This is a brief explanation of our extensive management system. Feel free to contact us anytime if you have any questions about your specific property that you would like to discuss with a property manager. We would also be happy to tour your property and discuss your options.
This is the most important service to compare when shopping for a property manager. A thorough screening process is crucial to avoid costly mistakes with your property. A bad tenant can be very expensive due to lost rent, extra time spent dealing with them, and damage to the property. While no background check can completely eliminate the risk of a problem tenant, our thorough examination of their rental and payment history can significantly reduce your risk. Once the potential tenants complete an application we check the following items:
Screening is the most important service a property manager provides. We apply our "owner mentality” to this process. If we wouldn't let a questionable person rent one of our own properties, then we definitely wouldn't let them rent yours.
Once we have completed our screening, we send the owner copies of the application and screening reports. We will make recommendations, but ultimately, the owner makes the final decision on the rental applicant.* Screening is the most important service a property manager provides. We apply our “owner mentality’’ to this process. If we wouldn’t let aquestionable person rent one of our own properties, then we definitely wouldn’t let them rent yours.
*Some cities like Minneapolis and St Paul have passed controversial limitations, rules, Restrictions, and laws on tenant screenings. It is unlawful for a property owner to violate these current laws and Mauzy Properties will do our very best to advise the owner on how to ensure violations do not occur.
Our pricing is very competitive. If you shop around you will find that our pricing is structured differently than most other companies. We have an "owner mentality" approach to property management. Our system is set up so that our goals and revenue sources are in-line with the property owners. We make money when the property makes money. Our fee structure proves that we are motivated to get good long-term tenants not turnover and vacancy.
Pricing can be viewed by clicking here
We all prefer that good tenants renew their leases. This saves our clients a lot of money in vacancy and turnover costs. Every month we notify tenants who have a lease expiration date within the next 90 days. Our lease renewal frequency is exceptionally high at 67.4% since our attention to the tenants needs and requests are 2nd to none. Depending on the market conditions and property we may also choose to raise the rent at this time. Results below for the full year 2020.
How Long Does it Take to Rent a Property?
Our entire team meets weekly to review each vacant property. If a property is not rented within 30 days it is typically due to price, presentation, and/or exposure. Our management system addresses each of these factors:
We do not make money on vacant properties. Most owners who have switched to our system have seen a decline in their vacancy rates.
How do you determine the rental price?
We run rental comparable for your property and area and use that information to determine a starting price. Then we track the number of calls, showings, and applications we receive and review the listings and prices weekly to make adjustments as needed. This way we are able to get the property rented quickly and at a good market price. If your property is listed too high then it will take longer to rent and in most cases the extra rent you were trying to get was lost in the time the property was vacant.
Some owners want to increase the rent to cover their mortgage. It is great when we are able to do this but please understand that your mortgage payment has little to do with the rental market. Our system is set up to make your renting experience as lucrative as possible in current market conditions, and NOT to waste time sitting vacant.
We have developed a thorough inspection program to protect your investment and to hold tenants responsible for lease violations and damages. Although our high screening standards reduce most lease violations and damages, regular inspections are important to maintain these standards and to identify maintenance issues before they progress. Here is an outline of our inspection program and how often we are checking on your property:
We have found that regular property inspections and routine maintenance can save us, and you thousands of dollars. For example: sometimes even good tenants will let a little drip under the sink go without being repaired, or not change a furnace filter as needed. If items like this are not addressed they can lead to expensive sub-floor and cabinet damage or costly heating and AC repairs.
During any of our inspections, if damages are found, the tenant is given 10 days to repair it to its original condition or we line up the repair and charge the tenant.
What happens when a tenant doesn’t pay rent?
Our lease gives the tenant a grace period from the 1st to the 5th of each month to pay the rent on time. If the rent is not received by the 5th then the following process begins:
**If a company, like an LLC, or S-Corp, owns a property we are not allowed to represent you in court as your “Agent”. Properties owned by companies are required to have an attorney represent them in court.
We have found that if tenants get behind in payments by more than one month they will likely never get caught up, so our system does not allow this to happen. We will typically have them out in the subsequent month they didn’t pay rent. Any unpaid charges that are not covered by the security deposit are pursued through a professional collection agency. We are very strict in our collection process. Whatever their circumstances, they do not become your charity case. We can help tenants with legitimate problems find help from different charitable organizations. But we are hired to protect your interests. If the tenant can't pay the rent, we need to find a new tenant that can. *It should be noted that our eviction rate is less than one percent. Our thorough screening process eliminates most of these situations before they happen. We rent to good people and when they have a problem during a lease, such as loss of job or divorce, they will communicate with us. If they have to vacate the property, they leave it in good condition because they tend to be responsible people.
What happens when a tenant moves out?
Tenants are required to give us a written 60-day notice prior to moving out. When we receive this notice the tenant is given a Move-Out Packet. This packet gives them detailed instructions on how to leave the property in great condition. It includes a cleaning checklist, key and utility instructions, charges for needed cleaning and repairs if necessary, and deposit return procedures. Once the tenant moves out, we perform a total property inspection and use the deposit to cover any damages or cleaning that is needed to return the property to its rent-ready condition. We return the remaining deposit money to the tenant with a full accounting of what was performed. We love it when we can return a full deposit to the tenants because this means the property is ready to be rented again.
Whenever possible we target our leases to end in the spring and summer. When properties turnover in the winter the vacancy rates are much higher and rents are lower. When leases end in the spring or summer we are able to rent them at a better price with less time vacant. For owners who want to eventually sell their property, this allows them to evaluate the market and list the home for sale during the spring and summer when the lease ends.
Do I get to approve maintenance?
Yes. Some owners want to be contacted about every maintenance issue while others only want to know about major items. To accommodate a majority of owners, we have a maintenance approval threshold. The standard threshold amount is $200. This means that if the repair is going to be under $200, we will take care of the issue, keep your tenants happy, and you will see it documented on your monthly statement. If the repair is going to be over $200 then we contact you to discuss the options and get your approval. Our vendors know to look for active warranties on appliances when possible. We also negotiate better prices and service with our partner vendors due to volume and experience. In some cases, we do not know the cost to repair an item until it is diagnosed. Once the issue is diagnosed, we contact you with details and the estimated costs.
Maintenance emergencies are an exception to the $200 notification threshold. Emergencies are defined as incidents that occur where your property is at risk of substantial damage. Examples of emergencies are water pipe bursts, gas leaks, leaking roof, basement flooding, sump pump failure, just to name a few. In an emergency situation, we take the necessary steps to protect your property and call you once the emergency has been averted.
What about pets?
Owners can specify if they will allow pets or not in their property. Here is some information to help you make that decision: Over 60 percent of renters have pets. If an owner chooses to not allow pets it may take a little longer to rent the property, but they lower their risk of having damages caused by a pet. If the owner allows pets we recommend a limit of 2 pets and weight restrictions based on the size of the property. We also recommend $300 to $500 per pet additional deposit. Our inspection process always includes a thorough search for pet damage and smell. We have found through years of screening potential tenants that pets typically match their owners. Good clean people have good clean pets.
*It should be noted that if a tenant has proper documentation for a companion animal as allowed in the Fair Housing Act then we are obligated to allow these animals. The tenant is still responsible for any damages caused by the animal.
We verify that the proper utilities are in the tenant's name before they are allowed to move into your property. Whenever possible it is best to have the tenants responsible for paying the utilities. However, if there are some utilities that must remain in your name, we can take care of paying those bills for you. You will see these payments on your monthly and year-end statements.
The St Paul Area Association of Realtors (SPAAR) is an association of real estate professionals who know first-hand the unique problems and challenges of buying, selling and managing residential properties. Professional Members of SPAAR are individuals who must be engaged in the buying, selling and management of residential properties, and licensed in those states that require licensing. SPAAR continues to be the premier professional association of realtors and residential property managers, currently representing over 2,500 members comprised of real estate agents, brokers, managers and their employees. Members of SPAAR adhere to a Professional Code of Ethics.
When and how do you pay owners?
We collect all payments from the tenant. Each month you receive a detailed statement that accounts for all payments and expenses on your property. All rents and other payments are deposited into a trust account. We will deduct our management fee and any other expenses that have been authorized and we send the balance to you. We post statements and process payments by the 15th of each month. Payments are sent to owners by direct deposit and statements are sent by e-mail and/or accessed through your web portal. Owners can access custom reports and previous statements anytime online.
Sounds Great! What's Next?
Once we have spoken to you about your specific property, and determined if our management system will work for you, we will send you a management agreement and complete a property data sheet. We can get most properties into our marketing system within 24 hours of receiving the signed agreement. Here is the basic process:
What needs to be done to get my property ready to rent?
Good clean properties attract good clean people. We prefer to give a property to a tenant in great condition. This way we can hold the tenants responsible to keep the property in that same condition. Here is a list of what should be done before the property is rented. If you have any questions or need help coordinating any of these items just let us know.
Once your property is leased, and prior to a tenant moving in, one of our handymen or property inspectors will visit and conduct a full safety and “Ready to Rent” inspection of your property. Our goal in conducting these inspections is to identify commonly overlooked safety requirements that are required by State and Local rental codes. We also inspect the property to ensure that it is clean, tidy and ready for the tenant to move-in. During these inspections, our handymen are authorized to install or replace any missing or non-operational safety equipment, and to order any supplemental cleaning or repairs to insure the “Ready to Rent” checklist is complete. The charges for the devices, supplies or services will be deducted and reported on your monthly statement. In order to prevent any surprise charges, we encourage you to run through the attached Safety Inspection.
Click the link to download the full “Ready to Rent Checklist”