Property Management

Management Fees

Single Family Residential

The management fee is only charged on rents that we collect.  Therefore, you will not be paying a management fee when we are marketing your home if it is vacant. 

 

• 1 – 5 properties – 10% monthly management fee
• 6 – 10 properties – 9% monthly management fee
• 11+ properties – 8% monthly management fee

Multifamily Buildings

Multifamily buildings (i.e. duplex and fourplex) – negotiable 12%-15%

Vacant Home Management

Vacant Home Management – $150/walkthrough and $75/work order coordination

Mars Hill Partner Club

Mars Hill has created a Partner Club to add value to our relationships and promote a community that helps each other meet our goals. We have partner programs for owners, residents, our service providers and agents that work with us. Each one is tailored to what each group would consider a value to them. We consider this a living program as we intend to add additional benefits as we grow the Partner Club. This will happen when we receive feedback from our members over the year. We have included details on the two Partner Club programs that may interest you.

 

Changes to these programs in your contract can only be made at the beginning and end of a resident’s lease.

Owner Partner Club

Investor Level

Fee-$16.00 per month

We have created an exclusive level of membership for forward-thinking property owners with an eye towards preventative maintenance and concierge service.  Owners are automatically enrolled at this level unless they choose the Landlord Level on the OIF.  Membership costs $16/mo and includes the following benefits:

1. 1. Tenant Replacement Guarantee – If we put a tenant in the property and they need to terminate the lease early, for a reason not allowed in the lease, we will replace that tenant with another qualified tenant and waive our Leasing Fees. 
   2. 100% Satisfaction Guarantee – cancel contract with 60 days notice
   3. Professional Photography of your listings
   4. 24/7 Owner Portal Access to all investment home records
   5. Access to our Vendor Network
   6. Newsletter with Mars Hill discounts provided by our preferred vendors access to our Vendor Network
   7. Free rental analysis for future investments
   8. 24 Hour Office line monitoring during weekday and weekends 8am – 5pm CST
   9. 24 Hour Emergency Maintenance Hotline
   10. *Rented in 60 Days Guarantee – We will find a tenant within 60 days from the time a home is vacant, in move-in ready condition, and priced within our original recommendation or we will credit the first month’s management fee.
   11. *Property Peace of Mind Guarantee – We’ll offer a one time $500 credit for any property damage that we cannot collect from the tenant at the end of the lease term.
   12. *Eviction Free Guarantee – If we put a tenant in the property and we need to obtain a judgment for non-payment of rent, we will cover the cost of the eviction process up to $1000.

• *10% discount on Mars Hill Maintenance Technician rate for work orders.

1. 1. *Professional Videography of your listings

• *Monthly filter delivered to your rental home

1. *Exclusive Investor level discounts from our vendor network
2. *$175 credit towards temporary AC and Heat equipment service during emergency situations.
3. *Option to have a third bid on major repairs upon request
4. *Portfolio and Investment Home Consultation 
5. *Priority access to investor-grade properties
6. *Exclusive payment terms to carry expense balances
7. *Preferred 5%-50% discounts off the nightly rate when booking your next vacation at any home in the Mars Hill Vacation Rentals portfolio of properties.

 

*Exclusive to Investor Level

Landlord Level

Fee-$6.00 per month

All property owners that opt out of the Mars Hill Partner Club Investor Level will be enrolled at the Landlord Level.  Membership costs $6/mo and includes the following benefits:

1. Tenant Replacement Guarantee – If we put a tenant in the property and they need to terminate the lease early, for a reason not allowed in the lease, we will replace that tenant with another qualified tenant and waive our Leasing Fees. 
2. 100% Satisfaction Guarantee – cancel contract with 60 days notice
3. Professional Photography of your listings
4. 24/7 Owner Portal Access to all investment home records
5. Access to our Vendor Network
6. Newsletter with Mars Hill discounts provided by our preferred vendors access to our Vendor Network
7. Free rental analysis for future investments
8. 24 Hour Office line monitoring during weekday and weekends 8am – 5pm CST
9. 24 Hour Emergency Maintenance Hotline
10. 5% discount on Mars Hill Maintenance Technician rate for work orders.

Resident Partner Club

Master Insurance Benefit Package

Fee is $40.00 per month

Insurance Coverage

• $100,000 Renters insurance coverage
• $10,000 Content coverage
• Renters Insurance claims assistance
• *Additional $1000 pet damage protection
• *Additional $1000 bed bug protection
• *Additional $500 mold remediation protection
• *Additional $1000 loss of rental income protection

 

*Deductibles and other limitations may apply

Additional Benefits

• Newsletter with Mars Hill discounts provided by our preferred vendors
• Monthly filters delivered to your door (if applicable – $120 a year value; owner must sign up)
• 24 Hour Emergency work order hotline
• Pre move in walkthrough and house orientation ($150 value)
• *Mars Hill Financial Assistance – Eligible for Rent assistance program
• Mars Hill Grace Pass – one time forgiveness for returned payment or late fee ($50 value)
• 24/7 Tenant Portal Access to all lease records
• Renter to Owner Concierge Program
• Unlimited Home Buying Consultation
• RentReporters.com referral link – https://prf.hn/click/camref:1011lcMku ($20 value)
• *$50 Monthly commission credit toward home purchase (if represented by Mars Hill – $600 value)
• Appraisal reimbursement provided by American Financial Network when buying or refinancing a home ($500)
• Preferred 5%-50% discounts off the nightly rate when booking your next vacation at any home in the Mars Hill Vacation Rentals portfolio of properties.

Tenant Insurance Benefits Package

Fee is $35.00 per month

Insurance Coverage

• If the tenant prefers to provide their own insurance, the following is required:
• Proof of renter’s insurance prior to the move in date
• Must provide a minimum of $100,000.00 in general liability coverage
• Must name both Mars Hill Realty Group, Inc. and the owner as “Additional Interest”
• This insurance must be maintained throughout the length of the lease and any renewals. If there is a failure to maintain renters insurance, this could result in an eviction
• The insurance company must email the “Declarations” page to Mars Hill prior to the “Pre Move-In Walkthrough”. Codes/keys will not be released until this information is received.

Additional Benefits

• Newsletter with Mars Hill discounts provided by our preferred vendors
• Monthly filters delivered to your door (if applicable – $120 a year value; owner must sign up)
• 24 Hour Emergency work order hotline
• Pre move in walkthrough and house orientation ($150 value)
• *Mars Hill Financial Assistance – Eligible for Rent assistance program
• Mars Hill Grace Pass – one time forgiveness for returned payment or late fee ($50 value)
• 24/7 Tenant Portal Access to all lease records
• Renter to Owner Concierge Program
• Unlimited Homebuying Consultation
• RentReporters.com referral link – https://prf.hn/click/camref:1011lcMku ($20 value)
• *$25 Monthly commission credit toward toward home purchase (if represented by Mars Hill – $300 value)

 

*Deductibles and other limitations may apply

Restorative Investing

Helping others and building relationships are at the core of what we do.  We have had clients offer their homes at significant discounts from the market rental rate to help their community.  This could benefit families that are going through a financial/health crisis, or even victims of natural disasters (i.e. flooding or fires) looking for temporary shelter.  

 

When you discount your rent, we match that discount on our management fees.  For example, if your home’s market value is $2000/mo and you want to offer it for $1000/mo (50% of market value), we will discount our management fee by 50%.  If you offer your home for free, we will manage your home for free too!

Communication And Dispute Resolution

We use text, phone and/or email to communicate with you.  You can expect a response by Noon the next business day.  If things are extraordinarily busy or the response requires research/time, we will acknowledge that your communication is received by noon the next business day and will properly set the expectation for a future, detailed response.

 

We handle all communications with your renters.  That is what you pay us for!   If a renter knows how to contact you, they will!  Please help us to reinforce this policy by referring any “accidental” direct contact by the renters to us so that we can stay in the loop.  We do NOT handle the following:

 

• Communicating on your behalf for tax appraisal disputes
• Being a mail hub and having your mail communications forwarded to us
• Negotiating with your insurance company on claims

 

If we are placed in the position to help you with any of these additional services above, we will charge an hourly rate of $200/hour for our time unless previous arrangements have been made.  Here are the options we have provided to you if you have mail that has not been forwarded:

 

Option 1:  We pick up, mail and charge $100 + shipping

Option 2:  Tenant mails and we credit them $100 + shipping

Option 3:  Tenant can take photo and Owner can have tenant dispose of it if deemed junk mail

Option 4:  Tenant can write “Return to Sender” on mail and put it back in mailbox 

Option 5:  With owner’s permission, tenant can open it and scan or take a photo of it for us.

 

All communications should be handled through your owner portal.  Not only will you get a quicker response, but we then have a written trail of communications.  Once you log a question or comment on your owner portal, it will be dispatched to the appropriate person to respond back to you.  

 

Please contact your property manager for any dispute resolution regarding staff.  If you are not able to resolve your questions with the property manager, you may always request a phone call with the broker/owner.  We do our best to work with you, but sometimes there will be situations where you may not agree with a decision we have made.  Here are the following remedies available for the Landlord if they disagree with a decision that Mars Hill has made.

 

1. Continue to trust in the good faith and judgment of Mars Hill even if it is contrary to your own opinion.
2. Negotiate new terms for the management contract and lease that are mutually agreeable to all parties.  These terms will need to be publicized as such during marketing as exceptions to our Landlord and Resident handbooks.
3. Give notice of termination to Mars Hill. (Mars Hill reserves the right to immediately terminate the agreement should we determine the Landlord is making a decision that compromises the safety of the tenant or prevents Mars Hill from conducting ethical business practices.) Reference NARPM Code of Ethics Article 5:

 

The Property Manager shall not manage properties for Clients who refuse, or are unable, to maintain their property in accordance with safety and habitability requirements of the local jurisdiction.

 

The Property Manager shall terminate management of a property if the Client does not comply with habitability requirements.

 

You can also forward your questions or concerns to the following persons:

 

• Contract Questions, New Owners, Client Relations – Propertymanager@marshillrealty.com 

• Maintenance, Make Readies, Bids – service@marshillrealty.com
• Accounting, Statements, Owner Draw – Accounting@marshillrealty.com
• Owner Portal, Office Administration – support@marshillrealty.com 
• Renewal Questions – Propertymanager@marshillrealty.com 
• Marketing Questions – marketing@marshillrealty.com 

HOA, Insurance, Taxes and Recurring Services

Owners are responsible for updating their forwarding address and ensuring that all fees for HOA, Insurance and Taxes are paid and that they communicate directly with these companies to ensure they are up to date.  If an owner prefers, they can add the property manager email as an additional contact for the HOA so that we can receive SERVICE-RELATED HOA violations and can quickly respond.  Please do not rely on us to be the primary contact for HOA, Insurance and Tax purposes because those incur a financial obligation that the owner must be responsible for.  Regarding interaction with the HOA on issues that affect their day-to-day occupancy, we encourage the resident to communicate directly with the HOA.  If the leaseholder does not have the authority to coordinate, we will engage with the HOA as necessary.  On rare circumstances, Mars Hill will require the owner to assist.

 

Lawn maintenance, pest service, and pool upkeep are all tenant responsibilities.  These can be written into the lease and addendums to allow for owners to specify a specific vendor and contract for these services, but they are paid by the tenant.  In the event an owner wishes to provide that service for the tenant, the owner will need to communicate directly with the vendor to ensure service is performed and submit payment directly to vendor.

Late Rent, Eviction and Collections

Late Rent

Rent is due on the first of every calendar month and is considered late on the second.  The late fee is assessed on the 4th, 6th and 11th day of the month for TX, VA and MD/DC respectively.  Any late fees collected are considered company administration fees and kept by the company.  Returned check fees and trip charge fees are also administration fees.  All rents received will be first applied to company administration fees on the tenant’s ledger prior to the rent.  

Eviction

Evictions cost everybody time and money. However, if you choose the right management company, these are rare occurrences.  We will do everything we can to avoid an eviction.  Our .01% eviction rate is an industry low because of our proprietary tenant screening criteria and application systems.  As a last resort, should it become necessary to file an eviction, we will refer the eviction out to an eviction attorney who is an expert at these types of proceedings.  The owner will be responsible for attorney fees and any court costs such as filing fees incurred for the purposes of removing a renter from the home.  These fees will be charged back to the resident in default if the lease allows.

Collections

Mars Hill will prepare the Itemization of Deposit within thirty days of the move out date on the lease when the home is vacated. If there is a balance owed to the Owner by the residents, Mars Hill will try to collect that balance within thirty days of the move out.  If after attempting to collect the debt, and the balance remains unpaid, the owner can then forward the file over to a debt collection service.

Maintenance/Work Orders

Policy and Procedures

The purpose of the maintenance division is to preserve the value and condition of your property by avoiding deferred maintenance.  We are committed to taking care of your property and providing excellent service to the residents so that they will continue to renew the lease and become long-term residents.  Residents are best kept happy when they know that work orders are being responded to in a timely manner.  

 

In order to accomplish this, the management company must be afforded the freedom to make decisions on an owner’s behalf.  That is why there is a $500 repair limit and portfolio minimum.  We will make decisions on work orders that are under the $500 repair cap and the owner must keep a $500 credit on their ledger at all times.  

 

We do our best to hire the right contractor for the job, but at times the contractor can cause damage or liability beyond our control.  The landlord agrees to release Mars Hill Realty Group from all liability in these situations.  We also limit the work we give to a vendor to $500 if we do not have a W-9 on file to avoid incurring tax penalties.

 

We respond to work orders by Noon the next business day.  When we select a vendor to work at the property, our goal is to have the tenant and vendor schedule an appointment directly with one another and complete the work within 5 days after the vendor has been assigned.

Repairs Over $500

• If it is NOT time-sensitive – Mars Hill will obtain an approval from the owner before scheduling.  
• If the repair is time-sensitive – Mars Hill will contact the owner with our recommendations and move forward on a course of action if we do not hear from the owner within 24 hours.  It is the owner’s responsibility to maintain updated contact information through their portal.  Reasonable care and performance will be expected from owners for the sake of preserving not only the safety of the residents, but also the property’s value and condition.   We reserve the right to determine what is “time sensitive” or an “emergency.”
• If the repair is a time-sensitive emergency – Some time-sensitive repairs are also EMERGENCIES.  We reserve the right to make decisions in EMERGENCY situations without the owner’s approval, if there is imminent danger to the property or health or safety of the resident.

 

If a Landlord expresses their disapproval of a repair decision and does not want to permit Mars Hill to do a repair that we feel is necessary, that is contrary to this contract and potentially a violation of the property code. Regardless of the Landlord’s opinion to the contrary, Mars Hill has an obligation to fulfill the terms of the property management contract as well as the lease with the resident.  Mars Hill, not the Landlord, determines  what is necessary for the protection of the property and the health and safety of the resident using our professional judgment. See “Communication And Dispute Resolution” for potential outcomes.

Time Sensitive Repairs

Security

• Actual fire on property  
• Break in/Burglary
• Broken door/window that cannot be secured and located on first floor
• Alarm that does not turn off and continuously sounding 
• In-home sprinklers that are running 
• Fence broken and there is a dangerous pet situation in the yard or neighbor’s yard.

Structural

• Storm damage to roof with potential water penetration

Plumbing

• No usable bathroom in the property 
• Burst water supply lines 
• Water heater failure/no water in home 
• Sewer backup or leaking into home 

Electrical

• High voltage electric hazard 

HVAC

• *No heat in the property and the outside temperature is below or forecasted to be below 32 degrees 
• *No air conditioning in the property and the outside temperature is above or forecasted to be above 90 degrees (source:  weather channel). 

 

*Under these conditions, we require temporary heat and air conditioning to be provided to residents at the owner’s expense.  Here are the two primary options Mars Hill will use to reduce liability to the owner during these emergency situations:

 

1. We will authorize the renter to spend up to $400 on a temporary A/C unit, heater unit(s), and/or box fans at a local Home Depot/Lowes.  This will be reimbursed and remain as property for the owner.  The owner has the option to sell these unit(s) to Mars Hill for 50% of the cost. 
2. Alternatively, Mars Hill will charge $270 to the owner for delivery, set up, unlimited rental days and pick up of a Mars Hill portable A/C unit.  This option is dependent on store hours/availability, tenant capability and company resourcing. 

 

NOTE:  Investor Level members of the Mars Hill Partner Club will receive a flat $175 credit towards these options.  

 

Every work order that is submitted through the portal will automatically notify the owner via email so that there are no surprises at the end of the month when you see less rent money than usual.  This also gives you the opportunity to proactively respond to work orders and approve them if you know they will be above $500.  By cutting down the decision-making time, we are able to fix problems quickly before they develop into something worse.  We also reduce the coordination hassle for the residents and improve relations with them as well.

Life Expectancy Per National Association of Home Builders – Repair or Replace?

Appliance replacements are often over the repair limit and are time sensitive.  It is very helpful if you can provide us the age of your appliance on the OIF so that we can make a better judgment call on whether we should invest money to repair an appliance or replace it.  Here is a formula that we consider when we have the right information about the appliance:  

 

(1 – (appliance age /appliance lifespan)) x cost of new appliance = amount to spend over remaining lifespan)

 

Appliance	Life Expectancy (years)
Air Conditioners (room)	10
Air Conditioners (central)	15
Dehumidifiers	8
Dishwashers	9
Dryers (electric and gas)	13
Freezers	11
Furnaces (electric; gas; oil)	15; 18; 20
Garbage Disposal	12
Humidifiers	8
Microwave Ovens	9
Range/Oven Hoods	14
Ranges (electric; gas)	13; 15
Refrigerators	13
Washing Machines	10
Water Heaters (electric; gas; tankless)	11; 10; 20

Recommendations Against Home Warranties

Home warranties greatly limit our ability to respond quickly to needed repairs.  In our experience, warranty companies use very poorly rated vendors to get the job done.  If you have a policy for your home, please consider canceling or not renewing the policy for the duration of the management agreement.  Warranty coordination will incur a $50 warranty coordination fee.  Please see paragraph 5d regarding time-sensitive repairs that may require action outside of your home warranty regardless of coverage. 

Insurance Claims

When there are large repairs that require coordination with your insurance company, you are responsible for filing the claim and negotiating/coordinating with the insurance company on specific payouts and scope of work.  We will coordinate with the insurance company to provide access to the property and provide you photos of before and after work.  We can also recommend vendors to get the work completed.  As with all emergency work orders, we reserve the right to get started on repairs to limit property damage even before the insurance company begins their coordination.  All owners agree to release Mars Hill Realty Group from all liability resulting from scheduling delays with the insurance company.

Release Of Liability

All owners agree to release Mars Hill Realty Group from all liability resulting from scheduling delays with the home warranty vendor, insurance companies or resulting from delays caused by owners who have not approved work within 24 hours of notification.  

Multiple Bids And Major Repairs

Oftentimes we use vendors that have already been screened for fair pricing and good business practices.  However, on occasion, there may be repairs that warrant an additional bid.  Investor Club members also have the option for a third bid upon request. If a Landlord Level member wants a third bid, or an Investor Level member wants a fourth bid, they will be responsible for an Additional bid cost of $50 per bid.

 

We define “major repairs”  the same way we define “major renovations”  Refer to the section titled Standard Make-Ready Versus General Contracting.  Any repairs involving three or more vendors or costing in excess of three months of rent for the property is a major repair.   If we are placed in the position of managing a major repair, we reserve the right to include a project management fee of 10% on top of the total project cost.

Recommended Paint Colors, Flooring Options And Appliances

If you are considering upgrades to your home, we can help you by recommending paint colors, flooring options, and appliance options that are durable and sustainable for a rental home.

 

The following are approved/recommended Mars Hill paint colors:

 

• Sherwin Williams 6141 Softer Tan for walls option 1 – (Sheen:  Eggshell)
• Sherwin Williams 7029 Agreeable Gray for walls option 2  – (Sheen:  Eggshell)
• Sherwin Williams 0055  Light French gray for walls option 3 – (Sheen:  Eggshell)
• Sherwin Williams 7006 Extra White for door and trim  – (Sheen:  Semigloss)
• Sherwin Williams 7006 Extra White for ceiling – (Sheen:  Flat)

 

Recommendations custom to your property will be made by your property manager during the walkthrough.  However, some common recommendations that we make are:

• Choose Quartz countertops when upgrading counters
• Use a waterproof Luxury Vinyl Plank (LVP) when replacing flooring and choose a light wood color like hickory or oak
• Choose appliances that are known for low maintenance calls:  Speed Queen for washer/dryer, Bosch for dishwashers
• Don’t use toilets with flush valves on top, they are more difficult to maintain
• Use Moen brand for plumbing fixtures

Wear And Tear

A fact of home ownership is that your home will degrade and deteriorate over time. This includes the overall structure of the home as well as appliances, plumbing, wiring, etc. We will provide our best efforts to preserve the value and condition of your property.  The owner should expect normal wear and tear of flooring and walls and be prepared to replace and repaint accordingly every three to five years.  

Utilities

Any utilities that are covered by the HOA payment will be the responsibility of the Landlord.  Utilities should always be kept on, when the resident is not responsible for it during their lease, the bill will be paid by the Owner or reimbursed to Mars Hill Realty Group.  The owner should coordinate with the utility companies to have a REVERT TO OWNER service in place.  This will automatically switch utilities between tenants to the owner’s name.  If this service is not available, Mars Hill can manually switch utilities to our company name, but this is a laborious process to coordinate with utility companies every time and involves reimbursement of the utility costs from the owner.  

Repair Deductibles

The reason we may charge a repair deductible to a tenant is to prevent the abuse of the work order system.  It is meant to eliminate frivolous work order requests by giving the tenant some level of financial responsibility.  It is sometimes impossible to determine if breakage is due to the tenant or normal wear and tear so we charge a very minor repair deductible that would be passed on to the Landlord when collected.  Repair deductibles are not charged for every work order, there are exceptions and they are evaluated on a case by case basis.  The decision to charge the tenant a repair deductible rests solely with the management company.

Money Management

Direct Deposit Disbursement

This money is directly dispersed into an owner’s bank account by the 10th of each month (provided rents have been collected).  All prepaids are not paid out to the owner until it is generated as a tenant ledger expense for that given month.  We do not disburse lump sum advance rent payments until the month they are due to reduce liability to both owner and resident and to follow best accounting practices.

End of Year Accounting

Our CPA mails out year-end 1099 statements according to IRS regulations.  Annual statements can also be viewed via your owner portal under the “documents” tab for the preceding year on Jan 15th each year.

Escrow Accounts

Occasionally, tenants pay one or more months of rent in advance. When this occurs, all advance rent payments are escrowed and distributed to the landlord as each month’s rent comes due.

Invoices

Invoices can be viewed via your owner portal under the “bills” tab.

Monthly Statements/Ledger

Monthly statements are emailed to the owner following direct deposit disbursement which can also be viewed via the owner portal under the “statements” tab.  On the far right side of the portal bills tab is a filter.  The default is the current month.  If owners want to see previous time periods, the time frame must be adjusted.  If there are questions about the ledger, email Alicia@marshillrealty.com..  You should receive a response within 24 hours.

Owner Contributions

If expenses exceed $1500, you will be asked to make an owner contribution through your owner portal.  Once you log into your portal, click on the “statements” tab then scroll to the bottom of the screen and click on the “edit payment account” button.  On the next screen, you will need to enter your bank name, account type, routing number, account number, SS number, driver’s license number, and driver’s license state, as well as your billing address info.  Once all that is entered, click save. Now, go back to the “statements” tab, and on the right side, you will see “make contributions online”.  Click on this link. The next screen will have a place for you to enter the amount you would like to contribute, and then click “save”.  There is an additional option of payment by credit card.  Note, there is a fee equal to 3.1% of the total amount being charged. 

Portfolio Minimums/Reserves

A minimum of $500 will be held in a contingency reserve account. 

Banking Information Updates

Any banking information changes can be made directly in the portal by the owner.  They can reach out to the Accounting team for assistance if needed.  We require double verification for all banking information to prevent fraud.

Owner Portals

Once owners sign up with Mars Hill, they will receive an email inviting them to create their owner portal and password. Please note, for security reasons, there is a 48-hour window for the invitation, so if they don’t have an opportunity to set up your portal before it expires, we will need to reset it for them.

 

Once owners have their portal set up, they will be able to keep track of their monthly statements, bills, maintenance requests and other documents.  If they need to make a payment to Mars Hill, they will be able to make an owner contribution on their portal as well.

Property Visit Frequency

There are many different situations when an inspection of the property may be performed.

Pre Move In Walkthrough

This standard walkthrough occurs two to three days prior to move-in.  The purpose of this walkthrough is to make sure we document the condition of the home with a thorough report and multiple photos.  We will also verify that the resident has all their monies paid, paperwork complete, utilities on and are ready to review the basic functions of the home as well as to make sure it is ready for occupancy.  

Post Move In Update

Within the first five (5) days of occupancy, the Resident will have the opportunity to add any items that were not documented at the Pre Move-In Walkthrough.  They will make a note of any cosmetic and/or mechanical defects found on the property that were overlooked in the pre move-in walkthrough.  It is important to be thorough and detail the pre-existing condition of the property accurately to prevent inaccurate assignment of financial responsibility during move-out.  The Resident will be held responsible for any defects found upon move-out not already listed on these forms.  

 

Any damages or defects found will need to be detailed in an email and sent to the Service Team at service@marshillrealty.com along with supporting photos. The Service Team will save the information with the existing Pre Move-In documentation which is visible through the Owner and Resident Portal.

Annual/Renewal Condition Updates

Every year, the Property Manager will reach out to coordinate documenting the condition of the property. The Property Manager will reach out through an email offering the option of conducting the documentation of condition in-person or coordinating with the tenant to perform the documentation virtually. If the virtual option is chosen, then the Property Manager will respond with an email providing instructions on conducting a virtual documentation of the condition of the property. This email will provide 3 easy steps and a listing of the photos that need to be provided. The Property Manager will reach out via phone, if needed, for any additional coordination. See the Renewal section for more details.

Move Out Walkthrough

This standard walkthrough occurs within 48 hours of a resident vacating the home.  We coordinate with the residents to perform a Move Out walkthrough once they have vacated the property and completed the requirements of the lease.

Total Walkthroughs

Over the course of the lease, we are in the home at least three to four times via our standard walkthroughs, not including any additional exposure to the property as a result of work orders.  We have found that this is a sufficient balance to take care of your home and still respect the privacy of the tenant.  Unless we receive a tip from a neighbor, or HOA letter, or anything that warrants an additional walkthrough, we do not conduct any other visits to the property.  If a lease violation is noted, we may do a follow-up inspection to make sure the tenants have complied.  

Out of Cycle Walkthrough

If you require an additional walkthrough, we can do so at the rate of $150/inspection.  

Landlord Walkthroughs

When you are in the area, it is natural to want to see your property. Out of courtesy for the resident, please give us advanced notice if you are planning to be in the area and would like to stop by your property. We will notify the tenant and make this coordination.  The lease requires us to give the tenants reasonable notice. Try to give us at least several days’ notice to prepare the tenant and to schedule a convenient time for all of us.

Security Deposits

We require one month’s security deposit from a resident and hold it in a non-operating escrow account. We audit our accounts quarterly to ensure our deposits are balanced.

 

When we conduct a move out walkthrough, our goal is to determine what we should fairly deduct from the tenant’s security deposit.  These are damaged items in the home that were not damaged and recorded via the post move in walkthrough report and photos.  Tenants can only be financially liable for damages beyond normal wear and tear and those costs will be reduced according to the depreciation schedule of 3-5 years for carpet and paint.

 

It’s important to note a few things to properly manage your expectations as a property owner:

We Do Not Deduct For Normal Wear And Tear

Every landlord wants to get a property back from a tenant in the same condition that it was when the tenant moved in. However, normal wear and tear has to be expected and the law requires property owners to take care of any normal wear and tear at their own expense.

 

Defining Normal Wear and Tear – Wear and tear is the deterioration in the property condition that is the result of normal use. It defines what would have happened to your property even if you were living there yourself. Everything in your house has a limited lifespan, and those things break down and wear out even when they are being maintained and taken care of. Examples of normal wear and tear include scratches and marks on walls and floors, shoe marks and worn carpet in high traffic areas over the course of several years. It’s similar to the depreciation that occurs on anything that’s being used consistently.

It Is Impossible To Catch Everything  

This is not a perfect process and we do not guarantee that we will catch 100% of all items that the tenant has damaged.  The idea is to catch the most obvious and 90+% of things that the tenant is responsible for.  Although we will send you photos so that you can review the condition as well, photos are not capable of accurately portraying wall conditions as well as when you are present in the home.  The owner should be prepared to paint the home and replace carpet every 3-5 years depending on the type of carpet chosen and the amount of wear on the home.  

Other Considerations

It is at the management company’s discretion to require the resident to provide proof of cleaning regarding gutters.  This is an owner expense. If the home has trees above the roof line or in close proximity to the home and they have occupied the home for 2+ years, we expect the tenant to conduct the cleaning.  We also only enforce chimney cleaning if there was a cleaning previous to their move-in.

Resident Disputes

One of our primary duties as your representative is to enforce the lease.  We will make every effort to do so before, during and after the term of residency.  If ever a dispute arises with the resident, Mars Hill will make every effort to resolve that dispute according to the terms of the lease and the Property Management Agreement.  Ultimately, contracts are between the Landlord and Resident and if any legal action is necessary, the Landlord is responsible for all legal fees.