1. Does Pioneer Enterprises help me buy or sell investment property?
Yes, our licensed agents will gladly assist you with your acquisition and disposition of investment property.
2. What are your management fees?
We charge a percentage of the monthly contractual rent between you and your tenant.
- 10% for 1-2 properties
- 8% for 3-6 properties
- 7% for 7+ properties
3. Will I be charged a management fee for vacant properties?
No. You do not get charged a management fee for vacant properties. We also do not charge owners for lease renewals with current tenants.
4. What do management fees cover?
The management fees are our retainer fees. Our basic service includes:
- Collection of rent
- Handling repairs on the property
- Miscellaneous administrative work with regards to tenants
- Issuing of notices and delinquencies
- Rent Court filings, warrants, and eviction notifications
- Thorough property walk-through before and after tenant placement
5. Do you charge management fees in the event tenants are delinquent?
Yes, management fees are not contingent on tenants paying their rents. However many times tenants get behind but eventually pay, so any balance on your account is satisfied first and then remitted to your account.
6. Do property owners require an expense reserve?
7. How and when do you send my rents?
Your rents are wired via ACH or paper checks mailed around the 12th of every month, provided rents are received. ACH and checks are usually available by the 15th of every month.
8. Do you handle major repairs and renovations?
Yes. We can handle major repairs and complete renovation projects on a turnkey basis.
9. Does my property have to be Lead Based Paint Compliant?
If your property was built before 1978 your property needs a Lead Based Paint Certificate or has to be inspected every time there is a tenant turnover to be compliant with MDE.
10. Can you assist in locating a good investment?
Yes, as we have access to licensed Realtors and Contractors. We can help in identify investments properties, present the offer, ratify contracts, and do the settlement for you. We can also give detailed work analysis, scope and work out a plan to make your investment a turnkey experience at a reasonable cost. However, we encourage a one-on-one meeting as needed for those types of jobs.
11. I like my tenants to pay for water utilities. How do you handle that?
We generally instruct occupants to pay their bills online. You may go online and see if those bills are paid. We cannot monitor those situations; however, you may bring it to our attention if the tenants are delinquent and we will invoice the tenant their specific bills.
12. How do you handle maintenance requests?
Tenants fill out an online form on our website. After we receive a repair request, the property manager or office staff may contact the tenant and ask them questions which will help us determine the exact nature of the problem before sending a service technician. We will also make sure it is not something the tenant can fix themselves (ex: reset button on the disposal, tripped breaker) before your money is spent on a service call. After determining that it is a legitimate problem, we will send the appropriate service vendor to make the repair.
13. Do you use the cheapest maintenance people you can find?
No. Our maintenance technicians are middle of the road in price and are competent and reliable. We also have dedicated all-around maintenance sub-contractors who are capable in a wide range of home repairs including air-conditioning, light plumbing and electrical. Our main “go to” guys charge $50/hr. Our other vendors range in price from $50/hr. to $100/hr., and sometimes more for conditions such as an after-hours emergency sewer backup. We try to have our main guys handle most of the multi-trade and make-ready tasks and use other vendors when we are backed up. This saves our owners a lot of money on multi-trade repairs by cutting down on the number of service calls to the property by different vendors. It also means that if we are called out on a repair, we are going to be checking the a/c filter, sink drains, smoke alarms and general condition of the property – something that a single trade vendor will not do for you.
14. Do you hold some of my money for repairs? How much?
No. We do not hold any escrow account for repairs. Minor maintenance repair charges are deducted from the monthly rent.
15. What do you do if the tenants are not taking care of my property as they should, or you discover unauthorized pets?
We give the tenant an opportunity to correct the situation and usually they will. If a problem persists, we will make a decision based on that specific situation.
16. What happens if the tenant does not pay their rent?
About the 8th of each month, we send late notices to all tenants with unpaid rent. We will post an eviction notice about the 10th day of the month if payment is not received by then. Whether or not the property manager eventually proceeds with a formal eviction depends on the specific circumstances. It is always financially better for all involved if a solution can be worked out. If the tenant has experienced a one-time event which is causing them a financial hardship, and we have had no previous problems with them, it is better for you and the tenant if we give them a chance to catch up – if there is reason to believe they can do so. If the tenant has demonstrated an ongoing pattern of late payments, broken promises about payments and/or evasiveness, we know from experience that eviction is the best course of action.
17. If the property needs work, can I do it myself?
If you’d like to do your own repairs we will send all repairs calls to you directly so you or your contractor can schedule repairs directly with tenants.
18. I want you to use my American Home Shield warranty for all covered repairs, is that ok?
Yes, we will make all reasonable efforts in resolving scheduling with tenants and warranty company, however, Pioneer Enterprises will not guarantee the work or responsiveness of the warranty company.
19. How do I know your property manager won’t spend my money on large repairs without my approval?
This is a legitimate fear. We promise in writing not to do that. For ordinary maintenance and repairs of less than $200, the property manager will take care of it without notifying you. You will find out when you receive your monthly statement. If we think a repair might exceed $200, we will call you and let you know what is happening, what we think should be done, and what the estimated cost might be.
Sometimes expenses such as a replacing a bad water heater, a roof leak that needs patching or repair, or emergency A/C and furnace repairs are unavoidable. The property manager will only initiate repair work in three cases in which the cost is higher than the $200 limit:
- the health or safety of a tenant is an issue
- instances where there is only one option to consider
- the property will incur damage if immediate action is not taken
The property manager will initiate the repair work, even if it is higher than the $200 limit, and then let you know of the situation and what we are doing about it. Mainly, we don’t think important repairs should be delayed while we try to contact you for permission to do the obvious.
20. How much is the leasing fee?
The leasing commission is equal to one month’s rent payable when your investment property is leased.
21. Does your property management agreement give you exclusive right to sell my property?
No. We can sell your property if you would like us to, but we don’t bind you to that in the management agreement. We think, at the time you decide to eventually sell, you should be free to decide who the best listing agent will be for your property given its location and characteristics. Most of our owners choose a full time sales agent to sell their home and we encourage them to do so in most instances.
22. Who holds the tenant’s security deposit?
All security deposits must be held in our deposit trust account. In the event if you elect to hold the deposit you will be required to comply with deposit disposition laws of Maryland. The deposit is only disbursed after a detailed walk through and there are no outstanding balances on the account.
23. Do I get charged for any legal fees of court filings on my tenants?
Yes. We charge you and your tenant for Rent Court Filings. Eventually tenants pay court filings charges which are passed on to your account. In the event they get evicted, their deposit is transferred to your account which should satisfy your account balances.
24. What do you charge for Rent Court Process?
Each jurisdiction Rent Court process may differ.
For Baltimore City:
Failure to pay rent $75.00
Warrants of Restitution $100.00
Eviction Notifications $75.00
Physical Eviction meeting with Sheriff $200.00
Locksmith (if needed) $150.00 or more, depending on locks and rekeying. For counties, there are no requirements of Notification; however, the Eviction process itself requires 3-4 people and pricing cannot be ascertained at the time of the eviction.
25. What happens if a Rent Court case goes to an Escrow trial?
Most of the time this should not happen but in the event this does take place, Pioneer Enterprises LLC may or may not be allowed to represent you in rent escrow matters; however, reasonable fees are determined on a case by case basis, depending on the complexity of the nature of each hearing, trial, or motion.
26. Are property damages covered by your services?
No, we cannot cover any damages caused by anyone on your property. Please check with your insurance company.
27. How informed will I be about what happens with my property?
Absent any special considerations unique to you or your property, our rule of thumb is: If something may cause a potential interruption in your ordinary cash flow (loss of tenant or non-emergency repair in excess of $200), we will let you know about it right away. Other than that, the saying “no news is good news” is most appropriate. Non-emergency items will be communicated along with your monthly statements and, of course, we encourage you to contact the property manager anytime you have a question or wish to discuss something. We know some owners desire a level of involvement that our property management system is not designed to accommodate. We try our best to make sure you are a good match for our style of property management. Part of that process is this Question and Answer page so you can obtain a sense of how we think and how the manager will manage your investment property. If you are a worrisome property owner or someone who desires a high degree of personal involvement with their property or who needs constant communication from the property manager, such as phone call before any repairs are completed, we are not a good match for your needs. The property owners who appreciate us the most are those who truly want everything handled for them turn-key and don’t want to be bothered unless something important is happening. That is the type of property management service we offer.
28. Are you a licensed Property Manager?
Bobby Kandhari is a licensed Realtor and a member of the National Association of Realtors. There is no “Property Management License” requirement in Maryland. We are rated A+ with the Better Business Bureau which is the highest rating a business can get.
29. How soon can you start managing my home?
We can start the process immediately. We will start by obtaining some information about you and your property and helping you decide if we are a good fit for your needs. Contact us online or call Bobby Kandhari at 410-354-1111.