuing education every two years in order to renew their license. To verify if the individual you are looking to hire is properly licensed, please visit www.dre.ca.gov/
Are property management companies required to carry special insurance?
Yes. If a licensed Newport Beach real estate agent is in the business of property management, they are required by the DRE to carry special E&O (Errors and Omissions) insurance coverage. Typically it is $500,000 per occurrence and $1,000,000 aggregate. This insurance protects you and us against errors in completing paperwork and omitting information.
My property manager has suggested that I paint, replace a few rooms of carpet, and have the house power washed before placing it on the rental market. I’m not selling—why should I go to all this trouble and expense for tenants?
A well-maintained property that is inviting will attract a better quality client, which avoids discrepancies in the long run. The property will also lease sooner and bring higher rents. Well-qualified clients with good income and high credit scores know they are desirable tenants. They will shop for the best value rentals for their income. The money you “save” by not keeping the property in top condition will be lost in long vacancies and potential problems associated with lesser qualified clients.