Here are our most Frequently Asked Questions
QUESTION: what about advertising?
Answer: RMM's service includes:
- Yard Sign
- website ad on www.rmmanagementllc.com, currently #1 for rental homes
- Classified Ad
- includes classified promoting website
- Individual Classified Ad for your unit at cost.
The owner pays for the advertising when advertised in the newspaper. However through our website, the military housing referral, and other sources we are able to advertise for the owner at no cost.
QUESTION: What about repairs?
Answer: There are two kinds of repairs.
1.)IN HOUSE repairs, handled by RMM service person(s) at material cost plus labor
2.)VENDOR repairs, repairs requiring licensed trades such as:
HVAC (furnace, AC), an electrician, or a Plumber and are billed at cost.
Repairs costing $200 or more requires owner approval UNLESS EMERGENCY.
QUESTION: When do I get my money?
ANSWER: Tenants are billed on the first of each month for the rent due for that month. Therefore, we "close the books" on the 19th of each month. Your report and your funds minus the fee will be mailed before the 1st. Most of the time they are mailed before the 24th, but to have a cushion for holidays or emergencies, the 1st is used in the agreement.
QUESTION: How do you show my unit?
Answer: RMM uses two methods to show properties
Lock Box Showing: Prospective Tenants are invited to see an available home at any time convenient for them. They simply stop by the office during business hours with a $20.00 cash key deposit, a valid photo ID, and complete a Lock Box Showing Form to view the property. This really works. They do not have a Landlord, Owner, or Agent following them room to room encouraging them to make a hasty decision. This will be their home. We encourage them to check it out, check out the neighbors and neighborhood and take their time. Most folks really appreciate this opportunity, trust, and respect.
Open Showing: After finding out we have a property they are interested in, whether it be through the newspaper, online ads, calling the office or stopping by. We'll take their names, phone numbers and list of properties they're interested in. Once we've got about 3-4 people interested in one unit, if that unit available, we'll set up a showing for later on that week.
QUESTION: What about questions involving Tenants?
(How much is application fee, how do they qualify, etc, etc, etc.,)
ANSWER: you may find what your looking for on our "Tenants" Frequently Asked Questions for Tenants. or "Rental Procedure"
QUESTION: How do prospective tenants know what is available?
ANSWER: There are several ways to find what we have available, may it be through the Sunday Classified Ads, Our Office Website, the military website, calling in and asking or simply by stopping by the office and checking out our "Now Available Board"
QUESTION: What forms of payment do you accept?
ANSWER: We accept all forms of payments or any type of business you are doing with our office. We accept Cash, Money Orders, Checks, Credit Card Charges, Online payments via paypal and Cashier's Checks. (Check Payments must be made payable to RM MANAGEMENT LLC. We will not accept any check or money order that is written to anyone other than RM MANAGEMENT LLC. Even if it is endorsed.) We accept debit cards also, we will just run them as a credit card. All credit card transactions, are subject to a 3% charge fee.
QUESTION: What is your management fee?
What is a management fee?
ANSWER: We charge a flat 10% of the monthly rental rate. When your property is vacant, we do not collect this fee. A management fee is the price we charge to have your property management by RMM.
QUESTION: What fees to I have to pay other than the management fee?
ANSWER: The State of Hawaii deems income derived from the rental of property as taxable income and the owner must pay 4% GET tax on the gross monthly rent. RM MANAGEMENT LLC will handle your semi-annual tax reporting and payments at no extra charge.
QUESTION: What insurance coverage do I need on my condo unit?
ANSWER: Although the condo association may carry insurance coverage for the building it is in the owners best interest to have liability (renters) insurance.
QUESTION: What is the advantage of using a management company?
ANSWER: When using a management company, it relieves the burden of having to keep tabs on all the little details. Using RMM to manage your property has great advantages. We have an "in-house" maintenance crew. By using them for minor repairs, your cost is cut almost is half, compared to hiring outside contractors who charge double our labor costs. Also by using RMM, you wont have to worry about meeting your tenant every month. RMM has a base office the tenants go to to fill out an application when interested in renting from us. From that first visit on, they know on the first of every month, their rent is due in our office, before 5:30. Once an agreement is set up with you, won't even have to come into the office. We'll mail you every check along with a monthly statement of activity.
QUESTION: Should I "property manage" my house?
ANSWER:Renting your home rather than selling it could be an attractive option worth considering for the following reasons:
- it helps pay the mortgage
- it keeps you on the home ownership ladder
- new laws make it much easier to rent
- in many cases your income will not be taxed
QUESTION: What rental income can I expect?
ANSWER:We can advise you on the market rent for your property and what, if anything, you can do to increase its rental value.
QUESTION: How will I find a suitable tenant?
ANSWER:We will find a suitable tenant for your property using the Honolulu Advertiser, several online websites and then take up references and credit checks to ensure suitability.
QUESTION: How will tenants treat my house?
ANSWER:It is our job to ensure your house is treated with the care and respect you would
expect. We would inspect it regularly
QUESTION: What if I suddenly need my house back?
ANSWER:Essentially if the agreement is still in it's assured term, unless the tenant is in breach of the Agreement then you cannot gain possession until the end of the term assuming that Notice has been served under section 21 of the Housing Act 1988 requiring possession of the property at the end of the term. If the tenancy has become periodic then by serving the statutory Notice of two months under section 21 you are then entitled to gain possession of your property.
QUESTION: Will my building society allow me to rent?
ANSWER:Will my building society or lender allow me to rent? If the property you are intending to rent is the main place of residence as long as the reason for renting is genuine, for instance working away or abroad most lenders will give their consent. However, if it is construed that you are renting your property for a commercial gain then your lender may insist that you convert your mortgage to a buy to rent, which may alter the interest rate.
QUESTION: How much tax will I pay on the rental income?
ANSWER:From the total rent received in a tax year you can normally deduct, for tax purposes, the following:
- Our fees
- wear and tear repair costs
- 10% of rent for depreciation, if furnished or part furnished
- Interest paid to the Building Society or Mortgage Company
- Insurance premiums
You then pay tax on the remainder of the rent. We prepare, at regular intervals, an income and expenditure account which you can send to the Inland Revenue.
QUESTION: How will I receive the rent?
ANSWER: Rents are payable by the tenant monthly into our client account. You will be paid direct from this account.
QUESTION: Does the tenant pay a deposit?
ANSWER: We collect a deposit from the tenant before they are permitted access to your property to safeguard against damage. At the end of the tenancy, we will inspect the property and the costs of any work attributed to the tenant will be deducted from the deposit.
QUESTION: What about essential repairs?
ANSWER: You are responsible for all repairs to the property with the exception of window glass or other breakages caused by the tenants. Small repairs can be carried out by our own specialist maintenance department or by whoever you might wish to nominate, and their charges deducted from your account. In emergencies, our maintenance team will be at your property within 4 hours. We will always ask for instructions before commencing any large scale repairs.
QUESTION: What if I have a mortgage on my property?
ANSWER: We can undertake all negotiations with your Building Society in order to obtain their permission to rent the property. Some lenders might charge higher interest rates for rental properties and raise a service charge.
