Frequently Asked Questions for Owners
Here is a collection of frequently asked questions we have put together to help you in managing a property. If you have any other questions not listed here, feel free to call or e-mail us.
What is included in the property management fee?
Property Management Services include the following: Account set-up, initial property inspection, digital photos for advertising, yard sign/lock box installation, tenant screenings/background investigations/application review, tenant appointments, advertising via internet, website, local rental agencies, & estimate preparation for any rent-ready work necessary. Basically, everything you need to get your property leased!
What do you do for the monthly management fee?
We handle all the day-to-day operations of your property, including but not limited to: handling tenant issues, rent collection & accounting, tenant / owner billing, maintenance of a 24 / 7 emergency call service, issue service repair orders as well as delinquent account servicing & eviction coordination.
What fee(s) do I have to pay in addition to the management fee?
The State of Hawaii deems income derived from the rental of property as taxable income and the owner must pay 4% General Excise Tax (GET) on the gross monthly rent. The Property Management Team will handle your semi-annual tax reporting and payments at a nominal fee.
Why is my property not rented?
If your property is getting exposure--meaning people are seeing it but just not moving forward with the application--it’s most likely priced too high. The real estate rental market dictates the rent as well as the supply and demand of rental properties. It’s extremely important that you don’t base the amount of expected rent on your mortgage payment, what your neighbor's tenant is paying, etc. Paradise Island Properties, LLC, will do a professional market analysis and give you a recommendation based upon comparisons in your immediate area. To avoid delays and wasted advertising dollars, we strongly suggest you stay closely within the range of our suggested rental amount.
When will you start advertising my property?
We will begin advertising as soon as when we have received the signed property management agreement from you, have inspected the property and taken pictures for advertising and assume custody of the keys.
Who pays for advertising?
The owner pays for advertising when it is done on independent vacation rental websites. However,we are able to advertise for the owner at no cost if advertising through our website, the military housing referral system and other sources available to us.
How long will it take to rent my property?
Each property is different and the time it takes to rent the property may vary depending on the market, the time of year and the leasing price. Our goal is to rent your property within a 30 day period.
How do you determine the leasing price?
We will do a complimentary market analysis for your property based on its size, age and location. We check all resources your tenant is likely to look when searching for a rental like the internet, local papers, rental agencies and the MLS. In order for a quick turn around, your property should be competitively priced against the competitions. If it’s the highest on the market, there’s a good chance it will sit longer as well. Again, our goal is to rent your property in 30 days or less and we will recommend a price that will most likely achieve that goal while still keeping within market rates.
What do you look for in a tenant?
We are mainly looking for stability in income and longevity at their previous addresses. We do not look for perfect credit but do not want to see numerous open collection activity or multiple late payments in the past 12 months. We verify employment income and past rental history.
Can I help pick out the tenant?
No, choosing tenants carefully is part of our job and we feel we are able to do it faster and more efficiently on our own. It is not time or cost effective for us to have to call you each time a prospective tenant is interested in your property. We will give you updates by email as to the status of your property and let you know immediately once we have secured a qualified tenant.
I already have somebody who wants to rent my property. Can I have them call you?
Yes, of course! Have them give us a call and we will do all the screening and coordinate the move in.
When do I get my check?
Owner checks are sent out towards the middle of the month, usually around the 15th of the same month the rent is received.
Why can’t I get my check earlier than the 15th?
The rent is due on the 1st & the tenants have a 5 day grace period. Once we receive the tenants check, we process it and deposit it in our broker’s trust account. The law requires us to wait until the checks clear which takes approximately 7-10 business days. We do offer direct deposit which will expedite the payment process.
Do you collect interest on my rent money?
No. All rent payments go directly into our broker’s trust account which is a non-interest bearing account and it is actually illegal to collect interest on these types of transactions per the Department of Real Estate. We do not make money or benefit off keeping your rent payments longer than we need to.
Can I contact the tenants or go over periodically to check on my property?
No. When you lease a property you guarantee the tenants “quiet and undisturbed use” of the property. They are the current legal owners while in possession and you are not able to enter the property or do anything without their consent. Also, when you’re using property management the whole idea is to keep an arm’s length from your tenants and avoid getting involved personally. Contacting your tenants and visiting the property while occupied defeats this purpose and tends to confuse the tenants as to who their point of contact is.
Does your company do repairs too?
Yes, we have an in-house maintenance crew that can handle any job large or small. Once we have inspected the property, we will evaluate the word that needs to be done and give you an estimate for the repairs.
How are your prices?
Our bids on rent ready work are extremely competitive.
Can you call me before doing any repairs?
We take service calls from tenants and qualify all repairs prior to making the trip to the property. For small repairs under $200.00 we take care of it right away without calling you. Emergency repairs also need to be completed right away and do not require authorization. All other repairs requested by the tenant need to be authorized by the homeowner and you will be given an estimate and need to sign off before any work is started.
What if I have a home warranty?
No problem, we will utilize home warranties whenever possible. Please forward us a copy of the home warranty at the time of sign-up.
Should I allow people with pets in my rental property?
Almost everybody has pets and to restrict them will greatly lessen the possibility of renting your property in a timely manner.
If there is anything else we can answer for you regarding our services please do not hesitate to call us.