Are you looking for a property manager or Property Management Company in Austin to manage an existing rental home, condo or investment property you are about to purchase? Below you will find answers to common questions regarding our Austin Property Management Services. These are questions you should ask any Austin Property Manager you are interviewing. If you have questions not answered below, feel free to contact us online or call us.
Utilizing the services of a Professional Property Management Company in Austin relieves you from the headache of unexpected and untimely tenant and repair issues. It provides you with peace-of-mind that your property will be effectively managed to maximize cash flow and protect your investment. It also provides you with a tested and true vendor team (via your property manager) to handle repair and maintenance issues at your property. No middle-of-the-night phone calls.
Having an Austin Property Manager handling the details of managing your rental home, condo or duplex allows you to focus your time and talents on other matters instead of worrying about your Austin rental property.
As a third-party professional buffer we can more effectively handle tenant issues and raise rents for you. Not raising rent for fear of losing a tenant is a mistake that many owners make which results in unnecessary decreased revenues.
We provide complete and accurate reporting and records of all property income and expenses consolidated in one place to simplify tax preparation.
Chuck Denny has been managing and leasing homes, duplexes and condos in Austin since 1984. Chuck and Zee Denny have been managing and leasing together in Austin since 1989, and since then have leased to hundreds of tenants in Austin, Round Rock and Pflugerville, and helped many dozens of owners with property management services for their Austin rental property.
We are members of the Austin Board of Realtors, Texas Association of Realtors and the National Association of Realtors. As Realtors, we are able to place your investment property for lease in the Austin/Central Texas MLS, which is vital exposure, and we subscribe to the Realtor Code of Ethics and Professional Standards. Continuing education in our field keeps us current so that we may more effectively manage and market your property according to current legal guidelines.
No matter which company you choose to manage your property, make sure you pick an Austin property manager who is serious about the profession of property management. Many property managers operate as a sideline business or an afterthought to their sales business, and make no effort to stay educated or updated on landlord/tenant laws or current industry practices. It is a mistake to hire such a property manager in Austin.
There are two of us – Chuck Denny, Property Manager/Broker and Zee Denny, Realtor – plus professional bookkeeper. You will deal primarily with Chuck and Zee depending on the property.
In selecting a property management company in Austin, you will find companies with various numbers of staff members. The advantage to a “small shop”, such as ours, is that you have a single contact person who always knows everything with regard to your property, tenants, accounting, repairs, etc.
Our philosophy is that the key to effective property management is people management, not just brick & mortar. We develop good working relationships with our tenants, which in turn maximizes their cooperation with timely rent payments, property upkeep and longer lease terms.
We believe that you hire a property manager to manage your rental property, not to assist you in managing it yourself. We offer a turnkey style of property management service which is most appreciated by those property owners who prefer to be “out of the loop” on all but the most important matters related to the management and leasing of their property.
We don’t pester you with small details, questions, information or “updates” about your property or tenants, except for those matters which will have a significant impact on your monthly cash flow. Instead, we simply take care of the things you have entrusted us to handle on your behalf.
For some property owners, our system is not a good match, and we understand that. We are very up front about the fact that we don’t want you to hire us if you expect to be involved in minor details or decisions related to the management and leasing of your property. We simply haven’t designed our systems and procedures to accommodate that level of involvement by owners and would instead refer you to a property manager who accommodates the level of involvement you desire.
Our general rule of thumb is this; if something has happened, or is about to happen, that will disrupt your ordinary monthly cash proceeds by more than $500, we will let you know about it.
An example would be that we receive a 30-day notice from your tenant, and therefore a turnover, along with related expenses, is pending and we want you to be informed and prepared for it.
Another example would be that your A/C unit has failed during the middle of a hot summer; we’ve determined that the 12 year old compressor needs replacing and have initiated the work to replace it. We’ll call to let you know what has happened and the expected financial impact on the following month’s statement.
Finally, for new owners that seem a bit nervous, we do tend to break our own rule somewhat during the initial lease-up and make-ready maintenance process, as we bring your property into our system and attend to any initial details such as bringing the locks and smoke detectors up to code or curing any necessary repair or maintenance issues. We do want you to be comfortable working with us going forward, so the start-up process may involve more communication, if you so desire, than is outlined above. You will settle in and become comfortable with us very quickly though, and after the initial period of getting started, we’ll revert to our normal routime and level of communication.
We manage residential single family homes, duplexes and condominiums that are in good to excellent condition. Another way to say it is; we manage safe, well maintained properties that attract good, quality renters.
We don’t manage anything larger than a duplex, such as 4-plex properties or small apartments.
We don’t manage commercial properties.
We don’t manage properties with pools or hot tubs, due to liability and safety concerns.
We don’t manage properties with chronic repair issues or conditions that might adversely affect the health or safety of an ordinary tenant. An example would be a property with a rotted 2nd story deck that an owner “can’t afford” to properly repair.
We generally like to keep the majority of our portfolio located in Northwest, Central, South, West, and Southwest Austin. If the mailing address for your property is not an “Austin” address, it’s probably outside our management area.
If you own multiple rental properties including some that are inside Austin and some that are not, call us to discuss whether we can handle your group of properties. We do sometimes make exceptions for the right properties and owners.
Each time your property comes up for rent, we will perform a market analysis to determine how much properties similar to yours have been renting for recently. Once we determine a starting value, we add or subtract based on the time of year, competition from other available properties for rent near yours, the condition of the property (older vs. newer carpet, age of appliances, floor plan, etc.), and other relevant market factors.
As a general rule, we believe it’s a good idea to price your rental property at or slightly below market value and get it rented quickly. Vacancy is your worst enemy and we work hard to prevent excess vacancy loss. Sometimes owners get hung up on trying to squeeze out a little extra rent, but we will council you against being too optimistic. For example, a property with a market rent of $1,195, if placed on the market for a more optimistic $1,250, only has to remain vacant about 2 weeks longer than it otherwise would have to completely erase the additional $660/yr. that the $1,250 would have achieved.
Additionally, we stay very tuned in to the rental market all across Austin.
Exposure and good photos are the name of the game. We market your property for rent as follows:
We stay within the customs of Austin and normally require 100% of a full month’s rent.
We hold the security deposit in a separate escrow account as it belongs to the tenant.
Security deposit disposition is made for return of the deposit within 30 days of move-out. If we are able to refund 100% it means the property was left in good condition (normal wear & tear excepted). However, we will not hesitate to make appropriate deductions; keeping in mind we give the benefit of the doubt so as to avoid costly legal issues. This rarely comes up due to good qualifying up front and developing good tenant relations during the lease. As incentive for the tenant to leave the property in good condition, we provide detailed ‘move-out instructions’ with clear expectations as well as a list of potential repair and replacement deductions.
We would rather not. If we do, pets will be limited to 35 lbs each and a maximum of two total animals. We also prohibit certain aggressive breeds of dogs such as Pit Bulls and Rotweilers.
If you instruct us to market the home as a No Pets property, we are happy to do so, and will not allow pets at all. Or you can instruct us to allow cats only, or dogs only. Be aware that pets can cause damage beyond the normal pet deposit of $200 to $500 per animal. On the other hand, not accepting pets eliminates a lot of prospective renters, so the more restrictive the pet policy, the greater likelihood of a longer vacancy at lease-up.
The pet policy for your particular property is something we will discuss at greater length with you during our initial conversation.
No. We write into every lease, for every property we manage, a “no smoking” policy with a hefty penalty for violation.
We require tenants to provide at least two years of good verifiable rental history (or proof of home ownership), good credit, and verifiable income at least 3 times the monthly rent. That’s it in a nutshell, but a lot more goes into the screening than just those three items.
Rental History
We call the applicant’s current/previous landlords and ask about the applicant’s payment history, whether there were bounced checks, late payments, unauthorized roommates, pets, noise, damage, etc.
If the former landlord is a private home owner (instead of an apartment manager), we pull the County tax record to verify that the person listed as the landlord is in fact the owner of the former rental property.
We also run an MLS search on the tenant’s former addresses to see if there was any MLS sales or rental activity that contradicts the rental time frame listed on the application.
These two additional cross-checks alone have caught many bogus applicants in years past who might otherwise have slipped through a less rigorous screening process.
Additional Address Checks
We also pull a copy of the applicant’s driver’s license from a public database we subscribe to. This online driver’s license service shows the date of last renewal (which isn’t shown on the actual driver license). We compare that address and date to the most addresses and dates listed on the rental application.
The online driver license also allows us to click on the applicant’s driver license address and see all other driver licenses that have the same address listed. This sometimes reveals interesting results as we discover additional people (girlfriends, roommates) not listed on the application, with recent license renewal activity at the same address of the applicant. We then ask questions to clarify whether or not those individuals are planning to move in to the new rental property as well.
We perform the same address crosschecks against the addresses that appear on an applicant’s credit report.
Employment Verification
We fax an employment verification form to employers, and ask the applicant for a recent check stub. Income must be at least three times the monthly rent to qualify.
Criminal Background, Eviction and Terrorist Database Search
We perform a Texas Criminal Background check on each applicant as well as an Eviction History search and Federal Terrorist Database search.
Most good applicants will sail through the screening process and be approved. Otherwise, the screening process may reveal “red flags” which we look into further. Commonly, an applicant may qualify based on income and rental history, but have poor credit. In some instances, if we think the applicant is a reasonable risk, we will offer them approval with additional security deposit equal to at least one month’s rent.
In all instances we are very thorough with our screening of tenants, probably more so than many other property managers, and will never let an urgency to rent diminish our screening requirements. We conduct our own verifications (we never outsource verifications to a disinterested third-party as it is us who has the relationship with the tenant).
In over 25 years we have never had to evict anyone, and have high retention rates. We know that this is largely due to careful up-front qualification procedures.
Yes. We use the most recently updated Texas Association of Realtors Residential Lease Agreement. In addition, we use our own lease addendum to clarify and augment the standard lease. We are meticulous with our management forms and contracts, making sure they are current and complete.
We enforce the lease very strictly, including late fees, pet policy, unauthorized occupants, vehicle limits, HOA Rules, lease term, and all other terms and conditions of the lease agreement. If we become aware of a lease violation, the tenant promptly receives a violation notice and is required to cure the violation to avoid further action.
This depends on the condition. Typically 3-5 days, 7+ if extra work required. Tenants will sometimes vacate before the end of the month, leaving time to make-ready before the 1st.
We maintain high occupancy rates. It is not unusual for our tenants to renew their lease and stay with us for two or three years. If there are any legal lease changes, we sign an all new lease (not just a renewal) to keep current. We keep careful track of lease renewal dates to keep a long-term lease in effect (not month-to-month).
We conduct periodic visual drive-by inspections and offer feedback to the tenant as incentive to upkeep the property. We utilize repair visits as an opportunity to view the interior. In addition, we do a walk-through of every property/unit every 6 months, and make notations on a checklist that is available to the property owner. We walk-through if the tenant renews, to survey anything that could constitute ‘deferred repairs or maintenance.’
All non-emergency repair requests are reported to us in writing as required in the lease agreement. Tenants may fax or complete the service request online. We strive to respond to and complete most ordinary repair requests in 3 business days or less.
Repairs and property condition issues offer the greatest opportunity for friction and ill will between landlords and tenants. A property manager walks the line between a tenant who wants things fixed ASAP, and an owner who is sensitive to repair expenses. We in fact want the tenant to enjoy a well maintained home in which everything functions as designed and intended. It’s to your advantage that this happens, as a happy tenant is more likely to remain in the property at renewal.
This is where the rubber hits the road on the “turnkey service” philosophy that was outlined above. If something in your home is legitimately broken, worn out or in need of repair, we are going to have it fixed or replaced without consulting with or informing you, so long as it falls within the $500 repair cap established in the property management agreement.
In many instances, we will quiz the tenant about the problem and attempt to solve it over the phone. This is commonly accomplished with problems such as tripped breakers or GFI outlets (reset breaker), malfunctioning garage openers (check the eyebeams), disposals (reset button), dishwashers (wall switch), HVAC (thermostat not set properly, filter door loose or intake blocked), etc.
This by the way is where we as a “small shop” can offer a more personal level of repair troubleshooting and diagnosis than a large property management company with an impersonal “repair pipeline” process. Essentially, before spending your money on a service call, we attempt to troubleshoot and solve the problem. Once it’s determined that a legitimate problem exists, and that a service call is needed, we send a vendor who we have probably been using for more than 10 years and whom we trust to take care of the problem.
$500 is held in your account at all times, to be used if needed to pay for a repair after your rent proceeds have been dispersed. This allows us to immediately handle routine repairs with having to request funds each time.
No. We won’t use American Home Shield or any other Warranty Company as a “first responder” on any repair issues at your home.
If, as a property manager, we wanted to damage my reputation with as many tenants as possible by providing the lousiest repair service possible, we can’t think of a better way to accomplish that than by using American Home Shield on all service calls. They simply are not compatible with the level of service we demand of our vendors, and they don’t make the cut to be a member of our vendor team. We’ve been burned so many times in years past that we finally decided we’d had enough, and said “no more”.
Nothing affects the reputation of a property management company more than the manner in which repairs are handled. Tenants judge us by almost no other measure. It therefore makes little sense to entrust vendors we don’t know, whom we have no relationship with or control over, with the reputation of our company and the relationship with your tenant. Instead, when repairs are needed, we will send our trusted vendors with whom established relationships exists, and they will provide the quality service we require in a professional and timely manner.
That said, if we determine through our own vendor that a covered mechanical item in your home has failed, or is in need of costly repair, we will endeavor to get American Home Shield, or whatever Home Warranty company you have, out to honor the warranty, provided that they accomplish the service call and repair in a timeframe and manner that is acceptable.
We maintain a current list of quality performing companies/contractors in all categories, using referral recommendations. We personally meet all contractors and require that they carry liability insurance.
No, we only use our qualified vendors. We are not able for liability reasons to use your friends or relatives to perform work on your home unless they are in fact licensed vendors (see below).
We will be happy to invite them to join our vendor list, if they are qualified and insured, but we can’t promise that a specific vendor will be dispatched to your home for certain repairs.
Yes, we have years of experience overseeing such projects, working with excellent contractors and companies to do the job right.
We will pay your recurring HOA dues, lawn service and any other bill or invoice generated as a result of repairs, utilities or other services to your property. We are not able to pay mortgage or insurance payments on your behalf.
Owner proceeds are made by electronic transfer direct to your bank account by the 15th each month. Owner statements are emailed at the end of the month, reporting that calendar month’s activity. You may access your online owner account 24/7 for financial reports and rental management documents.
Management fee is typically 8% of the monthly rent collected, with a $75 per month minimum.
Leasing commission is 70% of one full month’s rent each time a new tenant is located, $800 minimum.
Renewal Fee is $195 flat charge each time a lease renewal is executed with an existing tenant.
It’s rare that anything other than the three fees above are actually charged to one of our owners, but your management agreement will have some of the the following items listed.
We may charge for mailing/copy costs, such as if you want a copy of the tenant’s lease mailed to you, or we have to send certified mail to your tenant or provide a copy of a large HOA Rules document to your tenant. Fortunately, nowadays most correspondence is by email or fax.
No, we do not mark up maintenance or repair invoices.
No, there is no setup fee, but we will need you to mail your repair holdback of $500 to us along with the management agreement. If an existing tenant is in the property, we will need you to send the security deposit to be held in our deposit escrow account.
We use the Texas Association of Realtors Property Management Agreement along with some other forms as listed below.
Property Management Agreement
Owner Notice of Property Condition
Addendum to Property Management Agreement
W-9 Form
We will visit your property to have a look, and if it meets our condition requirements, we will send you a management agreement and initiate the process of assuming management of your property.
We greatly enjoy what we do and are hands-on in our management style. Chuck and Zee Denny touch all aspects of the management process i.e. we conduct lease-up meetings ourselves to ensure that things are done right.
We believe in a fair/firm/friendly approach with our tenants. We develop good working relationships with them, finding this a key incentive to upkeep the property (maintain the owner’s investment) and pay rent on time, resulting in higher occupancy rates, cash flow and investment value. However, we will not hesitate to strictly enforce any matters of the lease in order to protect the property.
We lease at the right rent in order to competitively attract more traffic from which to select the best qualified tenant. We do not lease on a first-come first-serve basis, but best qualified. Many management companies do not take such a personal interest in management, and lease to the first person who applies in order to collect a fast commission. We select carefully, without discrimination, for a long term approach.
If you have any questions not answered above, or wish to further discuss anything listed above, feel free to call Chuck Denny at (512) 288-4800 or contact us online.