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Kansas City Property Management Information

What is a Lifetime Tenant Guarantee? Kansas City Property Management Education

Tom Sedlack - Sunday, June 18, 2017

For many of our Kansas City property owners, tenancy and the quality of tenants is a concern and something a landlord needs to consider. A bad tenant is not like fine wine – it doesn’t get better with age. For most investors, a bad tenant should be ripped off quickly like a Band-Aid. You want to evict the tenant immediately and start fresh.

This is true for tenants who aren’t paying rent and those who are not complying with their lease agreements. Generally, if a tenant is willfully not complying with the lease or not making a payment plan that meets the needs of the lease contract, it’s best to move on. We have found that to be true time and time again.

Bad Tenants = Low Cash Flow

Unfortunately, sometimes property management companies don’t place good tenants. Low cost management companies sometimes have a vested interest in not doing good tenant screening or not providing good management to keep existing tenants happy. Those managers get fees for increased turnovers. A bad tenant will be more than a short term placement problem and a potential eviction. The vacancy and the discord and the leasing fee the management company charges will also be a problem. There will be turnover costs, utilities that need to go back in the owner’s name, and damage to your property. We have found that 80 percent of damages are caused moving in and out. So, there are many fees and issues related to turnover. Your best cash flow position is with a long term tenant who complies with the lease. The difference in your cash flow can be substantial.

Kansas City Lifetime Tenant Guarantee

With our management company, we have a lifetime tenant placement guarantee. Others may offer a tenant warranty, but there is no other company that offers a lifetime guarantee. It’s a lifetime guarantee because we know the tenant screening we do is the best in the business. We call prior landlords and conduct criminal background checks. We look at sex offender lists and do a meth lab check. We also do a full credit check. We want to make sure they are current with all their bills and not lazy with the water bill for example. It’s important to see that they know how to take care of a home. Another part of our tenant screening process is an income verification. A management company must do good screening for you. When this happens, you won’t have to worry about tenant turnover.

Comparing Management Companies

Our average tenancy is in excess of three years. You don’t want to limp along with a series of one-year tenancies. The difference in cash flow is tremendous. You’ll save on leasing fees and turnover costs, utilities during the vacancies, advertising and showing costs, and more. If you’re considering a property management company because they only charge $39 a month or $59 a month, remember that service matches price. Property management depends on experience and quality service. You need to trust your management company. A rental property is one of your biggest assets, and you don’t want to pick the lowest cost management company. They won’t protect your most valuable asset or put high performing tenants in your home. Besides, your management fees are tax deductible, so it’s crazy to seek out a low end management company and pick the one based on cost alone.

The goal is to choose a management company that stands behind tenants, and provides exceptional service. If our tenants fail to Tom Sedlackcomply with a lease, we will evict them and replace them at no cost to you. It doesn’t matter how long they’ve been in the property, and it will give you confidence and peace of mind. The good tenants will of course remain for years, and that goes right to the investors bottom line. 

If you have any questions about rental properties or Kansas City property management, please contact us at 33rd Company Kansas City.

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