Owner Frequently Asked Questions
The following are brief answers to the most commonly asked questions from Owners who have just signed up with the Kellogg Agency. For more detailed information, please see your Management Agreement.
Submit a question you'd like answered in the FAQ.
1. Who takes care of utilities when the house is vacant?
2. Why is there a trash bill on my statement every month?
3. When do I get my proceeds?
4. How much will I get every month?
5. Why are non-rent charges paid first?
6. Why am I still paying gas, water, and electric bills after the tenant has moved in?
7. Do I get a year end statement?
8. What happens if the Tenant doesn't pay rent?
9. How long does an eviction take? How much does it cost?
10. Who takes care of the yard when the house is vacant? And how much will it cost?
11. How can I get my vacant house listed as "Today's Featured Listing"?
12. Does Kellogg Agency check out keys to strangers?
13. Why is being a NARPM® member important?
14. Can I choose my own vendors?
15. How often are inspections done?
16. How does Kellogg Agency screen tenants?
17. How often will the house need to be painted or carpet replaced?
18. How is my property advertised?
19. Do you advertise in the paper?
20. Can I do my own advertising?
21. Is there a separate fee for advertising?
22. What websites are included?
1. Who takes care of utilities when the house is vacant?
We will turn on water, gas, and electric services for the Owner and pay for these services out of the Owner's reserve funds. These services must be on in order for us to prepare the house for rental and to show the home when it is vacant.
Tenants have five days to put utilities in their name after they move in.
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2. Why is there a trash bill on my statement every month?
(For homes in Rio Rancho only)
Waste Management will not allow tenants to put trash services in their name. So, we bill the tenants every month for trash (currently $11.25/mo). Waste Management bills owners twice a year (in Jan and July) for services.
The January and July Waste Management bills will be paid out of your account and will show as an expense.
The monthly trash bill that the tenants pay ($11.25) will show as a NEGATIVE expense on your statement (aka a credit).
This may seem a bit confusing, but we feel it's important that tenant's pay trash. Including it in the rent would reduce the Owner's profitability.
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3. When do I get my proceeds?
Owners are paid using direct deposit on or about the 20th of each month.
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4. How much will I get every month?
When the Kellogg Agency receives rent from the Tenant, we will then deduct our management commission, pay any outstanding bills on the account, then make sure your reserve account is "full". The remainder is sent to the Owner.
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5. Why are non-rent charges paid first?
According to our Residential Lease Agreement all non-rent charges are paid off first when we receive a payment from a tenant. We do this for legal reasons. We can only represent you in court (for eviction) for non-payment of rent. We cannot represent you for non-payment of trash, or non-payment of late fees, etc.
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6. Why am I still paying gas, water and electric bills after the tenant has moved in?
These are bills for the month prior to the tenant moving in. Utility bills run about 30 days behind the service dates. Tenants are instructed to put utility service in their name within 5 days of moving in. After the first month, you shouldn't see any utility bill charges on your statement.
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7. Do I get a year end statement?
Yes. In January we will mail you a Year End Summary Statement. You can give this to your tax preparer. 1099 forms will be mailed separately.
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8. What happens if the Tenant doesn't pay rent?
When a tenant doesn't pay rent on the 1st of the month, then we post a 3 day notice - usually by the 5th. (Tenants are allowed to mail rent postmarked by the 1st, so we have to give the mail a couple of days to come in.)
A 3 day notice demands rent to be paid within 3 days or we will file for eviction.
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9. How long does an eviction take? How much does it cost?
Evictions are rare. However, Kellogg Agency will not hesitate to evict a tenant that does not pay rent. The eviction process (from start to finish) is generally completed within six weeks.
Eviction costs (posting, filing and appearance fees) are included in the management commission. Saving you up to $500 per eviction! See management agreement for details.
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10. Who takes care of the yard when the house is vacant? And how much will it cost?
The Owner pays for water and yard service anytime the house is vacant. The Kellogg Agency will contract with a yard service company when the house is vacant. Keeping the yards neat and weed-free is essential to present the best appearance to applicants and also to eliminate HOA violations.
If there is grass you can expect approximately $25-35/wk.
If there is no grass you can expect approximately $25-50/mo.
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11. How can I get my vacant house listed as "Today's Featured Listing"?
The "Today's Featured Listing" option is available to Owners who used the Kellogg Agency as their Buyer's Agent for their investment homes. For those that qualify, we rotate homes based on a number of factors including how long the home has been vacant.
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12. Does Kellogg Agency check out keys to strangers?
NO! We believe checking out keys to strangers is a huge liability. We feel strongly that an agent should personally show each vacant property to prospective tenants. This allows us to sell the unique features of your home.
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13. Why is being a NARPM® member important?
Being members of NARPM® (www.NARPM.org) offers Kellogg Agency a number of benefits:
- Educational opportunities through classes, conference, and industry designations.
- Legislative information to alert us to the most recent local, state, and federal laws.
- Network of property managers
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14. Can I choose my own vendors?
No. Kellogg Agency has screened and chosen vendors based on price, quality of work, and customer service. We do not allow owners to hire or utilize their own vendors.
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15. How often are inspections done?
We inspect each home before a tenant moves-in and after a tenant moves-out. We, also, schedule an annual mid-lease inspection. There is no extra fee for these inspections.
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16. How does Kellogg Agency screen tenants?
We evaluate each application on the following: income and employment verification; credit report and score; and housing history.
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17. How often will the house need to be painted or carpet replaced?
Of course, there is no way to predict how “hard” tenants will be on painted walls or carpeting. On average the interior of a house is painted once every 3-4 years and carpeting is replaced every 5-6 years.
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18. How is my property advertised?
We use a number of advertising outlets to get properties rented: yard sign; Kellogg Agency website, military bases, Craigslist, and paid rental listings. We've evaluated and chosen the best websites and advertising outlets so that your property will be seen by thousands of potential tenants. Online advertising can be very expensive, so we’ve negotiated to get the best deals for you.
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19. Do you advertise in the paper?
No. Newspaper advertising provides little exposure outside the local community. The majority of tenants find us on the internet.
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20. Can I do my own advertising?
No. Do you really want tenants to have your phone number?.
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21. Is there a separate fee for advertising?
Yes. The cost of advertising is $250 per vacancy. This includes everything that has to do with promoting your property and getting it rented as quickly as possible.
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22. What websites are included?
There are two categories of websites: 1) paid listings; and 2) free listings. Paid listings are guaranteed the largest amount of traffic and are activated immediately. Free listings are “pulled” from other websites automatically at the discretion of the website provider which means the listing may or may not show up. Hey - you get what you pay for!
| Paid Sites in the Kellogg Agency Advertising Program: www.RentalHomePros.com www.NARPM.org (coming soon) www.Rentals.com |
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| Sample of Free sites: www.HomeTownRent.com www.HotPads.com www.KwikRents.com www.MyNewPlace.com www.Olx.com www.RentalAds.com www.Rentbits.com www.Tenant.com www.Vast.com |
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| These sites are free but require manual updating: www.AHRN.com (military) www.Craigslist.com |
