FREQUENTLY ASKED QUESTIONS

We conduct a thorough process when screening each applicant. This is one of the most important parts in the management process; Ensuring you will have a good tenant who takes care of your home and pays rent on time. Every individual over the age of 18 will be required to fill out an application (found under the Tenant tab of this website), and must become party to the Lease (Each tenant is "Equally and Severably responsible under the terms of the Lease").

The screening process includes:

• Pull Credit Report: Check tenant credit reports, analyze the report, and classify it as excellent, good, fair or poor. We look for evictions, collections, public records, bankruptcy or any late payments, accounts closed by grantor, accounts written off as P&L, etc. We also compare high balances with credit limits. How much of their available credit are they using? If it is 90%, they may have a weak credit score despite no negative accounts. If it is 10% they may have good credit score even with small number of accounts.
• Employment Verification: We verify tenant employment and make sure they work where they say they work and are legally employed.
• Income Qualification: You want tenants that are financially qualified to rent your home. When we verify the prospective tenant's claimed income with their employer, we then apply a rent-to-income ratio to qualify your tenants and ensure they are capable of paying rent.
• Landlord Verification: We also contact the tenants current and, sometimes more importantly, their previous landlord verifying, in writing if possible, the tenant's history of payments. Did they have any late payments, bounced checks? Did they take care of the property and give proper notice they were vacating? Would they rent to them again?
• Google Tenants: With the vast amount of information you can now find on the Internet, we feel it's important to 'Google' the tenants if possible. 'Googling' the applicant is more likely to show positives than negative, but it sometimes helps us to understand who is moving into your home. We have found an applicant's college papers, awards and positions, and photographs in uniform with glowing testimonies.

We are required to present all applications to you, good or bad. Once we have compiled all this information you get an email, phone call, or both with the details and guide you through your decision to accept or deny.

We recommend you set-up automatic payment to these entities and pay them yourself, we do not pay our clients' mortgages or HOA payments. With the advent of electronic banking, homeowners have greater control of their mortgages with less effort.

In most circumstances, we no longer pay our client's HOA payments because Homeowners Associations are increasingly reluctant to receive payments from third parties. Some associations are not prepared to recognize or accept payments from anyone other than the owner. Some HOA managers claim this is because of increased financial privacy laws enacted post-9/11 (Patriot Act, etc). More associations are taking payments on-line, simplifying and safeguarding the homeowner's financial transaction. The Associations that do not take on-line payments are often smaller self-managed associations, with no professional staff processing the checks. At times they do not recognize checks from property managers, or they do not keep track of them as well.

McGrath Real Estate Services collects the rent on the 1st through 5th of each month. Once we receive payment from the tenant and process to the owner's escrow account held by McGrath. We then reconcile your account by paying any outstanding contractor invoices, management fees, or other approved expenses and then forward your residual funds to your account (You should expect to see the funds in your designated bank account between the 10th to 12th of each month pending that the tenants paid rent on time and there are no holidays, weekends, or unforeseen technical circumstances at that time of the month). The rent is always collected by the property management firm. Managing rental properties without this financial service is not offered.

We also email a monthly owners statement and, an end of the year statement displaying your rental income, any maintenance or repairs (expenses) and any other activity for your property.

We have procedures in place to collect rent, and pursuing tenants who haven't paid rent while still conforming to laws regulating collections. Rent payments are due on the 1st of the month and late if postmarked after the 5th. If we do not have payment in our offices by the 5th of the month, the tenant is assessed a late fee of 5% of the monthly rent and we begin to phone and attempt to contact the tenant about receiving payment. The law requires collections callers to mail the debtor in writing as well. If we reach the tenant and there are extenuating circumstances, we stick to procedures, but try to get an expectation of when the Landlord will receive their rent. We notify the Landlord with the information we have regarding what our correspondence has been with the Tenant and what the next procedures encompass when pursuing rent collection and possibly eviction.

If the rent is not paid by the 10th of the month, we pay the Sherriff's office $12 per adult tenant to post a Sherriff's notice on the door. It is a 5-day pay or quit notice and they send us a receipt showing the day it was posted. 5 days after that day, we can file an unlawful detainer through an attorney. It may cost $200 to $500 just to file and pay for the first court date. At any time the tenant may exercise their once-a-year right of redemption by paying all debts. If they do not, we may refuse partial payments, or we may receive them and send them a notice of acceptance with reservation. The first court date may be 60 days from the date of non-payment. Assuming we win the court case, we would wait 10 days and file a writ of possession, and the sheriffs office would schedule a forcible eviction. Such action may take 30 more days. Most debts get settled out of court. Most tenants move before being forced out. We pursue possession first and foremost – it is more important to get a new tenant to occupy the property that can, and will pay the rent moving forward.

McGrath Real Estate Services, Inc. fully understands that emergencies happen anytime day or night. We make sure that tenants in properties that we manage always have an expedited notification process in case of emergency. We have dedicated staff which monitors an "emergency pager" 24 hours a day, 7 days a week. A tenant can contact this number and our on-call staff personnel will contact them to determine if the situation is an actual emergency (there is a big difference between a leaking faucet and a pipe burst) and the nature of the issue. After an initial diagnosis they determine the appropriate individuals to send out to the property whether it is a plumber, HVAC technician, water extraction specialist, etc. We determine, based on the findings of the specialist, what actions would be in the best interest of our owners to limit damage to the property, personal harm, and/or unsanitary/unhealthy conditions and also try to eliminate unnecessary costs. We would also like to note here that McGrath Real Estate does not charge a repair fee to the tenants (unless the damage was caused to direct affect or negligence of the tenants). We feel this discourages your tenants from addressing small issues and reporting them to us, which could potentially lead to further damages and higher cost repairs at the property, all because the tenants didn't want to pay the fee.

Pets and smokers are not protected classes under the Fair Housing Act, so you can discriminate against both, but we recommend the following:

• Regarding pets: McGrath Real Estate finds that about 55% to 60% of tenants have pets. By automatically not allowing pets, you are potentially limiting yourself by eliminating over half of your market demand. We suggest you allow pets on a case-by-case basis, this way if you don't mind small pets or maybe a dog over a cat you can make the decision after reviewing the rest of the information on the applicant. Some of our best tenants have been pet owners, and considering pets "case-by-case" allows smart landlords more flexibility in selecting the best tenant and lease terms by staying open to more market demand.
• Regarding smokers: All McGrath Real Estate leases specify that the residence will be maintained as a non-smoking residence. This means that tenants are not allowed to smoke inside, but are legally allowed to smoke outside the house. We feel that smoking inside the house creates some liability issues and has potential to do damage to the property if heavy smoking causes a lingering smell that can't be removed.

Absolutely! Although McGrath Real Estate Service's core business is property management, we have many experienced sales agents that are licensed Realtors. Active participation in residential sales for 30 years has allowed us to serve you, our clients better, and has given us a competitive edge in property management as well allowing more capital investment in technologies that can bolster our property management services as well as incorporating cutting-edge cross-over real estate techniques used in sales for property management too. A strong background in property management also gives us better insight on helping investors to purchase properties with better rent-to-value (R2V) relationships, and starts the investment process with a fluid transition from purchase to lease. Although we normally recommend a long-term real estate strategy and hope you hold onto your home for as long as you can, when the time comes, we'd be happy to help you sell your property, perform a 1099 exchange, assist you in the purchase of another real estate investment, or help you to buy the home of your dreams!

When choosing McGrath Real Estate Services, Inc. as your property manager your first thing to do regarding utilities is to have the bills sent to us. To do this you contact the utility companies and have them send the bill your name care of McGrath Real Estate Services, Inc. (see example below)

"YOUR NAME"
c/o McGrath Real Estate Services, Inc.
761-C Monroe St. #100
Herndon, VA 20170

The tenant will be responsible for all utilities that are not included with the HOA and/or Condo fee. The tenant is supposed to make arrangements to have utilities in their name on the possession date of the property. However, there are situations where this is not possible (such as a tenant moving in on a Sunday). When and if this happens the tenant will have the utilities switched into their name and a final bill for your account will be sent to us. We examine the bill and determine what charges the tenant is responsible for and bill them for that amount.

McGrath Real Estate does not manage furnished properties. This is our policy, and we have 101 very good reasons for it. Leaving personal property behind creates more liability issues for landlords, it can become and expense/nuisance if the tenant wants "some" but not all furniture, furnished rentals promote short-term leasing and represent a very small percentage of the market pool of tenants. It is also nearly impossible to manage or inspect for damage on furniture, or to make sure nothing is missing at tenant check-out. Double-check that you are not leaving behind any personal property or other non-fixtures. Don't even leave behind cleaning supplies. You are now running a rental business! It would be a shame to start your business with a poor impression on your first customer (the Tenant), and/or to have to pay someone to remove miscellaneous junk left behind because you didn't have time to get to it. The only things you should leave behind for your new tenants are:

• Filters for the furnace and air returns (if applicable).
• Home Owners Association documents and appliance manuals (kitchen drawer).
• Keys and garage door remotes should be left with your property manager.
• Do not leave your new contact information in the house or anywhere for the tenant, it may seem like a good or friendly idea, but many Landlords have regretted this, and, if you are interested in further discussion on the pitfalls of direct communication with your Tenant(s) – consult your property manager.
• The best thing to leave behind for your Tenant(s) is a clean house in good repair with all appliances working and a property manager to call if they are in need! Sometimes, a small "Welcome" gift basket is also a nice touch!

This is one of the areas that McGrath real Estate separates itself from our competition. EVERY property management firm or broker listing your property for rent should use the Multiple listing Service (MLS) through the MRIS (Metropolitan Regional Information System). Of course, an accurate, well presented listing in which you have made your home available and flexible to prospective tenants while they are house-hunting helps too. We like to put additional digital pictures on the listing, and you are welcome to submit to us pictures of your home during different seasons that may present your property more attractively.

McGrath Real Estate has several, full-time leasing agents dedicated to showing McGrath Real Estate rentals. We advertise the property on Craigslist.org, Realtor.com, Homesdatabase.com, and also the Washington post paper ads and on-line advertisements when appropriate and effective. We make use of AHRN.com (a military referral housing site), and we are open to other suggestions you may have. Through our experience and advertisement effectiveness reports we know that some advertisements are more or less effective than others, additional marketing requests should be made with your property manager and may be at the landlord's expense.

McGrath Real Estate has also been successful at drawing tenants from our own growing tenant pool, and is experienced in working with Foreign Embassies, and corporate entities in special leasing assignments.

The most important aspect in renting and marketing your property is the price and presentation of your home. You should meet with a McGrath Real Estate representative at your home for a professional analysis on what might make your home more marketable, and what is the right price for your home.

Yes! Although there are many misconceptions and inaccurate impressions about the "who, what, when, where, and how to" when working with Corporate entities and/or Foreign Embassies and diplomats, McGrath Real Estate has formed several strategic business relationships that have proved very successful in finding quality tenants from these sources. We have worked with more than a dozen officers with the Canadian Embassy, we have rented to the Royal Embassy of Thailand, as well as German and Japanese corporations just to name a few. McGrath Real Estate, of course, believes in and practices equal housing opportunity and we are open to working with anyone from anywhere as long as the lease terms and background checks on the applicants are agreeable to our Landlords. For the "accurate" picture in what it means to lease to, or work with these entities in the tenant marketplace, contact a McGrath Real Estate representative.

Of course! You should be able to see a copy of your MLS listing featured on our website under "Available properties". You may also request a copy of your listing from your property manager, and we are open to your suggests on editing the listing to market the best features of your home.

Refer to the 'Next Step' and the 'Owner Departure Checklist' found under the Manage My Property page of this website and be sure you have everything checked off. Pay particular attention to the section about preparing the home so it is in top condition. This will set the expectations for prospective tenants and attract more applicants, allowing you more discretion when selecting tenants. You will also need to have the utilities placed "In care of McGrath Real Estate Services," please use the link 'Utility Contacts' found under the Landlord page of this website, for helpful contact numbers.

We know many of our Landlords have great resources, especially at their work, that enable them to find great tenants for their homes and we encourage this! However, we need you to ask them to fill out our 'Rental Application' which can be found under the Tenants page on this website, then ask them to submit this form to us completed and we will take the application processing from there. In finding your own tenants, you save yourself the marketing costs of renting out your home, which is 75% of the first full-months rent, instead you are only paying a $500.00 flat fee for the processing of the application, preparation of the lease and lease signing, as well as the check-in inspection. It is important to note, that once McGrath Real Estate has begun marketing the property and incurred marketing expenses to do so, whether you find a tenant, or McGrath Real Estate does, it is then on our commission schedule and the $500 flat fee no longer applies.

McGrath Real Estate has a full-time property inspector that performs the majority of our homes. At the tenants "Check-in" Inspection, a Property Manager walks through and notes the condition of the property on a 10-page inspection form that will also be used at the check-out inspection. At the initial inspection the Property Manager also points out locations of main water shut-off valves, circuit breakers, hose bibs, how to change the furnace filters, etc.

We normally perform our next inspection four to six months into the lease term. Typically we perform this inspection in the fall season if possible to make sure the tenant has taken the proper steps to winterize the home where appropriate. Of course, we perform a final "Check-out" inspection at the end of the lease term in which we judge any damages to be assessed to the security deposit. If the tenant does not move-out at the end of the year, and instead renews their lease, then McGrath real Estate will perform an "Annual Inspection", at any inspection we check to see that smoke detectors are working, and during the mid-annual inspection, we will perform a Smoke Detector Certification and give a report to the Landlord, and Tenant. Of course, at every inspection we inspect the interior and exterior condition of the property and take pictures of any items we feel may need attention. Free inspections can also be requested for due cause.

Send us an email at McGrath@McGrathRealEstate.com with your detailed question. We can then research it and get back to you quickly. Please be sure to put your property address in the subject heading.

The most important thing is to sign the lease. You want to make sure that you have submitted funds to cover the security deposit and the pro-rated rent (if applicable). You will need to arrange to have utilities for the property turned on in your name by the possession date, refer to the ‘Utility Contacts’ found under the Tenant page of this website for helpful contact numbers. Last you need to make arrangements with our office for the check-in inspection and arrangements to turn over the keys as of the possession date. Please also make sure to review your ‘Tenant Responsibilities’ which can also be found under the Tenants page, as well as one of the last pages in your Lease.

To receive the fastest service regarding a repair you should use the link ‘Maintenance Request Form’ found under the Tenants page of this website, or email Repairs@McGrathRealEstate.com, these are checked regularly and action taken promptly. You are more than welcome to copy your property manager on the email but do not send it directly to them as they are in and out of the office throughout the day and may not see the email for several hours after it is submitted. You are also welcome to follow up with a phone call to our office at (703) 709-2264.

An after-hours emergency call should be made anytime the structure of the property is jeopardized or there is a danger to the occupant. These instances may include fire, an active water leak or flooding (that cannot be controlled by cutting off supply valves), loss of heat when temperatures are below 50 degrees, no electricity (not area related), damaged roof or structure damage from fallen trees. Lack of air conditioning is not considered an emergency.

Please refer to the section of your Lease p. 6, 31 TRANSFER OF TENANT which states that if you are transferred thirty-five miles or more (radius) from the location of the Premises, by your current employer or are involuntarily discharged or relieved from active duty with the Armed Forces of the United States, you will have the right to terminate the lease, provided written notice. If you do not fall under these circumstances, you will need to contact your property manager and discuss your options with him, regarding the remainder of your tenancy.

At least 30-days prior to your move-out, you must provide us in writing your notice to vacate, please use the form labeled ‘Notice to Vacate’ found under the Tenants page of this website. After you have provided us, or received, written notice that you are vacating the property, please make sure to schedule a check-out inspection with one of our Property Managers. The condition of the property at check-out will be compared to condition at move-in and any security deposit issues will be assessed. The security deposit will be returned within sixty days of check-out inspection. Then visit the link, ‘Exit Inspection Checklist’ also found under the Tenants page as this form provides you with specific details on what you are responsible for prior to your departure of the home.

Security Deposits are placed in escrow for your account. Per your lease, we have 60 days after your lease termination date to return your deposit. You can expect to get a full-return on your deposit IF your account isn’t in arrears, no damages are assessed by the check-out inspector, and all final utility bills have been paid. If you wish to expedite the return of your deposit: Get proof from the utility companies that your bills have been paid through your last day of occupancy, and your account is closed, and get these statements to McGrath Real Estate Services accounting department. Of course, leaving the house in good, clean condition and providing receipt of professional carpet cleaning is also helpful. We recommend Carpet Dynamics ((703)-560-1221) for carpet cleaning at the end of your lease.

When you assume possession of the property a McGrath representative will perform a check-in inspection, documenting the condition of the property. An annual inspection is performed, ideally between 5 to 8 months into the lease term. The smoke detectors will be tested at the annual inspection. This is a good time to make repair requests and let us know if you would like to renew your lease. When you are ready to vacate the home you should schedule a check-out inspection. If the owners of the property request a visit we will provide at least 48 hours notice to tenant. Beyond these instances we may schedule inspections if there are reasons for concern.

Any pets that will be residing at the home need to be included with your application and would be included within your lease. If you plan to obtain a pet after moving into the property you need to notify the property manager for approval, have an addendum created and signed, and you may be required to submit a pet deposit.

All of our properties are non-smoking residences and this is specified within your lease. You have a right to smoke outside the home, but you will need Landlord permission if you intend to smoke inside the home.

If the guests are planning to be at the property for longer than 14 consecutive days then you would need to notify us. This is so that there will be no confusion as to whom is actually living at the home and who is just visiting.

If you are going to be gone for a period greater than 14 days then you will need to notify McGrath Real Estate Services, Inc. This is to ensure that there is no confusion between you being on vacation and possible abandonment of the property. PLEASE LEAVE THERMOSTAT (HEAT AND/OR A/C) AS YOU NORMALLY WOULD DURING THE PARTICULAR SEASON. If a pipe freezes due to heat not being on in the home the tenant is responsible for damages. It is equally important during any other season to make sure exterior drains are free and clear of debris so you don’t come home to a flooded basement after a heavy rain in which the exterior drain is clogged!

A few weeks before winter starts you want to turn on your heat to ensure that it is functioning properly. The water to the exterior hose bibs needs to be shut off, disconnecting any hoses and leaving the hose bibs open. If they are present you would also want to close any storm windows and replace front screens with glass (if applicable).

Rent payments are due on the 1st of the month. If we do not have payment in our offices by the 5th of the month, you will be assessed a late fee of 5% of the monthly rent. On the 15th, if the rent has not been paid, we will send a Sheriff's to post a 5-day “pay or quit notice” to be served on you and you will be assessed the fees for that as well. We would much rather you communicate with us on when you can get us the rent, and what your situation is so we can work with you. If you know that your rent is going to be late, please contact us. The more information we have, the better we can assist you in fulfilling your lease obligations to the landlord.

Absolutely! Please click on the link ‘ACH Debit’ found under the Tenants page of this website, fill the form out and submit to us with a copy of a VOID check. We offer this feature to our tenants to provide more convenience to you, you no longer have to worry about your rent being late because you forgot to write the check and send it in the mail. With this feature, your rent will be automatically deducted the first of each month from your account.