Frequently Asked Questions

How often do tenants damage the property? Everyone has heard the story of the disgruntled tenant that leaves before the lease is up and fills the drains with cement.  With even the most perfect tenant, there will be some upgrades that will be necessary at the end of the lease, but 95% of the time, the upgrades are minor. In addition to that, the security deposit almost always covers the cost.

Is it true that tenants never pay rent on time? While our advice is  to be proactive and always stay a month ahead on your mortgage payment, the percentage of tenants that pay late is very low.  Late payments account for about 8% of the total, and it is usually the same 8% every month. If the rent payment is late the first couple of months, that is usually a good indication that there may be a habitual problem.

Can you increase the rental rate at the end of every lease? Just like the prices of cloths, cars, and homes fluctuate based on supply and demand, rental rates are also affected by the same. If the vacancy rate is higher than 7%, rental rates usually decrease. If the vacancy rate is lower than 5%, rental rates usually increase. Even if rental rates are on the rise, it is not always wise to increase rates if you run the risk of losing a great tenant that cannot afford the increase.

I have lived in the home that I am planning to rent out and the yard is beautiful. Can I count on the tenants to maintain it to the same standards? While deciding to rent the property that you lived in is a great way to get into real estate investing, it has a downside that you must be aware of. You have to leave your emotions at the door and treat it as a business. No matter how great the tenants are, they will NEVER maintain the home as well as you did. That does not mean that they will not take care of it, but you need to expect to see weeds here and there, little to no edging, etc.

Can I request not to allow pets?  Deciding to allow pets or not is your decision. In a perfect world, we would also choose not to allow pets, even though I have 4 dogs. But if you advertise “No Pets”, you are going to eliminate about 50% of the rental pool. There are certainly occasions where there is pet damage, but there are many more instances where tenants with pets take better care of the property than non pet owners. Also keep in mind that the pet deposit will usually cover any extra damage.

If the tenant cannot afford the entire deposit, should I allow the tenant to pay only half? While that will most certainly give you more tenants to choose from, it is not a wise move. First of all, if they cannot afford the entire deposit, the chances that they will be able to afford the ENTIRE rent amount in the future greatly increases. Not to mention that 50% of the security deposit never seems to cover all of the necessary repairs.

How long will it take you to rent my property? There are a number of variables to take into consideration when answering this question. What is the vacancy rate? Where is the rental located? What is the condition of the rental? What amenities does the property offer? What are the lease terms? But most importantly, does the rental rate that you are asking accurately reflect all of the above questions? If the answer is yes, then it should take somewhere in the neighborhood of 2 to 6 weeks.

What type of checks does Mavi do? We do criminal, credit and eviction checks. Felony and evictions automatically eliminate a tenant and everything else is based on a balance of the other factors.

What does Mavi charge for management fees? We charge 10% for 1 unit, 9% for 2, 8% for 3 to 20, and 20 and above is determined on a case by case basis.

I purchased a Blue Ribbon Warranty that covers all of the appliances, the hot water heater, and the furnace. Can I mandate that Mavi use the warranty when a repair is necessary?  As an investor myself, I understand the importance of minimizing the expenses associated with an investment property. That said, it is of equal importance to make sure that the item in need of repair is done by someone that we trust will do the job correctly. In addition to that, it is not the best idea to send someone into a rental that we have never met. So the answer to that is NO.

Can Mavi help me to find other quality investment properties? Yes, Mavi is a full service real estate brokerage firm specializing in real estate as an investment vehicle. Real estate investing is our specialty because it is our passion. We do not just look for property based on what you can afford, we run all of the numbers that are critical in the purchase of investment property, i.e. market rents, sub market drivers that may effect rental rates in the future, maintenance and repairs that will be necessary to bring it up to rental standards, jobs and transportation in the area, crime rates, return on  investment or ROI, appreciation rates, etc.