property management highlights

Property Management Agreement (PMA) Overview

The Property Management Agreement (PMA) is designed to provide a clear and straightforward framework for property owners and managers.

Setup Fee: There is a one-time setup fee of $200 per property. For example, a duplex would incur two setup fees, one for each unit.
Operating Reserve Account: Owners must fund an operating reserve account of $400 per property to cover normal repairs. For properties with pools or larger units, this amount may increase to $600. The account is reimbursed when the next rent payment is received.
Monthly Management Fee: The monthly management fee is 10% of the collected rent and is only charged when there is a lease or occupant in place.
Leasing Fee: A 10% leasing fee is charged in the month a new tenant is secured.
No “Junk” Fees: The PMA discloses that owners and tenants are not subject to any additional or hidden fees.

Term Length: The agreement is set for four years, but either party may cancel with one day written or email notice.
Cancellation Policy: If the owner cancels, the management fee for the remainder of the current lease becomes due and payable. However, this fee may be waived depending on circumstances. For changes, the PMA can be cancelled at the end of the current lease—this process is simple and beneficial for both parties.

Applicant Requirements: Applicants must have a minimum credit score of 620 and monthly gross earnings of at least three times the monthly rent. Adjustments may be made for co-signers or other acceptable circumstances.
Lease Approval: Only one initial from the owner is required for a new lease.
Lease Renewals: No charge for lease renewals. At least 30 days prior to renewal, owners will receive a recommended new rent amount.

Owner Portal: Owners are provided access to a free online portal via the company website. The portal includes the PMA document, lease documents, monthly statements, recent repairs, and more.
Monthly Payouts: Owner payouts are typically processed by the fifth of each month. Owners receive an email detailing the payout, and statements are posted to the portal simultaneously. Funds are deposited into the owner's bank account no later than the 11th of the month.

Application Fee: $65 per occupant.
Late Fee: $100 after the third of the month.
Early Lease Termination: Fee is half of one month's lease; tenant remains responsible until a new tenant is secured.
Certified Fees: As needed, all retained by the property management company.

Leasehold Disclosure: Owners must complete a disclosure detailing specific property information.
HOA Coordination: If the property is part of a Homeowners Association (HOA), the owner must continue to pay the HOA fees and instruct the HOA to send all violation notices to the property manager.
Utility Management: Owners must complete a landlord agreement with all applicable utilities and instruct the utility companies to send all billings to the property manager. This ensures utilities remain active when a tenant vacates, allowing for immediate repairs, cleaning, and preparation for the rental market.

Advertising: All properties are listed on major rental websites. The company takes its own photos and shows all properties in person.
Documentation: The Arizona Association of Realtors’ approved state property management forms are used, with electronic signing facilitated via the Authentisign system.

For more information, contact:

106 S. Camino Seco, Tucson, AZ 85710

Phone: 520-886-6023