Landlord Handbook

Once again, thank you for choosing Anchor Real Estate & Property Management as your Property Management Company. We look forward to a successful business relationship.

Section I: Company Information, General Advisement to Property Owner

AREPM has prepared this Property Owner’s Handbook as a guide for property owners and investors to familiarize you with our property management policies, processes, and procedures for management of your property.                                                                                                                                                          

 We hope that you enjoy reading this handbook and ask that you become familiar with its contents. If you have a question or concern which you believe is not answered, please contact us at (321)877-2457 or owners@anchorrepm.com and we will be happy to assist you.                                                                                

You should always seek appropriate legal advice from a qualified legal practitioner before acting or relying on any information contained in this Handbook.     

 Owner agrees and acknowledges it is Owner’s responsibility to fully read and review contents of the Handbook. Owner holds (AREPM) harmless for Owner’s failure to do so. Owner agrees and acknowledges that (AREPM) may modify terms of this agreement and Handbook. Notice of such modifications shall be sent to Owner via electronic means and such modifications shall be posted in the Owner’s online portal and shall become effective and binding upon Owner and (AREPM) twenty-one (21) calendar days after posting.                                                                                                                                                                                

 Anchor Real Estate & Property Management Mission Statement                                                                                             

The mission of AREPM is to provide quality service in property management and real estate sales in Central Florida, specializing in full - demonstrating integrity, expertise, and professionalism.                                                                                                                                                                                                               

 AREPM Communication                                                                                                                                                                     

Communication is key to the success in any relationship and the AREPM/Owner relationship is certainly not an exception. We are constantly communicating with our Tenants, prospective Tenants, and vendors.                                                                                                                                                                                         

 

Anchor Real Estate & Property Management  

Property Manager Name: _________________________________________

Phone Number:         321-877-2457                                                                           

Email:  _________________________________________________________

Website:                     www.anchorrepm.com                                                             

Office Hours:              Monday – Friday: 9:00 am – 5:00 pm                                    

 

 Changes in your Contact Information?                                                                                                                                                          

It is important that you let us know of any significant changes that may affect your account. AREPM needs to know when you are moving, changing your phone number or email address, or any other important information. Please contact us with any changes like this.                                                                          

 How to Contact AREPM?                                                                                                                                                                                  

While we certainly welcome your phone call, much of the communication that we need from an Owner will be through an email. As we are often handling emergency type situations, we treat communication like a hospital treats an emergency room. The most important issues are handled first. By emailing our office a request for information we are able to review your request and typically get back to our Owner that same day or the following business day. By keeping this hospital type format, we are able to quickly and effectively handle requests in a timely manner.                                                                                    

 Owner and AREPM agree that routine and ordinary communication between AREPM and the Owner will be through a working email account. Owner and AREPM further agree to routinely review their email account. Each party shall review their email account not less than once per business day. Further, both   Owner and AREPM hereby acknowledge and agree that any routine and ordinary communication delivered to said e-mail shall constitute notification.  Excluding notifications that must be sent via certified mail, as described in the Management Agreement and this Handbook.                                                        

 Special Note: When using email, we request that you put the “property address” in the subject line. With the problems of spam, worms, viruses, Trojans, and more in the Internet world, this helps us identify the importance of your message, and avoids oversights or deletions of messages.

Section II: Frequently Asked Questions about the Management Agreement

Will you contact me on maintenance issues less than $500?                                                                                                                   

While we do have your best interest in mind, we need the ability to do our job and that is to manage the issues that can happen at a property. If we do not    have the ability to correctly manage your property, you will ultimately be unsatisfied. We have found through many years of doing this, that $500 will not “handcuff” us, yet will give us the opportunity to earn your trust. Some situations may require immediate attention and other times it may be less expensive to approve the repair on the spot.  (i.e. to avoid additional service/trip charges) If we have a larger issue, like an a/c compressor that needs to be replaced or a roof issue, we will contact you. We will then review the situation, and help you make the best decision on how to move forward. It is in our best interest too    that you receive the lowest price for the repair and have it done right the first time so you are happy with our services.                                                                     

 What if I want you to use my plumber, A/C Company, etc.?                                                                                                                      

We will welcome and gladly review the names, and numbers of licensed and insured vendors that you may recommend. Once we begin active                            management all vendors used at your property must register with us and meet our vendor qualification standards before being allowed to perform any work or services. All vendors must meet all applicable Federal, State and Municipal qualification requirements. This is a necessary requirement for the protection of your property and for business liability and insurance requirements. We do reserve the right to use our own vendors. Why can using our vendor actually be      better for you? Sheer volume of business. When you give a vendor 3 jobs per year, you likely will not receive a discount, nor will the loyalty be there to arrive on time/ perform great work. When you give a vendor hundreds of jobs per year, your/our expectations are much higher.  Owner acknowledges and agrees    that in no case shall such vendor perform any services at the property without the AREPM’s specific written authorization, further AREPM may elect not to     contract the Owner’s vendor and instead contract AREPM’s choice of vendor.                                                                                                                                                

 Home Owner Associations                                                                                                                                                                                 

AREPM requests from all Owners the correct and current contact information (including name, address, telephone, fax, and e-mail address) for the                Condominium Association or Association Management Company, and all current rules and regulations within three (3) business days of effective date of            Agreement. This will enable our office the ability to contact the association to obtain information, especially as it pertains to the possible application information needed by the association so we are able to accurately explain this information to prospective Tenants. If after 3 business days, AREPM still does not have the information, the Owner authorizes AREPM at the Owner’s expense.                                                                                                                                         

 Disbursement of Funds                                                                                                                                                                                       

Owner agrees to provide all documentation and records required by AREPM to manage and operate the Property. Owner hereby agrees and acknowledges    that all such Internal Revenue Service forms and documentation as AREPM deems necessary, including but not limited to fully complete and signed W-9 form, must be provided to AREPM. NO DISTRIBUTION OF FUNDS WILL BE MADE TO ANY OWNER UNLESS AND UNTIL ALL OWNERS HAVE PROVIDED TO AREPM A      CURRENT SOCIAL SECURITY NUMBER OR TAX ID NUMBER, ALL APPLICABLE INTERNAL REVENUE SERVICE FORMS, DIRECT DEPOSIT (ACH) FORM, AND THE OWNER'S INSURANCE DECLARATION PAGE (PROOF OF INSURANCE)                                                                                                                                                                 

 Distribution of Rents to Owner                                                                                                                                                                        

AREPM shall distribute to Owner the proceeds collected from the rental of Property minus the rental commission, fees and any costs and expenses incurred by AREPM provided for in Agreement and Handbook. Distribution of funds to Owner will be processed by the 10th of the month. In the event Owner does not receive funds by the 15th, then Owner must contact and notify AREPM.   AREPM IS NOT OBLIGATED TO CONFIRM RECEIPT OF FUNDS BY OWNER.                                                                                                                                               

1.      Owner hereby acknowledges and agrees that no funds will be distributed until such time as monies have cleared the AREPM bank (clearance time subject to local or out of area checks and banking regulation, procedure, and law). Florida law strictly prohibits any payment to an owner unless there are sufficient funds in the Owner’s account.                                                                                                                                         

2.      All distributions to Owner shall be by means of ACH (Automated Clearing House) directly into Owner bank account not earlier than the 10^th of each month.  AREPM will only disburse funds on business days and does not disburse funds on weekends or holidays.                                                                                                                    

3.      Owner hereby acknowledges and agrees that distribution of Owner funds are subject to the Agreement and the Handbook and shall be disbursed first to fees, commissions, charges, costs, and reimbursements due; second to all other operating expenses, costs, charges, and disbursements payable from Owner funds  held by AREPM; third Owner Reserve; lastly any remaining balance to Owner.                                                         

 Monthly Statements                                                                                                                                                                                          

All daily bookkeeping transactions are available 24 hours a day, 7 days a week for you to view online on our website. While online, you can print a statement from our site. You will need to use the main email address that you provided AREPM in order to receive a statement. If you have given our office more than one email address, try those additional email addresses. If you have difficulty reading your monthly statement or logging into the program, please contact your property manager. We are happy to assist you and answer your questions. Owner acknowledges and agrees that all statements and reporting to owner regarding AREPM management and operation of Property will be via electronic mail.                                                                          

 End of Year Procedures                                                                                                                                                                                                         

At the end of each year AREPM is required to file 1099’s for income received over $600. Please note that this amount is for “total received” requirement. Please note that security deposits are not included in this amount.                                                                                                      

 It is necessary that you supply AREPM with the necessary Social Security/Tax ID information so the 1099 is accurate. AREPM will send the 1099 for the rent by January 31 for the previous tax year. With that said, please update our office with an address change by January 7 so we are able to update our records and ensure the timely delivery of the 1099. If there is a change in your tax information such as a new trust or address, please notify us via email at  owner@anchorrepm.com                                                                             

 AREPM also issues 1099s for disbursements to vendors for work over $600.00. Therefore, Owners do not have to issue 1099s for work completed and paid through the AREPM trust account. Owners are responsible for issuing 1099s to any vendor paid through the owner’s personal account.                                                                                                                                                                                                                      

 The last statement of the year will reflect “total amounts” for income and expenses that have transpired throughout the year, such as management fees, leasing fees, landscape, utilities, repairs and maintenance, etc. The amounts will not reflect any funds issued through the owners personal account. Owners can submit their last statement to their tax preparer along with other information for income tax reporting. AREPM does not issue statements to the Owner’s tax preparers directly.                                                                                              

 Cleaning of Property Prior to Tenant Move In (“Rental Ready Condition”)                                                                                                              

1.      Owner agrees to have the property, lawn, pool in a clean “Show Ready Condition” during the leasing period.                                       

2.      Carpets are to be professionally steam cleaned before a Tenant takes possession of the property. Per our lease, the Tenant must professionally steam the carpet upon their move out. This will keep your property’s carpet in a better condition than not having the carpets professionally cleaned after every move out.                       

3.   The property must be in 100% clean condition and the property must be placed in “Rental Ready Condition” prior to Tenant taking possession.                                 

4.      Owner gives AREPM authority to have the property cleaned, carpets professionally cleaned and repairs performed to place the property in “Rental Ready Condition” prior to Tenant taking possession.                                                                                                  

 Furnished Property Walkthrough                                                                                                                                                                                     

For a fully furnished property, the Owner shall deliver to AREPM a copy of the furnishings inventory in a digital form via electronic mail within 3 business days of start of the Management Agreement. The walkthrough of a furnished property takes an extensive amount of time.                                                                                                                                                                                                                                            

1.      Owner is solely and exclusively responsible to keep and maintain such inventory.                                                                                        

2.      Owner acknowledges and agrees that Manager has no obligation, no responsibility, and no liability with respect to condition or loss of any personal property items including but not limited to any and all furnishings.                                                                

3.      Owner acknowledges and agrees that any Tenant placed by Manager has no obligation, no responsibility, and no liability with respect to condition or loss of any personal items including but not limited to any and all furnishings, except as may be specifically required in rental agreement.                                                                                                                                                        

 Home Warranties                                                                                                                                                                                                                   

Owner hereby acknowledges and agrees that it is Owner’s sole and exclusive responsibility to provide to AREPM, in digital form via electronic mail or otherwise, full and complete written documentation and information for any warranty items or warranty programs for the Property or any elements of the Property or any mechanical items at the Property within three (3) business days of start of the Agreement. Owner further acknowledges and agrees that AREPM shall have no obligation, no responsibility, and no liability for any costs, expenses, charges, or fees regarding any warranted item in or at the Property, should Owner fail to provide AREPM full and complete written documentation and information as herein required.                                                                                                                                          

 Window Treatments                                                                                                                                                                                                              

Owner will provide window blinds (not curtains) and appropriate hardware within ten (10) business days of start of this Agreement or hereby authorizes AREPM to purchase and install said items at Owner’s expense.  Screens on all windows are required by Florida law and all windows must be operational.  If TENANT demands screens or window repairs, OWNER agrees that BROKER is authorized to purchase screens and/or make window repairs or replacements at OWNER’S expense.                                                                                                            

 Insurance                                                                                                                                                                                                                                 

Owner acknowledges the current existence of and agrees to maintain public liability insurance coverage on the Property at all times in the amount not less than $100,000.00 per person and $300,000.00 per occurrence and shall furnish AREPM with proof of insurance and a copy of the declaration page at time of listing. Owner agrees to name AREPM as an additional insured on all policies. Owner agrees to and does hereby indemnify and hold harmless AREPM, its employees, agents and assigns, from any and all claims, suits, damage costs, losses and expenses arising from the management of the Property and from any injury to persons and/or property occurring on or about the premises. Owner agrees to indemnify AREPM for any damages suffered as a result of any lapse in or failure by Owner to maintain insurance coverage.                                                                                                                                                                                                                  

 AREPM recommends to all Owners to contact their insurance agent to ensure that the proper type of coverage is being held on a given property. If the Owner is no longer residing in a property, AREPM recommends that you inform the insurance immediately and always provide accurate information to the insurance agent/company.                                                                                                                                                   

The Owner acknowledges and agrees that the first payment of rent to an Owner on each lease will not be disbursed until AREPM receives from the Owner the current Insurance Declaration Page.                                                                                                                                                 

 Vacant Units                                                                                                                                                                                                                           

Vacant units are increasingly subject to vandalism, squatters, theft and damage and loss to air conditioning compressors.  BROKER shall check and or show vacant units at least 2 times per month.  If more frequent checking is requested, this must be negotiated separately    between BROKER and OWNER and there may be additional charges.  Under no circumstances will BROKER be held liable for any loss or damage to the vacant premises.  OWNER is aware that often homeowner’s insurance does not cover vacant properties and should consult their insurance agent.                                                                                                                                                                                           

Compensation                                                                                                                                                                                                                         

What are some of the items included in the Leasing Fee?                                                                                                                                         

• Running comparable and compare/review for an accurate rental price.                                                                                                                

• Calling/emailing vendors to help place property in “Show Ready Condition.”                                                                                                        

• Emailing estimates from vendors to Owners.                                                                                                                                                               

• Hiring vendors to repair and clean the property to place in “Show Ready Condition.”                                                                                          

• Pay vendors from Owner escrow the agreed amount for performing repairs.                                                                                                       

• Writing up the advertisements and taking advertising photos.                                                                                                                                  

• Place ads on numerous websites, signs, MLS, etc.                                                                                                                                                        

• The cost of answering phones 7 days a week.                                                                                                                                                               

• The cost of showing properties 7 days a week (gas, tolls, time). A property is shown on average to 8 different prospective Tenants during the leasing period.               

• Receiving, running, reviewing prospective Tenant applications.                                                                                                                                 

• Running credit checks, back ground checks, and eviction search                                                                                                                               

• Following up on a prospective Tenant’s employer, current landlord, etc.                                                                                                                 

• Meeting with and reviewing with the Tenant the lease and answer their questions.                                                                                             

• The cost to have a move in walkthrough performed (gas, tolls, time).                                                                                                                      

• Many other small items all performed to ensure a quality Tenant.                                                                                                                           

 

What is included in Management Fee?                                                                                                                                                                            

• Attending to daily telephone, email, and fax inquires.                                                                                                                                                 

• Timely rent collection.                                                                                                                                                                                                        

• Organizing keys for viewings, inspections, and repair vendors.                                                                                                                                 

• Attending to payment of various property expenses.                                                                                                                                                  

• Collection of late rent through various legal means.                                                                                                                                                    

• Lease enforcement with Tenants.                                                                                                                                                                                    

• Hand deliveries of notices to Tenants as necessary.                                                                                                                                                     

• Attending to correspondence.                                                                                                                                                                                           

• Organizing maintenance repairs and quotes.                                                                                                                                                                 

• Administering rent through our trust account.                                                                                                                                                              

• Liaison with home owner or condo associations if applicable.                                                                                                                                   

• Organizing utilities to be turned on and off when required.                                                                                                                                       

• Conducting annual rent reviews.                                                                                                                                                                                      

• Receiving and responding to Tenant concerns or complaints.                                                                                                                                    

• Regular follow up with maintenance contractors.                                                                                                                                                         

• Periodic visual inspections of the property to ensure lease compliance.                                                                                                                  

• Processing notices to vacate or to renew a lease compliance.                                                                                                                                    

• Liaison with insurance companies, when authorized.                                                                                                                                                  

• Conducting video-taped or photographed move-in/move-out inspections.                                                                                                             

• Lodging security deposit claims, when necessary, in accordance with the Florida Landlord Tenant Laws, F.S. 83.                                           

 Why is there a fee if the Tenant renews the lease?                                                                                                                                                    

We doubt you will find a company that does not charge a lease renewal fee or month to month fee, it’s a pretty standard fee. Here is what we include:                                                                                                                                                                                                                      

1.      We perform a walkthrough approximately 60-90 days before the end of the lease. We want to be able to give you the advice of whether we should invite the Tenant back for another year. We are happy to say, more than 98% of the time, we do invite the Tenant to stay for another year.                                                                       

2.      Research rental websites and the MLS to locate comparable properties in the area to effectively then negotiate with the current Tenant a possible increase of the monthly rent. In the case of a falling rental market, try to keep the rental price the same.    

3.      We contact the Tenant regarding the renewing lease.                                                                                                                                      

4.      After agreeing to terms with the Tenant, having another lease prepared and ready for the Tenant.                                               

5.      All while reviewing the process with the Owner.                                                                                                                                                

This minimal fee provides us the resources to effectively keep the vacancy of your property at a low and the quality of your property as high as possible.                                                                                                                                                                                                                   

 Services NOT Provided by AREPM                                                                                                                                                                                  

Owner further agrees that this Property Management agreement does not include providing on-site management services, property sales, refinancing, preparing property for sale or refinancing, modernization, fire or major damage restoration, rehabilitation, collecting income tax, accounting or legal advice, representation before public agencies, advising on proposed new construction, debt collection, counseling, attending Homeowner Association meetings. If Owner requests AREPM to perform services not included in normal property management or specified above, Owner and AREPM will agree on a fee for those services before work begins.                                               

 Termination of Agreement                                                                                                                                                                                                  

In the event the Agreement is terminated, Owner acknowledges and agrees that AREPM shall have the right to immediately accelerate all management fees due hereunder for the remainder of the term of the rental agreement or to have the fees deducted from the rent collected until paid. The balance of the management fees shall be due and payable by the Owner to AREPM for the remainder of the lease agreement for so long as the Tenant(s) placed on the property by AREPM shall remain in the owner’s property.  Except as otherwise provided in this paragraph, the owner agrees to pay an unconditional cancellation fee of $200.00 for the owner’s termination of the management agreement for any reason.  In the event AREPM has not procured a Tenant within 120 days of property being in rental ready condition, Owner may terminate this agreement without penalty.  If termination occurs, OWNER shall immediately hire a     Property Manager in Florida at which time BROKER will transfer any security deposit BROKER is holding to the new Property Manager.  If OWNER does not hire a Property Manager in Florida, BROKER will not transfer the security deposit unless transfer is agreed to in writing by the OWNER and Tenant, or unless directed to do so by a court of law.     

 

Section III: Pre-Leasing/ Leasing Process

Step 1 – Pre-Leasing Process                                                                                                                                  

Execution of the Management Agreement/ Setting up Your Account                                                                                                                   

When you enter into a Management Agreement, AREPM establishes an account for you and your property. AREPM recognizes the importance of accurately collecting and disbursing funds. The accounting program used by AREPM is one of the most recognized and highest rated specialized software. It is designed to handle the many facets of property management and accurate record keeping, and complies with the requirements of the state of Florida.                                                                                                                                                  

 Preparing To Rent the Property                                                                                                                                                                                     

When prospective Tenants view your vacancy, AREPM wants the property to look its best and compete with area rentals. Tenants have many choices, we want your property to stand out in their mind, to ‘Pop!’ We understand budget constraints, so we will review with you before leasing your property what items should be addressed to ensure a quick leasing period, the highest rent and the most importantly, the best qualified Tenant. The AREPM property manager will contact you to discuss the details of your vacant property and any necessary maintenance/cleaning.                                                                                                                                                                               

 Excluded Amenities, Personal Property or Places/Areas on the Premises                                                                                                            

Any appliances such as a Jacuzzi, hot tub, extra refrigerator, garbage disposal, dishwasher, solar system, irrigation system, grill, pool pumps or another amenities or items that the OWNER shall not be responsible for maintaining must be disclose to BROKER by OWNER 

in writing or OWNER understands by Florida Law that the OWNER will be responsible for repair, maintenance or replacement or all items.  Any excluded areas must be disclosed as well or, by Florida law, TENANT may use them.  This includes but is not limited to areas such as shed(s), storage closets(s) garage, attics, crawl spaces, dock, other storage areas, sheds, rooms.  Any personal property left on the premises is left at the OWNER’S sole risk.                                                                                                                                                                           

Setting the Rent                                                                                                                                                                                                                     

Supply and demand determines rent. If there are multiple rentals available in the area of your property, it is necessary to be very competitive. If very few are “for rent” in the same area, it can make it easier to rent the property. Markets change and we will assist you on the current rental market.                                                                                                                                                                                             

 Pets – Should you allow them?                                                                                                                                                                                        

There is a small percentage of time we would recommend to Owners that allowing a pet may not benefit them – such as – the Owner is allergic to cats and the Owner will be moving back into the property after just a year or two of leasing. But, statistics show that more than ½ of all Tenants have pets. By excluding pets from your property, you will substantially reduce the available number of prospective Tenants – which can then prolong vacancy time. As such, AREPM’s policy is to allow pets at all properties unless specific written instructions to the contrary are provided. It is important to encourage full disclosure on pets while taking an application. We do not want the Tenant to hide the fact that they have a pet.                                                                                                                                           

 

AREPM recommends to owners that when the property is on the market that pets are advertised, “Pets Welcome.” This can solve two problems:                                       

1.      First, this encourages prospective applicants to disclose any pets.                                                                                                                   

2.      Second, by advertising pets are accepted, it avoids eliminating an excellent Tenant that does care for their pet, has an excellent     

Tenant history, and owns a pet that is suitable to your property. Thus decreasing vacancy costs.                                                        

Note: We do not place an advertising that ‘pets are negotiable’. If a prospective Tenant makes an application, but the owner decides not to take the prospective Tenant because of the pet, the prospective Tenant may decide they were being discriminated against for something other than having a pet. This could create additional liability to AREPM and the Owner that could have easily been avoided.     

 Service Animals                                                                                                                                                                                                                     

“Service animals” for handicapped/disabled persons are NOT pets by Federal Law, and owners cannot discriminate against handicapped/disabled persons with a service animal. Fair Housing legislation does NOT allow owners or property managers to collect deposits of any kind for service animals. However, landlords can still process applicants who are handicapped or disabled on the same criteria as other applicants: income, credit, and Tenant history. If they fail to qualify in these areas, the landlord/manager can still deny the application, handicapped or not.                                                                                                                                                                                   

 How quickly will you lease my rental property?                                                                                                                                                          

The million dollar question! We can never say with certainty how long it will take to lease a rental home. There are far too many variables that come into play including location, season, price, applicant quality and just being in the right place at the right time. This is a numbers game, and to win, you have to have as many potential Tenants looking at your home as possible. They can’t look at it if they don’t know it is there, and advertising is the only way to let them know what you have for them. Although vacancies are unsettling, we follow our proven processes until we find the right Tenant for your real estate investment.                                                                                                       

 Vacant Property and Remove All Personal Items                                                                                                                                                       

By signing the Management Agreement, the Owner agrees to vacate the Property and cause any and all other person(s) in occupancy to vacate the property, and to remove ALL “personal property” from Property including but not limited to items from sheds, garage, attic, basement, and storage closets NOT LESS THAN SIX (6) CALENDAR DAYS PRIOR TO A TENANT OCCUPANCY OF PROPERTY.                           

 

Step 2 – Locating a Quality Tenant                                                                                                                      

Advertising & Marketing                                                                                                                                                                                                     

Internet:                                                                                                                                                                                                                                  

The Internet is a great source in locating quality Tenants. We advertise on over numerous websites in order to maximize exposure. We found the more exposure our listings have on the internet, the more calls we receive, and the more showings we have, the faster we locate a great Tenant for more money.                                                                                                                                                                                                 

MLS:

Approximately 60% of our Tenants are located through the Multiple Listing Service (MLS). Listing your property here allows us exposure to over 5000 local real estate agents and relocation experts. We enter into this database all of the important information about your property to encourage agents to show your property.  We offer realtors a referral fee – and we pay the fee – not you the owner.        

Signage:

AREPM displays “For Rent” signs prominently where permitted.

More calls = more showings = better Tenants!

 The Tenant Application Process                                                                                                                                                      

Tenant Screening                                                                                                                                                                                                                    

Screening is crucial to successful Property Management. AREPM requires all applicants to fill out a detailed application and submit it for processing/approval. A credit check is NOT enough! Our company conducts a careful review of a Tenant’s background. AREPM has several risk management techniques. You can count on a closely supervised and consistent screening process with AREPM.                                       

 1.      Credit Check                                                       

2.  Criminal Background Check                                                    

3.      Evictions Check                                                           

4.      Landlord Verification                                                 

5.  Employment Verification                                   

 6.  SSN Verification                                                         

7.  FBI Most Wanted                                                      

 8.  Federal Terrorist Watch List                                    

 

 

Step 3 – Leasing, Signing and “Rental Ready Condition”                                                                               

 

Tenant Handbook                                                                                                                                                                                                                 

Tenants immediately receive the “AREPM Tenant Handbook.” This detailed booklet gives them additional information on how to care for the property, report repairs, maintain the property, make timely payments, give proper notice to vacate, leave the property in good condition, and more.                                                                                                                                                                                                                

 Step 4 – Pre-Occupancy Review                                                                                                                            

Walkthrough of the Property                                                                                                                                                                                             

A vital part of the tenancy is extensive photos taken and a detailed report taken documenting the condition of the property before the tenant moves in to occupy the premises. Unless there are extenuating circumstances the AREPM team will complete the documentation before the Tenant takes possession of the property. Then once the Tenant moves out of the property, there is a documented basis supporting a security deposit refund or claim.                                                                                                                                                                 

 By signing the AREPM Management Agreement all Owners authorize and agree that walk throughs performed prior to the Tenant taking possession and walk throughs performed after the Tenant vacates the property will be performed without the presence of the Tenant or Owner. Why do we have this guideline? Imagine you are reading a newspaper, someone comes up and begins to read the same newspaper behind you – concentrating becomes more difficult. If you want to view the property when the property is vacant this can be   arranged for you, please contact your property manager.                                                                                                                                             

 Locks                                                                                                                                                                                                                                         

At AREPM’s discretion, locks may be changed at the Owner’s expense before a new Tenant’s take occupancy. This also applies to owners that have recently moved out of a property (Housekeepers, family, friends, neighbors all could have a key to the property). Your property insurance may also require the locks to be changed between tenants. This policy is a prudent business practice to help control and reduce the Owner’s liability making it wise for any Owner to follow this practice for the protection and safety of the Tenants.                       

 

Section IV: The Tenant Moves In

Rent and Security Deposits                                                                                                                                                                                               

AREPM verifies that all funds have cleared prior to issuing possession to a Tenant. We do require a minimum of at least one full month’s rent as deposit to be paid by a Tenant prior to renting the property on every property each time. This eliminates prospective tenants who do not have the necessary funds for renting and protects the property. Once approved, all applicants must pay in full, the first month’s rent, and a security deposit, in certified funds or money order.                                                                                                                                                                                              

 Security Deposits and Claims on Deposits                                                                                                                                                                     

AREPM will deposit all funds collected for Owner, less any sums deducted or disbursed per Management Agreement and/or handbook, in a financial institution insured by an agency of the United States government. AREPM shall hold funds in an escrow account separate from AREPM’s operating accounts. Owner further acknowledges and agrees that all such funds shall be held exclusively by AREPM as is described herein and in no event or circumstance shall any said funds be held by Owner. AREPM shall have responsibility, obligation, and sole discretion to file claims against said funds within provisions of Florida Statute 83. AREPM shall not be liable in event of bankruptcy or failure of a financial institution.                                                                                                                                                                                             

Working with Tenants                                                                                                                                             

Collecting Rent                                                                                                                                                                                                                       

AREPM takes the payment of rent very seriously. Paying the rent on time is expected. Rent payments from Tenants are due on the first day of the month and is late if received in the AREPM office after 11:59 pm on the first day of the month.                                                         

AREPM recognizes that many things can happen when it concerns rent. Although rare, when an employer does delay the Tenant’s paycheck, there are real tenant emergencies, and more. Therefore, we make a serious effort to determine why the Tenant is having a problem and to assist in helping the Tenant figure out a different payment option. So long as the Tenant stays current on the rent,  AREPM has found that being professional and courteous while being still stern is the best policy to collect rent. At the end of the day, properties are rented by adults, and rent is to be paid on time.                                                                                                                                    

 Other Notices                                                                                                                                                                                                                         

There are other notices that may be involved with Tenants. AREPM serves notices as situations warrant, such as a notice to mow the lawn, a notice of an HOA violation, a notice of intent to enter the property, a notice regarding an unauthorized pet, or an unauthorized Tenants, etc. These Tenant violations may be in the form of a letter or a Legal Notice. Often, these notices are simply to correct minor Tenant problems and most Tenants comply. However, if necessary, AREPM will contact the Owner with information to discuss a specific situation.                                                                                                                                                                                                                                    

 Bugs/ Inside Pest Control                                                                                                                                                                                                    

If during the first 30 days of the rental agreement the Tenant contacts AREPM of a ‘bug problem’ or inside pest control issue, AREPM will have the property treated at the Owner’s expense. Picture yourself newly moved into a property and immediately there is an unusual amount of pests in the property. It is highly unlikely the tenant caused this issue, in such a short period of time. (If the Tenant did cause   the issue, they will be billed accordingly)                                                                                                                                                                            

 Tenant Issues                                                                                                                                                                                                                          

The AREPM policy is to obtain good Tenants through extensive marketing and showings of the property, eliminating many Tenant problems. However, even good Tenants have problems. AREPM treats each problem with a common sense approach, follows Landlord/Tenant Law. If the situation is serious, AREPM will contact the Owner, and work to find a solution for the issue.                               

 Owner/ Tenant – Arm’s Length Distance                                                                                                                                                                         

By signing the AREPM Management Agreement all Owners authorize and agree to allow AREPM to enforce the terms of the rental agreement and further acknowledge and agrees not to interfere with AREPM’s efforts to enforce the terms of rental agreement, nor in any way instruct or advise Tenant to breach or not fulfill any provision of the rental agreement. We understand some owners have the urge to speak to Tenants. Why is this a dangerous situation for Owner? ‘Breaking Bread’ as we call it is a dangerous thing.                             

 Because of the additional liability imposed on AREPM (and the Owner) if you intend on engaging with the Tenant, AREPM may not be the firm for you. Per the Management Agreement and this Handbook, the Owner agrees not to communicate directly or indirectly with Tenant    in any way, form, means, or manner except through AREPM, or at specific written instruction of AREPM, during a rental agreement term.  The Owner’s contact information will not be provided to the Tenant, nor will the Tenant’s contact information be provided to the Owner at any time. In the event the Owner does communicate with the Tenant during a rental agreement term, except as provided herein, then per the Management agreement, AREPM may, at AREPM’s sole discretion, the Management Agreement whereupon Owner shall pay fees as described in Management Agreement and Handbook.                                                                                                                                                    

 Legal Action                                                                                                                                                                                                                             

Although AREPM works diligently to avoid the necessity to begin an action, such as an eviction proceeding, it can happen. In the event any legal action is required, AREPM will contact the owner prior to taking action, discuss what is needed.                                                           

 Maintenance                                                                                                                                                               

Preventative maintenance                                                                                                                                                                                                  

The best approach to maintenance is “preventative maintenance,” and this is the AREPM  Policy.                                                                          

1.      Completing a walkthrough to document the condition of the property before the Tenant takes possession.                                      

2.      Complete and sign a detailed Lease Agreement, which includes a thorough outline of what are Tenant responsibilities regarding maintenance as well as owner obligations.                                                                                                                                                         

3.      Supplying Tenants with the “AREPM Tenant Handbook,” which provides additional instructions on the care of the property and how to report maintenance issues.                                                                                                                                                                

4.      Conduct an “Annual Property Review”. This goes a long way in assessing the property’s condition on an annual basis on any need for maintenance or prevention of more costly repairs.                                                                                                                    

 We want the Tenant to know from the beginning of their tenancy what the AREPM/Owner’s expectations are for caring for the property. This approach can prevent costly maintenance. Next, we use “preventative maintenance” procedures when work is required and utilize  competent contractors. Often the minor expenditures save the most money such as doorsteps, new filters, checking appliances, testing  smoke alarms, adjusting doors, window latches, deadbolts, caulking, grouting and more. Many small repair items can prevent maintenance that is more expensive.                                                                                                                                                           

It is equally important to keep up with maintenance while the tenant occupies the property. Often people think no news is good news;      this can be just the opposite. Instead, “delayed news can become very bad news.” This is why, in our Tenant instructions, we require them to report maintenance. For example, what is worse than finding out dry rot could have been prevented or discoloration of the linoleum if the Tenant had reported the leaking toilet in the bathroom? Avoiding major maintenance costs are certainly more favorable in such cases.                                                                                                                                                                                                                                          

 Minor Repair or Maintenance ($500 or less) During Tenancy                                                                                                 

AREPM shall not be required to obtain prior approval of Owner on any and all expenditures of $500.00 or less for any one item. The aforesaid limit is not cumulative and multiple items of repair or maintenance occurring within a calendar month shall not constitute one item. In the event repairs are made then AREPM shall withhold the amount of repairs from the ensuing rent proceeds distribution or from any rents received but not yet distributed to Owner.                                                           

The AREPM property management team contacts owners regarding maintenance above the current $500.00 minimum that is listed in the AREPM Management Agreement, unless the situation is an emergency. Our Property Managers will frequently communicate repair information to an owner for items that are below the minimum cost as well!                                                                                                             

 

Major Repair or Maintenance (over $500.00) During Tenancy                                                                                                

AREPM will notify you via e-mail and obtain your prior approval on all expenditures (non-emergency) over $500.00 for any one item. This over $500.00 cost applies to any one item and is not cumulative or applicable to multiple items or repair or maintenance occurring within a calendar month. Once AREPM has sent notification to you via e-mail, you will need to provide approval in writing to AREPM via electronic mail within 72 hours. If you do not respond via e-mail within the 72 hour time period then you hereby authorize AREPM to proceed with such repair or maintenance as deems necessary. This notification process is not required for monthly or reoccurring operations charges you have already authorized.                                                                                                                                                              

 Emergency Repairs                                                                                                                                                                                                                

Emergency repairs are those necessary to protect the Property, or other property from damage, prevent injury to persons, avoid  suspension of necessary services, avoid penalties, fines, or suspension or services to Tenant called for in a lease or rental agreement or by law. Examples of emergencies include but are not limited to electrical system (system shorts, sparking, shock hazard, or defective components), HVAC system for air conditioning (cooling), heating, refrigerator, range/oven, plumbing, water supply, water leak, pest infestation, mold/mildew. Prior notification to owner and/or prior approval from owner is not required for expenditures over $500.00 to resolve emergency repairs. AREPM will notify Owner in writing in a timely manner in the event of any emergency repair.                            

Emergencies/ Disaster/Hurricanes/Tropical Storms/Acts of God                                                                                                                          

When an emergency and/or disaster strikes, AREPM as your manager may have to undertake immediate action to protect your property and the Tenants. AREPM will notify you as soon as practical, but the nature of the emergency and/or disaster determines the action needed by AREPM. There are times when a property manager must “act” in order to prevent great financial risk to you. For example, when a property is flooding, immediate action is necessary to limit property damage.                                                                                               

In the special cases of Hurricanes, Tropical Storms, or other acts of God, AREPM shall not be responsible to take any precautionary measures to avoid any damages from Hurricanes, Tropical Storms, or any acts of God unless specifically agreed to by separate written agreement (other than Management Agreement and Handbook) between AREPM and Owner.  OWNER agrees to indemnify and hold harmless BROKER from any and all actions brought by a contractor or subcontractor for injuries or damages incurred while on the subject property.                                                                                                                                                                                                                      

 Section V: The Tenant Moves Out

Notice to Vacate                                                                                                                                                                                                                      

When there is a notice to vacate, the move out procedures with Tenants are as critical as when AREPM moves in a Tenant. The preparation for this really began when the Tenant moved in with a detailed rental agreement, move in walkthrough and AREPM Tenant Handbook. These documents give instructions to the Tenant on how to move out.                                                                                                   

 Communication with Owners and Tenants                                                                                                                                                                    

AREPM notifies the Owner when a Tenant gives notice to vacate. Owners can assume that AREPM will automatically proceed with re-renting the property.      AREPM places the property on the market to rent unless the  Owner notifies AREPM in writing to take other measures. AREPM also responds to    the Tenant notice with information detailing the steps to complete a successful move. Rent is required until the end of the notice unless    otherwise stated in the rental/lease agreement.                                                                                                                                                                 

 Tenant Move Out Walkthrough                                                                                                                                                                                         

AREPM conducts a move out walkthrough similar to the one performed before the tenant moved into the property. AREPM records any maintenance required and discloses a list of damages to the vacating tenant through a Security Deposit Claim. Digital photographs are taken when the Tenant moves out and are compared to the documentation from when the Tenant moved into the property. This will support any deductions from the security deposit. After assessment of the Tenant move out, AREPM advises Owners of any Tenant damages or any maintenance required to re-rent the property.                                                                                                                                     

Carpets Professionally Cleaned                                                                                                                                                                                         

Per the lease, the Tenant must have the carpets steam cleaned upon termination of the lease.  Should the tenant fail to provide proof of carpet cleaning or the carpets do not appear to be cleaned upon visual inspection, a claim will be charged against the tenant’s security deposit for the cost of cleaning the carpet.                                                                                                                                                                        

 Allowance for Reasonable Wear & Tear                                                                                                                                                                         

Per case law in Florida and Florida Landlord/Tenant Law, a Tenant is responsible for reasonable use of the Owner’s property and is also   obligated to maintain the property in good condition. Should the tenant fail to do so then the Owner may make a financial claim for damages against the Tenant’s security deposit. Florida courts, however, have consistently ruled that Owner’s may not charge for “ordinary wear and tear” on the property. Ordinary wear and tear is usually defined as the physical deterioration that occurs with the        normal use of a property without negligence, carelessness, accident with, or abuse of the premises, fixtures, and chattel property by the occupants of their guests. Ordinary wear and tear is deterioration or depreciation in value by normal and reasonable use. Most courts  will allow the landlord or property manager to prorate the useful life of a damaged item. If the court believes the useful life of carpeting in a rental dwelling is five years, then the cost of replacing the carpeting would have to be prorated over the five year period. For example, if the carpet was brand new when the Tenant moved in and when the Tenant left two years later, then a court may allow for a charge of 3/5 the cost of replacement against the Tenant – not the full replacement costs. Many Owners have lost cases in court and have been forced to pay thousands of dollars in attorney’s fees to the Tenant’s attorney when attempting to charge a Tenant for   “ordinary wear and tear.”                                                                                                                                                                                                      

 Security Deposit Claims                                                                                                                                                                                                       

Proper, timely, and accurate handling of a claim on the former Tenant’s security deposit is crucial. AREPM must review and evaluate the property, estimate claimable damages, and prepare a formal written security deposit claim on the former Tenant’s funds in strict accordance with Florida Law. This is a very precise and detailed process as any error or miscalculation can cause the claim against the former Tenant’s security deposit to be denied by a Florida court.                                                                                                                                 

 So long as the former Tenant does not dispute the claim the security deposit funds can be released to you the Owner in as little as 30 days from the date of Tenant move out. However, should the former Tenant dispute the claim the process may take 60-90 days or longer. This is one reason why AREPM takes such effort to ensure that any damages are well documented with the proper photo evidence and     cost estimates. This not only supports any claim to a Florida court but will help persuade the former Tenant that the claims are accurate   and fair – so that the former Tenant will not dispute the claim in the first place.                                                                                                           

 Section VI: Turning the Property Back Over to the Owner                                                                       

It is the goal of AREPM to satisfy your management needs and engage in a successful business relationship, but some things do change over time, Owners sell properties, etc. If this happens, the AREPM cancellation policy is to resolve your account in a professional, timely, and pleasant manner. Please review the following policies for cancellation:                                                                                                               

Written Notice                                                                                                                                                                                                                        

1.      Owners are advised that lease renewals are frequently negotiated with Tenants during the 10th month (approximately 60-90 days before the end of the lease) of a lease, and cancellations of the management contract may be subject to any lease renewal! For this reason, AREPM recommends that Owners provide written notice of cancellation at least 75 days prior to lease renewal.

2.      The AREPM policy is to give cancellation of management by certified US Mail. AREPM must receive the notice within three business days of the date of the notice.                                                                                                                                                 

 Keys                                                                                                                                                                                                                                           

AREPM will allow for pick up by the Owner of any keys, remotes that AREPM has in its possession. AREPM will mail these keys, remotes,    etc. via regular mail to Owner. Keys picked up by someone other than the Owner, must be authorized by the Owner in writing prior to      and must have valid photo ID at time of key pick up.                                                                                                                                                        

 Documents                                                                                                                                                                                                                               

If occupied by a Tenant, AREPM will supply the Owner with a copy of the lease. All documents forwarded to the Owner will be forwarded via email.                                                                                                                                                                                                                                   

 Monthly Rent and Security Deposit                                                                                                                                                                                  

AREPM will deposit all receipts collected for Owner, less any sums deducted or disbursed per Agreement and Handbook, in a financial institution insured by an agency of the United States government. Manager shall hold funds in an escrow account separate from AREPM’s operating accounts. Owner further acknowledges and agrees that Owner shall immediately hire a Property Manager in Florida at which time Broker will transfer any security deposit Broker is holding to the new Property Manager.  If Owner does not hire a Property Manager in Florida, Broker will not transfer the security deposit unless transfer is agreed to in writing by the Owner and Tenant, or unless directed to do so by a court of law.                                                                                                                                                                                                        

Section VII: Miscellaneous                                                                                                                                    

Mold Issues                                                                                                                                                                                                                               

Owner hereby agrees to maintain Property in a clean, rental ready condition as solely and exclusively defined by AREPM during leasing period, including appropriate control and/or remediation of mold. Owner further agrees to maintain the rental property as solely and exclusively defined by AREPM for Property during leasing period and Owner further agrees that Owner is solely liable for any and all costs, fees, charges, and expenses whatsoever that may be associated with appropriate control and/or remediation of mold at the Property prior to and during any rental agreement period. Failure of Owner to fulfill aforesaid obligations shall be cause for AREPM to immediately terminate this Agreement and Handbook and assess to Owner all charges as are provided herein. Notification to Owner          and/or prior approval from Owner is not required for emergency expenditures over the necessary services, avoid penalties, fines, or suspension of services to Tenant called for in a lease of rental agreement or by law, including appropriate control and/or remediation of mold.                                                                                                                                                                                                                                             

Lead-based Paint                                                                                                                                                                                                                    

Lead-based paint became a major issue in the 1990s that prompted mandatory requirements for residential housing and continues today. AREPM follows all mandated federal and state guidelines for lead-based paint. All properties prior to January 1, 1978 require disclosures to all Tenants.  Tenants sign lead-based paint disclosures prior to renting a property and AREPM provides them with the required EPA Pamphlet, Protect Your Family from Lead in the Home as published by  The Environmental Protection Agency.                                                                                                  

Property owners and/or Property Managers must also notify Tenants, in writing, of any scheduled work necessary for lead-based paint on the property.                     

Note: If your property was built prior to 1978, maintenance items must be completed by a License Certified Lead Based Professional.                                                                                                                                                                                                                            

 Confidentiality                                                                                                                                                                                                                        

AREPM hereby agrees that all information provided to AREPM by Owner shall be confidential and AREPM shall not disclose to any third party nor publish in any media (including but not limited to online, internet, or websites) nor provide to any third party data or information related to Owner’s non-compliance, breach, or any violation of this Agreement, nor provide any allegation, opinion or recounting of Owner’s conduct related to or arising from this Agreement without the express written consent of Owner except as may be required by law, proper government regulatory agency, or court of competent jurisdiction. Owner, in exchange for such obligation from  AREPM, hereby agrees that all information provided to Owner by AREPM, including but not limited to in whole or in part this Agreement and any Lease Agreement, shall be confidential and Owner shall not disclose to any third party nor publish in any media (including but    not limited to online, internet, or websites) nor provide to any third party data or information related to AREPM’s non-compliance, breach, or any violation of this Agreement, nor provide allegation, opinion, or recounting of AREPM’s conduct related to or arising from this Lease Agreement without the express written consent of AREPM. Both Owner and AREPM hereby acknowledge and agree that foregoing obligations are of mutual benefit and value to both parties and that violation of foregoing obligations by one party shall be considered a breach of this Agreement, with all legal remedies available for said breach, including but not limited to all court costs, all legal fees, and    damages to be awarded to prevailing party. The foregoing shall in no way whatsoever limit nor constrain either party from lawful enforcement of provisions of this Agreement, nor in any way whatsoever limit nor constrain reports to law enforcement or governmental agencies.                                                                                               

Professional and Specialized Advice                                                                                                                                                                                  

AREPM recommends and advises Owner to verify all facts and representations that are important to Owner and to consult an appropriately licensed and qualified professional for specialized advice including but not limited to legal advice, tax advice, insurance advice, property condition, Landlord Tenant law, environmental condition, and other specialized advice; Owner hereby acknowledges  no reliance on AREPM and it’s officers, directors, agents, licensees, affiliates, and employees for such specialized advice. Owner and AREPM each agree to rely solely on appropriate qualified professionals for specialized advice on any and all matters regarding Property    and/or lease. Owner hereby acknowledges and agrees to accept without reservation and undertake the obligation and responsibility for selection and compensation of such appropriate qualified professionals. This paragraph will survive expiration of Agreement.              

 If AREPM contacts legal counsel on the Owner’s behalf, the Owner agrees to pay for these charges. AREPM will advise the Owner before    legal counsel’s invoice is to go above $500.00 and will receive written permission to continue receiving advice from counsel.      

 

Modification and/or Alteration of Agreement by Owner                                                                                                                                           

By signing the AREPM Management Agreement all Owners authorize and agree that Owner may not modify, alter, adjust, or amend Agreement and Handbook in any way or manner except with specific written agreement of AREPM.                                                                    

Section VIII: Conclusion

We hope you have found the AREPM Owner Handbook informative and useful. If you still have questions, please do not hesitate to contact us. If you feel there is any other information AREPM can provide, please let us know so we can include it in the future.                                   

 Again, we want to thank you for your business and we look forward to a successful management relationship.                                                

 

General Disclaimer – To the maximum extent permitted by law our management team, agents and team members disclaim all responsibility for any loss or damage which any person may suffer from reliance on the information and material contained in this Handbook or any opinion, conclusion or recommendation in the information and material whether the loss or damage is caused by any   fault or negligence on the part of our management team, agents and team members or otherwise.                                                                     

 

The information relating to the law in this Handbook is intended only as a summary and general overview on matters of interest. It is not intended to be comprehensive nor does it constitute legal advice. While it is our officers, employees, agents and associates believe that   such information is correct and current at the time of printing, we do not guarantee its accuracy. Many factors unknown to us may affect the applicability of any statement or comment that we make to your particular circumstances and consequently you should seek appropriate legal advice from a qualified legal practitioner before acting or relying on any of the information contained in this Handbook. 

 

 

12.1.16