Transfer of Rental Management FAQ Individual Units

Transfer of Management FAQ

 

I just signed up to use Owl Management’s property management services what do I need to do for the transfer?

 

Checklist for Owner Move-Out

  • 1. Cancel your utility accounts for the day of the tenant’s move-in.
  • 2. Contact the post office to have your mail forwarded to your new address. This can be done on the USPS website linked here.
  • 3. Change the mailing address for your tax bills. This can be done on the City of Chicago’s website linked here.
  • 5. If there are any appliance instruction manuals or warranties that you prefer for us to keep on file, provide them to Owl Management as well.
  • 6. Switch your homeowner’s insurance to a policy with dwelling coverage for a tenant occupied property.
  • 7. If your property is a unit in a condominium association, fill out any necessary paperwork with the condominium association to give Owl Management and our vendors permission to enter the unit and receive notices.
  • 8.If your unit has keys that cannot be copied, add Owl Management name to the locksmith’s list so that Owl will have the ability to make keys.

When will I receive my first payment?

If the property is rented, you will receive your first payment after the next rent check is received, typically by the 15th of the month.

If the property is vacant and we lease it for you, typically the 1st month’s rent will go towards the leasing commission. When we receive the 2nd month’s rent, we will send you the rental income, usually by the 15th of the month.

How much will income will I receive in my first payment?

If your property was already rented when we began managing it,
in your first payment you will receive:
+the monthly rental amount,
minus -one month’s management fee,
-the Operating Account Minimum, and
-the costs of any repairs or maintenance.

If your property was vacant when we began managing it, and the 1st month’s rent was used to pay the leasing commission, management fees for the 1st and 2nd months will be deducted from your first payment.
In your first payment you will receive:
+the monthly rental amount,
minus two month’s management fees,
-the Operating Account Minimum, and
-the costs of any repairs or maintenance.

How will I receive the rental income?

For your convenience, the funds can be deposited directly into your bank account (via ACH) without any charges to you. You can also have checks mailed to you, if you prefer.

What type of insurance do I need for leasing an individual condo or home?

For a tenant-occupied property, you need “dwelling coverage.” This is not the same as homeowner’s insurance for an owner-occupied property. It is important that you purchase the correct type of insurance to be certain your property is protected. If you would like a referral, we can put you in touch with an agent who specializes in dwelling coverage.

Do I need to set-up bank accounts for the property?

Owl Management will take care of this for you. For each owner, we set up a bank account for the operation of his or her properties. There are no charges for this account because of our strong relationship with our bank.

Do I need to hold the security deposits?

Owl Management will do this for you and you are not charged any additional fees for this service. There are specific legal requirements for the handling of security deposits, and Owl can help ensure that these funds are handled in a legal manner.

If my tenant pays late and I don’t receive any rental income on the 15th of the month, when will I receive the late rent?

Late rent payments are sent out once a month on the 25th of the month. If we have not receive the rent payment by then, it will be sent out on the 15th of the following month.

When will I receive my monthly statement?

Monthly statements are uploaded to the online portal usually within a week of owner payments going out. Once you sign up for the portal you will receive an e-mail notification letting you know when a statement is posted. You can sign up for the online portal here.

Who is responsible for changing the utility bills over to a tenant’s name?

It is the tenant’s responsibility to set-up gas, electric and cable bills in his or her name. This is outlined in their lease. If utilities are currently in your name, we recommend that you call to cancel your accounts to avoid any confusion. You should cancel your utility accounts for the day of the tenant’s move-in.

When will I know if my tenant is renewing his or her lease? What is your renewal process?

We send renewal information to a current tenant approximately 90 days before a lease expires, and we require that he or she inform us regarding renewal 60 days before the lease expiration. By law, 60 days is the earliest you can require a tenant to give you notice of his or her decision to renew or move out. If your tenant decides to move, this gives the leasing agent 60 days to market the property and find a new tenant, helping to avoid vacancy.

Before we send the renewal information, we will contact you to see if you want to increase the rent or offer renewal at the tenant’s current rate. We generally recommend a small increase, if any, in the range of 3% or $25, to avoid the cost of having your tenant leave because of a rent increase. With a change in tenant, your turnover costs can include one month’s rent for leasing, plus any carpet cleaning, paint touch-ups, etc.

Does Owl recommend move-in fees or security deposits?

Owl recommends not collecting a security deposit, and instead collecting a non-refundable move-in. Additional information on this recommendation is here.