Owner Q & A 

 

How long have you been managing rental property?

Over 30 years. We started managing our own property in Chattanooga. Then when we moved to the mountains we began as a sole proprietorship in September of 2003. We became a corporation shortly after that time. We then sold that company in January of 2015. In February of 2016 we began Farren Property Management, LLC.

Do you have any references?

View some of the remarks made by our clients about their experiences with Lynda Farren. We are also more than happy to give you additional names as references

How much do you charge to manage my property?

Generally speaking, we charge 10% of the amount we collect from the tenant as our management fee each month. There is no minimum monthly fee even if the property is vacant. If you don't get paid - we don't get paid! We email your statement and pay you via direct deposit. If you would like paper statements and printed checks, there is a charge for that service.

How much do you charge to lease my home?

Generally, we charge a fee equal to one month's rent to place a tenant for a one-year lease term. We call this a "Leasing Fee". If the tenant does not stay for the full term of the lease, then we will refund part of the Leasing fee based on the number of months of rent not paid by the tenant. For example, if your tenant paid the rent for 6 months and then moved out, you would receive a 50% refund of the Leasing fee charged based on the 6 months they did not pay rent.

How long will it take to rent my property?

Some properties rent within days on being placed on the market and others take more time. In general, your property should lease in 30 days or lease

Can I sell the property to the tenant?

Yes! If you (we) sell the property to a tenant that Farren Property Management, LLC placed, our management agreement sets out that you will pay Farren Property Management, LLC 3% of the purchase price. After all, Farren Property Management, LLC brought you the "buyer". We will help prepare the contracts, arrange financing, and coordinate all of the tasks required to successfully close the sale. However, if Farren Property Management, LLC did not place the tenant then we don't expect to get paid a sales commission if the tenant buys the house (unless you ask us to represent you and help with the transaction).

Can I sell the property to someone else if the tenant can't buy it?

Yes, our lease form has a clause that allows the owner to terminate the lease early. If you need to sell your property, and the tenant is not willing or able to buy it, we would try to get the tenant on a month to month basis so you can sell the property and only be required to give the tenant a 30 -90 day notice to vacate.

If you can't wait until the lease term expires, then the clause described above still gives you the option to sell the property even though the lease hasn't expired. Our management agreement places no limit on you selling the property to someone other than the tenant. You can sell it yourself, list it for sale with another broker, or list it for sale with Farren Property Management, LLC. Yes, we also sell property. As a matter of fact, we have a great deal of experience selling property that is occupied by tenants.

What happens if the tenant has a maintenance problem?

The tenant submits a work order through their portal. We then handle the work order. If it is an emergency, then we JUMP to attention and handle that IMMEDIATELY.

In the management agreement you set a "repair limit" which tells us when, based on the estimated cost of the repair, you want to be involved in handling a maintenance problem. For non-emergencies, we will handle the repair on your behalf depending on the repair limit of $250.

Who collects the rent? When do I get paid?

The tenant makes all payments to Farren Property Management, LLC. The security deposits are maintained in one escrow account. All rents and other payments are deposited into a separate escrow account. We will deduct our management fee and any other expenses that have been authorized and we send the balance to you. We send out statements on the 10th of each month (or the next business day thereafter). We email you the statement and we deposit the money directly into your bank account for you (direct deposit).

What happens if the tenant doesn't pay the rent?

In our lease form we give the tenant a 1-day grace period to pay the rent on time. On the 2nd we tell the computer to post late fees for any tenants that have not paid yet. Then "Late Letters" are generated and HAND DELIVERED. Under Georgia law we must first notify the tenant that they are in default on the lease and the Landlord must "demand possession" of the property before a dispossessory warrant can be requested from the court. We will also try to contact the tenant and find out why the rent hasn't been paid.

In the demand letter we give the tenant 2-4 days to pay, depending on the particular circumstances with each tenant. If we still have not received anything after that time period, we start filing Dispossessory Warrants (eviction). As needed we will go to court, arrange to get the "writ of possession" from the court and, if necessary, meet the sheriff at the property with a "put out" crew to remove the tenant and their things from the property. Why the tenant can't pay the rent is not really relevant. Whatever their circumstances, they do not become your own personal charity case. We can help tenants with legitimate problems find help from different charitable organizations. But we are retained by you to protect your interests. If the tenant can't pay the rent, we need to find a new tenant that can.

How do you screen potential tenants?

One of the most important aspects of making your experience as a Landlord rewarding is placing the right tenant in your property. A prospective tenant will submit a detailed application online on our website. This will tell us their income, how stable his/her job/career may be, and his/her current & previous rental or housing history. Finally, we pull and review the tenant’s credit history, primarily to verify that all the tenants have told us is true and correct. Some applicants can be very deceptive, even to the point of having friends or family members pose as former landlords or employers so that the information sounds good to the landlord conducting the background check.

We require a picture ID of the applicant which usually is a driver’s license.
We check to see if the applicant has had dispossessory warrants filed against them.
We get copies of their paystubs to confirm their source of income.
We require copies of their tax return if they are self employed.
We confirm their landlord reference or residency history (mortgage payments). 

We require that persons have monthly income of at least three times the monthly rental amount, that they have honored all current and previous leases, and have paid in full and on time. Sometimes an additional deposit may be required, and in other cases, we may have to deny tenants completely.

Farren Property Management, LLC complies with all Federal Fair Housing laws and we will not discriminate against any applicant, occupant or resident of any property at any time based on race, creed, color, religion, national origin, handicap or familial status.

A thorough background check is crucial to avoid costly mistakes with your property. A bad tenant can be a very expensive ordeal due to lost rent; extra time spent having to deal with them, and damage to the property. While no background check can eliminate the risk of a problem tenant, our thorough examination of their rental history can significantly reduce your risk.