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FREQUENTLY ASKED QUESTIONS
IN NO PARTICULAR ORDER
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ISN'T THE TENANT SUPPOSSED TO
PAY THE TRASH? WHY AM I GETTING BILLED? - The
trash company is one of the utilities that can lien your property
if the bills aren't paid. Consequently, it is in your best interest
to pay the trash bill out of your account and then we bill the
tenant. That way the tenant doesn't get behind and we are able
to monitor the utility bills that can directly impact your property.
Usually the tenant then reimburses you with their next rent
payment.
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I THINK I WANT TO SELL, CAN
YOU HELP ME WITH THAT? - Certainly. We are a
licensed Real Estate office and can handle sales as well as
management. In fact, most owners prefer to go through us. If
we have been managing you property for some time then we usually
will take 2.5% commission and offer 3.5% commission to outside
brokers. That extra half a percent makes a big difference in
getting offers on your property over other available properties.
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I RECEIVED A 1099 FROM BOTH
HUD AND YOU FOR THE SAME TENANT, WHAT DO I DO?
- Federal requires that anyone who pays out $600.00 or more
to anyone else, must report it. Consequently, both HUD and our
office are correct in the amounts we are reporting. The "fix"
for the problem is simple. Add both 1099's together and report
the sum total as gross receipts. Usually the HUD 1099 is smaller
than the one you received from our office. Next, deduct the
HUD 1099 amount as an expense. You could itemize it as "HUD
Duplicate 1099". Your bottom line net result will be the
same.
If you do not add the two 1099's together and report the total
as gross income, it will flag the IRS and probably cause a low
level audit.
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I'VE DECIDED TO MOVE BACK INTO
THE PROPERTY, WHAT HAPPENS NOW WITH THE TENANT?
- Assuming that the tenant has a valid lease agreement, and
they want to stay until the end of the lease term, you probably
won't be able to move back in. If they are on month-to-month,
then you will need to go through the 30 day eviction process.
Of course non of this will happen if the tenant decides they
want to move and just move out. We've seen owners financially
help the tenants move. Sometimes this is cheaper in the long
run than waiting for them to move and having the owner make
other interim arrangements.
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THE MONTH-TO-DATE INCOME FIGURES
DON'T TOTAL THE YEAR-TO-DATE FIGURES ON MY CASH FLOW STATEMENT,
HOW COME? - They usually won't. The Cash Flow
statements are generated on the 10th of each month and only
show activity in your account from the 1st of the month until
the date the reports are generated... ie the 10th. These dates
are important in understanding why there "seems" to
be a discrepancy. Let's say a tenant either pays late, like
on the 12th of the month. In this case, this income isn't going
to show on the Cash Flow statement in the Month-To-Date column
since the funds were not received between the 1st and the 10th
of the month. However, those funds will show up in the Year-To-Date
column the following month. You will be able to actually see
the individual payments and expenses that take place outside
this 1st-10th window on the Owners Statement. Here, all the
previous months transactions and the current months transactions
(up to the date it is printed) are displayed. See Example
The same actually applies to expenses as well. This is why your
check may seem short when there aren't any expenses listed in
the Month-To-Date column. It's because there was an expense
on say the 20th, after your last check was mailed out but also
before the 1st of the next month. Check the Owners Statement
and you will see the expense detailed there. See Example
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