What is Property Management?
What exactly is property management? Property management, also referred to as real estate management, encompasses all aspects of running and managing your income property. Companies that perform property management, such as KMB Management, handle all of the day-to-day business of your property so you don't have to. Property management companies can handle anything ranging from finding and screening tenants to maintaining the property, collecting rent, and handling any issues that arise.
Property Management is the management of one or more residential or commercial properties. Property management companies do all the little things that help your property stay profitable.
How can KMB Management help me with my property? At KMB Management our focus is on exceptional management of homes, condos, town homes and apartments. KMB Management is a full service Property Management company that deals with the Marketing, Tenant Screening, Leasing, Accounting, Rent Collection, Evictions, Repair Coordination, and Regular Reporting; so property owners can focus on other concerns. KMB Management services the Quad Cities as well as the Iowa City, North Liberty and Cedar Rapids communities. We offer Iowa homeowners and investors an exceptional source of rental property management and will on request, provide references for your consideration.
Most property managers utilize a yard sign or local newspaper as the sole method of marketing a property. Although we do utilize colorful yard signs and the local newspaper, the vast majority of potential tenants utilize the internet. Our marketing plan includes the following:
- Web Site: We believe this web site is the most actively utilized residential property management web site in the Greater Quad Cities area and in Iowa City/Cedar Rapids Corridor. Considering the amount of "hits" per month, we know prospective tenants utilize this source.
- National Database Postings: In addition to our own web site, our "availabilities" are placed on national sites like Zillow, Trulia, Apartments.com, Yahoo, Craigslist, AOL and many, many more. This is very labor intensive, but the public clearly relies upon these sources when seeking quality housing.
- Cooperative Relationships: We work closely with major employers, specifically human resource departments to assist employees in transit. KMB Management list all "availabilities" on the Rock Island Arsenals sponsored web site (AHRN) or the "Automated Housing Referral Network". We also work as closely as possible with the colleges, to assist students in their property searches.
- Signage: Rental signs are placed on properties 30 days before properties become vacant. We promise you, that these colorful signs stick out!
- Community Referrals: KMB Management is making a name for itself, and our long term history in the community and profession allows many "word or mouth" referrals. We also have many realtors refer prospective tenants to us!
All prospective tenants are thoroughly screened at no cost to the owner. We have online computer services to check credit history, bankruptcy likelihood, judgments, evictions and criminal record. Employment verification, income and past tenancies are checked. Satisfactory ratios between earnings and expenses have to be met to be considered for tenancy.
Criteria utilized to qualify a tenant include:
- Satisfactory credit history
- Monthly income about three times the monthly rental amount
- No outstanding judgments
- No past rental evictions
- Established history of credit since a past bankruptcy
- Employment verification
- Criminal record check
- Present and former landlord references
All properties are offered subject to the Federal Fair Housing Act which makes it illegal to advertise any preference, limitation, or discrimination based on race, color, religion, sex, country of national origin, handicap, or familial status.
Criminal Background Check: We do not rent to anyone with a serious felony, drug charge conviction or any person who is required to register as a sexual offender.
Owner can be part of the selection process. Not many, but some property owners wish to be consulted prior to an acceptance. We continue to honor this request, subject to all federal, state and municipal statues that most be followed.
KMB Management does not generate revenue based off of maintenance income. Although we have a professional maintenance staff, all management agreements cap the amount of money we can spend on your behalf. We recognize that every dollar spent on maintenance reduces immediate owner income. However, continued quality income is directly related to the condition of the property.
KMB Management offers the following:
- Repairs are evaluated: We look to see if the problem was caused by long-term (typical) wear and tear, or was the cause of a tenant issue. If the repair is a result of tenant actions, the cost is charged back to the tenant.
- Repairs are prioritized: We have an extensive triage system that allows us to define the diligence needed to rectify a specific issue. Obviously, the loss of heat or plumbing requires immediate attention, and sometimes additional cost depending upon day and time. Minor actions such as a loose gutter, dripping faucet or broken garbage disposal can be scheduled in a reasonable amount of time that minimizes cost.
- Competitive Pricing & Quality of Service: We have had clients that request for a specific vendor to be utilized during a repair, or ask for "their guy" to be used in order obtain deals with maintenance issues. We try to honor those requests. Otherwise KMB Management has a chosen selection of outside vendors that have a strong reputation in the community and that continue to demonstrate over time their ability to perform on a professional basis. Our company receives no mark-up compensation and maintains an arm's length business relationship. We recommend bidding out all major expenses, and can also have KMB Maintenance staff bid as well. Typically, KMB Maintenance staff are delegated to small repairs and procedures that can be completed at a far lower cost than outside vendors.
- Verification: Those community vendors should be licensed, bonded and insured. There is great risk for an owner to use non-licensed and uninsured vendors. It isn't just the quality of workmanship that is of concern; it's the liability for personal injury that may result from using an uninsured trade's person. We will always utilize licensed, bonded and insured vendors whenever possible. If not available, client will be notified.
Financial Reports: Bookkeeping is accomplished by a double entry, cash basis computerized report that is distributed to owners monthly.
Monthly owner statements provide details of all income and expenses that occurred during the month.
Rental properties are registered with the appropriate city agencies and all tenant requests, notices and issues are logged into a computerized system that enhances record keeping for any unforeseen needs.
Owners receive a year's end accumulative report for ease in preparing their federal income tax forms. Owners can also view all vendor bills on our online system, so they can verify their money was spent as we reported.
KMB Management is powered by Rent Manager. Rent manager is a powerful, full service property management software that allows the owners in which KMB Management works with to interact with an online portal. Owners can access the online portal to interact with KMB Management and see how their property is performing.