FAQs for Owners
FREQUENTLY ASKED QUESTIONS
When do I receive the monthly statement and what does it include?
Per our management agreement, we complete owners’ statements and distribute funds between the 25th and the end of the month. We directly deposit or mail the payment with the statement. We recommend that you keep a reserve to prevent financial issues when payments change due to maintenance, vacancy, etc.
How do you decide who rents from you?
Our application process determines suitability of prospective tenants based on your initial request and initial Standards.
What happens if a tenant does not pay their rent?
If a tenant does not pay their rent, Sky Management files the appropriate court action for as many of the following as applicable:
- unpaid rents
- late fees
- court costs
- utility charges
This filing appears immediately in credit reports. If and when judgment is awarded, it appears as an unpaid judgment until satisfied.
By filing and pursuing judgment, we protect our owners, other property owners, and other property management companies who check credit reports.
Owners of properties that we manage receive their money, minus management fee and applicable taxes, once an ex-tenant has paid (satisfying the judgment). In exchange, we send notice of satisfaction to the appropriate court and the ex-tenant’s credit history is improved accordingly.
A prospective tenant who wants to rent through Sky Management (and most other property managers) must satisfy any judgment that appears as unpaid on their credit history. We DO rent to people who satisfy (pay) their judgment.
Do you have any non-paying tenants?
Yes, all reasonably large property management companies have non-paying tenants. Although we understand that most tenants who do not pay are experiencing unusual financial difficulties, we have to be fair to all tenants and owners. As a result, all tenants who have not paid their rent on or before the 5th of the month are subject to a court filing to recover the unpaid rents.
What happens to the Security Deposit?
Real estate law makes this answer easy. Security deposits are held in a security deposit trust account, which is separate from our operating trust account. When a tenant vacates the property, we complete and document a security deposit disposition inspection. Based on the results, the former tenant will receive all, some, or none of their security deposit.
How do you prepare a property for rent?
Whether the rent is several hundred or several thousand dollars per month, the property has to be clean, functional and in good condition. When we assume management for a new property, we conduct a complete inspection. Because we manage a wide range of houses and multifamily properties, we are able to suggest cost effective improvements. Frequently, we are able to tell an owner about a property near theirs that we also manage. By comparing and contrasting features, condition, rents and occupancy, we can work together to plan a property improvement strategy.
How is the rental amount determined?
Sky Management combines analytical tools, decades of experience, and observation to understand the rental market. As with property improvement strategies, we can often compare properties within our inventory to suggest prices. Another way to say it is: a property’s competition determines the market rent. It’s a matter of supply and demand.
How is my property marketed?
Sky Management tailors marketing to the subject property. We use a variety of old, new, high tech and low tech methods. We’re not afraid to be creative. Print advertising costs (for signs, banners and publications) are passed through to the owner.
How long will it take to fill a vacancy (or *the* vacancy in the case of a house.)?
Again, it’s a matter of supply and demand. And, since it’s real estate, supply and demand vary by local area (part of the city, school district, etc.), time of year, and other factors. Market forces can be favorable or unfavorable. Preparing, pricing and marketing the property are important factors. In our experience, the slower periods are August/September (beginning of the school year) and Thanksgiving through New Year.
What is your Pet and/or smoking Policy?
As an owner, you can shape the policy for your property. We’ll be happy to discuss details and make suggestions. Our general pet policy, guided by liability insurance, defines acceptable situations based on animal type, breed, size and number. The features of a property, such as yard, fencing, etc. also come into play. The majority of renters own pets, so a strict “No Pets” policy will significantly limit the number of qualified applicants and can lead to long vacancies. There is a pet fee that goes to the property owner.
What about late rent?
Rents must be paid according to the lease (also described in the Tenant FAQ – How and where do I pay rent?) Eviction is a part of our process that is fairly rare (about 1% per month). We wish it didn’t have to happen, but it is necessary to be fair to owners and other tenants. As noted in our Management Agreement, late fees go to Sky Management.
How does Sky Management handle Maintenance Emergencies?
The Sky Management maintenance department personnel and sub-contractors are on-call 24 hours a day, 7 days a week. Here’s what we tell tenants about maintenance emergencies: See “What if it’s an emergency?” in Tenant FAQ
What happens if tenant wants to terminate the lease?
Early termination is addressed in our lease.
What happens if tenant breaks their lease?
- The tenant is still responsible for all terms of the lease
- Court Filing for any unpaid rents, late fees, unpaid utility billings, court fee and reasonable attorney’s fees
- Early Termination Fee equal to one month’s rent
- charges for any damages or neglect to the residence, and
- forfeiture of the Security Deposit.