Owner FAQ

Q: Does the monthly fee cover the yearly town inspections, Cert of Occupancy inspections, semi-annual visits, etc.? And, who does the inspections, is it hired out to contractors?
A: No, these property visits are not included in the monthly fee and a $75 fee will be charged for the first hour at the property (and $35 for each additional hour as necessary).  These inspections are important to prevent fines, safety issues and extend the life of your property. Note that additional third party fees may apply also.

Q: What is the charge to find and sign a new tenant? Does this also include the inspection fees, background checks, time, etc.?
A: The cost for NJRR to find a tenant is $750 for up to FIVE (5) showings.  This includes execution of the lease and other associated documents.  If a lease is not executed within 5 showings, and additional $750 is charged for each additional 5 showings.  It is important to note that most properties do NOT require 5 showings as potential tenants have already completed an application, were reviewed and viewed the photos  of the property online.  Credit and background checks are paid by the applicant/tenant.

Q: What happens during a vacancy?
A: We charge only $35 to our owners with vacant properties. It becomes our incentive to get it rented as soon as possible for the owners. Usually vacancies are from 25 to 35 days on average.

Q: What is your collection procedure for late payments? And do you evict tenants?
A: Collection of late rent, fees, etc. happens automatically, through automated emails and phone calls. Tenants can pay with cash, money orders, checks or even debit cards. We determine very early on in a tenant’s stay how they pay their rent and act accordingly. We have some tenants that pay late every month and we know who they are. When we do have to file an eviction, often the filing itself brings the tenant back in line and we avoid a court hearing, etc. or it gets them out more efficiently and quicker. Evictions can be done by hiring an attorney, which we can find and work with but note that there are additional filing fees, legal fees, sheriff fees and lockouts fees attached to each eviction.  Upon eviction, we work with a collection agency to retrieve all funds due.

Q: Is there a repair service/administration fee for work performed?
A: We do NOT mark up any service charged by vendors. We have a strong list of vendors that get a tremendous amount of work from us; they are loyal, provide good quality work in a timely manner and have very competitive pricing. This cost savings is passed onto our owners.

Q: When do I get paid and how often do I get reports?
A: You can view the status of your property through the online portal in real-time. We distribute owner draws the last day of each month along with an emailed financial report.

Q: We have someone interested in renting our property? Do we pay a commission?
A: You only pay a commission if you require showings. We do not dictate to our clients how they acquire their tenants. We work with real estate brokers so you can list with us ($750 fee assessed), you can use your own Realtor (commission assessed) or get a potential tenant on your own and then pay no commission.

Q: Why don't you charge an initial deposit and reserve account setup for unexpected costs?
A: Automatic deposit of the net income (owner draw) is made on the LAST day of the month that rent was received.  Expenses such as maintenance and emergencies DURING that month will be removed from the deposit.  So instead of removing costs from a deposit which needs to be maintained (additional cost), we simply remove the amount from the income during the month.

Q: Why do I need to add your company as an additional insured on my home owner’s policy?
A: It helps to limit our liability in case a lawsuit is filed against you and your property. We, as agents and managers, are working on your behalf. Investment properties and the management of them carry a lot of risk. We ask every one of our clients to have us listed as an additional insured on their insurance policies to limit exposure. As an added value to you, our Broker must maintain Errors & Omissions insurance (with an Equal Opportunity/Anti-Discrimination Rider) that extends to all our clients to limit their liability.  You benefit from this with no additional cost to you. The task to add us is simple to do and not out-of-the-ordinary for any insurance company. There is no additional cost to you through your insurance company, just your time/phone call.