June 2025 - Mid-year Updates and Important Changes to Management Terms

1. The Tenant-Finding Fee has increased from $600 to $800. What additional value do I receive?
 

The revised fee encompasses a comprehensive range of enhanced services designed to maximize tenant placement efficiency and property care, including:
 

• Premium advertising with paid promotions on leading platforms such as Zillow.

• New tenant screening platform, with robust income (bank statements, w-2, 1099, paystubs) verification, ID verification through automated & intelligent systems.

• Installation of dead-bolt smart locks on your properties at no additional cost to the owner, representing a value of $250 including labor, to enhance security and convenience.

• Access to our in-house legal counsel for expert guidance and support on leasing and related matters.

• A dedicated in-house leasing manager responsible for property showings for both tenant-occupied and owner-occupied homes, ensuring personalized service and efficient scheduling.

• Accelerated lease-up times, reducing average vacancy periods from 37 to 24 days, effectively offsetting the fee adjustment through minimized loss of rental income.

• Regular property visits to maintain optimal presentation standards throughout the leasing process.

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2. Why is the maintenance approval threshold increasing from $300 to $500?
 

The previous limit was set in 2021. Inflation, labor shortages, and higher material costs mean some repairs now exceed $300. Raising the threshold prevents delays—especially for time‑sensitive issues like HVAC/Water Heater/Appliance/Garage Door failures—by allowing us to approve and dispatch small jobs immediately while still notifying you once the work order is opened.

3. Why is the charge increasing from $50 to $60 per hour?

The increase reflects significant cost pressures due to inflation and rising operating expenses. Key contributing factors include:
 

• Labor costs: Wage rates for skilled maintenance technicians have increased industry-wide in response to market demand and inflation.

• Technology & software investment: We’ve implemented enhanced tools like Property Meld to streamline tracking, scheduling, communication, and reporting. These platforms require ongoing licensing and support costs.

Despite these changes, our in-house technician model continues to deliver strong value compared to third-party vendors—offering:
 

• Faster turnaround times (currently averaging 4 days for non-emergency issues)

• Greater quality control

• Transparent communication and documentation

• Lower total repair costs in many cases
   

We remain committed to delivering efficient, professional service while keeping costs fair and aligned with current market conditions.
 

4. Will I still get notified before work is done?

Yes. You will receive the usual work‑order email from our Property Meld platform. The difference is simply that we no longer need explicit written approval unless the estimate exceeds $500 (or your custom limit, if lower). You can always reply to pause or ask questions.

5. Why are you introducing a Mileage Reimbursement now?
 

Our in-house technicians do not bill for travel time, which has historically been absorbed by our company. However, with rising fuel prices, insurance premiums, and vehicle maintenance costs, we’re implementing a standard mileage reimbursement to help offset these growing expenses.
 

This fee is designed to cover both:
 

• The out-of-pocket costs associated with technician travel (fuel, wear and tear, insurance, etc.), and

• The opportunity cost of technician time spent in transit, which is time they are not able to bill for directly or spend servicing other properties.
   

By applying the IRS standard mileage rate ($0.70/mile for 2025), we are keeping this reimbursement aligned with federal guidelines and ensuring it fairly reflects the actual cost of operating and maintaining a vehicle for work-related purposes.
 

This change allows us to maintain service quality and technician availability without increasing hourly service rates.
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6. Do these changes affect my monthly management fee?
 

No—the standard management percentage remains unchanged.
 

7. Can I opt out of any of these fees?
 

The Mileage Reimbursement, updated approval threshold and in-house maintenance technician charge are policy‑wide. The Tenant‑Finding service is optional if you self‑lease, though we strongly recommend professional marketing for best results.
 

8. What if I have additional questions or want to discuss my portfolio specifically?

Please contact via email or schedule a meeting with me, https://scheduler.zoom.us/satya-pullakhandam. I will gladly answer any questions or concerns.