Answers to Your Property Management Questions
Most common property management questions answered.
River City Asset Management processes rental payments for ACH deposit into your checking account on the 5th of the following month. This allows us to manage maintenance costs effectively without needing additional contributions for expenses less than your rent.
We possess a broker’s license, which is mandatory for property management operations in Tennessee.
The property management agreement is a formal contract that outlines the services we provide, the fees associated with those services, and the responsibilities of the property owner.
Our fee structure is designed to cover the comprehensive services we provide while keeping the management fee competitive. Turnkey clients receive a 1% discount on the monthly management fee. Each fee supports a specific aspect of our service, ensuring top-notch customer care for investors and tenants.
- Monthly Management Fee (10%): Covers office expenses such as salaries, rent collection, software, insurance, taxes, certifications, and training.
- Lease-Up Fee: Covers costs related to leasing activities, including marketing, salaries, commissions, and administrative expenses.
- Maintenance Markup (15%): Addresses maintenance-related expenses such as project management, insurance, vehicles, and office overhead.
- Lease Renewal Fee: Provides incentives for lease renewals and covers general overhead costs.
- Late Fees: Offset expenses incurred due to late payments, including after-hour calls and court fees for evictions.
Owner approval is required for expenses exceeding $400 to ensure we deliver exceptional service and avoid unnecessary costs.
We primarily outsource maintenance work but handle some tasks in-house for rent-ready properties to secure competitive pricing.
The average turnover cost is approximately $2.25 per square foot, covering expenses such as painting, cleaning, yard work, utilities, and minor repairs.
Our occupancy rate typically ranges from 95% to 97%, with an average tenant stay of about 40 months.
We offer 24-month leases with a 5% rental increase in the second year to minimize vacancy and cover increasing operational costs. For example, a lease starting at $1,000 would increase to $1,050 in the second year.