Leasing & Property Management Services

Explaining Tenant Placement Service

For properties that rent between $1,500 and $2,499 per month, Birmingham Home Leasing provides Tenant Placement Service for 50% of the first month’s rent. Monthly Management Service is optional (see chart below). Tenant Placement Service includes advertising your property online on Zillow, Trulia, etc. Rental Customers will access your property via Rently lockboxes which provide a key for entry. For properties that rent for $2,500 to $2,999 per month, the Broker requires additional security provided by installing a Rently keyless, digital deadbolt on the front door. This service costs 75% of the first month’s rent. For properties that rent for $3,000 per month or more, the Broker requires even more security provided by installing Rently keyless, digital deadbolts on all exterior doors. All Tenant Placement Services also include Move-In/Move-Out Reports, Tenant Screening, Lease preparation and processing and free Lease Renewal for Tenants placed by Birmingham Home Leasing.

How We Screen Tenants

We believe that thorough Tenant screening is the best way to avoid evictions. We pull the Applicant’s credit report from all three Credit Bureaus (TransUnion, Experian, and Equifax) and average their scores.

We also check the Applicant’s Driver’s License information with the appropriate issuing State. In addition, we conduct a Criminal Background Investigation on all Applicants.

Identity theft and Synthetic Identity Fraud is unfortunately a common and growing problem. We have methods and procedures for discovering identity theft and fraud and have a published policy on the subject in compliance with the Federal Trade Commission’s “Red Flag Rules” guidance.

Please check with each of our competitors about this subject, but to the best of our knowledge, we have the most thorough Tenant screening process in the Birmingham Metro Area.

Fees for Optional Property Management Service

Birmingham Home Leasing provides two Monthly Management Service options to allow each Property Owner to pay for only the service they intend to use.  Both of our Property Management Plans include the following services:

  • Collecting and transferring the rent
  • Monthly and annual accounting
  • Security Deposit escrow, accounting and return
  • Move-In and Move-Out Condition reports

The Monthly Property Management Fee is determined by the amount of repair and maintenance authority assigned to the Broker. Review the chart below for the differences between the 2.5% per month plan, 5% per month plan and 7.5% per month plan (conditions apply, see below) and then select your preferred plan.

Service:2.5%5%7.5%
-The Owner accepts sole responsibility for ordering all repairs and maintenance service required to maintain habitability under Alabama Law and the Broker’s “No Deferred Maintenance” Policy.
-The Owner accepts sole responsibility for contacting the Tenant and scheduling the appointments for their selected vendor without the assistance of the Broker.
-The Broker has no duty to the Owner to obtain quotes or recommend vendors for repair and maintenance service.
-The Owner accepts sole responsibility to verify that any vendor they order service from is appropriately credentialed, insured, etc.
-The Broker will not assist the Owner with a repair or maintenance service order without the Owner upgrading to the 5% plan.
Broker is authorized by the Owner to obtain a quote from a vendor deemed by the Broker to be reliable and preferred without obtaining additional or multiple quotes.
Owner to deposit & maintain $400 Repair Reserve with Broker.
Owner authorizes the Broker to order repairs and maintenance costing up to $400 without the express approval of the Owner.
Broker to provide one quote from a preferred vendor for repair & maintenance costing $401 up to one month’s rent for the Owner’s review & approval.
-Under this plan, the Broker has no assigned authority or responsibility to obtain quotes and facilitate repairs and maintenance that exceed a cost equal to or greater than one month’s rent.
-Under this plan, the Broker will rely on the Owner to promptly order and schedule with the Tenant all repairs and maintenance exceeding the cost equal to or greater than one month’s rent.
-The Owner accepts sole responsibility to verify that any vendor they order service from is appropriately credentialed, insured, etc.
-If the Owner requests that the Broker facilitate a repair or maintenance service that costs one month’s rent or greater and the Broker accommodates the Owner’s request, there will be an 8% markup on the services provided by the Broker and prepayment will be required before the Broker will place the order for the work to be done.
-Under this plan, the Owner authorizes the Broker to order all repairs and maintenance services that the Broker deems necessary to maintain habitation and appropriate condition of the premises. The Owner will be required to pre-pay any services that the Broker orders that would exceed the amount of one month’s rent.
Additional fees to be determined on a case by case basis for properties 31+ years old

7.5% Management Plan is Only Available to Owners of 15 or More Properties

This plan is available only to Owners of approximately fifteen or more properties. It authorizes the Broker to make all necessary repairs, no matter what the cost, without consulting with the Owner for approval. This plan is not available to Owners of one or two properties. 

The Broker does not “finance” repairs and the Management Contract will contain a clause which authorizes the Broker to draft from as many rent receipts necessary in order to make an immediate payment to vendors for a major repair(s). 

Clients who are not a U.S. citizen or a “U.S. person” are subject to 30% withholding from rental receipts according to IRS Publication 515.

Under this plan, the Broker does not lease or manage properties:

  • Outside the specified service area
  • Unless they are in excellent condition
  • Unless they are appraised by the Broker to rent for at least $1,500 per month. In this area, a property that would rent for about $1,500 per month would usually be purchased at approximately $225K or more.

Owner’s Use of Annual Home Warranty Policy Strictly Prohibited

In the Broker’s experience, Annual Home Warranty providers and the vendors they select are unreliable. For this reason, the Broker is not willing to manage a property where the Owner intends to attempt to make repairs and provide maintenance services using their Annual Home Warranty policy. Under the Management Agreement, the Owner agrees not to use an Annual Home Warranty policy to facilitate repairs and maintenance services.

Policy Against “Add-On” Property Management Services

Birmingham Home Leasing reserves the right to “screen” Tenants that they lease to and/or manage. Birmingham Home Leasing also reserves the right to conduct a Move In Condition Report for properties that they manage. Therefore, Birmingham Home Leasing will not agree to process a Lease for a Tenant found by the Owner or agree to manage a Tenant placed by another Broker.

11/17/2021