Leasing & Property Management Services
Leasing Service or Tenant Placement Only (TPO) Service
In this context, “Leasing Service” refers to placing the Tenant and “Property Management Service” refers to any service provided by the Broker after the Tenant is placed.
Leasing Service includes advertising the property, showing the property, taking Applications, screening Prospective Tenants, negotiating on behalf of the Property Owner, and preparing the Lease for both parties to sign.
We will schedule showing service for your property with our REALTORS and Cooperating REALTORS. We will negotiate on your behalf, screen Potential Tenants, and prepare a Lease for both parties to sign online. The Tenant will bring the initial funds to our office in the form of Cashier’s Checks to start the Lease. Our fees are taken out of the initial funds provided by the Tenant.
For a Brokerage Fee of 50% or 100% of the First Month’s Rent, Birmingham Home Leasing will list your property in the local Multiple Listing Service (MLS) which will syndicate to Zillow, Trulia, Hotpads, Realtor.com, etc. (if your property is not also listed for sale). If another Agent brings the Rental Customer that you accept, we will pay half of whatever fee you pay us to that Agent. Most Cooperating Agents anticipate to be paid 50% of the First Month’s Rent when they show a rental property. The commission rate is available for the Agent to see (not the public) in the MLS Listing. If you do not offer to pay a Cooperating Real Estate Agent 50% of the First Month’s Rent, then many will not show your property to their Customers. For that reason, 98% of Landlords choose our 100% MLS Rental Listing Service.
Conditions Apply for Leasing or Tenant Placement Only (TPO) Service
We list single family detached dwellings with at least 2 bedrooms and 2 full bathrooms in our published service area. The property also must be appraised by us to rent for at least $1,100 per month in the “High Season”.
Effective June 9, 2018, Birmingham Home Leasing is reversing its policy not to provide Leasing and Property Management Services for multi-unit properties (townhomes, condominiums, duplexes, etc.). However, we should disclose that previous experience years ago taught us that it takes longer to find a well-qualified Tenant for multi-units than single family detached dwellings. We believe the reason for this is because many Rental Customers who are looking at multi-units are also viewing apartments, which have much lower requirements on credit and income for Lease Application Approval.
Leasing Service is not available to Owners who reside outside of the United States or Canada.
Explaining Optional Property Management Service
At Birmingham Home Leasing, you are not required to purchase our Monthly Property Management Services, they are optional. Many Property Owners just use our Tenant Placement Only (TPO) Services.
Property Management Services include:
- Collecting the Rent from the Tenant and transferring it electronically to the Owner.
- Monthly and Annual Accounting for Rent Collection Services.
- Issuance of IRS Form 1099.
- Accepting Repair and Maintenance Requests from the Tenant.
- Escrow and Return of Tenant’s Security Deposit.
Conditions Apply for Property Management Service
Property Management Service is not available to Owners who reside outside of the United States or Canada.
Property Owners are required to pay for professional carpet cleaning and professional house cleaning before the first Tenant takes occupancy. The first Tenant and subsequent Tenants will be responsible for paying for professional carpet cleaning and professional house cleaning when they vacate.
It is common practice to make the Tenant responsible for mowing the lawn or requiring them to hire a professional to mow the lawn, but all other lawn and landscaping responsibilities will be assigned to the Owner. Most of these responsibilities only need to be performed as needed or once a year. These responsibilities include but are not limited to:
- Fertilization and weed treatment
- Raking the lawn if the lawn is large and there are a lot of hardwood trees
- Edging the lawn
- Trimming the shrubs
- Weeding the flowerbeds
- Replenishing the flowerbeds with mulch or pine straw
- Gutter cleaning
- Treating for fire ants
Fees for Property Management Service
The Monthly Management Fee is determined by the age of the house as follows:
- $100 per month – 1 to 30 years old
- $150 per month – 31 to 40 years old
- $200 per month – 41 to 50 years old
- $250 per month – 51 to 60 years old
- $300 per month – 61 to 70 years old
Policy Against “Add-On” Property Management Services
In the situation where a Property Owner wants to hire a Property Manager after a Tenant has been placed by them or another Broker, the Owner would be required by contract to transfer the Security Deposit to the new Broker. Birmingham Home Leasing will not accept the transfer of a Tenant’s Security Deposit when they did not perform a Move In Condition Report. Birmingham Home Leasing will not accept a Move In Condition Report from another party. Practically speaking, this policy prevents Property Owners from contracting for Property Management Service after a Tenant has been placed by them or another Broker.