Frequently Asked Question
WHAT DO YOU CHARGE?
Our management fee is 8%.
AM I REQUIRED TO HAVE A PROPERTY MANAGER?
Yes and No. Nevada State law requires that you have a representative in the county or within 60 miles of the rental property. Below is an excerpt of the statute:
NRS 118A.260 Disclosure of names and addresses of managers and owners; emergency telephone number; service of process.
1. The landlord, or any person….
(a) The name.
(b) A telephone number at which a responsible person who resides in the county or within 60 miles of where the premises are located may be called in case of emergency.
That also means that an owner can not use a 1-800 number or an answering service for “taking calls”. An owner doesn’t necessarily have to use a property manage company. There are two other options. First, the owner can manage the rental themselves if they meet the above criteria of living in the county or within 60 miles of the rental or they can engage someone as an employee to handle the rental. Of course that gets messy with taxes, deductions, workers compensation, insurance etc.
HOW MUCH WILL MY UNIT/PROPERTY RENT FOR?
We base the rental fee on several factors including size, property type, amenities, as well as what other comparable properties have been leased for. We are a member of the Greater Las Vegas Association of Realtors and have an extensive database available through the Multiple Listing Service (MLS).
HOW LONG WILL IT TAKE TO RENT MY PROPERTY?
Las Vegas is currently enjoying a tremendous growth spurt. The average time is about 30 days. Many factors influence demand. The biggest of course will be price. Price actually has two faces. Price as compared to other similar properties, and price in and of itself. If the subject rental is $2,500.00 per month, there is a much smaller market from which to draw a qualified tenant than for a property priced below $1000.00 per month. This means that usually it will take longer to rent a property with a higher rental price.
WHEN DO YOU MAIL THE OWNERS CHECKS?
Management sends out owners checks on or before the 15th of the month as long at the tenant pays the rent on time. Sometimes tenants are late with their payments. It is always good for owners to keep their mortgage payments paid at least one month in advance in the event that a tenant does not pay on time or there is an eviction. Management offers two methods of payment which are mailing OR electronic deposits into owners account.
CAN YOU PUT THE MONEY STRAIGHT INTO MY BANK ACCOUNT?
Yes, we offer electronic deposit.
DO YOU PAY ALL THE BILLS?
We will pay as many bills as you want us to handle and are comfortable with.
HOW MANY VACANCIES DO YOU HAVE?
The rental market in Las Vegas is strong as long as you are priced properly. The vacancy factor is influenced by many factors including general economy, interest rates, and current impact of terrorist threats. As interest rates decline, more renters can buy. When tourism is negatively impacted, there are job layoffs and less spending, renters and their families move in together… that weakens rental demand.
HOW SOON CAN YOU START MANAGING MY PROPERTY?
If you are not currently involved with a licensed management firm we can start immediately. If you have a manager currently you will need to discontinue their services, according to your agreement, before we would be able to become involved and manage the property for you.
DO I GET A WRITTEN STATEMENT?
YES! Every month it emailed to you on or before the 15th. It is computer generated, not hand written, and not only gives you over all income and expenses but details every transaction for you. We also include all receipts from vendors for work completed.
HOW MUCH MONEY DO YOU KEEP IN THE OWNERS TRUST ACCOUNT FOR REPAIRS?
We require a minimum of $200.00 per property. Many owners keep much, much more…. we’re flexible. If repairs must wait because of insufficient funds then the tenants will suffer. In the long run an owners profits may suffer because tenants will move when repairs are not completed in a timely manner.
DO YOU SELL REAL ESTATE TOO?
Yes. However, 98% of what we do centers around property management. We do not actively seek sales. When the time comes most of our owners will request that we either find them additional investments or list their existing rentals. Since we have had a long term relationship these owners are comfortable with our recommendations.
HOW MUCH DO YOU CHARGE TO GET A NEW TENANT?
Leasing fee is charged whenever a new tenant is acquired. Fees may vary including advertising costs and or MLS Broker fees that refers a tenant.
WHO HOLDS THE TENANTS SECURITY DEPOSIT?
The management company holds the tenant’s security deposit in a trust account. In Nevada the Broker is always responsible for the money. Below we have retyped the Nevada Statutes regarding this matter.
NRS 645.310 Deposits and trust accounts: Accounting; commingling; records; inspection and audit.
1. All deposits accepted…
2. Every real estate salesman…
3. A real estate broker shall…
4. If a broker receives money, as a broker, which belongs to others, he shall promptly deposit the money in a separate checking account in a bank in this state which must be designated a trust account. All down payments, earnest money deposits, rents, or other money which he receives, on behalf of his principal or any other person, must be deposited in the account unless all persons who have an interest in the money have agreed otherwise in writing. A real estate broker in his discretion may pay to any seller or the seller’s agent the whole or any portion of such deposit. The real estate broker is personally responsible and liable for such deposit at all times. A real estate broker shall not permit any advance payment of money belonging to others to be deposited in the real estate broker’s business or personal account or to be commingled with any money he may have on deposit.
HOW MUCH SECURITY DEPOSIT DO YOU CHARGE THE TENANT?
As a general rule of thumb we request an amount equal to one months rent. However, there are many factors that make up the figure. Are there pets, gate cards, pool keys, garage door openers, etc. Assuming no extensive damage the deposit should cover most of the expenses and unpaid rent. Extremely high security deposits are great if you can get them…. but they also keep good tenants from being able to afford the overall move-in. The law limits the maximum of security deposit for a property is three times the monthly rent.
DO YOU WORK WITH SECTION 8?
Landbank Realty does not accept Section 8 at this time.
HOW DO YOU CHECK OUT PROSPECTIVE TENANTS?
In addition to verifying their current residence, payment history, and employment status, our management staff complete a detailed credit check through Appfolio. We are able to get a credit rating from anyone no matter where they have lived in the past. We also ask for pay stubs and/or reference letters.
HOW DO YOU HANDLE EVICTIONS?
The eviction process in Nevada when compared to other areas of the country is fast. We normally begin the eviction process on the 5th of the month by posting a 5 Day Pay or Quit Notice at the property. When the mandatory time has expired and the tenants have still not met their obligations we will file the appropriate paperwork (Affidavit of Complaint, Order for Summary Eviction, Instructions to the Constable etc.) with the Justice Court and Constables office. Usually between 2-4 business days later the tenants will be physically removed from the property and the locks will be changed. The entire process averages about 21 days
HOW DO I GET MONEY THAT IS OWED AFTER A TENANT LEAVES?
Landbank files any outstanding balances with Clark County Collections. They will attempt to collect and can charge up to 50% of what is collected as their fee (paid for by the tenant).
WHO PAYS TO ADVERTISE THE PROPERTY?
Ultimately, in any pricing structure, with any company, the owner does.
WHAT EXPENSES WILL I INITIALLY INCUR WHEN CHOOSING YOU?
We charge $100 for our set up fee. The Reserves of $200 will be taken out of the 1st months rent, along with the Leasing fee, Realtor fee and of course the management fee. however your situation or property may require some expense if it is not ready to rent. Many owners, as the first act of business, need us to evict a tenant. Of course there will be eviction and court costs etc. that will need to be funded before we get involved. Or possibly, the property needs a major overhaul requiring plumbing work, landscaping, roofing, painting, new carpet, fixtures etc
HOW LONG OF A LEASE DO YOU SIGN?
We sign a one year lease.
WHAT SORT OF MARKETING DO YOU DO?
We try and saturate the market when it comes to filling a vacancy. Below is a list of advertising techniques we employ.
* FOR RENT SIGNS – Posted at the property and separate signage off site leading potential renters to the property.
* MLS – Enter property data on the Multiple Listing Service which makes your property available to 10,000 other Realtors.
* INTERNET – Listings on our web site (www.landbank.us) and the Greater Las Vegas Realtors web.
WHAT IS THE TERM OF YOUR MANAGEMENT AGREEMENT WITH OWNERS?
The first initial term is 12 months.
WHAT SORT OF RESTRICTIONS CAN I IMPOSE ON A TENANT?
Usually when our management company hears this question, an owner is really asking who can I keep out. We follow all government laws and guidelines. If you are going to be in the rental business you can not afford to biased. It isn’t worth it. Every demographic group, rich or otherwise, has it’s percentage of problem tenants. However, if you are referring to unprotected classes such as pets, smokers, drug dealers etc., then yes you have a choice. You can always impose any restriction you like that deals directly with the property and not the tenant. Restrictions on alterations to the property, number of vehicles, size and type of vehicles (no planes or tanks), landscaping, wallpaper, painting etc.
HOW CAN I BE SURE THE TENANT WILL MAINTAIN MY PROPERTY?
Being a landlord and having rentals is a ‘business’. With any business or investment there comes with it a certain amount of risk. The most realistic answer to the question is that you “can’t be sure” of anything. However, you can take the necessary steps to reduce your risk by using a property management company that checks a tenants background, makes them sign a solid lease agreement, and checks on the tenant periodically. Always prepare for the worst and hope for the best. It’s only a small percentage of people that do major amounts of harm to a property. On the other hand, there is also a small percentage of tenants that will go out of their way to improve the property like putting in landscaping, footing the bill for painting, or putting in a patio or driveway. Most people fall in the middle. There are no guarantees in life.
WHAT DO YOU CHARGE WHEN THE PROPERTY IS VACANT?
Landbank Realty only charges a management Fee on collected rents. So, if a property is vacant there normally isn’t any charge. Aside from any repairs that may be done.
HOW DO I GET STARTED WITH YOU. WHAT’S THE FIRST STEP?
You can give us a call, or email us with the particulars of the subject property (rental). That’s it. It will take us a few minutes to put your packet together. When you get the packet, answer the questions regarding the property and fill in the other highlighted areas and send the paperwork back to Landbank. We’ll get started right away.
WHAT ARE YOUR FEELINGS ABOUT PETS AND SMOKERS?
They exist and make up large paying demographic groups. Let’s take pets. Tenants know that only a small percentage of owners ‘allow’ pets. Consequently, many pet owners feel they must deceive a landlord about having a pet. They justify it in their mind because they don’t see their pet as being a problem. This means that on occasion you will rent to a person without pets only to find later on that they have a pet. At this point you have a decision to make. Remember, the property is an investment. The question you need to ask yourself is, if the pet has caused damage, and you evict the tenant because of the pet, will you be better off? You will get as much of the deposit as possible to make the repairs and you will have a vacancy…. no income. If you let the pet stay (assuming no more damages), you will still have to make the repairs when the tenant decides to leave, but you will have the income while the tenant is in the property. If the pet isn’t causing any harm, it’s always better to let them stay.
As a general rule of thumb, we request no smoking in any of our rentals.
For the most part it depends on you. It’s your property. The more people you exclude, potentially the longer it will take to rent…. and on average the vacancy will always cost more than making the repairs.
WHAT IS THE ‘MLS’ AND WHAT GOOD IS IT?
MLS stands Multiple Listing Service. It’s the computer data base that most realtors access to advertise their properties to all of the other realtors. It’s free, until you actually benefit from it. We normally offer up to $300 referral fee to other realtors who bring us a qualified tenant that is accepted. It doesn’t cost anything to list and the referral fee comes out of the first months rent.
DO YOU PICK UP THE TENANTS RENT PAYMENTS AT THE PROPERTY?
No. Tenants can mail their payment to our management office. Tenants can also go online to make their payment. This is explained to all tenants when they sign a lease at our management office. In addition, we have a drop box at our office available 24/7. We have never had a problem with tenants getting their payments into the office.
HOW DO YOU DECIDE WHAT TYPE OF MAINTENANCE PERSON TO SEND FOR A REPAIR?
The management staff look at the type of repair that is being made and pick the best person that is suited for the job. Many times it also has to do with “risk’. In other words, we don’t send a handyman to repair or replace an electrical box or breaker board. The chances of causing a fire are too high, so we would use an electrician. However, we wouldn’t use an electrician to change out some light bulbs or replace a light socket or switch, something with little or low risk, we would use a handyman. So, each instance and what is involved is evaluated and the best person is selected based on risk and cost.
IT DOESN’T LOOK LIKE YOUR RENT PROJECTIONS WILL BE ENOUGH TO COVER MY EXPENSES, WHAT DO WE DO?
First of all we do not set your rent price. We show you what the market is paying for your type and size of property. You can ask any price you want. Keep in mind, your average tenant doesn’t really care what you need, how much you paid for the property, how little you put down, or what your debt obligation is. He is looking for the best property that meets his budget. Like anything else, if he can basically get the same thing cheaper, the next block over, that’s what he will do. You need to decide how long you are going to try and get “your price”. Remember, every day the property sits vacant, you’re losing money.
CAN YOU JUST GET ME A TENANT AND I’LL MANAGE THE PROPERTY MYSELF? – Yes, Landbank Realty can find a tenant for you if that is all you want. The tenant finding fee is $500. We will have the property shown and screen the applicants for credit, past rental history, income, evictions and criminal records. The owner then decides if they want to accept the applicant. They would still be charged the agent commission as well.