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TENANT PAYMENTS:
Who will be responsible for collecting rent?
In the case where there is an On-site Property Manager, they will be responsible for collecting rent and logging the payments. At smaller properties, where an On-site Property Manager is not necessary, Lasson Management prefers to have the tenants mail their rent checks to our office. Tenants are provided rent payment envelopes for easy identification. There is a “Drop Box” located at the Lasson Management offices where tenants can drop their rent checks. The Drop Box is checked twice a day.
Do you deposit the rent money in my own bank account?
Lasson Management has an established trust account where your rent receipts will be deposited. This account will be used for the rent deposits and also for paying vendor invoices. There is a nominal monthly bank service charge fee that will be charged to your property.
Can my tenant use Direct Deposit to pay their monthly rent?
Lasson Management can set up monthly rent payments to be deducted from the tenant’s personal bank account. (The Property Manager can provide a form that the tenant can fill out authorizing Lasson Management to deduct the monthly payment from their bank account and deposit it in the property’s checking account.) The cost for this service will be an expense to the property and appear on the property’s monthly bank statement. Or, the tenant can initiate the service themselves, at their own bank, and provide Lasson Management with the deposit information.
What about security deposits for my tenants?
The Property Manager will fill out the new tenant leases and collect the required Security Deposits from the new tenants. Security deposits will be deposited in the Lasson Management savings account.
How often do you take the money to the bank?
Tenant payments will be recorded on a log sheet by an Administrative employee or the On-site Property Manager. All rent receipts will be electronically scanned to the bank account daily or the deposits will be hand-delivered daily..
How are the payments posted to the tenant accounts?
The Property Manager will turn in the Tenant Payment Log Sheets to the Accounting Department, or email them to the Accounting Department daily.
An Accounting/Administrative employee will post the payments to the tenant accounts from the Log Sheets.
How will you treat unpaid rents?
Lasson Management’s rent collection policy is that rent is due and payable on the first of the month. The tenant will be given a 5-day grace period in which to pay their rent. On the sixth of each month, a late fee, established by the Owner or Lasson Management will be charged to the tenant’s account. A Late Notice will be delivered to the tenant encouraging them to pay the rent and late fees to avoid any legal action. After a specified time, the appropriate legal action will be taken if necessary.
How are returned checks handled?
Lasson Management will send a certified letter to the writer of the check giving them specific instructions to replace the returned check. Follow-up will occur after 7 days. If the tenant does not take care of the returned check, it will be turned over to the County Attorney for collection. All applicable legal fees will be charged to the writer of the check.
VENDOR INVOICES:
How do you handle vendor invoices?
The Property Manager, or On-site Manager, will code the invoices using a Chart of Accounts that Lasson Management provides. The invoices will be turned in to the Accounting Department.
In the case of a smaller property, or homeowner’s association, the vendors will be notified of a change in mailing address for the property’s bills. Lasson Management will send out a letter to the vendors informing them of the change.
The vendor invoices will be entered in the computer and paid the following week.
Paid invoices will be returned to the property owner at the end of the month.
What happens to the “excess” funds in the bank account at the end of the month, after the rent has been collected and the bills have been paid?
Either a check will be produced for the Owner’s Disbursement, less the Operating Reserve, or Lasson Management can transfer the funds to a savings or reserve account. This will be determined when the Management Contract is signed.
What is a “Reserve Fund”?
Lasson Management holds a sum of money in reserve to meet expenses that may come due between the time of disbursements and the time the next, monthly rental income flow begins. The amount of this reserve fund will be one month’s mortgage payment and/or one month’s normal operating expenses. In the case where Lasson Management is authorized a specified amount that they can spend in an emergency situation that specified amount will also be held in reserve with the other funds. The amount of the Operating Reserve will be determined when the Management Contract is signed.
Will I be billed for Property Management Fees?
Property Management fees will be established when the Management Contract is signed by the property owner and Lasson Management.
Typically, the management fees will be calculated at the point rent is paid. Other receipts are calculated at the end of the month and a payment will be automatically deducted from the property’s checking account the following month.
FINANCIAL REPORTING:
What kind of report(s) will I receive?
The Accounting Department will provide the following reports:
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- 1. Cash Statement
- 2. Tenant Balance Report
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These reports are included in the monthly Property Management Fee agreed upon between the property owner and Lasson Management.
Can I receive monthly financial reports such as a Balance Sheet and a Profit and Loss Statement?
This will be addressed when the Management Contract is signed.
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