Common Owner Questions about Property Management

Company Customer Service Standards

Our Pledge to our Customers:

Communication:
• Our office hours are 9:00 am – 12:00 pm and 1:00 pm to 5:00 pm, Monday – Friday
• We promise to respond to the following:
o Telephone messages within 24 business hours.
o Email messages within 24 business hours.

We know how valuable prompt communicvation is and uphold, operate by and guarantee these standards!

Yes

Each vendor must agree to the standards outlined in our Preferred Vendor Program in order to work with Rollingwood Management. This program helps to ensure quality, accountability, and protection for our property owners by requiring vendors to:

• Provide competitive estimates and pricing

• Submit detailed invoices

• Maintain 24/7 availability for emergency needs

• Conduct criminal background checks on all employees entering a property

• Guarantee workmanship with a warranty on labor, and materials

• Obtain approval for any repairs outside the original scope of work

• Obtain approval if repair costs exceed preset limits

• Maintain current Worker’s Compensation, and General Liability insurance

No.

It is our opinion that paying invoices is part of a management company's regular responsibility when managing your property. However, a cost would be incurred if you want us to monitor a substantial project that requires multiple trips to the property and a vendor overview. This will be discussed with you before we start the project. Please also review our scope of services in your Owner Handbook.

We carry General Liability insurance and Professional Liability insurance (commonly known as Errors and Omissions).

When considering a property management company, you should ask whether that company can reimburse you if it makes a mistake that costs you money. The court may give you a judgment against your management company, but what would keep the manager from declaring bankruptcy to avoid paying the claim? Most management companies do not carry Errors and Omissions (E&O) insurance. Fortunately, since our establishment in January 1986, no one has ever made a claim against our policy. Every day, we strive to ensure that the need will never arise.

We also carry Worker's Compensation Insurance. If someone were to get injured on your property, it would not become a liability to you. We require that all contractors carry Worker’s Compensation Insurance as well. Many property management companies do not require their contractors to have this coverage. However, without this protection, your liability is far higher than the small amount of money that would be saved from using an uninsured contractor. Don't take risks when you don't have to.

We close our books on the 15th of each month, providing you with a link to your Owner Portal on the 18th, along with transferring funds. While we strive to maintain this schedule, occasional delays may occur due to holidays or weekends.

Your Owner Portal offers 24/7 access to monthly statements and all receipts in PDF format.

Our management statements include:

Monthly and year-to-date Profit & Loss statements for each property.

• A detailed cash activity report outlining every transaction.
• Copies of all invoices.

Unlike many property management companies, we provide full transparency by including invoices with your statements. We believe you deserve complete visibility into every expense related to your property.

Once your monthly statement is ready, you will receive an email with a link to your portal. This email also confirms that monthly funds have been sent to your designated account. However, depending on your bank, this may take up to 24 hours from when we initiate the automatic deposit. Please note that holidays and weekends may cause delays in transfers.

We strive to keep informed about a property's condition through several systems. This includes seeking well-qualified tenants, conducting annual property manager surveys, and scheduling in-house maintenance technician visits.

1) The biggest key to a property being well cared for is leasing to a well-qualified tenant. We find that well-qualified tenants are motivated to take care of the property to remain "well qualified." See our tenant guarantees.

2) We email you a comprehensive annual property survey before renewing the tenant’s lease agreement. This allows you and the property manager to discuss the property's condition and determine if a lease renewal is necessary. NOTE: Your property manager performs the survey. This requires your property manager to have firsthand knowledge of your investment.

3) Having an experienced maintenance tech on our team yields many benefits:

• Respond to maintenance requests within 24 to 48 business hours (think, excellent service).
• Performs quality guaranteed repairs,
• Completes a 7-Point Maintenance Check Up during each visit (checking key maintenance issues),
• Can perform several different trades in one call. A less expensive way than calling several other vendors to a property.
• Building a relationship with the tenant

Over time, a property’s systems and appliances will deteriorate. By evaluating these, you will be better prepared for necessary improvements and more likely to identify potential maintenance issues before they become more expensive problems. A well-maintained property leases, and ultimately sells quicker!

Experience has taught us that the better the condition of your property, the better the tenant you will attract. The better the quality of the tenant, the less the likelihood of a property being intentionally damaged. Tenants have worked hard to get to where they are, and they don't want to mess up their credit by causing property damage.

This means that the property should be:

• Hotel clean (yes, that's our definition of clean).
• Walls should be painted if they are dirty or marred.
• Carpeting and flooring should be cleaned or replaced.
• Appliances should be up-to-date and working.
• Window coverings, such as 2” blinds on the windows.
• The property should be in good repair inside and out (everything works).
• Lawn and beds should be in top condition and mulched (curb appeal is critical for first impressions).
  This is not a complete list, but you get the idea. Your property should be a place someone would be happy to live and call their home.

Many residents begin to form an opinion about your property when they pull up to the curb. If the yard, entrance area, and interior look sharp and inviting, the agent will be more successful in leasing your home. A quality resident is motivated to take care of your home and will leave it in good condition. This means lower operating costs for you!

We want to keep you informed of the status of your property should a vacancy occur. We do that in several ways:

1) Before the Tenant Vacates: You will be notified by email when a Notice to Vacate is sent to us. If above-normal repairs are needed, you will be notified by the property manager, along with cost estimates. Every day, turnover items will be “handled” by us as quickly as possible. Items such as turning on utilities, mowing the yard (if needed), pest control, minor maintenance, and so forth. Quick decisions are necessary to get your house on the market and leased!

2) While on the Market: When the property is actively listed on the market, we will email you weekly updates with the agent showing activity of the property.

3) When Leased: Once the property is leased, you will be notified by our office manager. This notice will be emailed and will give you the specifics of the transaction (date leased, lease rate, length of the lease,..).

All residents are required to attend an online orientation session before moving in. During this session, we review the lease terms, including the resident’s financial responsibility for the entire lease term.

If a resident must vacate the property before the lease ends, they remain responsible for:

• All lease payments until the property is re-leased

• A reletting fee (equal to one month’s rent)

• All costs associated with the turnover

Any unpaid amounts will be sent to collections, which may negatively impact the resident’s credit rating.

Yes and maybe.

We would be happy to have one of your vendors complete a vendor packet to determine if they meet our Preferred Vendor qualifications. However, in addition to being fully insured (Workman's Comp and Liability), a vendor must agree to a certain level of product quality, response time, and warranty provisions. We do this because the service your tenant receives is critically important to us. In turn, we want to be sure our vendors see it that way.

We cannot think of a quicker way to tarnish our reputation as a property management company than to outsource customer service to an unknown vendor for interaction with your tenants. We cannot take on the risk of a potential lawsuit and cannot guarantee the quality of their work. Additionally, if their work is of poor quality and requires a follow-up on our part, you will be invoiced for the property manager's time.

Our property management fee ranges from 8-10% of the gross monthly rent, with a $75 per month minimum. If your property leases for less than $937 per month or is vacant for a period of time, there is a $75 per month charge.

Our operating costs are based on the service level needed to deliver the quality of services you should expect to receive from a full-service management firm. If you are considering saving costs by going with a less experienced firm that does not provide a full spectrum of management services to protect your asset or is not transparent with their costs, you may not receive the value for your management dollars that you should. Why risk it?

If you have four or more units, contact us for a quote on providing services for a more competitive rate.

Also, unlike other property management companies:

• We do not charge an Account Set Up Fee.
• We do not charge a monthly Vacant Property Advertising Fee.
• We do not charge a monthly Wire Transfer Fee.
• We do not add an Administrative Processing Fee (markup) to vendor invoices.

The leasing commission is 80% of new residents’ first full month’s rent. From this, we pay all the agents involved (listing and leasing) in the transaction, all costs associated with listing your property in the Multiple Listing Service, listing it on our Web site and all the additional property leasing sites, preparing all the lease documents, and performing a required lease orientation with your tenants.

A lease renewal of $250 is administered if we successfully retain your current resident and execute a lease renewal contract. Renewing the lease agreement is always our goal, not turning the property over. Why should you pay a lease renewal fee? Property turn-overs are one of the most expensive events at a property. A turn-over can easily cost you thousands in lost rent, the lease commission, mortgage payment, make-ready maintenance costs, utilities, lawn care, pest control, rekey, and so on. If a company charges nothing to renew the lease, they may be tempted to allow a property to turn over and charge you a leasing commission. What's their incentive not to? Incentivize the property management company to give excellent service to your tenants and to keep them in the property.

Your tenant is your “asset,” give them good service, as they provide the means for you to make your mortgage payment. A vacant property is a money pit! We understand the value of tenant retention for your success. That's why many of our systems focus on tenant satisfaction. On average, our tenants stay with us for over three years! That's three years of no turn-over costs and an interruption in cash flow. Keeping a tenant in your property should be a priority. A long-term tenant saves you money! Click here for more information on how we market your property and here to find out more about our leasing commission guarantee.

Since our primary focus is on the immediate Austin area, we do not manage property in

• Manor,
• Elgin,
• Hutto,
• Georgetown or
• Leander.

No.

As the owner of the property, it is your decision whether to allow pets or not. Some owners will unequivocally not allow any pets, while others will approve only small dogs, and others will accept dogs of any size. Some will allow only one pet, and others will allow multiple pets. Some will allow cats, some will not, and others will allow cats only if they have been declawed and spayed or neutered. If you decide to allow pets, Rollingwood Management recommends a minimum pet deposit of $300 per animal living in the home, and the pets must meet our pet criteria.

If you decide not to allow pets, be aware that you will be eliminating almost 60 to 65%% of the rental market, and it will be more difficult to rent your home. If the management company has done its due diligence, properly qualified the resident(s), and collected the proper deposit, the risk of having a pet is minimized.

NOTE: These provisions do not apply to Service Animals. If an applicant has a valid Service Animal, they will be allowed to lease the property with their Service Animal.

No

All our properties are non-smoking only. The Tenant Handbook or Rules and Policies clearly state this to the residents. There are substantial financial implications for a tenant that smokes in a property.

Our office staff is trained to protect your confidentiality. However, Texas law now requires we release your name and mailing address if a tenant request that information from us in writing. Some of our owners have set up a PO Box, this can prevent direct contact with a tenant. If a tenant contacts you, we strongly suggest you not talk with or negotiate any situation with the tenant. If you agree to something that we are unaware of, it could void work we are doing and cause a process to be restarted. Ask your resident to call their property manager and then notify us.

As the property owner, you could be held liable for known and unknown conditions at the property. In most cases, your fire and general liability insurance policy should cover you adequately. However, you should discuss the recommended limits with your insurance company for your specific situation. Our experience has found that most owners are underinsured for liability coverage.

It would be best to discuss placing your property into an LLC with your attorney. An LLC was conceived as an alternative to traditional corporations and partnerships. Typically, corporations protect their owners against personal liability for business activities, but this comes with complicated tax and record-keeping issues. Partnerships generally minimize tax problems but offer no liability protection.

Please note: This is not legal advice; we are not attorneys. Our management agreement with you includes an indemnity clause that places basic liability on the property owner, regardless of any fault on the part of the management company. Insurance companies are aware of this, and most will gladly name the property manager as an additional insured at no extra cost. This is important, as you want the insurance company to protect both of us in the unlikely event of a lawsuit.

Yes, provided that the current lease agreement is one we can enforce. Once the current lease concludes, we will sign your current resident onto a Texas Association of Realtors lease agreement.

In cases where the resident is behind in their rent, we can take the necessary steps to either encourage payment or proceed with eviction if payment cannot be obtained. Many residents will suddenly find a way to pay the rent or move as soon as they hear that a management company has been secured to follow through with a collection.

Most property managers look for A-grade tenants, while the rest of the world looks for B-grade tenants. Our years of experience have shown that A-grade tenants are motivated to take care of a property, ready to move, and are qualified. They have a good credit rating, stable employment, and funds for the security deposit. A-grade tenants are more likely to pay their rent on time, every month. Generally, A-grade tenants are easier to manage and less of a burden on your property. However, B-grade tenants can be just as good, which is why we allow for some exceptions to our criteria, which are often cured by either a co-signer or a larger deposit.

Yes and no.

We typically obtain an initial bid for the work to be performed. If additional bids are requested, we are happy to secure them; however, a service charge will apply.

After 38 years in business, we have established strong relationships with trusted vendors who consistently offer competitive pricing, perform quality work, and stand behind their services. Additional estimates often add weeks to the process, delaying repairs and impacting tenant satisfaction.

In our experience, the lowest bid can sometimes reflect the saying, “you get what you pay for.” For this reason, we do not typically engage unknown companies. Owners should also note that when vendors provide free bids, it is with the expectation of receiving the work. Sending vendors for bids when they are unlikely to be selected can result in vendors charging for estimates or declining future requests—both of which can hinder our ability to work with top providers.

While we will always accommodate owner requests for additional bids, it is essential to understand the potential delays and associated costs.

Residents are required to perform basic maintenance on their property. Some examples are :

• Replace burned-out light bulbs,
• Change HVAC air filters,
• Fill water softeners,
• Change smoke alarm batteries and so on.

Additionally, we expect them to be able to tighten a loose door handle, push the reset button on the garbage disposal, or reinstall a window screen that may have fallen off. Residents are typically responsible for lawn care, unless they are on a property where the owner provides this service. Lawn care is mowing, trimming, watering, and keeping flowerbeds weed-free. When repairs need to be done outside the scope of the resident's responsibility, one of our in-house maintenance technicians or subcontractors will be sent to the property.

Our maintenance staff is available 24 hours a day, and we guarantee their work!

As an agent of the landlord, we are granted permission by the tenant to run their credit. However, we are not allowed to provide the credit report or application to the owner without the applicant's consent, and most applicants don’t want their personal information disclosed. This is very understandable in our current times of identity theft.

We are required by federal law to have a Privacy Policy, and we provide a copy of this policy to every tenant who applies to lease from us.

Unfortunately, due to liability reasons, we do not manage property that has a pool.

Federal Fair Housing laws are demanding, and the fines for mishandling this are high.

Our job as your agent is to protect you from discrimination lawsuits. We take Fair Housing laws very seriously and reserve the right to select and approve the applicants. We can call and present the applicant information to you if requested; however, we reserve the final decision.

If an owner refuses an applicant due to discriminatory practices, we will immediately cancel our property management contract. For your protection, we will make this decision on your behalf.

We can start showing the property as soon as possible once it's under contract. However, you know the adage “first impressions are lasting impressions.”

The better the property looks, the better the chances of renting quickly to a quality tenant. We've found that renters typically don't negotiate; they either like the property, or they don't. If the yard looks rough when they pull up, chances are they won't even come in. If the interior looks rough and isn't clean, they'll move on to one ready to go. Tenants are not like home buyers; they typically won’t “make an offer.” They either like the home, or they don’t; you only have one chance to impress them with your property.

This lost time drives up the Days on Market for the listing, and agents wonder if there's a problem with the property. Additionally, every day it sits empty, you're losing income and incurring ongoing expenses (such as water, electricity, and yard care).

Rollingwood Management requires reserve funds for each property under management. These reserves ensure that repairs, maintenance costs, and other obligations can be paid promptly, even after rent has been dispersed.

As a service to our property owners, we are happy to pay HOA dues, property taxes, hazard insurance premiums, and other property-related expenses at no additional cost. To guarantee these payments are made on time, we require reserves equal to the anticipated costs.

A full accounting of reserve funds is included in your monthly statement.

Please note: Expenses cannot be incurred unless sufficient funds are available in your account.