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Frequently Asked Questions
    for Taking Over Tenant-Occupied Properties


  1. Why do you need a good move in inspection?
    Georgia law mandates that a move-in inspection must be completed (and signed by both parties) before the security deposit is given to the landlord. If you don’t have a move in inspection dated preceding the date the security deposit is given to the landlord, you will likely not be able to retain any of it for damages the tenant caused the property. If you do it just right, you may be able to retain it for other charges but not for damages. The courts hold very strictly to this law and a properly signed and dated move in inspection is a big deal.

    The move in inspection is also the benchmark for what you are going to withhold for damages. If there is not a good move-in inspection, there is nothing to compare the move-out charges to and therefore no deposit can be withheld. The tenant will just tell the judge “it looked that way when I moved in” and you will have nothing to dispute it with. If you can’t prove otherwise by a move-in inspection, the judge has no option but to order the deposit refunded.

  2. Are you holding the Security Deposit? Why does Crown have to hold the security deposit?
    When we are managing a property, and the tenant moves out, they will be looking to Crown to do a move out inspection and properly withhold (or refund) the security deposit. As the manager of the property we will be liable for this deposit and must have the funds in our escrow account before we take over the property. If we manage it we need to hold the deposit. You can instruct us to deduct it from the first rent we receive from the tenant if you like (rather than cutting us a check) but we must have it in our escrow account.

  3. Why does Crown charge a fee to take over an existing tenant?
    The easiest part of this business is leasing a vacant property. The hardest part is taking on some one else’s tenant. Most owners are asking us to do this because they have discovered how hard it is to manage a property and want to get out from under the stresses of tenant relationships.

    Most of the time we are cleaning up someone's management mess and it’s hard. It’s twice as hard to manage a tenant someone else put in the property. You have set the standards; you used your lease not ours; you have trained them as to when rent is due; you have shown them mercy and now we have to retrain them to our way of doing things.

    It’s like asking a builder to finish a home another builder started or having a computer programmer finish a program another programmer started. It’s much harder taking over than starting from scratch. Occasionally, owners decide to remain the manager until the current tenant moves out and let Crown pick it up from there. Whatever you want to do is OK with us. We just know from experience how many man-hours it takes to take over an existing tenant.

    Another reason we get paid is because we usually need to go to the tenant and get lots of documents signed. Often there is no valid lease in effect, no lead paint disclosure, no HOA exhibit, no pet exhibit, and no roommate exhibit or inspection policy in place. We need to orient them to our rent payment systems, maintenance procedures, mold disclosures, and have them meet the property manager they will be reporting to. This all takes time and energy which we can’t do for free.

  4. Why do we need to do a property visit before we make our final decision?
    Many times we have taken over a property that the owner has not seen for years. We are constantly amazed at the terrible condition some properties are in and we want to see it before we take it on. We are up to the challenge of a poorly maintained property and we are not afraid of it even if it's a wreck; we just want to know about it before we say yes. Property visits don’t take long. A manager will contact the tenant after you have teed it up, set an appointment with the tenant (or you) and walk the property. Normally it takes less than 10 minutes.

  5. Are you ready to cut all ties with the tenant?
    The biggest problem we have with taking over an existing tenant is not the tenant, but the owner. When owners have managed their own property they feel like they should control things. They have an established relationship with the tenant and have a hard time terminating that relationship.

    Hands-on owners often try to micro-manage the property manager and tell them how it should be managed. After 30 years (and 7,000 tenants) we think we know how to do this in a way that will keep you, and us out of court. The problem is the owner won't end his relationship with the tenant and take his hands off the control panel.

    Unless you are ready to step back and let Crown manage the property, don’t turn it over to us (or anyone else). No one will like it unless you are ready to let it go. If we do, and your not ready to let us manage it, we’ll just end up giving the property back to you. Just keep the property and let us be an advisor unless you’re willing to end all communications with the tenant and let us do the managing.

    To help with this issue, there are letters that will go out from Crown (and you) to the tenant. The one from you (#7 below) tells them that you are no longer involved with the property and that Crown is now their property manager. The one from Crown (#8 below) is very pleasant and invites them to meet with us to make the transition smooth. These letters will help make the transition successful.

  6. Are you asking us to take over a property because the tenant needs to be evicted?
    We are OK with this. Crown has evicted many tenants over the years and understands the process better than most lawyers. We have a system in place to process the eviction economically and efficiently. We will send the proper letters, file the proper notices with the court, buy the writ and manage the dispossessory. As long as we are both in agreement with exactly what Crown is responsible for we will accommodate you in this process. We will get the management papers executed, establish your escrow account and go to work. Contact us for details on this process.

  7. Letter from the owner to the tenant
    You certainly can say what you want but less is generally better.
    RE: Change in Management

    Dear XXXXXXX:

    I no longer manage this property. I have hired Crown Realty & Management Corporation to handle all property management issues from this date forward. Please do not contact me with rent payment issues, maintenance, or other problems with the property. This property is no longer under my control.

    Please contact XXXXX at 770-998-9300 extension XXX concerning paying your rent and other issues. Pay all rent to Crown Realty & Management Corporation at 1702 Macy Drive, Roswell, GA 30076. They will be contacting you soon to meet with you regarding their managing the property.

    Thank you,

    XXXXXXXX
    Property Owner

  8. Letter from Crown to the tenant
    Re: Change in Management

    Dear XXXXXXX:
    I want to welcome you to Crown Realty & Management. My name is XXXXX and I will be your property manager. My assistant is XXXXX. As you are aware by now Crown Realty & Management has been asked to manage the property you currently occupy. Below are a few helpful things to make this transition flow smoothly.

    1. Rent: We expect your next rent payment to be made on XXXXX in the amount of $XXXX. You can mail it to Crown or drop it off at our office. You may also pay by e-check or direct deposit. See www.crowngeorgia.com for other payment options.
    2. Maintenance: Maintenance issues must be submitted in writing from our site. You can go to our web site 24/7 under “current resident services” and complete the maintenance request form. For emergencies you can call our office number at 770-998-9300 and proceed with the instructions on the voicemail.
    3. Security Deposit: Our records indicate you have a security deposit of $XXXXX that has been transferred to Crown. If this is different than your records, contact us immediately.
    4. Office Phone: Crown keeps regular office hours and is usually able to take your calls live. Occasionally you will get an auto-attendant but generally not during office hours. Just follow the instructions and you will get a return call.
    5. You will need to sign a Crown lease soon. I will contact you soon for a time we can meet at the property and go over the paperwork.

    Again, welcome to Crown. Please fell free to contact me directly at 678-336-68XX or my assistant XXXXXXX at 678-336-68XX. We are here to see that you have a good experience with our management company. We want to give you the best service possible. We will schedule a walk through inspection with you soon to view the property. Visit our website to see everything Crown has to offer its valued residents.

    Sincerely,

    XXXXXXXX
    Property Manager

 


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