Leasing & Management
| Features | Excalibur | Our Competitor? |
|---|---|---|
Aligned Interests Fee Structure: | ||
| If property is vacant no managements fees are due |  | ? |
| If tenant is not paying rent, no management fees are due | | ? |
| Prorated warranty on leasing or renewal fees paid | | ? |
| Our staff are paid bonuses for renting houses more quickly, getting vacant houses made rent ready quickly, renewing leases, closing work orders promptly, answering over 90% of our calls live, keeping delinquent rents low, and more. The better they do for the Owner, the better they do for themselves. | | ? |
| Late Fees – if scheduled payment to Owner is delayed, Owner gets the late fee paid by the tenant. | | ? |
| No penalty or fee for terminating the management agreement | | ? |
| No charge for coordinating work orders/maintenance | | ? |
| Any pet fees or forfeited pet deposits go to the Owner | | ? |
| No fees for preparing 1099s or annual reports | | ? |
Agents present to show your property(many companies use electronic lockboxes so tenants can show themselves) | | ? |
Standard Eviction Filings for Non-Payment of Rent | Excalibur Pays | |
No “Eviction Protection” Fees | | ? |
| No charge for court appearances related to evictions | | ? |
No Fee for connecting utilities | | ? |
Fully Insured: | | ? |
| General Liability ($1,000,000) | | ? |
| Additional Liability Umbrella ($2,000,000) | | ? |
| Workers Compensation | | ? |
| Professional Liability (E&O to $1,000,000) | | ? |
| Employee Theft (Protect your funds in the Trust Acct) | | ? |
| Cyber Crime $1,000,000 (Protect against your loss from identity theft caused by hackers) | | ? |
Discounts Available: | | ? |
| Discounts for properties that rent for more than $2000/month | | ? |
| Discounts for owners with multiple properties | | ? |
| Discounts for owners with $2000 repair limit (reduces Broker’s time coordinating repairs) | | ? |
| Discounts for owners paid on 23rd of month (rather than 9th) | | ? |
| Discounts for owners paid electronically (rather than checks) | | ? |
| Discounted sales commission if Owner sells thru Broker | | ? |
Owner has opportunity to approve rental applicants | | ? |
Owner may use Owner’s contractors or make the repair themselves | | ? |
Owner sets repair limit (no set amount) | | ? |
Experience: | ||
| How many years have you been managing property? | Since 1985 | ? |
| Do you own any rental houses? | Yes | ? |
Expertise: | ||
| Awarded the Certified Residential Management Company (CRMC) designation from National Assn of Residential Property Managers (NARPM) | | ? |
| Broker serves on advisory committee for the Georgia Real Estate Commission | | ? |
| Key staff hold Master Property Manager designation from NARPM | | ? |
| Broker is national instructor for NARPM, throughout GA for Georgia Assn of Realtors, and nationally at several real estate and property management events | | ? |
Buying or Selling
| Features | Excalibur | Our Competitor? |
|---|---|---|
Experts in Cash Flow Analysis | ||
| We can show you why rental houses for sale must be evaluated based on Internal Rate of Return (IRR) and not Cap Rate | | ? |
| Depict your assumptions in a cash flow projection | | ? |
Correctly Estimate Rents prior to Purchase Offer | ? | |
| If Excalibur is also going to lease the rental house you purchase then we need to accurately estimate the market rent. We need to keep the promise we make. | | ? |
Discounts Available | ||
| If you buy a rental house thru us, we will lease it for free | | ? |
| If you sell a rental house managed by us we will discount the sales commission | | ? |
No Fee for connecting utilities | ||
| We can help you “upgrade” your current rentals and work with Exchange Intermediaries to help postpone your capital gains tax obligations | | ? |
Experience | ||
| How many years have you been managing property? | Since 1985 | ? |
| Do you own any rental houses? | Yes | ? |
Expertise | ||
| Awarded the Certified Residential Management Company (CRMC) designation from National Assn of Residential Property Managers (NARPM) | | ? |
| Broker serves on advisory committee for the Georgia Real Estate Commission | | ? |
| Key staff hold Master Property Manager designation from NARPM | | ? |
| Broker is national instructor for NARPM, throughout GA for Georgia Assn of Realtors, and nationally at several real estate and property management events | | ? |
Managing Yourself
Years ago, when we first started the business, our corporate attorney warned us to:
“Always remember, you are only one
lawsuit away from being out of business.”
As a Landlord, you own property and you have insurance which is why it is easy for a tenant to find an attorney to sue you on a contingency fee basis. There is a lot of law with which a landlord must comply. Here are a few examples. Are you prepared to comply with these and several others?
Other Issues
| Examples | Expertise |
|---|---|
| How do I keep my tenant from growing marijuana or cooking meth in my house? | |
| If I find out someone did cook meth, what do I have to do before I re-rent the house? | |
| Who pays for treating the house for bed bugs? | |
| If my tenant dies, how do I get their things out and get my house back? | |
| How do I fix mold problems reported by the tenant? What if the tenant says that the mold is making them sick? | |
State Law
| Examples | Expertise |
|---|---|
Landlord/Tenant Law | |
| What constitutes “wear & tear” and what is tenant damage? | |
| If the air conditioner breaks, do I have to fix it? If not, have I committed a “constructive eviction” of the tenant? | |
| If a soldier, sailor, or other service member has 10 months to go on their lease, but they notify me today that they are being deployed in 6 months, can they still terminate the lease now? If so, is there a penalty? | |
| My tenant has not paid rent. What is the first step in the eviction process? If I start the eviction, and they pay most, but not all, that is due, can I continue the eviction process? | |
| When have I committed “wrongful eviction”? If my tenant skips out, can’t I just re-take possession, throw away their trash, and re-rent it? | |
| Every few weeks there is another article in the news about a landlord being attacked or killed by their tenant. How do I avoid that when evicting my tenant? | |
Personal Injury Law | |
| If I send a contractor out to fix my property, and that contractor does not have Work Comp insurance, and they fall off their ladder and get hurt, am I liable? | |
| If my tenant leans against the deck railing, and the railing gives way causing the tenant to fall and get hurt, am I liable? | |
State Law
| Examples | Expertise |
|---|---|
Landlord/Tenant Law | |
| What constitutes “wear & tear” and what is tenant damage? | |
| If the air conditioner breaks, do I have to fix it? If not, have I committed a “constructive eviction” of the tenant? | |
| If a soldier, sailor, or other service member has 10 months to go on their lease, but they notify me today that they are being deployed in 6 months, can they still terminate the lease now? If so, is there a penalty? | |
| My tenant has not paid rent. What is the first step in the eviction process? If I start the eviction, and they pay most, but not all, that is due, can I continue the eviction process? | |
| When have I committed “wrongful eviction”? If my tenant skips out, can’t I just re-take possession, throw away their trash, and re-rent it? | |
| Every few weeks there is another article in the news about a landlord being attacked or killed by their tenant. How do I avoid that when evicting my tenant? | |
Personal Injury Law | |
| If I send a contractor out to fix my property, and that contractor does not have Work Comp insurance, and they fall off their ladder and get hurt, am I liable? | |
| If my tenant leans against the deck railing, and the railing gives way causing the tenant to fall and get hurt, am I liable? | |
These are just a few of the many legal issues and considerations that landlords have to deal with from time to time. If you know how to handle all of these issues, then you have the expertise necessary to do the job yourself.ме. That leaves the question of the COST for doing it yourself (Opportunity Cost). Based on how much you normally get paid for working, compare how much it costs for you to manage the property yourself vs. hiring a professional.
Cost to lease and manage yourself:
Assumptions – There are 52 weeks per year. If you work 40 hours per week, 50 weeks per year, then you work 2000 hours per year. So if you make $100,000 per year then you make about $50 per hour. Excalibur leases between 500 – 600 houses each year. We have several leasing agents that work for us. We have managed thousands of houses over the years and process hundreds of work orders each month. We surveyed our leasing agents and examined our data to determine it takes an average of:
| Tasks | Estimated Average Time Required |
|---|---|
Leasing | |
| 40 calls/emails for each listing. 10 – 11 minutes per call/email (including follow up questions) on the phone/computer. | 7 Hours |
| 4 showings per application. 2 hours per showing (includes drive to, waiting, showing, answering questions, drive home). | 7 Hours |
| 1.5 applications per approval and move in. 4 hours to process and verify each application. Includes calls, and call backs, to former landlord and current employer. | 6 Hours |
| Prepare lease, drive to property, perform move in inspection, answer questions and explain lease, sign lease, collect funds, and drive home. | 4 Hours |
| Total Average Hours to Lease the House | 25 Hours |
| Management: (Assumes good tenant with no problems) | |
| Open mail, stamp rent check, and drive it to the bank for deposit, and drive home times 12 months and account for income and expenses. | 25 Hours |
| Handle 4 maintenance requests per year including coordinating access with vendors | 16 Hours |
