Frequently Asked Questions-Property Owners

I am looking for a property management company and wanted to know more about Alabama Rental Managers. Alabama Rental Managers is a full service property management company serving the greater Tuscaloosa and Birmingham areas.  Established in 2006, we serve a growing need for a professional property management company that specializes in residential new single family homes, townhomes and condominiums.  We will accept homes on a case by case basis over 10 years old, and require a home warranty for those homes.  We manage many homes in the newer subdivisions in the greater Tuscaloosa and Birmingham areas, and manage many estate homes with rent exceeding $2,500 per month.  Minimum rent is $800.

Why should I choose Alabama Rental Managers over another property management company?  There are several reasons for choosing Alabama Rental Managers.  We have no up-front cost to initiate service; if we don't lease your home, you don't pay.  Due to our extensive marketing and advertising, we lease homes very quickly.  We show your homes personally, prospects are accompanied 100% of the time.  We have no separate advertising fee.  We don't mark up our vendor invoices.  We can separate our services, providing leasing only, or management only.  We went from 5 properties in August 2006, to over 600 homes in January 2012.  The majority of our business comes from referrals or repeat business.  Join us!

What services do you provide? We provide a full range of services to investment property owners including real estate leasing, management, accounting, inspections, and tenant management.

We charge one month's rent for finding a new tenant. Included below is a list of services provided for leasing your property:

• Professional market research to provide comparable rental home prices to determine fair market rent
• Professional advice to prepare the property for maximum results in marketing including staging and renovation recommendation
• Broad market advertising with internet syndication of over 100 websites
• Real estate certified showing of your home to prospective tenants
• Employment of a universal lock box to maximize showing opportunities
• Photography of interior and exterior
• Professional signage to attract drive by prospects
• Extensive background screening, including credit pull, criminal background check, employment and income verification, and residential history
• Negotiation of rental agreement, terms and conditions
• Professional leases provided
• Conduction of move in and move out inspections

We charge 10% of the monthly rent for our management fees. Included below is a list of services provided for management of the tenant:

• Collection of maximum monthly rents
• Collection of maximum amount for security deposit
• Collection of maximum amounts for a pet fee (if applicable)
• Utilization of an escrow account to process and retain security deposits
• Process maintenance requests
• Process contracts, including the lease and lease renewals, termination and evictions.
• Insure compliance with Alabama landlord/tenant laws
• Insure compliance with federal/state fair housing laws

Included below is a list of services provided for management of your property and investment:

• Conduction of move in and move out inspections
• Conduction of periodic inspections
• Coordination maintenance services with utilization of a maintenance operating reserve of $250 for services $250 or less, and consultations with owner for services over $250
• Coordination utility services between occupancies
• Generation of a monthly financial report
• Generation of an annual financial summary
• Filing of form 1099 with the IRS

Will I have one contact within Alabama Rental Managers? Alabama Rental Managers has specific departments, staffed with professionals, to assist you when you have questions. We have a maintenance department, a licensed leasing team, and an accounting department. When you have questions, you will be able to speak to someone who specializes in your question, a real benefit to property owners. You will not have to speak to the leasing team about your finances, nor will you have to speak to accounting about your maintenance. 

Why should I hire a professional management company? I might be able to manage things myself. Being an absentee landlord is difficult unless you have someone to administer the property. Do you have the time to conduct market comparables to price your home in the current market so that it rents quickly? Can you take the time to show your property to potential renters? Do you have the means to screen them by verifying rental history, employment verification, income verification, a credit check and a criminal background check? Will you be able to manage the property from afar? What happens if a pipe breaks out and you're out of state? Alabama Rental Managers will look after everything related to the property - from putting it on the market and screening your tenants to collecting rent, maintaining the property, conducting periodic inspections. Based on the number of clients that we have who began self-managing, and then hired us after a bad experience, it is worth the 10% to hire Alabama Rental Managers.

What are the advantages to renting out my home?  In the current market, many people are considering renting their home as opposed to selling it, based on an expected financial benefit. We do our best to get the financial benefit that you desire, by striving to maximize and sustain the rental amount, and protect your investment so that it continues to make money for you for years to come. Your tax accountant can help you with changing tax laws, and all tax related issues.

Renting out your house turns it into a business property. This entitles you to deduct operating expense, maintenance, and repairs, and to depreciate the property.  When establishing a depreciation schedule for a rented home, the IRS requires that owners compute the value of a house by taking the lesser of its fair market value or its purchase price plus the value of permanent improvements made. The depreciation schedule itself is supposed to stretch over the remaining useful life of the house. That figure depends on both the age and the condition of the dwelling. There is, however, one major exception: If you eventually sell the house and qualify for the capital-gains tax exemption, you'll be taxed on the amount you depreciate, which could make renting out your home considerably less attractive. Your tax accountant can help you with changing tax laws, and all tax related issues.

Improvements can't be deducted, but you recover their cost by depreciation. The good news is, you typically depreciate the cost of any appliances, carpeting, furniture or plumbing over only five years. So if you buy a new $1,000 dishwasher for your rental, you can deduct $200 a year from your rental income for five years. Be sure to talk with a CPA before you file your returns due to changing tax laws.

What type properties do you manage?  We specialize in residential single family homes, townhomes and condominiums.  We will accept homes on a case by case basis over 10 years old and require a home warranty for those homes.  We have many estate homes with rent exceeding $2,500 per month, and have a great deal of experience marketing high priced homes.  Minimum rent is $800.

Does my home have to be empty to begin the process? We will list an owner occupied home while occupied, but do require a move out inspection with the owner prior to the tenant's move in. We will list a tenant occupied home with a lease, or a vacant home.

How much money should I have set aside for expenses? We recommend three to six months depending on your risk tolerance.

Do you have location restrictions? We provide management to homes within 60 miles of our office.  We are located in Birmingham on Business Center Drive, which is near I-65 and Valleydale Road.  Our homes are located in the following counties: Jefferson, Tuscaloosa, Shelby, St. Clair, and others on a case by case basis.

How do I get started? To get started, Alabama Rental Managers needs the Leasing and Management agreement signed and returned, along with a W-9 and a simple check list of amenities and special instructions. You need to have all utilities on through the first days of the lease, and the home needs to be professionally cleaned, including the carpets professionally cleaned. The paint needs to be in good condition, and the grass needs to be cut. The better a home looks, the better it shows.