Owner Frequently Asked Questions

 

BRINGING YOUR PROPERTY UNDER MANAGEMENT

  • Criteria For Management

    In order to provide the highest level of service to our rental homeowners and residents, we have limited our services to properties with the following criteria.

    PG Management Group, LLC, accepts unfurnished single-family homes (including townhomes, condos, and duplexes) and some multifamily properties. We are not taking furnished properties or short-term rentals. All properties will require a lease term of at least 12 months.

    Our normal service area includes all of Mecklenburg County, the Western part of Cabarrus County (which includes, Kannapolis, Concord, and Harrisburg), the upper part of Union County (which includes Indian Trail, Monroe, Weddington, Wesley Chapel, and Wingate), and the lower part of Iredell County (which includes the town of Mooresville and areas south of Mooresville)

    All properties we manage must meet any and all applicable local ordinance requirements. 

    All properties we manage must meet building code habitability standards.

    Due to existing and recently updated EPA Rules, PGMG no longer accepts properties built in or before 1978.

    The current time on the market will vary based on several factors including time of year. It is best if you can have a 2-month lead time if possible. Owners should have the ability to afford some possible vacancies and unexpected maintenance. We advise, once the property is leased, that you save 20% of the monthly rent for those repair expenses, or make sure you have a safety net for these expenses.

    Read more about Vacant Property Expenses

    Read more about Maintenance and Savings 

    Once you have vacated the house, the property needs to be free and clear of any and all furniture and personal belongings and must be in Move-In | Rent Ready Condition.

  • Can I use my own vendors?

    We are able to accommodate any reasonable request to send a well-known vendor to a property. If you are notified of a certain repair and you want to send the AC tech to your home that has been servicing it for the last 5 years – we can do that, however we do have to consider this an extra accommodation and there is a $40 charge. There are numerous concerns in using an outsider vendor. First – we do not have them properly vetted in our system of approved vendors. We would need to check their references, verify their licenses & insurance, and then set them up with a W9 in our accounting system to be IRS compliant. Second – there is a huge liability issue because if this vendor causes harm to the home, or themselves, legal action could follow and we would be taking the brunt of that action by default for acting as a “general contractor” and dispatching that vendor. We must charge this fee in order to handle the additional accounting work, and taking on the liability of using an un-approved vendor. If you would like to call our office we will be happy to discuss this in more detail.

  • Utilities

    To ensure a smooth transition into property management, it is necessary to make sure the utilities are not shut off and that they are still in your name. If your utilities are shut off, it could result in serious damage to your property. You are responsible for any and all utilities during the time the property is vacant.

    Please make sure the utilities are left on through the move-in. This is so we have time to document the property prior to move in as well as the resident’s documentation.

  • Required Documents

    It is important that PGMG receive all critical information as we begin management. You may have already completed Owner and Property Questionnaire. If not please visit https://pgmg.info/PGMGPropertyQuestionnaire and complete the online form.

    If the property is currently occupied, we also require a copy of the current lease as well as applications, move in inspections, security deposit and financial documents.

  • Fee Schedule | No Hidden Fees

    • Occupied Property On Boarding Fee:        $250 per occupied property

    • Vacant Property On Boarding Fee:             $100 per occupied property

    • Tenant Procurement:                                      50% one full months rent

    • Lease Renewal Fee:                                          $250

    • Monthly Management Fee:                           10% with | $80 minimum

    • Minimum Account Balance:                         $350 for each property

    • Home Warranty Work Order:                        $25 service fee/per claim

    • Rehab Premium for Items over $800:       10% of vendor price

    • Professional Photos:                                        $300 per property (optional)

    • Landlord Protection Plans:                           No new policies due to COVID-19 (effective April 2020)

    • Property Assessment  Reports                     $109 per visit 

    • Early Termination Fee Please refer to your management agreement for specific information

    Procurement Fee 

    The biggest cost you’ll incur in the management process is in getting the property rented. It requires a lot of manpower, advertising, application processing systems, and move-in procedures,  and when you add outside costs it’s expensive to get a good resident in the property. 

    Monthly Management Fee 

    The monthly fees pay PG Management Group, LLC for the day to day routine of answering phones; handling maintenance, unauthorized pets, HOA complaints, rent collection and evictions; monthly reporting; accounting for resident charges; trust account management and handling emergencies and the like. 

    Renewal Fee 

    A renewal fee isn’t for transacting the renewal as much as it rewards the manager for giving great service for the past 12 months that caused the resident to want to stay. We start earning the renewal fee from the day we move the resident into the property. Our average resident stays 2.4 years, we have many that have stayed 5 years, and our longest resident stayed 7 years. So, we’re on your side on this issue and know the importance of keeping them in the property, paying rent, for a long period of time. 

    Early Termination Fee 

    If we’ve started marketing the property, posting it on rental websites and putting signs and lockboxes on the property, we’ve already spent some real money. If you terminate us before we have a chance to lease it, the management agreement calls for a $200 marketing fee to recoup those costs.

    If you terminate us in the middle of a tenancy, there are some fees to PG Management Group, LLC for withdrawing your property. Management companies make their money by keeping residents in the property for a long time and if you withdraw from our system you remove that important revenue stream. Like terminating a cell phone contract, there will be some fees for terminating during a resident’s stay.  Termination fees are common to service industries such as cellular telephone service, subscription television, and so on, where they are often known as early termination fees (ETFs).  These fees are stipulated in the management agreement. 

    Rehab Admin Premium 

    The monthly management fee pays us to manage “normal maintenance breakdowns,” not for overseeing rehabs, renovations, restorations and other large jobs. We differentiate the two by costs (under or over $800) and how it’s done (from the office or with multiple trips to the property). When multiple quotes and trips to the property are needed to oversee large jobs, a 10% add-on charge helps to defer the costs of the manpower for that extra effort. 

    Charges for Tasks Outside Our “Scope of Service”

    We have another document that outlines “what services you get for the fees you pay” and “what you’ll be charged extra for.” Obviously, the $80 monthly fee does not cover meeting with your HOA, digging out records from five years ago, meeting your appraiser at the property or shipping your riding lawn mower to Denver. Owners often ask us to drive out to the property to see if the hail storm did any damage, see if the neighbor picked up the swing set, pick up and forward their mail, locate the pool keys and see if they left the lights on.  We’re happy to make these unscheduled, owner-requested trips, but we pay folks for this and the cost will be passed on to the owner.

 

PROPERTY STANDARDS

  • Rent Ready

    When homeowners move from their homes and convert them into rental properties, it is common that the homeowner had become accustomed to living with minor repair problems and less than perfect interior painting. An owner often feels that a tenant can live with the same minor flaws. But there are difficulties to this approach.

    In order to successfully market a property for rent, it is imperative to present a well-maintained, clean property. Not only does it set a standard of care to the applicant, it allows us to command higher rents and fewer days of lost rent. Most importantly, if the initial walk through inspection at the beginning of a tenancy shows areas of deficiency, then justice courts may not hold tenants to a very high standard of care upon move out if the tenant challenges the deposit refund.

    Help us start a new tenancy on your home with a good relationship as opposed to a disappointed tenant that has to make demands that the house be brought to satisfactory standards. Most often, a satisfied tenant appreciates your high standards and reflects that appreciation by maintaining your property in the condition in which they received it. The following standards have been developed as a guideline for all new properties that come into management, as well as those properties that have been with PGMG over the years.

  • Interior Maintenance

    • Smoke alarms must be in every bedroom and in working condition. If the smoke alarms fail, do not pass inspection, or are older than 10 years old, they will need to be replaced with 10 year lithium ion smoke alarms as per NC Landlord Tenant Law.

    •  All wiring inside and out must be to code and outlet covers or switch covers must be installed. 

    • All door locks and window locks must operate easily and effectively, no windows painted shut. 

    • Screens and screen doors should be free of holes and fit properly. 

    • Door stops should be installed or repaired for every door throughout the house. 

    • Sliding closet doors must be on tracks and slide easily. 

    • Fresh caulking should be applied around tubs and showers to protect the structure from mold and to provide a sanitary environment.

    • Kitchen and bathroom fixtures should be free of leaks and drips to avoid any future damage. Any rusted fixtures should be replaced.

    • Toilets should flush easily and be free of any obstructions. All plugs and diverters should be in good working order. 

    • Sinks, toilets, tubs, showers and kitchen appliances should be sparkling clean. 

    • All walls, ceilings and baseboards should look fresh and clean in appearance, neutral in color. 

    • All nail holes should be filled in, textured and painted so that they blend with the rest of the walls. Any repair larger than a dime should be textured and painted. Any repair that is made when paint doesn’t blend, should be painted corner to corner. If you can look down the side of the wall and see paint spots, then it most likely needs to be painted corner to corner. 

    • Floor coverings should be clean and in good repair. 

    • Carpets should be free of stains and odors and properly stretched. 

    • All carpets should be professionally cleaned. 

    • Windows should be clean in appearance and all window coverings should be clean and in good condition, including rods, drawstrings, wands and slats. 

    Please note Roman blinds are not allowed as they have been nationally recalled due to their safety hazard. 

    We have also partnered with Second Nature to send furnace filters directly to the tenant on a quarterly basis. This service is at no cost to the homeowner and is paid for by the tenant as part of our Resident Benefit Package.  The filters are also stamped with the expiration date, which is helpful come inspection time. 

  • Exterior Maintenance

    • All landscaping should be neat in appearance. 

    • Bedding areas and lawn should be free of weeds. 

    • Trees and shrubs should be trimmed back from walkways and driveway. 

    • Fencing should be in good repair with adequate locking mechanisms, when required. 

    • Sprinkler systems should be maintained to protect plants, trees and grass. 

    • There should be no missing shingles on the roof. 

    • If gutters are present, they should be adequately attached and free of damage and clear of debris. 

    • Any personal items or debris left behind should be removed including any chemicals other than paint. 

    • Cans, planters, hoses or lawn equipment must be removed. 

    • Oil or grease stains on driveways, walkways or carports should be removed.

  • Renting Your Property

    Supply and demand determines rent. If there are multiple rentals available in the area of your property, it is necessary to be very competitive. If very few are “for rent” in the same area, it can make it easier to rent the property. Markets change and PGMG advises owners on the “current rental market.” We suggest if a property is sitting vacant long, that weekly decreases to the rent be incorporated to reduce your vacancy. However, each home and each season is unique.

  • How Long Will The Home Be Vacant?

    This is the most commonly asked question we receive from owners. There is no way to predict how long a property will remain on the market, even in the best market conditions.

    However, PGMG works diligently to rent the property as quickly as possible. What is important to remember is that the most important objective is to have “a quality tenant.”

    PGMG, or any other property management company, can rent properties “quickly” if they do not have standards for obtaining good tenancy. However, bad tenants will only create more expense, headaches and eventually another unwanted vacancy; therefore, waiting for the “right tenant” is worth the additional time it can take to rent the property.

    Once a property has been cleaned and placed on the market for rent, experience has shown that it needs to be ‘freshened up’ every two-three weeks. We may need to send in a cleaner or maintenance tech to perform light cleaning, check toilets, pick up newspapers/trash, change air fresheners, remove any light debris, weeds or dead bugs, etc, at your expense.
 

Communication

  • Communication is Key

    Communication is a key to the success in any relationship and the PGMG/Owner relationship is certainly not an exception. We work constantly to improve communications with all of our clients or prospective clients. This includes everyone – owners, tenants, applicants, vendors, buyer, sellers, and the public.

    It is important that you let us know of any significant change that can affect your account. PGMG needs to know when you are moving, changed phone numbers or emails, if you have a problem with your account, if your social security number has changed to a Tax ID, if you will be unreachable for a period of time or any other important information.

    Another alternative is to inform your Emergency contact listed on the Owner and Property Questionnaire. The purpose in asking for this information is only so PGMG is prepared in the event of an emergency repair or major problem concerning the owner’s property and/or tenant. PGMG encourages all owners to use email to contact us. It is fast and effective. PGMG personnel communicate by: Phone, fax, email and written correspondence. Again, email is usually best and the most effective option.

    • PGMG Website

      PGMG works hard to utilize the most current and relevant business technologies. The PGMG website, www.PGManagementGroup.com, has proved to be a tremendous asset. Here are a few of the benefits for clients on the PGMG website: 

      • Prospective tenants can search our site for available rentals, schedule showings, apply to rent online and take online video tours of your property. 

      • Tenants have access to a portal, allowing them to update contact information, submit a maintenance request, view transaction history or send PGMG an email from the site. (TWA-Tenant Web Access)

      • Owner Portal (OWA-Owner Web Access)

      • Owners can obtain forms. 

    • General Office Information

      PGMG's mailing address is 2217 Matthews Township Pkwy, STE D-244, Matthews, NC 28105. Our phone number is 704-566-3610 and our general email address is hello@pgmanagementgroup.com

      Hours of operation are Monday-Friday from 9 am-5 pm (EST)

      Our office location is currently closed to the public effective March 12, 2020, due to COVID-19 and will remain closed until further notice.
     

    Owner Responsibilities

    • Owner Responsibilities

      PGMG takes their management responsibilities seriously, and requests owners to do the same. 

      Owner responsibilities are: 

      • Notify PGMG of any ownership change or eminent owner change for the managed property. 

      • Supply PGMG with accurate information so we can service the management account properly. 

      • Review statements at least monthly and notify PGMG of any discrepancies found as soon as possible. 

      • Support Fair Housing Laws and guidelines, as well as all necessary legislation. 

      • Maintain a current insurance policy for their property. 

      • Review their property insurance yearly and update as needed. 

      • Exercise responsibility for required maintenance and the safety of their tenants. 

      With the addition of the following:

      1. Warrant to PG Management Group, LLC that all owners with rights in the property have executed the management agreement.

      2. Maintain regular communication with PG Management Group, LLC and respond to inquiries and requests for authorizations.

      3. Keep loan payments, property taxes, insurance, and HOA dues current.

      4. Investigate and communicate to PG Management Group, LLC any HOA rules governing leasing in the community where the property is located, as well as provide PG Management Group, LLC with leasing requirements of said HOA.

      5. Pay PG Management Group, LLC the commissions agreed to in the agreement. 

      6. Avoid discrimination of any kind regarding the property while under agreement with PG Management Group, LLC. 

      7. Avoid all contact with the resident while PG Management Group, LLC is managing the property.

      8. Maintain a positive escrow account balance until management agreement is over.

      9. Pay (reimburse PG Management Group, LLC) for maintenance on the property necessary to maintain habitability, utilities, safety, and health of the resident.

      10. Fund, in advance, any repair over $350 and maintain a minimum owner reserve.

      11. Fund within seven (7) business days of notification if the escrow account becomes negative. 

      12. Maintain landlord insurance on property naming PG Management Group, LLC as an additional insured.

      13. Keep plumbing, electrical, HVAC systems, appliances and improvements left on the property in normal operating condition during the term of the agreement with PG Management Group, LLC. 

      14. Pay attorney and court costs that arise in the process of evicting residents, but no other legal actions, initiated by the Manager, without the owner's first giving permission to file such action.

    • Depreciation-What You Need To Know

      Most of the items in and on your property depreciate. Flooring and paint are two of the biggest and most misunderstood ones. If flooring or paint need to be replaced at the end of a tenancy, we will go off of the age of said item, not the condition at move in. 

      Lifespans are usually 5 years as stated by the IRS rules allowing for useful life and depreciation . 

      ESTIMATES BELOW

      WATER HEATER: 8-12 Years.

      HVAC: 15-20 Years.

      RANGE: 5 Years

      DISHWASHER: 5  Years

      MICROWAVE: 5 Years

      REFRIGERATOR: 5 Years

      GARBAGE DISPOSAL: 5 Years 

      CARPET: 5 Years

      FENCES: 15 Years

      SHRUBBERY: 15 Years

      ADDITIONS and IMPROVEMENTS, such as a new roof: This is determined as if the property were placed in service at the same time as the addition or improvement. 

    • Wear and Tear

      Normal wear and tear means the deterioration that occurs based upon the use for which the rental unit is intended and without negligence, carelessness, accident, misuse or abuse of the premises or contents by the tenants, their family or guests. 

      Examples could be nail holes (non-excessive) used to hang pictures, minor spot painting between tenants, traffic wear in carpet, carpet replacement after 5 years, scuffed hardwood floors, sometimes minor cleaning between tenants, worn toilet seats, re-keying or replacement of worn locks, blind replacement due to sun damage or paint flaking, caulking or any other ative maintenance. 

      Per  NC Landlord Tenant Law:

      If the tenant stays for the entire lease term and has paid all rent due, the landlord (or agent) may deduct from the security deposit only the actual cost of repairing any damage which you have done to the property. The tenant cannot be charged for damage caused by “ordinary wear and tear.” 

      What constitutes “ordinary wear and tear” must be determined on a case-by case basis. 

      For example, if the tenant is the most recent tenant in the property, the landlord cannot charge the tenant to replace such items as carpet, plumbing, or appliances which need replacement because they are old and worn out. In fact, the tenant cannot be charged for even contributing to the normal wear and tear of such items. 

      On the other hand, if the tenant caused the item to wear out because of the mistreatment of it, the tenant may be charged for the amount of unusual wear which the tenant caused (but not the entire cost of replacement). 

      Ordinarily, costs for routine cleaning and maintenance (painting, carpet cleaning, etc.) may not be deducted from the security deposit.

      However, if you leave the property so filthy that unusual or extraordinary measures are necessary to clean or restore the premises, the landlord may deduct the cost of such cleaning from the security deposit. 

      Read More here about Normal Wear & Tear vs. Damages-What the Heck is the Difference?

     

    The Scope of Property Management

    • The Scope

      Because PGMG provides owners with a very wide range of services, it can be easy to request something that we cannot perform. Some tasks go beyond the normal scope of property management or require additional fees/services. There are also areas we dare not tread, such as accounting or legal advice, that require proper licensing. We ask that you remember this when making a request.

    • Duties of PGMG to Owner

      1. Maintain corporate offices, staff, website, escrow accounts, phone and email systems.

      2. Maintain appropriate licenses and trust accounts for owner’s and resident’s funds, as required by the North Carolina Real Estate Commission, and maintain said records for three years.

      3. Maintain insurances including general liability, workers’ comp, and errors and omissions coverage.

      4. Represent the owner exclusively unless the owner gives written authorization to the contrary.

      5. Maintain qualified staff with experience and specialized training in managing residential rental properties.

      6. Provide owners with insight and advice regarding the rental market, help with setting asking rent, and help with getting the property rent-ready.

      7. Market owner’s property for rent; put out signs and install lockboxes; post in local multiple listing services, as well as local and national web-hosting sites.

      8. Maintain licensed leasing staff to respond to callers and show properties.

      9. Take resident applications, pull credit history, employment and residency records, eviction reports (along with other background information) and use good judgment in the qualifying/approving/denying of applicants. 

      10. Retain the resident's security deposit in a trust account as required by the North Carolina Real Estate Commission and disburse it after move out, according to the terms of the lease, the North Carolina license law and the North Carolina Landlord Resident Law. 

      11. Maintain a maintenance response system to take requests from residents requiring maintenance.

      12. Maintain 24/7 emergency response call system for maintenance emergencies. 

      13. Manage the property for the owner, handling tasks to include the execution, renewal, default, and reinstatement of leases; collecting rent; maintaining the property and making 70973c records available for owner review. 

      14. Maintain owner’s escrow account records, including receiving and recording receipt of rents, handling owner advances, paying expenses on the property, paying vendors and managing emergency situations, distributing collected funds to the owner and providing monthly owner financial reports. 

      15. Manage the eviction process, including filing with the county, negotiating consent agreements, coordinating court appearances, purchasing writs of possession and overseeing the removal of the resident’s possessions from the property on behalf of the owner and at his expense. 

      16. Manage normal maintenance breakdowns as part of the management fees and managing rehab, renovations and restorations when authorized by the owner.

      17. Complete a move-out report when the resident vacates the property, and charge the resident for damages above normal wear and tear as described in the lease, the North Carolina Landlord Tenant Law and consistent with industry standards. 

      18. Only initiate legal actions on owner’s behalf with owner’s permission, except those related to collecting rent and evicting residents over rent collection. 

      19. Refund owner’s escrow funds within thirty (30) days of termination of the agreement and consistent with North Carolina license laws.

    • Management Services DO NOT Include

      • Showing the property to real estate agents, inspectors, appraisers, or prospective buyers while the property is for sale

      • Providing on-site management

      • Property sales

      • Refinancing

      • Preparing Property for sale or refinancing

      • Supervising and coordinating modernization

      • Rehabilitation

      • Fire or major damage restoration projects

      • Obtaining income tax, accounting or legal advice

      • Advising on proposes new construction

      • Debit collection

      • Counseling

      • Attending Owner’s association meeting and the like. 

      If Owner desires Management to perform services not included in normal property management or specified above, a fee shall be agreed upon for these services before work begins, subject to certain limitation imposed by law for the specialized services only authorized by licensed professionals. If you have any questions on what is included or not included in property management, please let us know. 

     

    Company Policies

    • Professional Standards of Conduct

      Your property management agreement is subject to our Standards for Professional Conduct for Landlords, Residents and Property Managers. By signing the management agreement, you agree to conduct yourselves to these standards, understanding that failing to do so may result in your management agreement not renewed. 

      Below are the six standards of conduct expected from you when dealing with our firm: 

      1. Be inclusive. We welcome and support people of all backgrounds and identities. This includes, but is not limited to members of any sexual orientation, gender identity and expression, race, ethnicity, culture, national origin, social and economic class, educational level, color, immigration status, sex, age, size, family status, political belief, religion, and mental and physical ability. 

      2. Be considerate. We realize moving and dealing with issues around the property can be stressful, and we go out of our way to accommodate reasonable needs and requests. Your decisions might affect whether a landlord keeps a property or sells it, or whether a resident wants to renew or move. You should take those consequences into account when making decisions. 

      3. Be respectful. We won't all agree all the time, but disagreement is no excuse for disrespectful behavior. We will all experience frustration from time to time, but we cannot allow that frustration become personal attacks, yelling or using inappropriate language. An environment where people feel uncomfortable or threatened is not a productive or creative one. Our staff is trained and empowered to discontinue any conversation that is disrespectful, and to note same in our records. From time to time we choose not to renew our agreements with people who repeatedly cross these boundaries with us. 

      4. Choose your words carefully. Always conduct yourself professionally. Be kind to others. Remember that we as Property Managers are here to help landlords, residents and vendors and provide quality housing, however when circumstances combine to make it challenging to meet the expectations of a customer, we will communicate that frankly and professionally - and appreciate your doing the same. 

      5. Be truthful. If you find it challenging to meet the terms of your agreement us, tell us exactly why. We might be able to help you, and pledge to do our best when given the opportunity to help you. When we are unable to help and must enforce a contract with you, try to understand why. Differences of opinion and disagreements are mostly unavoidable. What is important is that we resolve disagreements and differing views constructively. 

      6. Make differences into strengths. We can find strength in diversity. Different people have different perspectives on issues, and that can be valuable for solving problems or generating new ideas. Being unable to understand why someone holds a viewpoint doesn’t mean that they’re wrong. Don’t forget that we all make mistakes, and blaming each other doesn’t get us anywhere. 

    • The Law

      It is very important in the field of property management, that PGMG follow local, state, and federal legislation and guidelines. Our company takes pride in our industry, and we further implement guidelines and policies of several organizations, such as the National Association of Residential Property Managers, (NARPM®), and others.

    • Code of Ethics

      PGMG follows the Code of Ethics outlined by NARPM® as well as the Realtor® Code of Ethics. PGMG considers this a top priority in conducting business and is required of all PGMG personnel.

    • Drug Free Policy

      PGMG has a drug-free policy for all personnel, vendors, and tenants. PGMG incorporates this policy into PGMG rental/lease agreements, tenant, personnel, and vendor documentation.

    • Legislation

      PGMG adheres to the laws and guidelines of federal, state, and local legislation, and incorporates this into all documentation, policies, and procedures. Here are some of the agencies and acts PGMG follows: 

      • Fair Housing (HUD) - We support and follows Fair Housing laws and guidelines. 

      • SCRA Act – Serviceman’s Civil Relief Act, which has replaced the Soldiers’ and Sailors’ Act of 1940 

      • URLTA - Uniform Residential Landlord Tenant Act 

      • FCRA - Fair Credit Reporting Act 

      • EPA - Environmental Protection Agency 

      • IRS - Internal Revenue Service

      • NCREC - North Carolina Real Estate Commission

      • NCSOS - North Carolina Secretary of State

      • Any other local or state legislation that may apply to North Carolina

    • Lead-Based Paint

      Lead-based paint became a major issue in the 1990s that prompted mandatory requirements for residential housing and continues today. PGMG follows all mandated federal and state guidelines for lead-based paint. 

      All properties built prior to January 1, 1978 require disclosures to all tenants and owners. Tenants sign lead-based paint disclosures prior to renting a property and PGMG provides them with the required EPA Pamphlet, Protect Your Family from Lead in the Home as published by The Environmental Protection Agency. 

      Property owners and/or Property Managers must also notify tenants, in writing, of any scheduled work necessary for lead-based paint on the property. 

    • Mold Issues (Discoloration)

      PGMG regards mold issues as a top priority in property management. 

      Owners should be aware that mold is another leading issue in the property management industry and failure to act if tenants report or discover mold can lead to costly lawsuits. Several cases regarding mold have awarded damages to tenants in the millions of dollars. This is an area of extreme liability and PGMG takes action if a tenant reports mold. PGMG notifies owners as soon as practical of any mold issues so we and/or the property owner can take the proper steps. Owners are hereby advised to immediately repair all roof, plumbing, sewage, drainage, pool or other leaks that can cause mold, as delays can cause costly mold remediation! 

      Mold occurs in places that are moist and warm and can spring up in areas that have flooded and never completely dried. Typically, you can find mold in the bathroom, basement, under the carpet or any other area that has been exposed to water. 

      Black mold

      Black mold is a microscopic living organism that is so small it is invisible without a microscope. If there is enough mold that you can see it with the naked eye, then the mold has been growing and spreading for a significant amount of time.

      You can usually find mold growing on drywall, wood, carpet, and other porous types of fabrics and materials. In order for mold to grow, it needs the right conditions, such as an area that has been wet for more than 48 hours. It occurs more commonly in humid environments.

      Symptoms of exposure

      If you and your family have been exposed to black mold, you may suffer from red itchy eyes, a sore throat, coughing, runny nose, congestion, other asthma-like symptoms and even skin rashes. If you are having these symptoms and they are not improving but instead continue to worsen, you are more than likely suffering from mold exposure.

      Landlord liability

      In North Carolina, landlords are bound by the “implied warranty of habitability,” regardless of what is written in the lease agreement. This means that the landlord is legally obligated to provide tenants with apartments and homes in livable conditions.

      In addition, North Carolina law requires that landlords fix any excessive standing water, sewage or other flooding problems caused by leaks or improper drainage.

     

    Answers Regarding Funds

    • Funds

      PGMG recognizes the importance of accurately collecting and disbursing funds. The bookkeeping program used by PGMG is specialized software designed to handle the many facets of property management and accurate record keeping.

    • Banking

      PGMG accounts for each owner’s funds separately in the bank account and does not co-mingle funds with company's monies. PGMG requires that all accounts maintain a positive balance, so PGMG in turn requires each property owner to be responsible to fund all expenditures in advance of their becoming due. To better enable us to pay expenditures as they become due, owner’s accounts have a required ‘minimum balance’ or maintenance reserve. Owners can replenish these funds via check or electronic transfer via their OWA by making an Owner Contribution.

    • Monthly Statements

      We request payment to our owner clients between the 10th and the 15th of each month.

      1. We will verify funds in your account.

      2. We will request disbursement to you.

      3. You will be emailed a copy of your owner statement showing the disbursement has been made.

      4. At the beginning of the following month, we will send you the full Owner Statement

      For example, if the first payment to you was on January 10th, you will receive a statement from January 1-10th. Then on February 1st (or the next business day), you will receive a full Owner statement for January 1-31st.

      When we then disburse your February payment, say on February 11th, we will then send you a statement showing the dates from the last time we paid you. In this case, it would be from January 11-February 11th. Then, on March 1st (or the next business day), you will receive a full Owner statement for the full month of February.

      If you have difficulty reading your monthly statement, please contact us. We are happy to assist you and answer your questions 

    • Owner Disbursements

      PGMG disburses available rental funds to owners electronically along with your statement. PGMG does not disburse funds on weekends and holidays. PGMG cannot issue owner checks unless there are sufficient funds in the owner’s account. Unless otherwise agreed, ‘available rental funds’ are all monies over the maintenance reserve and after any additional recurring monthly expenses.

    • End of Year Procedures

      PGMG is required to file 1099’s for income received over $600. Please note that this amount is for “total income received,” and not the yearly total of owner disbursements.

      The Internal Revenue Service dictates the “total income received” requirement. Security deposits are not included in this amount.

      It is necessary that you supply PGMG with the necessary Social Security/Tax ID information so the 1099 is accurate. PGMG will send the 1099 for the rent by January 31 for the previous tax year via email. If there is a change in your tax information such as a new trust or address, please notify us with the Owner Change of Information form. If you need another change form, please contact us.

      PGMG also issues 1099s (1099-NEC form effective 2020) for disbursements to vendors for work over $600.00. Therefore, owners do not have to issue 1099s for work completed and paid through the PGMG trust account. Owners are responsible for issuing 1099s (1099-NEC form effective 2020) to any vendor paid through the owner’s personal account.

      The last statement of the year will reflect “total amounts” for income and expenses that have transpired throughout the year, such as management fees, leasing fees, landscape, utilities, repairs and maintenance, etc. The amounts will not reflect any funds issued through the owners personal account. Owners can submit their last statement to their tax person along with other information for income tax reporting. PGMG does not issue statements to the owner’s tax preparers.

    • Billing Rights Summary

      If you think your bill is wrong, or if you need more information about a transaction on your bill, write to us as soon as possible. We must hear from you no later than 60 days after we sent you the FIRST bill on which the error or problem appeared. You can telephone us but doing so will not preserve your rights. 

      In your letter, give us the following information: 

      • Your name and managed property address. 

      • The dollar amount of the suspected error, and 

      • Describe the error and explain, if you can, why you believe there is an error. 

      If you need more information, describe the item you are unsure about. This is a summary of your rights under the Federal Fair Credit Billing Rights which governs all of our practices. 

     

    Advertising and Marketing

    • Internet/Website

      Our listings are syndicated and will appear on many websites, such as Zillow, Trulia, Hot Pads, Zumper and more, as well as www.PGManagementGroup.com and social media. Your property will receive maximum exposure.

    • Lockboxes and Signage

      Lockboxes allow all agents in the market and prospective renters to view homes 24/7. PGMG will install a lockbox on the front door (or nearby) and start showing the property as soon as it's rent-ready. If your community requires a special sign, the cost of getting it made (and delivered) will be passed along to you. If you don’t alert us about special signs required by your HOA and we get fined for using our own, you will absorb the charges.

    • Video Tours | Slide Show Videos

      PGMG also creates a video tour of your property. People love watching these videos from the comfort of their own home. We also find these video tours truly assist those who are searching for homes from afar and can make it so much more comforting if someone has to rent sight-unseen.  You can view our YouTube Channel Here

     

    Tenant Applications

    • Applications

      Applications are available online at www.PGManagementGroup.com only when a property is available for rent or lease.

    • Tenant Screening

      Thorough screening is crucial to successful property management. PGMG requires all applicants to fill out a detailed application and submit it for processing/approval. A credit check is NOT enough! Our company conducts a careful review of their credit, income, and tenant history or ownership. All applicants must submit verifiable information on their income to show they can support the property. Rental history or previous home ownership is carefully checked. Cross-referencing all three areas – credit, tenant history, and income - provides the answers to qualify or disqualify prospective applicants. Please refer to our Application Qualifications Here

    • Co-Signers | Guarantors

      PGMG believes that good credit is required to secure the renter’s promises in a lease but it doesn’t have to be the occupant’s credit. We get lots of folks who have their parents, employers, caregivers and counselors guarantee the lease and we’ve had great success enforcing cosigner agreements. The cosigner completes an application and executes a guarantee and also signs the lease.

    • Pets

      Statistics show that more than half of all tenants have pets. By excluding pets from their property, an owner will substantially reduce the available number of tenants – which can prolong vacancy time! 

      As such, PGMG's policy is to allow pets at all properties unless specific written instructions to the contrary are provided. It is legal for property owners to discriminate against pets. 

      At PGMG, we require every animal to be vetted through our professional screening process. The fee for this is $20.00 for the first pet profile and $15.00 for each additional pet in your profile. These application fees are paid directly to our 3rd party vendor, PetScreening.com (https://pgmgtgroup.petscreening.com/), conducting the pet screening. This screening is part of our application process and any house application received that lists a pet(s) must complete this in order to move forward with the rental application. The “Paw Score” score produced will determine the amount of the monthly pet rent and fees to the renter. PGMG recommends to owners that when the property is on the market, that pets are “conditional.” This can solve two problems:

      1. First, this encourages prospective applicants to disclose any pets. 

      2. Second, by listing pets as negotiable, it avoids eliminating an excellent tenant that does care for their pet, has an excellent tenant history, and owns a pet that is suitable to your property. 

    • Service Animals | ESA (Emotional Support Animals)

      Special note: “Service animals” for handicapped/disabled persons are NOT pets by Federal law, and owners cannot discriminate against handicapped/disabled persons with a service animal. Fair Housing legislation does NOT allow owners or property managers to collect deposits of any kind for service animals. 

      However, Landlords can still process applicants who are handicapped or disabled on the same criteria as other applicants: income, credit, and tenant history. If they fail to qualify in these areas, the landlord/manager can still deny the application, handicapped or not. 

      More Information on Service Animals and ESA's

     

    The Tenant Move In

    • Rent and Security Deposits

      PGMG does not allow “payments” on traditional cash security deposits – we require all funds paid in full prior to renting the property. Traditional cash security deposits are maintained by PGMG, in a true, non-interest-bearing Trust Account at Bank of America. However, we understand that moving costs can be expensive, so each approved applicant will have the option to choose affordable Security Deposit Insurance which will eliminate a traditional cash security deposit, with smart, affordable insurance so that our approved applicants can just pay a small monthly fee to our 3rd party vendor, who will ensure each home for the property owner/property manager in case of damages and lost rent that might occur. We're committed to building the future of renting by making moving simpler and less stressful from beginning to end.

    • Lease Agreement

      Once PGMG receives a non-refundable holding fee and lease prep fee, a thorough lease agreement with the applicant is completed. If the accepted applicants are a foreign nationality and cannot read and understand the documentation, they must supply an interpreter at their expense, of legal age for signing the lease agreements. PGMG will automatically pursue lease renewals unless the owner notifies us in writing not to do so. Renewal fees are due for each written lease renewal or monthly tenancy beyond the initial lease term.

    • Managing the Move In

      We will complete the Move In Walk Thru by our 3rd party vendor partner. As Managers, we are required to document the condition of the property prior to the resident taking possession so there is something to compare to when charges are assessed for damages after move-out. The resident will also document the property within 3 days of taking possession.

    • Rekey Policy

      Just before a new resident takes possession of the property, we will have it re-keyed by a licensed locksmith. This assures them of some level of privacy and protection from past residents, owners, neighbors, cleaning people, contractors, and anyone that has had access to the lockbox. The total cost you pay depends on how many exterior doors there are and how many dead bolts have to be reset. We try to have all locks keyed to the same key. This just makes it easier on the resident.

    • Uncompleted Repairs / Contingencies

      One of the worst things that can happen when we meet a resident at the property for a move-in is to find that the property isn’t ready. Owners (or their vendors) don’t always complete work as they promised or clean up thoroughly, and it causes lots of yelling and screaming. Residents often arrive with their moving van and don’t have the time to clean the home before moving in. We do everything we can to this, including a pre-move-in wipe down , but it doesn’t always work out the way we hope.

      When the property isn’t ready, or the contingencies are not done as promised by the owner, we often have to take drastic actions, costing the owner serious money. When a resident moves into a dirty home, or one that has unfinished repairs, they will hold it against us for the life of the lease.

      We’ll do everything we can to make it right, but it usually is an expensive process because we’re all scrambling for solutions at the last minute in order to avoid putting off the move-in inspection or losing the resident.

      Remember this: speed always costs more, whether you’re shipping packages or calling a contractor or a cleaner to come immediately and finish a repair or clean the home so we can let the residents take possession. In these situations, we go to work “making it right” and discuss the costs later.

    • Pre-Move In Wipe Down

      Pre-Move In Wipe Down For many years, it was common for us to get ready to move a resident in and then find the property was not clean and ready to occupy. Dead bugs accumulate in vacant homes, toilets get rancid, cob webs gather, light bulbs die, vendors fail to clean up after themselves and the property gets stale and musty.

      Residents expect hotel (white glove) clean, whether they should or not. If we do this badly (and we have many times), and the home is dirty at move-in, renters get really angry and remember the experience until they move out. No one likes to clean up someone else’s dirt. We solved this dilemma several years ago by scheduling a pre-move-in wipe down just before the resident is to take occupancy.

      Like re-keying, it is done a day or two before the move-in takes place. The cost is generally around $95 to $250 depending on just how big (and how dirty) the house is.

    • Owner Cleaning Challenges

      Frequently we have owners tell us that they will clean the property before move-in and we don’t need to order the previously mentioned wipe down. Everyone wants to save money and the DIY method is often preferred. Here’s the problem: everyone has a different idea of what clean is and people are satisfied with different levels of clean. To some, cleaning once a month is good enough while others clean every day. Since we can’t attempt to match residents with owners of the same cleaning standards, we have to use a neutral standard we can all agree with. That standard is “hotel clean.” When you check into a hotel room and find dirty mirrors, toothpaste on the counter, Q-tips in the wastebasket, and mud on the floors, you demand another room, and so you should. “Hotel clean” means leaving no evidence of the previous occupant.

      If you tell us you’ll do the cleaning and the property is not “hotel clean” when we arrive to do the move-in inspection, we’ll call a crew to make it right before we turn it over to the resident. Also, if we promised the resident a move-in on Saturday and the home isn’t ready, we may have to put the resident up in a hotel on your dime until the cleaners can get there on Monday. Most residents arrive to the move-in inspection with their truck full of stuff and movers ready to set up house.

      Having the property clean and ready for the move-in is one of our highest priorities and should be yours as well. The move-in can be a pleasant experience or a horrible one and will set their expectations and attitude toward the home, manager and owner for the rest of their stay. Let’s work together to welcome the residents to a clean and safe place to live.

    • Tenant Handbook

      Tenants receive a Tenant Handbook, at move in. This detailed booklet gives them additional information on how to care for the property, report repairs, maintain the property, make timely payments, how to give proper notice to vacate, leave the property in good condition, and more. The Tenant Handbook is also uploaded to their TWA for immediate access 24/7.
     

    Working with Your Tenants

    • Rent Collection

      Rents are due on the first day of the month and late if not received prior to the sixth day of the month. PGMG recognizes that many things can happen where it concerns rent; rent can really be lost “in the mail”; employers can delay the tenant’s paycheck, there are real tenant emergencies, and more. Therefore, we make a serious effort to determine why the tenant is having a problem. To encourage timely payments PGMG encourages Tenants to pay their rent ONLINE via their TWA.

    • Other Notices

      There are other notices that may be involved with tenants. PGMG serves (as required by law) notices as situations warrant, such as a notice to clean up the landscape, HOA violations, a notice to enter the property, a notice to perform survey/inspections, a notice regarding an illegal pet, illegal tenants, etc. These tenant violations may be in the form of a letter or a legal Notice “form.” Often, these notices are simply to correct minor tenant problems and most tenants comply. However, if necessary, PGMG contacts the owner with the information to discuss the situation.

    • Communications with Tenants

      PGMG prohibits direct communication between owners and tenants. This is to avoid your risk by opening gray areas. PGMG cannot effectively do our job as your agent and advocate if we are not involved in communications.

    • Tenant Problems

      PGMG has years of experience handling the myriad of tenant difficulties that can occur. The PGMG policy is to obtain good tenants, eliminating many tenant problems. However, even good tenants have problems. PGMG treats each problem with a common sense approach, follows landlord/tenant law, and uses the appropriate documentation. If the situation is serious, PGMG contacts the owner, and works to find a solution for the problem.
     

    Maintenance

    • Preventative Maintenance

      The best approach to maintenance is “ative maintenance,” and this is our policy. 

      First, PGMG has already started with educating the tenant by: 

      • Completing a detailed Rental Agreement, which includes a thorough outline of what are tenant responsibilities regarding maintenance. 

      • Supplying tenants with the Tenant Handbook, which provides additional instructions on the care of the property and how to report maintenance issues. 

      We want the tenant to know from the beginning of their tenancy that the PGMG/landlord expectations are to “care for the property.” This approach can costly maintenance. 

      It is equally important to keep up with maintenance while the tenant occupies the property. When items are left to deteriorate, it usually means the owner will have to spend more in the future. Often people think no news is good news; this can be just the opposite. Instead, “delayed news can become very bad news.” 

      This is why, in our tenant instructions, we require them to report maintenance. For example, what is worse than finding out dry rot could have been ed or discoloration of the linoleum if the tenant had reported the leaking toilet in the bathroom? Avoiding major maintenance costs are certainly more favorable in such cases. 

      Here are some Landlord Tips for ative Maintenance:

      1. Clean Your Gutters Every Autumn

      2. Stain Your Deck and Fence Now and Then

      3. Power Wash Your Porch and Siding as Needed

      4. Drain the Water Heater

      5. Check for any leakage or disruption in the plumbing.  

      6. Re-caulk Showers and Bathtubs, and around the Kitchen sink

      7. Service your HVAC twice a year

      PGMG's 3rd party vendor, completes a property visit one time during the initial lease term (in addition to the Move In) 

      $109 is the cost of this report.  This detailed report, including photos, is designed to give an in-depth look at how a resident is caring for an occupied property.  The report addresses the following areas: 

      • Property Code Violations

      • Insurance Risks

      • Maintenance Issues

      • Condition of lawn and shrubs

      • Common HOA Violations

      • Evidence of damage to flooring, windows, ceiling, walls, lighting, and appliances

      • Evidence of current or past presence of pets

      • Evidence of changes or modifications to the premises

      • Apparent violation of any restrictions on condition, use or occupancy limited by HOA

      • Evidence of neglect/items in disrepair

      • Placement and functionality of smoke alarms

      • Placement and condition of air filters

    • Emergencies

      When an emergency and/or disaster strikes, PGMG has policies in place for the property and tenants. PGMG notifies the property owner as soon as practical. The nature of the emergency and/or disaster determines the action needed by PGMG. There are times when a property manager must “act” in order to great financial risk to the owner.

      For example, when a property is flooding, action is necessary, particularly if the property owner is not immediately available

    • Handling Your Own Maintenance

      Most owners hire a manager because they don’t want direct involvement with the resident in the property. However, some owners have a tool belt and like to tinker around the house to save a little money. When the property is vacant (and anytime on exterior issues) you are free to do whatever you like. While the resident is occupying the property, we will handle all interior maintenance with our preferred vendors. There are liability and common sense issues that drive this policy.

    • NC Landlord Tenant Law Regarding Maintenance

      North Carolina Landlord Tenant Law is very specific about landlords being responsible for all maintenance on a rental home. The law says that landlords are responsible for any improvement left behind by the owner when it’s rented and cannot try to pass maintenance over to the renter by agreement in the lease.

      North Carolina law makes it clear that it is not possible to duck this responsibility by adding a stipulation in the lease saying “We are leaving the refrigerator or washer and dryer behind, but we are not fixing it if it breaks” or “The resident agrees to pay the first $50 of any maintenance repair.”

      Whatever you leave behind, you have to keep in good repair. We learned this the hard way in the early years thinking we could get the resident to make repairs on the refrigerator, washer/dryer, microwave, or grill by just saying “we agree to it” in the lease.

      You can’t and we won’t, under North Carolina law. North Carolina is unique on this issue, and landlords who try to get around it are subjecting themselves to serious judgments by the courts when disputes arise. (G.S. 4.42)
     

    When the Tenant Vacates

    • Before the Move Out

      In managing rentals there are five kinds of move-outs depending on the circumstances: 

      1. Normal Scheduled Move-Outs account for about 90% of our business. Once they give us notice to move we will be communicating with them, and with you, right up to the day of the move-out property visit to make sure they keep utilities on; return keys, garage door openers, community keys and passes; and remove all personal property. We give them lists of things to think about so they can avoid fines and earn back their security deposit. Our priority is to get the property back in rent-ready condition. Most renters want their deposit back and pay close attention to these issues. 

      2. Early Terminations

      Occasionally people get transferred or buy another home before their lease ends. There is an early termination stipulation in the lease that allows the resident to move early by paying rent until we place a new resident into the property or until their lease end date arrives, giving us 60 days notice. We’ll notify you immediately upon receiving a Notice to Vacate and will keep you in the loop throughout the process.  Please note, North Carolina Law states that we do have to do everything we can to make sure we get the property leased again in a timely manner and the landlord cannot just wait until the lease end date arrives.

      3. Coordinated Skips

      Occasionally renters call us in the middle of their lease term and just tell us they’re moving for any number of reasons. They lose jobs, get divorced, can’t get along with their roommate or just can’t afford the rent anymore. They’re not skipping, but they’re also not offering to pay the early termination fees; they just want to notify us of their intent to move and want to do it under controlled conditions. We’ll notify you immediately and will handle all the charges according to the lease and state law. 

      4. Skips and Abandonment

      Every now and then, we find a property abandoned. Usually we discover it when we’re doing a drive-by due to unpaid rent or an imminent eviction. Often the utilities are off and there’s plenty of personal property left behind. When this happens we’ll make a decision about whether we take an abandonment option or wait for the sheriff to empty the property. This is a very delicate issue. In order to completely indemnify the Landlord and Manager, is to pursue  the eviction process. (G.S. 42-25) We’ll notify you immediately upon discovering your property vacant and keep you in the loop throughout the process. 

      5. Eviction takes place when the dispossessory process is finalized and the sheriff executed the Writ of Possession and the locksmith secures the property.  In the past we’ve averaged about one eviction a month. Since 2014 we have only had a few evictions. Residents are kept well informed regarding the pending eviction so there are no surprises and they often skip shortly before the sheriff arrives. As we near the day of eviction, we will be monitoring the property, utilities and resident closely to try to figure out when they leave. We try our best to cooperate with them so we get keys and garage door openers returned and utilities transferred. Finding a home with the utilities turned off is not pretty, especially when there is food left in the refrigerator and the temperature is 90 degrees. It doesn’t happen often, but it happens.  

    • Notice to Vacate

      When there is a notice to vacate, the move out procedures with tenants are as critical as when PGMG moves in a tenant. The preparation for this really began when the tenant moved in with a detailed rental agreement and Tenant Handbook. These documents gave instructions to the tenant on how to move out.

    • Communication with Owner & Tenants

      PGMG notifies the owner when a tenant gives notice to vacate. Owners can assume that PGMG will automatically proceed with re-renting the property unless instructed otherwise. PGMG also responds to the tenant notice with information detailing the steps to complete a successful move. Rent is required until the end of the notice unless otherwise stated in the rental/lease agreement.

    • Tenant Move Out

      PGMG conducts a move out walk thru similar to the one performed when the tenant moved into the property. PGMG records any maintenance required and discloses a list of damages to the vacating tenant. Digital photographs and/or videos taken when the tenant move out are compared to move in media to document the condition of the property and support any deductions from the security deposit. After assessment of the tenant move out, PGMG advises owners of any maintenance required to re-rent the property.

    • Security Deposit Refunds | Final Accounting

      Proper handling of the security deposit refund is crucial. Any tenant deductions are determined in a timely manner, and a security deposit refund and/or claim is prepared in accordance with state laws. Owners receive a summary of the claim with their monthly statement, showing any deductions and monies refunded. This includes traditional cash security deposits along with our security deposit insurance option.

    • Collection Accounts

      If a balance is still owing after 30 days of the tenant's move-out date, we do our best to collect any balances.
     

    Cancellation of Management

    • Our Goal

      There will come a day when we decide to part ways. Eventually everyone does. Our longest relationship with an owner has lasted since 2014 (and some since 2010 as we worked in property management since 2010 in general), but we don’t expect that of everyone.

      Since it is inevitable, we want it to be a smooth and orderly transition. Because there are license laws and trust accounts involved, we have to do this very carefully. We have thorough checklists for this process so we don’t miss a thing. If there is a resident in the property this is a little sticky, but we have done it many times and know exactly what the issues are. Some owners decide to manage their own property. Some want another property manager, while others want to sell and be done with leasing.

      Whatever the reason, we will always be willing and cooperative to make the transition smooth. It is the goal of PGMG to satisfy your management needs and engage in a successful business relationship if this happens and resolve your account in a professional, timely, and pleasant manner. Please review the following policies for cancellation.

    • Types of Separation and Cancellation

      1. Separating in the Middle of a Tenancy

      If you separate from PG Management Group, LLC in the middle of a resident’s stay in a property, there are some fees to pay. Property managers make their money by keeping good residents in a property for as long as they can. If you cut us off in the middle of a tenancy, you are cutting short our opportunity to make what we need to make on the overall management of the property. If we put a great resident in a property, it is only right that we receive management and renewal fees until they vacate. The best time to separate from your management company is between residents and not in the middle of one. 


      1. Separating with Cause and without Cause 

      Either party can initiate a separation. However, there are two sets of circumstances that generate a separation. One is “for cause”, meaning one of us is unwilling to fulfill their agreement and the other is unwilling to continue to tolerate it. As an example: if we don’t manage as we agreed, and you call us on it, we must be given the opportunity to correct the problem. If we don’t, then you should be able to sever our relationship without penalty.  The second is “without cause”, meaning there is no contractual reason to separate, just a need to part company. If that takes place, there may be some consequences as we are both counting on each other to fulfill the agreement. 


      1. Official Notice to Separate 

      The management agreement calls for a certified letter to notify each other of our need to part ways. Upon official notice we’ll address all the issues in a methodical and seamless way to facilitate a smooth separation

    • Written Notice

      We require a written and signed 30-60 day notice to cancel your account. Please refer to your management agreement for specific details.

    • Notice to Current Tenants

      PGMG will notify current tenants the date PGMG will no longer manage the property and that PGMG forwards all security deposits to the owner. It is the owner’s responsibility to advise tenants where to make future rental payments and work requests after the notice period.

    • Distribution of Documents

      PGMG will supply current tenant documentation to the owner. If the owner has employed new management, it is the owner’s responsibility to instruct them to pick up documents, keys, and any other necessary materials.

    • Final Disbursement of Funds

      PGMG will distribute funds, including security deposits, and final statements to the owner within as agreed in the management contract. PGMG will issue a 1099 for funds collected during the current tax year when the tax year ends.

    • Penalties & Fees

      Penalties and fees may be charged for early termination of the contract, as spelled out in the Management Agreement.
     

    COVID-19

     

    When it's Time to Sell

    • Selling to the Resident

      The most efficient sale you will ever have is when you can sell the property to the existing resident. Everybody loves the idea of selling to the resident because there is no vacancy between the time the resident moves out and a new buyer moves in. This is the best of all worlds for the owner.  So, if it is good for the owner, why doesn’t it happen very often? As a broker, we would love to sell to current residents every time. It’s an easier sale, and there is no move-in or move-out to manage. When we got in this business, we thought residents would buy houses.  They do, just not the one they rented. Why?

      Here’s what we discovered over the last few years of managing and selling rentals for our clients: when residents choose a rental they make compromises in the house, the community and the area. They don’t take the time buyers generally take to select just the right house for their family. They aren’t thinking ten years, but two; it’s just a temporary place to live until they figure out where they want to buy.  We have sold a few houses to renters, but not many. 

      Secondly, it’s a hard sale. Here’s the problem; residents don’t do home inspections before renting a home. When people live in a property for a while, they figure out what’s wrong with it.  They learn the upstairs does not cool in the summer and the neighbor is a crab.  They know what needs to be fixed; they know the problems with the property, and often they won’t buy it because they know too much about it.  This sounds strange, but for some reason they would rather buy something they know nothing about than buy something they’ve lived in and know everything about.  Stupid as that sounds, we’ve heard it a thousand times.  That being said, if you want to sell the property and it’s occupied, we have experienced agents who know exactly what to do. Just ask your manager to put you in touch with them. 

    • Lease Purchase

      Akin to selling to the current renter is lease purchasing it to a new one. One thing to keep in mind is that an attorney will need to be involved and draft the terms of the Lease Purchase. If the resident does not hold up their end of the agreement, then you will need to go through the Foreclosure process. This is completely different from an eviction of non-payment of rent and most magistrates will not take the case. An attorney will certainly need to be involved.

    • List for Sale

      When our clients are done with leasing the property we often sell the home for them. We have been licensed brokers since 2007 and know how to get the job done. Because we know a lot about the property, and we have a relationship with the occupant, we are able to get it on the market before they move out and we don’t need much from you to make it happen. When you get notice from us that they’re moving, let us know if you want to sell. 

    • Short Sales

      It’s a common misconception that a short sale is the best way to get rid of a property in a hurry. What people don’t understand is that the owner must be several months behind in the mortgage payments (which is damaging to their credit rating) before their lender will even talk to them about taking a discount on the loan payoff (paying it short). They also won’t talk to you if the property is rented. The lender thinks if the property is rented, you should be able to make the payments. Short sales are a common phenomenon of the current real estate market which means three things: the lenders are all doing them differently, the rules are changing weekly and the fad will be over soon. If you think your property is upside down on the mortgage and want to investigate this option, contact your lender and get the story before you call PG Management Group, LLC about offering it to the renter. We’ve closed a few, but it’s a lot harder than it looks.