Property Owner FAQ
Q: Why shouldn’t I manage my property myself?
A: A lot of owners choose to manage their property themselves and many of them are very successful. With the time involved in collecting rents, arranging repairs and leasing units, most owners have found that their time is more valuable spent elsewhere. A good property manager will make you money on your investment, not cost you money. Other important considerations are the legal aspects of property management. In the litigious society that we live in, a property owner can ill afford to handle a problem tenant in an incorrect manner. Professional property managers are well versed in landlord tenant law, and are abreast of the constantly changing Federal and State mandates governing them.
Q: How do I know you will select a good tenant for my property?
A: Our criteria is high when it comes to choosing our residents. Our screening procedure takes into account an applicant’s credit report history, employment history, stability, and prior rental history. Our thorough background checks result in better qualified, financially stable residents. This in turn creates a lower turn-over factor and premium rents.
Q: How much does professional property management cost?
A: Generally the cost of management is a percentage of the monthly gross rent. The percentage will vary depending on property type and size. However as a rule of thumb, you can expect to pay anywhere between 7% and 10% depending on your property type, size, and requirements. For seasonal and short term rental properties, management fees are slightly higher.
Q: Are any licenses required to perform property management?
A: Yes, the law requires that property managers are licensed with the Department of Real Estate. NSI Corporation (DBA: Pike Properties) is a fully licensed Corporation in the State of California.
Q: Will I have to pay for property repairs?
A: Yes, just as you would if you were to manage the property yourself, you are still responsible for maintaining the property. The advantage of allowing the property manager to handle the maintenance issues of your investment property are extensive. We have the capability of negotiating with vendors for discount prices based on volume. These savings are passed directly to the property owner. We also have in-house maintenance for general repairs, and an on call emergency service for those late night repairs that just cannot wait until business hours.
Q: Is the cost of property management deductible?
A: Yes, the cost of management services are deductible, just like your mortgage interest, property taxes and the cost of repairs. (See your tax advisor for details.)
Q: What is the procedure for applying for an apartment?
A: ALL Applicants must complete a credit application, drivers license (Or other approved method of photo ID); Social Security Card, 3 Months bank statements and 3 months paystubs from current employer may be required
A $30.00 NON REFUNDABLE credit check/application fee is also required.
All paperwork must be completed and signed before you will be eligible to apply for a location. Once the screening results are returned and all required paperwork is completed, Pike Properties & Management will contact you regarding the status of your application.
Q: What happens once we are approved?
A: You will be contacted to schedule a move-in inspection appointment, and your security/holding deposit (If applicable) will be deposited. Once the move-in inspection is completed, you will have to complete and sign a rental agreement with the entity you are renting from.
Q: How does Pike Properties & Management determine the security deposit amount?
A: There is risk involved for both parties of a rental agreement the security deposit required be each tenant is determined using a variety of methods.. including the review of all application data, financials, employment, previous residency, prior rental history, reference information and many other methods. Typically an applicant with above a 700 FICO Score will be eligible for the minimum security deposit, whereas an applicant who’s FICO Score (Credit Score) is UNDER 700, the security deposit can be anywhere from 1 & 2 Months rent (Or even 3 months’ rent for furnished dwellings)
Security Deposits are due at lease signing. A $500.00 PET DEPOSIT is required for any tenant who intends to have pets (ie: cats, dogs, birds, lizards, fish etc…). A Pet deposit agreement is also required and will need to be signed by the tenant.
Q: What happens at Move-in?
A: ALL Roommates or occupants over the age of 18 will be required to sign each page of the lease/rental agreement. A Move-in inspection will occur and Tenant(s) will note Move in conditions and notes on the provided Vacancy Checklist. All of the Utilities need to be changed into the Tenant’s name and will need to be effective as of the move-in date. *Note: You may be assessed a fee if you do not contact the utility company by the commencement date of your lease. The first month’s rent (or if moving in on or after the 15th of the month, next month’s rent will also be due), Security deposit, pet deposit, credit check/application processing fee(s) and any other move-in charges are to be paid in FULL by the commencement date of your lease. Once move-in charges are collected, you will be provided with keys to your new place.
Q: Who do I contact to transfer Utilities into my name?
A: Below are some of the contact numbers of common vendors/utility companies who can help you establish service at your new place. The contact information below is for the utility companies who service South Bay and Torrance area. You may need to refer to the Yellow pages to get contact information for utility companies in your area.
Gas Southern California Gas Company
(800) 427-2200 or visit socalgas.com
Elect. Southern California Edison
(800) 990-7788 or visit sce.com
Water/Rubish City of Torrance Water/Rubbish
Cable/Internet Time Warner Cable
Q: Who is responsible for maintenance of the property?
A: Your lease is VERY CLEAR about what maintenance is your responsibility; please refer to your signed lease agreement for more information.
Q: What is the pet policy?
A: Unless otherwise noted in the property description, all properties have a no pet policy. If pets are allowed in a particular property, the pet deposit is equal to $500.00 and a Pet Deposit Agreement (Lease addendum) is required. The Pet deposit agreement will be attached to the signed lease agreement and the signer assumes responsibility for ANY and ALL damages to the occupied unit as a result of the pet and per the Pet Agreement terms.
Q: What about Military?
A: We do have a Military Addendum for our leases. We do not offer discounted rents for Military.