FAQs

Frequently asked questions



Property Management FAQs

  • I want to manage my property myself. Do you have any advice?

    Yes, property management can be very challenging, so the best advice we can give you is to try to find the best tenants possible. This starts with presenting your property in the best possible light. Make sure your property is neat, clean and if possible, make it look like new - as if one has ever lived there. 


    Remember: Quality Attracts Quality. 


    If your property looks run down; if the walls need paint, the kitchen and bathrooms are outdated or dirty, or if the flooring or carpet is worn or dirty, you will attract tenants who don’t care about these things and they will not try to take care of your property, since you didn’t. More importantly, they may not be as concerned with paying your rent on time or adhering to their lease agreement. So any first-time landlord’s first step is to ensure that your property has fresh paint, new flooring, neutral colors and lots of light. That will go a long way towards attracting a good quality tenant.


  • Can I download a lease instead of having a Realtor create one for me?

    NO! You need a good lease, one that encourages good behavior and discourages bad. Your lease should incorporate the very latest in landlord/tenant laws. It should also clearly spell out when rent is due and what the late fee is for late or partially paid rent. It should also account for the most common tenant issues such as adding additional tenants or bringing in a pet or adherence to homeowner’s association rules and regulations. Your lease needs to specify how much the security deposit is and that it CANNOT be used as last month’s rent. There is no such thing as “First and Last” month’s rent.  A tenant should always pay rent and a security deposit. And, according to California law, a security deposit is a security deposit, regardless of what it is called. There are also limitations on how much you can charge for a security deposit. Tenants need to be reminded that a property needs to be returned in the same condition as when they started their lease - minus normal wear and tear. 


  • I can't charge a tenant for Normal Wear and Tear. What is that?

     “Normal wear and tear” generally refers to the expected deterioration of a rental property resulting from a tenant's everyday use. This can include things like loose doorknobs, worn out carpet, and minor scratches and marks on the walls and floors. As an example, we like to refer to normal wear and tear as when a tenant kicks off his or her shoes and it scuffs the walls. Additionally, we always consider normal wear and tear as being on a sliding scale, depending on the length of a tenancy. The longer a tenant has lived in a property, the more leeway you should give them. 


    BTW, A landlord can only deduct certain items from a security deposit. For example, you can charge a tenant a cleaning fee after they move out but only to make the property as clean as when the tenant first moved in. This is why we always ensure that a rental property is professionally cleaned and the windows are professionally cleaned prior to a tenant moving in. Then we document the property’s condition with a pre-move in inspection that always includes notes and photographs of the condition of the property. Then we have the pre-move in inspection as evidence if there is a dispute over any security deposit deductions after a tenant moves out. 


  • I rented my place to someone with a refrigerator, and it stopped working. Do I need to replace it?

    Yes. If you rented a home to a tenant with certain amenities or appliances such as a microwave or refrigerator, or air conditioner and if it stops working, California law states that you need to replace it with a similar appliance or fixture. What you provide at the beginning of the lease is what you need to provide during the terms of the lease. 

  • What are your Management Fees

    We charge $700.00 to lease a property. This service includes:

    • Professional photographs of your property
    • We ensure that your property is rent-ready
    • List your property on the Multiple Listing Service (MLS) 
    • List your property on most of the top rental websites including Zillow, Apartments.com,  HotPads and Trulia.
    • Scheduled and conduct showings
    • Collect applications
    • Comprehensive screening (complete credit, eviction and background checks; verification of employment and employment income and other stated sources of income; review rental history with current and previous landlords. 
    •  Write Lease Agreement and addenda
    • Pre Move-in Inspection
    • Move in Tenants

    We also charge 2.5% of the first year's annual rent as a leasing commission. This is paid to the selling (procuring) broker - No renewals.


    Important note: A lease commission incentivizes Realtors to show a listing to qualified applicants and thereby increasing the number of potential applicants who will see your home.  

  • I have a friend that wants to lease my condo. Is that a good idea?

    Absolutely Not! Just because this scenario seems easy and hassle free, doesn’t mean it's a good idea. When, or if, life throws a challenge at your friend, they are going to ask you for a break on the rent - and of course you will give it to them, because that’s what friends do. Your mortgage company won't give you the same break. Nor will your Homeowner’s association -  if you have one. Remember, owning a rental property is a business and we advise that you take it seriously because the consequences can be expensive.

  • What type of rental properties do you manage?

    For the past ten years, we have successfully managed single family and small multi-family properties in Orange County.  

  • Do you work with Homeowner's Associations (HOAs)?

    Over the past 10 plus years, we have successfully worked with most of the Home Owner’s Associations, HOAs and their property management companies in these communities. 

  • What areas of Southern California do you cover?

    We manage properties in Irvine, Newport Beach, Corona Del Mar, Huntington Beach, Tustin, Lake Forest, Foothill Ranch, Mission Viejo, and the surrounding communities. 

  • How quickly will you lease my rental property?

    There are many factors that affect how long it takes to lease a home. The bottom line is, it depends on the location, rental price, the condition of the property and the current rental market activity. We believe that a property that shows well, is visually desirable, looks new and clean and has multiple, professional quality photographs on lease listing websites, speed up of the leasing process. Quality attracts quality and we pride ourselves on making a property as desirable as possible in person and online to attract quality tenants.  


    There many other variables that affect how long a home sits on the market including macro economic conditions, the time of year that a home is listed and the amount of current “active” listings or competition in the marketplace.  


    This is a numbers game and attracting as many potential applicants to look at your home is vital. Prospective residents cannot see a home if they don’t know about it and online advertising with multiple professional photographs is the only way to drive leads. Rest assured that no other property management company is more effective advertising and promoting your rental home than we are. Although vacancies are unsettling, we have followed proven processes for the past ten years and have been very successful in finding the right tenant for our client’s rental properties.

  • How much will my rental property rent for?

    Often real estate investors will set rents based on how much they need to earn to cover their mortgage and HOA expense, or how much they want to net, or based on what they heard another similar home is renting for. These methods almost always create problems. Arriving at the appropriate market price is not rocket science but can be tricky. First and foremost, basic economic forces are the most important factor. For example, what are similar homes renting for? How many homes with the same specifications are on the market? What time of year is it being listed? How does it show? Paint, flooring and cleanliness also play a role in what home will rent for.

  • When you find residents for my rental home, how do you qualify them?

    We strive to provide you with the very best quality residents possible. Here is what we do to screen your prospective residents:

    • A complete lease application on each adult resident 18 years and older.
    • A complete credit report on each financially responsible adult and/or cosigner.
    • Verification of each principal resident’s social security number.
    • Court search to see if the applicants have ever been evicted in the past 7 years.
    • Criminal check to see if there are any violent crime convictions.
    • Search of the 3 major credit bureaus to see if applicants have any outstanding collection accounts.
    • Verification from their former landlords.
    • Verification of their employment.
    • Verification of their income.
  • How often and how are property inspections conducted?

    Our property inspection procedure is comprehensive. Here is what we do:

    1.  Prior to a tenant moving in, we conduct a pre-move in inspection to document the condition of the property. This is usually done no more than 2-3 days before a tenant moves in.
    2. During the tenancy, we conduct property visits - usually 90 days before the end of a lease to ensure that the tenants are in compliance with the terms of their lease and to ensure that the house is in good shape, so we can recommend renewing their lease.
    3. Finally, we conduct a move out inspection as soon as we can after a tenant moves out. This is done to document the condition of the house to help provide evidence for potential charges against the tenant’s security deposit.

    All inspections are done with the use of our property management software, so everything is stored online and is available to our clients. We take many pictures and add notes for clarity. These inspections are shared with the landlord.

  • What are the terms of your property management agreement?

    We are a performance-based company, so if you are not happy, we are not happy. Thus, we have an easy cancellation policy. During the first 60 days either party may cancel with a telephone call, thereafter if we do not perform to your satisfaction, you may cancel with a 30-day written notice.

  • What are your property management fees?

    Our standard monthly management fee for a single-family rental home is 5.75% of one month’s rent with a minimum fee amount of $135.00.  We do not charge any set up fees.  

  • When will I receive my rent?

    We pride ourselves on quick turnaround of your rental income.  We offer “Electronic Direct Deposit” or ACH deposits into your bank account. Rent proceeds are deposited into your bank once they have cleared our bank and all outstanding bills are paid. You are paid a Net Rent no later than the 12th of each month unless your tenant is late with their rent.  

  • Do you send out monthly statements? If so, when?

    Yes. Monthly statements are sent out no later than the 10th business day of the month. The monthly statement details your account activity, with any original receipts, work orders etc.

  • What if a tenant damages my property?

    With our screening program, the chances of this happening are slim-but it does happen. With our marketing and screening process, we try to attract quality, responsible, stable residents. With that kind of tenant, malicious damage is usually not a problem. If we perceive that a tenant may become a problem, we let you know so the appropriate actions can be taken. In the event a tenant does damage to the property, we get the house back in rent ready condition as quickly as possible and re-leased. Once we are clear about the cost of the damage, we can assist you with obtaining judgments, filing complaints if appropriate, and even collecting on the judgment.


    By the way, our office has an excellent system of tracking damage and cleaning costs with our move-in and move-out inspections. We will charge residents for any damage or cleaning related directly to them; however, we are very fair and will not charge a resident without merit.

  • What if a tenant needs to be evicted?

    If a tenant defaults on their rent, we will help you manage the process. California’s Landlord-Tenancy laws tend to favor the tenant so the eviction process can be a time consuming, expensive process. That said, we will guide you through every step to make is as easy as possible. 

  • Do you get my approval before doing any maintenance work?

    Our Property Management Agreement outlines the parameters for maintenance approvals, based on a mutual agreement. Whenever possible, we will contact you for your approval for repairs that are over the stated limit on your property management agreement. However, if a repair request is an emergency, we may feel it necessary to authorize the repair and then contact you to inform you of what has happened. Additionally, one of the surest ways to lose a tenant is through slow response time for repairs. We do our best to get all repair requests resolved as soon as possible.

  • Do you guarantee the residents that you place in my rental home?

    YES, we provide our property management customers with the following guarantee: Should any tenants that we place into your rental home move out and break their lease (for any reason), we will waive our normal leasing fee and re-rent your home to new tenants FOR FREE! (Advertising cost excluded) 

  • Are you the cheapest company in town?

    No. It seems there is a new property management company or Real Estate Agent starting out every day, trying to beat everyone else’s prices. Our fees are very competitive and we certainly are not the most expensive. On the other hand, we charge a fair fee for a tremendous service. 

  • Who handles problems late at night?

    We are always “ON CALL” to handle late night calls from our residents. We have an after-hours maintenance call center to answer repair calls. Tenants also have access to their own Tenant Portal where they can post repair requests online. These are reviewed as they are received, and as previously said, we evaluate the status of all repair requests twice a week. Many times, we can solve problems over the phone or via text or email to avoid what might have been an additional maintenance expense.

  • Why should I choose Hermitage Property Management?

    In a word, “Experience”. Our customers know us and trust us. We believe that the key to our success is in the personal relationships that we have developed with our Owners, Residents & Vendors over the past 10 years.

  • Can I opt out of your SMS messaging?

    As part of our property management process, we use SMS/Text messaging to communicate with our clients and their residents. These SMS/Text messages are not used for marketing or sales and are strictly used for property management related or repair related communications. Any resident or client that does not want to receive SMS/Text messaging, can opt out by SMS/Text message or by emailing us at info@hermitagepm.com.

  • I am moving my tenant in on the 15th of the month. Should I prorate the first month’s rent?

    We do not advise that. We always collect a full first month’s rent and prorate the second to get your tenants on a first of the month rent payment schedule. This makes rent collection easier to track and the process of requesting your tenant to pay a full month’s rent up front ensures that they have more “skin in the game” and discourages them from skipping out early. BTW, we always make sure we have either a Cashier’s Check or their first month’s rent in the bank before tenants get their keys. Also, according to the state of California, you should calculate your prorated rent, based on a 30-day month for every month. 


  • My tenant wants to move out after one year. What shall I do?

    Tenant turnover is very expensive for a landlord. We tell our clients to count on losing at least one month’s rent when we turn over a property - plus the costs for repairs to make a property rent ready. Please reread question one at the top about making sure the property is in good condition to re-list for lease. Also remember that there are also costs associated with advertising a vacancy, professional property photographs, background checks, employment verification, credit checks, processing a new lease, and commission to the tenants realtor.


    Consequently, and perhaps most importantly, if you have good tenants, it is far better to keep them rather than put your place back on the market and take a chance on a new tenant. 


    So here’s the point - do whatever you can to keep your tenants for 2 - 3 - 4 years or more. Let them pay your mortgage and HOA bills, so you don’t have to.


    In summary, If you manage your property yourself, you should:

    Start with a like-new property. Make sure your place is as neat and as clean as possible.

    When you list your property to lease, price it fairly. Good tenants are knowledgeable and know what rent should cost for a good property and are willing to pay fair market rent. If you are trying to squeeze an extra $50 or $100 out of a tenant, you may not get the best outcome and could potentially have to deal with a difficult and challenging tenant.

    Respond quickly and professionally to all repair requests with professional, quality vendors. We always make sure our vendors are on time, neat, clean, and professional and you should too as they are a reflection of you and your property. Ensure that your vendors fix the problem correctly the first time and that they don’t leave a mess. Remember, it is far more expensive, frustrating and a hassle to have your vendors make a return visit. your vendors represent you - so you want them to do it right the first time.

    Make rent increases fair and reasonable - don’t get greedy and gouge your tenants because you know it is expensive for them to move so they will likely pay the rent increase. That only breeds resentment and encourages tenants to move out.  

    Treat property management like a business. Keep emotions and friendships out of the relationship.


  • I am curious what is going on inside my rental. Can I go inside and inspect it?

    No, you can’t just drop in for a look. But as a landlord, you are entitled to inspect the home with 24 hours notice. But we caution against pestering your tenants. 


    As part of our processes, we inspect our client’s properties on a regular basis. For example, we conduct property evaluations when we take on a new client. Then we do pre move-in and move out inspections with lots of photos and notes.  Finally and most importantly, we do annual inspections during the lease term to look for repairs, deferred maintenance and possible lease violations like pets, not on the lease, or evidence of additional tenants. We use inspection software to help us document the condition of each property. 


  • I want to rent my condo but I need to earn enough to pay the mortgage and HOA dues. Can I base my rent on my bills?

     We don’t advise pricing your rent to cover your cash flow losses. Please see the above about pricing. We believe that pricing your condo to meet fair market rent pricing will yield the best quality tenant. In our experience, good tenants know what fair market rent should be and they are the tenants who have budgets, good credit scores and will pay their rent on time. 


    If you are taking a loss every month, perhaps you shouldn’t be renting your property. Or, if you are set on renting your property out, take the loss and if your CPA agrees, write off the loss on your taxes. With time, the market rent will catch up with your expenses. BTW, it is important to note that we are not tax accountants. We highly recommend that you speak to your CPA about the tax consequences of renting your place with a potential negative cash flow.



Miscellaneous Questions & Concerns


  • Locks:

    We strongly recommend that all property door locks be changed after each new tenant to insure that all keys are accounted for. This will give the tenants peace of mind and minimize your liability.

  • Landscaping Maintenance:

    For units of two or more, exterior maintenance in all common areas is the landlord’s responsibility. For single-family homes, yard maintenance is up to you. You may wish to pay for yard service and water if the landscaping is an important issue. Even though our lease reads that the resident is to care for the yard, we cannot guarantee compliance (or the residents’ gardening expertise). If during our monthly drive-by inspections it appears that attention to the landscaping is needed, we will remind the resident of their responsibilities. If the problem persists, Hermitage Property Management will see that it is corrected to the best of our abilities.

  • Appliances:

    A stove is a fixture and should be part of the property. We also suggest that you furnish a refrigerator. Moving large appliances in and out can be hard on doorjambs, carpet, tile and vinyl floors. If the laundry room is not in the garage or near an outside door, you might consider providing a washer and dryer. This is especially so, if the property may be desirable to first time renters, college students, newlyweds, corporate transfers, etc. Any damage to the appliances that was done by the resident will be charged to the resident.

  • Utilities:

    We recommend that residents pay for natural gas and electricity. Water, trash and sewer are optional, however if you have nice landscaping you may consider offering the home with the water paid as residents may not be willing to pay a high water bill for watering your rose bushes or lawn.

  • Window Treatments:

    A unit supplied without window treatments is an invitation to your resident to drill holes in the walls and leave holes behind at move-out. It also encourages makeshift window coverings, such as sheets, blankets or worse. For these reasons, we do require that your property have adequate window coverings before a resident takes occupancy.

  • Final Thoughts:

    As difficult as this may seem, we recommend keeping your emotions about the property to a minimum. Think of the mortgage that is being paid by renting it out! Normal wear and tear is to be expected. Any damage that may occur can be repaired and anything can be replaced.


    All of the above also applies to investment properties. “Return” on your investment is the key; not torn drapes or stained carpet. These can be replaced with resident’s Security Deposit. The important issue is keeping them rented. While it is wonderful to find the perfect, non-smoking, no pet and wishing a one-year lease type of resident; they are few and far between. Allowing pets, smoking and open lease lengths are a sure way of providing an open market and continued income. There are many considerations to make regarding an income producing property. If you have additional questions, please feel free to contact our office here.

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