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Owner Services - FAQs
The following 'Frequently Asked Questions' often arise in our discussions with prospective clients |
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| 1. |
Why hire Marcus & Associates, Inc?
Our objective is immediate response and professional service. Property management is one of our principal activities. Marcus &
Associates, Inc. has been in the business since 1971. We are locally owned and managed. We manage all our properties as if
they were our own and providing you with the "peace of mind" that everything we do, we do in your best interest.
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| 2. |
Who is Marcus & Associates, Inc.?
Marcus & Associates, Inc. is a locally owned full service real estate company. Marcus K. Nishikawa founded it in 1971. It began
originally as solely a residential sales company and since has grown into four divisions, two branch offices with over 34 employees
and 30 salespeople. Our Commercial Division boasts such clientele as Kuakini Medical Center, The State of Hawaii, Bank of Hawaii,
Oceanic Cable, and the Medical Arts. Our Residential Division boasts such clients as Bank of Hawaii Trust,
State of Hawaii, Maryknoll SChools, Hawaii Conference Foundation and Front Street Affordable Partners. The Property Management Division has three departments. Residential
Rentals Department manages over 1,000 single and multi-family homes and the Commercial Department manages over 1,000,000 sf
of properties on Oahu and Hawaii.
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| 3. |
The Rate You Charge Is Higher Than Other Companies. Why?
It’s true that most companies charge less than 12% with many companies around 10%. At a rental rate of $1500 per month, the extra 2% that Marcus charges comes out to $30 a month. At $2000 month rent, the difference in fees is $40. We feel very strongly, and our current clients agree, that the extra services we provide are well worth the slightly higher fee. Here’s what you’ll get for the $30:
For any work where Owner approval is required, typically over $450, multiple bids are obtained thereby eliminating the possibility of a conflict of interest. There is no obligation to use MMS at any time for any work performed.
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| 4. |
Is there a charge to find tenants for my rental?
A fee of up to 12% of the first months rent for each new tenant enables us to provide a full time Leasing Professional dedicated
to finding the right tenant for you home. By providing specialists that focus in one area such as leasing, we are able to provide
the best possible service available today.
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| 5. |
How do you determine fair market rental value?
We regularly conduct rental surveys at the time the property is vacated. The results of the comparative market
studies are shared and discussed among our property management staff and utilized in determining rental values for new and existing
rental properties. This has resulted in minimal vacancies while obtaining the highest rents for our clientele.
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| 6. |
What kind of forms do you utilize when renting out my property?
As a member of the Honolulu Board of REALTORS, Maui Board of REALTORS, Hawaii State
Association of REALTORS, and National Association of REALTORS, we utilize all the approved standard forms for leasing and
sales of properties. All agreements are in writing. NO VERBAL AGREEMENTS. Standardized forms provide you, the tenant and
our company with clear and concise understanding of what is expected.
In addition to the industry standard forms, we have also developed and utilize our own Addenda covering many areas that may be
unique to your rental property and not addressed in the standard forms.
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| 7. |
How do you find the tenant for me?
We utilize several means of exposing your property and gathering potential qualified tenants. After 31 years of experience we have
developed many successful means finding that right tenant for you.
- Rental publications. Island-wide private publications specializing in rentals only with distribution to shopping centers, schools, office
buildings, street kiosks, university campuses. These are usually free to prospective tenants. You benefit from our volume discounted
rate schedule.
- Classified advertising. Local newspapers with the advantage of our volume discounted rate
schedule.
- Internet Through our publication sources, each rental property advertised is also exposed through the Internet. Potential renters
who are "searching the net" for rentals are able to contact us directly through the email link to our offices.
- Military Housing Office. We keep in constant touch with the military housing office at no cost to you. It has provided us with the
additional exposure to minimize vacancies.
- Network of Property Managers and Salespeople. Whenever a rental property becomes available, our entire company of salespeople
and property managers on Oahu, Maui, and the Big Island are alerted to further expose your property.
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| 8. |
How do you screen and qualify the tenants?
- Rental Applications. We utilize rental application forms that adhere to Fair Housing Laws and Landlord Tenant Codes.
- Credit Reports Each applicant completes a credit application and they are submitted to our credit service for the applicant's credit
history. The subsequent report is reviewed for financial ability, punctual rent and other debt history. Minimum income requirements
are strictly enforced during the selection process.
- Past Rental History Personal telephone verifications are completed on all past rental references and landlords stated by the
applicants.
- Criminal History Each applicant over the age of 18 is carefully screen to insure they have a felony free background.
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| 9. |
How to you interact with the tenants?
We believe that good tenant relations are critical to the smooth management of the property and collection of rent in a timely manner.
Periodic surveys are distributed to tenants to insure that our quality of service is at a satisfactory level.
However, the enforcement of rules and compliance with the terms of the Lease are also expectations of the tenant, which we handle in a
professional and businesslike fashion. We believe that maintaining a good relationship on a "business" level and in a professional
manner results in a much more effective atmosphere when dealing with problems or even raising rents rather than a "friendly or
social" relationship which may often develop between other landlords and tenants. This leads to difficult and awkward feelings when
dealing with rule enforcement or rent related matters.
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| 10. |
Will the property be in the same condition as we left it prior to renting
it out?
Realistically, your property will not be in the exact identical condition as when you left it. There will be a difference due to normal
wear and tear. When we live in a home as owner-occupants, we all have a special attachment to the home and it definitely shows in the
way we clean, take note of repair items, and maintain the house in general. Although tenants we select are screened very carefully,
they may not view the house in the same way as you or I would as occupant-owners. They will clean and maintain the house as they
are expected to, however it may not be to the same standards.
In our experience, if owners desire the yards to be in somewhat the same condition as when they lived there and maintained it, it would
be best to hire a yard service to come in on a regular basis to maintain it.
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| 11. |
How often will you be inspecting my rental?
While the house is vacant, we will check on it every week and/or as we show it to prospective tenants. Once it has been rented, we
conduct one complete interior and exterior inspection each year by our in-house Home Inspector knowledgeable in construction and repairs.
A complete report is sent to you with any recommendations for
repairs or improvements.
Onsite check in and check out inspections. These inspections are conducted in the presence of the tenant (or owner) to confirm and
document the current and existing condition of the property to minimize security deposit disputes and provide tenants with
instructions on proper care.
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| 12. |
How do you handle repair and maintenance items for my rental?
- Tenant maintenance guide Tenants are provided with guidelines on proper maintenance and care of the property and its
contents.
- 24-hour emergency calls Tenants are provided with a 24-hour emergency page number in the event repairs or other
emergencies are required after-hours. Our management staff has a ready list of repair personnel for immediate dispatching to handle
these calls.
- Licensed and insured. All vendors are continually verified to be up to date on their licenses, workman's compensation insurance,
liability insurance, and as necessary, bonding for larger cost related work.
- Cost savings We pass on any savings to owners on bulk purchases of supplies and repair cost.
- Monitoring The Construction and Repair department monitors and ensures that repairs to the property are completed in
the most cost efficient and quality manner. We also insure that inconvenience to the tenant is minimized through timely response and
completion of the work.
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| 13. |
Do I need to maintain a reserve fund for emergency repairs?
Yes. We require that owners maintain a $450 reserve fund for any emergency repairs and billings, which may occur between,
rent collections.
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| 14. |
What happens when the tenant is late paying their rent?
In the event the tenant does not make payment by the end of the "grace" period indicated on the rental agreement the policy and procedures are as follows:
- Delinquent letter (Late notice) is sent out on a designated day. Tenant has 5 business days (required by law) to come in and make
payment.
- We will make the calls to the tenants regarding delinquent rent and arrange for immediate payment. As owners, you are notified if
and when the 5-day deadline is not met following our notification. Letter will demand immediate payment or face termination.
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| 15. |
How often do evictions occur and what is involved? Is there a cost to
me?
An eviction of a tenant is usually the last resort after all other attempts have been made to either collect rent or rectify an untenable
situation. It is something we try to avoid at all cost. Evictions can be both lengthy and costly, however, it is an inherent risk of rental
ownership and management. The eviction process to remove a tenant and regain possession of a rental property may involve time and
money. Before any action is taken in this direction, you will be consulted and provided with all the details in order to make a sound
decision.
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| 16. |
Do you pay my general excise tax? Mortgage? Maintenance Fee?
Normally, our services include the payment of all expenses related to the operation of the property. This would include such items as
yard maintenance, utilities, repairs, and supplies as needed. Arrangements can be made for our accounting department to make
payments toward your general excise tax and other recurring charges, provided adequate funds are available each month. All recurring charges require an
equivalent amount as reserve.
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| 17. |
When should I expect a statement and any net proceeds check?
Rent is normally received on or before the first of each month; it is forwarded to the accounting department and processed for deposit.
Upon deposit, any expense invoices are paid and the net proceeds check is prepared along with the statement each month by the 25th for residential and by the 15th of the following month for commercial and multi-family properties.
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| 18. |
Will I have to provide moneys into my account?
Rents are normally received in a timely manner and expenses are nominal. There may be instances where large repairs may be
required that exceed your normal rental collection, at which time we will be in contact with you in advance to plan out the project and
also how you will be funding it. The other instance may be during evictions where utilities, and other recurring expenses are required
to be paid.
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| 18. |
Can I expect all records pertaining to my property to be maintained and
made available for me?
The following records are retained and provided to you on monthly basis or as you require them for tax or other purposes:
Rental agreements, tenant files, inspection reports, paid invoices, warranties, insurance certificates, cash flow and income/expense
statements, and other documents as required for the operation of your rental property.
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