Rent Resources for Owners

Rent Resources for Owners

We’ll take care of you and your investment so you have time to do what you do best. Our knowledge, experience, and integrity—along with reasonable prices and pride in a job well done—mean you can relax knowing your investment is working for you.

We’re pragmatic, highly skilled professionals who deliver professional management service like no other. We use the latest technology and marketing strategies to find and keep qualified renters for your property. We get it. We support our owners with property management solutions intended to save time and money. Whether you are a Professional Real Estate Investor or an Accidental Landlord, we can help. We specialize in servicing high-quality homes here in the beautiful City of Portland, West of 122nd Ave. Single-family homes, plexes, townhomes, and privately owned condos looking for long-term renters fit nicely into Living Room’s portfolio. Our commitment to excellence, education, and technology, as well as our ability to respond and adapt to market forces, means we can confidently provide the highest caliber of service. We invite you to get connected and join our unique network of professionals for a long and lasting business relationship. Call us. We want to talk to you.

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Frequently Asked Questions

Utilities

In most cases the tenant will be required to contact the provider and place all utility accounts in their name. In the City of Portland, garbage will remain in the homeowner’s name and be paid by the homeowner.

How are utilities billed if the home is a split rental with shared meters?

In this situation the utilities with the shared meter would remain in the homeowner’s name. We can add a flat fee utility charge to the rent or it can be billed back at actual rates based on the occupancy in each space. If you’d like to have the utilities billed back at actual rates, bills must be directed and paid through the LRPM accounting department.

Will the owner be notified if the utilities are disconnected?

It’s important to contact each utility provider and ask them to flag your account as a rental. The provider will help you process the paperwork required to ensure we are notified of disconnections and your home never goes without service. This is especially important between tenants.

Tenant Selection

How are tenants qualified?

Visit LivingRoomRentals.com and view a copy of the Rental Screening Criteria. We use the same form for each set of tenants, for each home we manage.

Once the home is marketed, will the homeowner get to choose or approve the tenant?

The homeowner does not have a say in who rents the home. Applications are processed one at a time, in the order they were received. The first application processed will have an opportunity to meet the screening criteria before we move onto the next applicant. The first approved applicant will pay a deposit and be required to take possession within 2 weeks of their approval or on the date the home is made ready, whichever is further out. Unlike the process of selling your home, Fair Housing Laws prohibit us from presenting a homeowner with multiple approved applicants and choosing the “best one”. If you know someone interested in leasing the home, encourage them to apply right away to secure their place in line. Truth Bomb–A standard 3-bedroom home could be occupied by a set of 6 unrelated college roommates. A handful of those roommates may come with emotional support/service animals that we are unable to collect pet deposits for. If the possibility of this makes you nervous, professional property management may not be the route you want to take.

Is there any option for the homeowner to take charge of tenant selection?

A homeowner can control the tenant selection process as long as they are willing to do all the marketing, touring and screening of the tenants. For liability reasons, Living Room will not place our name on any marketing or signage until the applicant has been approved for move in. Once approved, Living Room would happily draft lease documents, complete the move in inspection and process the rent payments. In this situation, the placement fee is reduced to only 25% of one month’s rent.

Does the homeowner have to accept pets?

Pet owners make up almost 70% of the rental pool. The more restrictions you place on pets, the smaller your rental pool becomes. An additional $300 deposit will be collected for each pet. However, if you you feel strongly about this issue, we will agree not show your property to prospective tenants with pets. Please note: Verified service animals are not considered pets and must be accepted even in those situations where pets are prohibited. It is illegal to collect an additional deposit for service/emotional support animals.

How many people can live in the home?

Two people per legal bedroom. Children under the age of 2 are not included in the count.

Tenant Placement

Who is the ideal Tenant Placement Landlord?

Our tenant placement services are a great option for well-informed landlords that do not have the time or tools to complete marketing, tours, and screening of their new tenants. This service comes in handy for landlords that plan to be out of town during the time their rental is vacant. These are experienced landlords comfortable drafting lease agreements with a general knowledge of landlord/tenant law.

How hard is it to draft a lease?

Living Room’s tenant placement services include a set of lease documents (PDF). The blank templates, produced by Multifamily NW will be available for the landlord’s use if they would like. You are also welcome to use lease templates of your choice. If you are not experienced with lease documents, we would suggest meeting with an attorney to complete the forms. We highly encourage landlords to utilize DocuSign or a similar platform to collect the tenant’s e-signatures. Check out our full-service management options if you are interested in LRPM performing this service and producing a fully executed tenant lease, a great option for new landlords.

Can I hire LRPM’s Maintenance Team to prepare the home for a new tenant?

Absolutely. Please review the Tenant Placement Menu of Services for turnover pricing. Please note, the contract only permits our team to coordinate maintenance while the rental is vacant.

Who performs the move in inspection with the new tenants?

We encourage the landlord to meet with the tenants on move-in day. This is a great way to build a relationship with your tenant and ensure you are on the same page as it relates to the condition of the home at move in. If you are unable to be present, you can have a Living Room Agent present for the key exchange and walk-through. This service is included in your Placement Fee.

Will the tenant pay Living Room or the landlord on move-in day?

The tenant will be given access to a temporary tenant portal once they are approved. This allows the tenant to pay holding deposits within the 24-hour deadline. It also offers them a secure place to pay rent before accepting keys. Due to increased awareness in housing scams we’ve found tenants are less hesitant to prepay funds into a secure PM website then directly to a private party. The security deposit and rents will be transferred to the property owner within 10-days of receipt. If the payment is returned as non-sufficient, the property owner will be notified and required to work directly with their tenant to collect funds. Any fees owed to Living Room will be deducted from rents paid by the tenant. Security Deposits will always be transferred in full.

Will Living Room assist with violation notices, lease renewals or move out accounting when necessary?

These services are not included in our Tenant Placement Contract. If you are looking for these services ask about our Full-Service Management.

Marketing

Where is the home marketed?

The home is marketed on 36 listing sites including Zillow, HotPads, Craigslist and our Website.

When is the home listed?

The home will be marketed as soon as it is vacant and ready to tour. This will ensure prospective tenants are seeing a nice clean space and experiencing the home at it’s best. Additionally, this timing eliminates confusion as it relates to the move – showing the home in a condition they can expect. It also eliminates the need to bother the current tenants during the chaos and clutter of moving. We’ve found that listing the home prior to vacancy results in lost momentum and more days on the market

Security Deposits

Who holds the security deposit?

LRPM holds the tenant’s security deposit in a designated security deposit trust account until they move out. If we take over management of a property which is already rented, the owner must forward the security deposits to LRPM right away.

How is the amount of the security deposit determined?

LRPM’s standard security deposit defaults to an amount equal to one month’s rent. Many condo and plex owner’s accept smaller deposits (300 – 800) to compete with the large apartment communities that offer low move in costs. Deposits are increased by 25-50% based on the tenant’s risk level. The tenant’s risk is determined by factors like income, rental history and credit. For more information, review the Rental Screening Criteria located on LivingRoomRentals.com.

Do you collect last month’s rent?

No, it is no longer standard practice to accept any more than first month’s rent and a security deposit from a new tenant.

What happens if the tenant damages the property?

Tenant damage can be deducted from the security deposit…for the most part. Wear and tear should be expected and is not considered damage. Paint and carpet replacements/cleaning are 2 of the most costly expenses to homeowners that often fall under “wear and tear.” For more information on what can and cannot be deducted from the deposit please ask the management team for a copy of the Homeowner’s Move Out Instruction Guide

Does Living Room collect a % of the security deposit?

100% of the monies withheld from the tenant’s security deposit is credited to the homeowner’s ledger.

Rents

When do homeowners receive the rent LRPM collected from the tenants?

We process owner payments/disbursements on the 15th of each month. You will receive an email once the payment has been processed along with an Owner’s Statement shortly thereafter. If the tenant pays all or a portion of the rent late, you may not receive the payment until the following month. The Owner’s Statement will include copies of work orders, processed invoices and a ledger of income and expenses. Please review for accuracy each month. Much of the accounting is automated….we all know how that goes. Please expect an additional 2-3 business days for the owner distribution to hit your bank account.

How is the monthly rental amount set?

We set the rent with you! We’ll compare recently leased properties in your neighborhood to give you a good idea of rates. From there we can set the price based on your real estate goals. Rents will not be adjusted without the owner’s input.

How much of a rent increase can the homeowner expect upon renewal?

It all depends on the market. You will receive a rent assessment about 4 months before your tenant’s lease expires to help you determine the appropriate amount to raise rents upon renewal should you decide to do so. Here in the city of Portland rent increases over 9.9% will be subject to Relocation Assistance Fees due to the tenants.

What is pet rent and will the tenants pay it?

Pet rent is a monthly fee the landlord charges their tenants with pets. Large apartment complexes need to recoup the costs of hiring maintenance teams to pick up after pets, change out dog waste stations and regularly replace landscaping. Most single family/plex units don’t have these monthly expenses and therefore there is no need to upcharge the tenants.

Landscaping

Will the tenant manage landscaping?

No. We ask each of our homeowners to include lawncare in the monthly rent. Mowing and trimming become a low priority for tenants with busy lives. The lack of attention leaves homeowners upset with the over growth and large bills for cleanup. Keep in mind, most tenants do not have lawnmowers, and providing the equipment adds liability and another item to repair. Most importantly, tenants often times have very different ideas about what is considered “reasonable” lawn maintenance. Once the home is occupied there are no weekly drive-by visits so it’s difficult to monitor conditions. When a landscaper is hired, tenants are more apt to stay on top of the contractor.

Tenant Communications

Is it appropriate for the homeowner to reach out to the tenant directly?

No. If you are looking for direct contact with your tenants, you may not need full-service property management services. Once you’ve hired LRPM to manage your rental property we ask that all tenant communications go through our office, no direct contact. We want to ensure the homeowner is not placed in the tough position of over accommodating or over promising. We also want to make sure the tenants are going through the proper channels of communication (online work orders and forms). Documentation is the key to successful property management and something we take very seriously. We will take good care of your tenants, promise!

Tenant manual

If there are special instructions that would help the tenant more comfortably live in the home, you might consider creating a “Tenant Manual.” A simple 3 ring binder or laminated sheet on the refrigerator works great for this. I’ve also seen homeowners leave notes strategically placed around the home. One of the most common is a reminder to leave the front loading washer open to prevent mildew.

Management Contract

What happens if I’m not happy with your service?

Let us know! If we can’t change your mind in 30 days, we’ll release you froim the contract at the end of the following month.

How long is a management contract?

12 months. At the end of the 12 months, it automatically converts to a month-to-month agreement.

What if the homeowner wants to place the property in an LLC or Trust?

If the LLC/Trust is listed on the deed, we are happy to draw up the contract and prepare all tax documents in the LLC/Trust as well. Please note, the insurance policy must also be listed in the LLC/Trust.

Lease Violations

What happens if the tenant moves out early?

If a tenant needs to break their lease, they are automatically billed a Lease Buyout Fee of 1.5x the monthly rent. This fee is delivered in full as a credit to the homeowner’s account and covers one month of lost rent along with the 50% placement fee you’ve paid Living Room to move them in. The tenant is encouraged but not required to give written notice before breaking their lease.

What happens if the tenant doesn’t pay the rent?

Here in Oregon, the earliest we can begin the collection process for late rent is the 8th of the month. If the tenant has an outstanding rent balance of $100 or more on the 8th of the month, we will issue a 72-hour rent demand notice (extended by 4 days for mailing). If they are responsive, we will work with the tenant to generate a formal payment agreement. If they are unresponsive or violate the terms of the payment agreement we will begin the eviction process. Eviction processing fees start at $150. Eviction fees are paid by the homeowner and later collected from the tenant through the security deposit or collection efforts if the tenant is unable to pay prior to moving out.

What happens if the neighbors complain about the tenants?

We’d encourage your neighbors to reach out to us if they are experiencing frustrations that cannot be handled with the tenant directly.

Maintenance

Will LRPM use the homeowner’s preferred vendor?

We’re happy to use your contractors as long as they are available and properly licensed/insured. Each vendor must produce a W-9, Contractor’s License and Insurance Policy before they are scheduled for any job on a Living Room Rental. If your desired contractor is unresponsive, unavailable or has not produced the proper documentation, we will default to a LRPM approved vendor.

How are emergency maintenance calls handled?

Maintenance emergencies will be handled quickly and without homeowner approvals. To avoid bothering or pestering the homeowner, we will fill you in on emergent calls once it’s been handled. The following items will be treated and handled as an emergency:

  • No air conditioning (when outside temperatures are above 85 degrees and AC is provided in the home).
  • No heat (when outside temperatures are below 55 degrees). Except when weather conditions prohibit service.
  • No water
  • Overflowing commode
  • Commode not functioning (when only one in a home)
  • Refrigerator/freezer not cooling
  • Kitchen sink backed up
  • Electrical outage/breaker
  • Gas failure of any nature
  • Major water problems-leaks, broken pipes, running water
  • Unsecured entry points into the home
  • Non functioning access gates or garages with vehicles parked inside
  • Any threatening situation: fire, flood, police action

How much will it cost the homeover to hire Living Room to prep the home for a new tenant?

The condition of the home plays a huge part in determining the cost. If we walk into a well-maintained home in need of a standard paint job, cleaning and carpet cleaning, we’ll typically ask the owner to make a $1500 – $3000 maintenance deposit. If we need to add a handyman, chimney sweep, gutter cleaning, yard clean up, etc., you may be required to place a deposit of $3000 – $5000. Capital projects that include major repairs, flooring replacements, moisture/lead/asbestos mediation, and safety improvements should be handled before hiring a property manager.

How often is the home inspected?

As the homeowner you have the option to request an inspection at any time. We encourage homeowners to respect the privacy of the tenant and limit inspections to no more than 2x per year. We find that annual inspections are typically sufficient. Living Room inspections reports are $95 each and will include a set of organized photos and notes. The inspection is uploaded to your Owner’s Portal for review.

Plans to Move Back or Sell the Home

Is it true that relocation assistance costs landlords thousands of dollars to move back into their own house?

In March of 2018 the City of Portland adopted a new ordinance that requires homeowners to cut a check to their tenants when issuing a no cause eviction, refusing to resign a new lease or increasing rents by 10% or more. Assistance fees range between $2800 – $4500 depending on the size of the home. Homeowners may apply for one of twelve exemptions should they desire to take possession of the home. Many of the exemptions require the homeowner to apply for and disclose their exemption prior to signing a lease with a new set of tenants. For more information, and a link to the exemption application visit the Portland Housing Bureau website.

Insurance Requirements

Why is LRPM required to be listed as additionally insured on the Homeowner’s insurance policy?

This is a standard requirement for property managers and only applies to the general liability part of the policy. Since the owner has to indemnify the property manager for anything that could go wrong (except for professional negligence and other similar facts), having the additional insured would streamline the defense process. While Living Room carries General Liability Insurance as well as Professional Liability Insurance, which protects from a financial loss caused by a mistake or wrongful act by the property manager, those policies generally don’t provide protection against matters concerning the home itself. This leaves the property manager vulnerable to claims regarding someone injuring themselves at the property, burglary, fire, water leaks, etc. Without the additional insured endorsement, Living Room could have to defend itself and then seek reimbursement from the owner directly (or their insurance) for any losses under the indemnification clause (so the end result is the same, it’s just more streamlined when Living Room is an additional insured)

Forms and Documents

Owner Information Form (OIF)Download
Menu of ServicesDownload
Menu of Services (Tenant Placement Only)Download
Owner Onboarding ChecklistDownload
Rental PreplistDownload
Sample Property Management AgreementDownload
Sample Tenant Placement AgreementDownload

Portal Login

Our cloud-based property management software allows our team to manage your properties with ease and better serve owners and residents.

Process And Respond To Maintenance Requests More Quickly.

We can quickly resolve issues by accessing vendor information and using electronic work orders for more efficient communication. All records are stored for future access.

Pay You Even Faster Every Month.

Deposits can go directly into your bank account using ACH (electronic payments).

Save Time And Paper By Using Email To Send Monthly Owner Statements.

The statements are organized in a concise and easy to read format that details the performance of your property for the previous month. We can also post these monthly statements on a secure Owners Portal.

Contact Living Room Property Management

Looking for a rental? Need help with the dashboard? Whatever you need, we’re committed to providing superior service to our owners and tenants alike. Below you’ll find a form to request more information or to submit a support ticket. A member of our team will review your request and get back to you within 24 business hours.

Living Room Property Management