A. Leasing Fee (60% – 75% of One Month’s Rent) – This fee covers our initial property inspection,
managing all necessary repairs, keeping you updated, taking photos, online Zillow marketing,
tenant screening, lease negotiations, lease signing, and coordinating the tenant’s move-in. This
charge applies each time we fill a vacancy. No upfront payment is required; the fee is deducted
from the first month’s rent once your property is rented.
B. 8.5% Monthly Management Fee (The 13th Month) – Our approximate 8.5% monthly management fee includes all the vital day-to-day tasks involved in managing your property, such as:
- Communicating with tenants and providing support
- Keeping owners informed with regular updates
- Handling maintenance requests and scheduling vendors
- Coordinating and following up with vendors
- Managing tenant-related issues and conflicts
- Issuing legal notices when necessary
- Monitoring and enforcing lease compliance
In essence, we handle all aspects of property management so you can relax knowing your investment is well cared for.
C. $100 Annual Inspection Fee – Each year, we perform a detailed inspection of your property to verify its condition and ensure tenant compliance with the lease. This includes:
- Looking for any visible tenant damage or problems like leaks
- Checking furnace filters, smoke detectors, and CO alarms for proper function
- Identifying tenant concerns or maintenance needs
- Confirming lease compliance, including unauthorized pets or extra occupants
Afterward, we provide a comprehensive report with photos and notes, outlining any issues and recommended actions to keep your property in excellent condition.
D. $195 Lease Renewal Fee – This fee is charged when we renew your tenant’s lease. Approximately 60-days before the lease ends, we will contact you to confirm renewal plans and review important details, such as:
- Current market trends and suggested rent adjustments
- Terms of the lease renewal (usually for one year, but can be modified as needed)
- Any tenant-related concerns we’ve been managing
We make sure you’re fully informed and in agreement before proceeding to ensure a smooth renewal process and continued property performance.
We begin with a thorough initial property inspection and offer clear recommendations to
get your property ready for move-in. This usually involves painting, completing necessary
repairs, carpet cleaning, landscape cleanup, ensuring smoke and CO detectors meet safety
standards, and replacing the air filter.
Once the property is rented, we rekey the locks or have the Owner rekey the locks. This step
gives Tenants peace of mind and protects you from potential security risks such as break-ins
or theft. Our aim is to make the entire process smooth and efficient, helping your property
become rentable as quickly as possible.
We primarily show properties in-person with an appointment or during our agent held open
houses. This gives our team the ability to interact with prospective Tenants and answer any
questions they may have instantly on-site.
On a case-by-case basis and only with Owner approval, we may consider implementing a
self-access showing system that allows access via a secure digital lockbox system. Self-access
showings would be available daily from 8 a.m. to 7 p.m., allowing prospective Renters to
tour the property at their convenience, which can speed up the leasing process. This
method gives Renters the opportunity to view the home on their schedule, enhancing their
overall experience. Given understandable concerns about security, not all properties are
recommended for this showing type.
Within several days of signing the contract you’ll be contacted by one of our representatives. If your
property is sitting vacant or you are preparing to move-out, we’ll contact you to go over property
specifics, coordinate key pick-up, and discuss other pertinent details. After visiting the property, we’ll
share with you items that should be cleaned, repaired, or replaced prior to renting the unit.
If the property is Tenant-occupied, we’ll contact you to receive lease documents, discuss security
deposits on-file, and obtain keys. Once lease documents have been obtained and reviewed, we’ll
coordinate with the Tenant to conduct an initial inspection and discuss with results with you.
You will need to show us proof of insurance prior to the property being listed or within 30 days of signing our Property Management Agreement. Our agreement requires:
- Current insurance coverage on the property.
- Liability insurance reflecting a minimum of at least $500,000.
- The Realty Collection listed as an Additional Insured.
Note: Adding The Realty Collection only as an Additional Interest is not sufficient and does
not meet our requirements as it does not extend liability coverage to us.
Be sure to inform your insurance carrier that the property will no longer be owner occupied.
Your property will likely require a new Rental policy to be issued. When setting up your new
policy, request that we’re added as an Additional Insured.
If necessary, feel free to send the following note to your insurance carrier:
“I’ve hired a property management company to manage my rental property. Please
confirm that I have at least $500,000 in liability coverage and that the below property
management company is listed as an Additional Insured.
Property Management Company Address:
The Realty Collection
3580 Wilshire Blvd, Suite 1798A
Los Angeles, CA 90010”
Contact us if you encounter problems obtaining rental insurance and well provide a referral.
Contact the Post Office regarding mail forwarding procedures. You will need to go to the
Official USPS Change of Address® website to complete the process. It may also help to
inform your normal mail carrier of the address change as the process may take a while to
complete. Link: https://moversguide.usps.com/mgo/disclaimer?referral=MG80&_gl=1%2a19h01iw%2a_ga%2aMTYwNDYyMDg1MS4xNzU5OTczMDEx%2a_ga_QM3XHZ2B95%2aczE3NjE1ODg0NjMkbzIkZzEkdDE3NjE1ODg1OTMkajYkbDAkaDAhttps://www.usps.com/manage/forward.html
No. Once a new Tenant takes occupancy, we’re unable to collect or forward any mail or
packages. Former Tenants are responsible for properly redirecting their mail. Writing “Not
Here” or “Return-to-Sender” on any mail received may help in redirecting the mail to the
proper address.
No. Please keep all utilities on.
Connected and turned-on utilities are needed to inspect, repair, clean, and market the
property. If the Internet remains on, cameras can be installed to monitor the property
during vacancies.
Tenants need to setup utilities in their own name at the start of their lease. For new rentals,
Owners should provide utility contact information as soon as possible to facilitate a smooth
transition and limit any service disruption.
When a new Tenant is approved, we’ll draft lease documents and send to the Owner for
review. Once approved, we’ll send to the Tenant for signature. The Owner or the Property
Manager can sign the lease. Once all signatures are obtained, a copy of the fully signed lease
will be sent to the Owner.
Yes. During repairs and showings, a lockbox may be installed. But once complete, for
liability and safety purposes, all properties are rekeyed when starting a new lease.
Rekeying after each Tenancy promotes safety and limits any unauthorized access. This
practice enables us to control access and also enhances property security.
Rents vary significantly within Los Angeles and San Bernardino counties throughout the year.
They also fluctuate during the holiday and back-to-school seasons. Additionally, rents may
be impacted by HUD guidelines if a Housing Voucher is used (Section 8) or if the property is
under rent control (RSO).
To determine how much rent you can realistically ask for, we’ll perform a Free Rent Analysis
on your property.
During our analysis, we’ll ask questions about the condition of your property, neighborhood,
featured amenities, appliances included, recent improvements, and any future planned
improvements. Based on your responses, along with recent area comps, we’ll provide a rent
estimate for your property. This estimate will likely be within a 10% range of market rate for
your area.
We primarily show properties in-person with an appointment or during our agent held open
houses. This gives our team the ability to interact with prospective Tenants and answer any
questions they may have instantly on-site.
We may consider other showing types, such as self-access showings. But this is rare and
would be on a case-by-case basis, and only with Owner approval.
The following should serve as a general guide to make your property rent ready:
- Remove all furniture from the property unless renting it out furnished or as a short-term
rental, such as Airbnb. - Have the property cleaned. Pay close attention the kitchen and bathrooms.
- Remove any moldy looking grout, silicon, or build-up in sinks, tubs, or showers.
- Shampoo all carpets. Some carpeting may require a deep cleaning.
- Clean all windows inside and out and install blinds or window coverings as needed.
- Confirm plumbing and HVAC systems work and that there are no roof leaks.
- Be sure all appliances are fully functioning and are cleaned inside and out.
- Install smoke detectors and carbon monoxide detectors where required.
- Cut, trim, and maintain any landscaping.
It can take anywhere from several weeks to several months depending upon location,
amenities, asking rent, and market conditions.
For each property we provide written screening qualification criteria to applicants during
showings.
We use the California Association of Realtors rental application. We also use internal
methods, third-party services, and RentSpree.com to perform background, credit, eviction,
income, and reference checks.
Properties are reviewed during repairs throughout the year and undergo informal
inspections at that time. Owners desiring annual inspections are provided pictures and
other property details upon request.
We ask Owners upfront if pets are allowed. If pets are allowed, rent may remain the same
or an additional charge for pets may apply. But this is determined on a case-by-case basis
and will be taken into consideration with the Security Deposit collected.
Tenants with pets often stay longer, thereby reducing turnover. But they can also irritate
other residents, neighbors, and create issues related to flooring, paint, odors, waste pick-up,
and mail service.
If you have a repairman that’s already worked on the property and you like that person’s
prices and services, we’ll continue that relationship. Else, we’ll reach out to our network of
repair contractors. We also coordinate with Home Warranty companies and can submit
needed service requests on your behalf. For repairs over $200 dollars, we’ll confirm your
approval before authorizing.
When repair requests are received, we’ll call the Tenant to learn more about the problem
and we’ll try to resolve the issue over the phone. Pictures are normally requested and sent
to the applicable repairman for diagnosis. Quotes and repairs are then scheduled. Owners
are informed and often sent pictures as appropriate.
Home Warranty repairmen charge a standard Service Fee outlined in your Home Warranty
Contract.
Our vendors charge their own independent rates. Fees incurred may be at market rate or
slightly below based on our relationship with the vendor and the type of repair needed.
Typically repair costs are identified and shared by our team. Quotes and free estimates from
contractors are solicited as needed.
The Owner can pay the vendor directly via card, check, online payment, or Zelle.
Alternatively, we can pay the vendor and get reimbursed from the Owner.
Yes, you can use your own vendors.
For Tenant occupied properties, it’s best that contracted repairmen complete all repairs.
Tenants are responsible for:
- Plumbing blockages or stoppages not caused by defective plumbing parts or tree
roots. - Repairs beyond ordinary wear and tear.
- Proper ventilation and timely damage reporting.
- Keeping the premises clean and sanitary.
Our Property Managers have vendors available 24/7 to respond to emergencies.
- Water related leaks and pipe breaks are given top priority and handled immediately.
- Gas leaks are usually referred to the gas company.
- Other emergencies and issues are handled on a case-by-case basis.
Our Leases are often drafted where the Tenant pays the Owner directly. Rent is due on the 1st of each month. Rent payments are subject to Late Fees if not received on or within several days of the due date as indicated in the Lease.
Security Deposits are usually 1 – 2 month’s rent depending on Ownership type and if an
exemption is allowed.
On July 1, 2024, California state law changed limiting Security Deposits to one (1) month’s
rent in many cases. If an Owner qualifies for exemption, the Security Deposit can be up to
two (2) month’s rent. For a detailed explanation, see California Civil Code 1950.5 (c)(1).
Security Deposits are transferred to and held by the Owner.
Prior to move-out, a pre-move out inspection will be requested. Upon vacancy, the Security
Deposit must be returned to the Tenant with 21 days.
If deductions are taken, detailed receipts and itemized charges, along with before and after
pictures of repairs must be provided to the Tenant.
No. A cash reserve is not typically required. However, a cash reserve may be required if
recurring bills and maintenance expenses are paid by Management.
Property managers are required to withhold 7% of the gross rent or lease payments in
excess of $1,500 per calendar year, and remit those payments to the California Franchise Tax
Board (FTB) if they both:
(a) Manage real property
(b) Collect rent or lease payments for California property owners that reside outside of
California (nonresident owner)
California residents or corporations, partnerships, and limited liability companies with a
permanent place of business in California, can submit Form 590, Withholding Exemption
Certificate, to certify an exemption from withholding. When a Form 590 exemption is
certified, no withholding is required.
California nonresident property owners may qualify for a waiver or reduced withholding. To
request a waiver from withholding submit Form 588, Nonresident Withholding Waiver
Request to the FTB. To request reduced withholding submit Form 589, Nonresident Reduced
Withholding Request.
Usually, The Realty Collection does not charge fees on vacant properties. The Realty
Collection charges a leasing fee for securing a tenant and charges a monthly property
management fee while the property remains rented.
Vacant properties under Management’s repair, as well as harder to rent properties may
incur a fee during vacancy. If you’re charged a fee during vacancy, the fee for re-leasing is
typically reduced or cancelled.
We can pay certain bills for you such as HOA dues, property taxes, utility bills, and gardener
bills. A cash reserve or similar setup will likely be requested. We do not pay mortgage or
insurance premiums.
Property Management Agreements are usually tied to the Tenant’s lease period, which is
often 1-year. However, an Owner may Terminate the Agreement at any time for any reason
with at least 30-days written notice. This enables us to establish trust and offer as much
flexibility as possible.
Yes, unless a local or state order prohibits our ability to do so.
Several months before a lease expires, we’ll contact the Owner to determine if a lease
renewal is desired and on what terms. Local rent control or city or state rules may limit the
amount and frequency of any desired rent increase. Rent increase options will be discussed
before any notices are sent to the Tenant.
You can sell your property at any time. Be advised that leases in place will survive the sale.
Meaning, a Tenant will not be forced to leave just because the Owner decides to sale.
Selling a vacant property may be easier than selling one that’s occupied. Similarly, selling a
duplex, triplex, or 4-plex may be easier to sale with at least one vacant unit. Whether
occupied or not, The Realty Collection will work with the Tenant and Owner to facilitate a
smooth transaction.
It’s best that Owners not visit the property once a Tenant takes occupancy. This enables us
to establish a buffer between the Owner and Tenant. It also keeps contact solely between
Management and Tenant maintaining professional lines of communication.
Occasional drive-bys are ok and even recommended. Annual inspections and repair photos
are available upon request for Owners curious about inside property conditions.