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Service Star Realty Owner Manual ...................................................................................................... 2
Table of Contents ................................................................................................................................ 2
Welcome ............................................................................................................................................. 4
Owner Documents ............................................................................................................................... 5
Owner Information............................................................................................................................ 5
Insurance Authorization ................................................................................................................... 5
IRS Form W9 or W8ECI ................................................................................................................... 5
Lead-Based Paint Disclosure ........................................................................................................... 5
Keys to your property ....................................................................................................................... 5
Service Star Realty .............................................................................................................................. 6
Service Star Realty mission statement ............................................................................................. 6
Service Star Realty principals .......................................................................................................... 6
Service Star Realty Communication .................................................................................................... 6
Company communication ................................................................................................................. 6
Service Star Realty website: www.LeaseAZ.com ............................................................................. 6
General office information ................................................................................................................ 7
Address information ......................................................................................................................... 7
Communication ................................................................................................................................ 7
Office Hours ..................................................................................................................................... 7
(Leasing calls are answered evenings and weekends) ............................................................... 7
Emergencies .................................................................................................................................... 7
Contact Information for Our Team ....................................................................................................... 8
Service Star Realty personnel .......................................................................................................... 8
Owner Communication ........................................................................................................................ 9
Email ................................................................................................................................................ 9
Owner vacation notice ...................................................................................................................... 9
Owner Responsibilities ........................................................................................................................ 9
The Scope of Property Management ................................................................................................. 10
What is included in Service Star Realty Property Management services ........................................ 10
What is NOT included in Service Star Realty Property Management services ................................ 10
Company Policies .............................................................................................................................. 10
Department of real estate requirements ......................................................................................... 11
Code of ethics ................................................................................................................................ 11
Drug-free policy .............................................................................................................................. 11
Legislation ...................................................................................................................................... 11
Lead-based paint ........................................................................................................................... 11
Mold issues .................................................................................................................................... 11
Answers Regarding Funds................................................................................................................. 12
Banking .......................................................................................................................................... 12
Monthly statements ........................................................................................................................ 12
Disbursement of monthly funds ...................................................................................................... 12
End of year procedures .................................................................................................................. 12
Billing rights summary .................................................................................................................... 13
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Renting Your Property ....................................................................................................................... 13
Preparing to rent the property ........................................................................................................ 13
Setting the rent ............................................................................................................................... 13
How long will the property be vacant? ............................................................................................ 13
Advertising/Marketing ........................................................................................................................ 13
Internet/website .............................................................................................................................. 13
Interoffice marketing ....................................................................................................................... 14
Signage .......................................................................................................................................... 14
Video Tours.................................................................................................................................... 14
Showings and applications ............................................................................................................. 14
Processing Tenant Applications ......................................................................................................... 14
Tenant screening ........................................................................................................................... 14
Cosigners ....................................................................................................................................... 14
Pets ............................................................................................................................................... 14
Service animals .............................................................................................................................. 15
The Tenant Move-In .......................................................................................................................... 15
Rent and security deposits ............................................................................................................. 15
Rental/lease agreements ............................................................................................................... 15
Video documentation ..................................................................................................................... 15
Maintenance addendum ................................................................................................................. 15
Working with Your Tenants ................................................................................................................ 16
Collecting rent ................................................................................................................................ 16
Notice to pay or quit ....................................................................................................................... 16
Other notices .................................................................................................................................. 16
Tenant problems ............................................................................................................................ 16
Legal action – Eviction Protection Program .................................................................................... 16
Maintenance ...................................................................................................................................... 17
Preventative maintenance .............................................................................................................. 17
Emergencies/disaster ..................................................................................................................... 18
When The Tenant Vacates ................................................................................................................ 18
Notice to vacate ............................................................................................................................. 18
Communication with owners and tenants ....................................................................................... 18
Tenant move-out video .................................................................................................................. 18
Security deposit refunds ................................................................................................................. 19
Collections ..................................................................................................................................... 19
Additional Services ............................................................................................................................ 19
Quarterly A/C filter change and interior overview ........................................................................... 19
Annual Property Review (APR) ...................................................................................................... 19
Supervision of extraordinary maintenance ..................................................................................... 19
Real Estate services ...................................................................................................................... 20
Cancellation of Management ............................................................................................................. 20
Written notice ................................................................................................................................. 20
Notice to current tenants ................................................................................................................ 20
Distribution of documents ............................................................................................................... 20
Final distribution of funds ............................................................................................................... 20
Conclusion ......................................................................................................................................... 21
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Thank you for choosing Service Star Realty to manage your investment. We are aware that you had
many choices and we appreciate that you have selected us as your property management company.
Service Star Realty works to achieve the highest professionalism in Real Estate/Property
Management Services. We have prepared the Service Star Realty Owner Manual to assist you in a
successful business relationship with our company. We urge you to take the time to review the
information enclosed. We feel this will further clarify many of the procedures of our Property
Management services. After reading the material, if you have questions or any concerns, contact your
management team immediately, we would like to help you with answers.
Service Star Realty forms have also been included with this manual. Completing and using the forms
assists Service Star Realty in setting up and maintaining an accurate account for you and your
investment.
Special note: the information provided in this Owner Manual is subject to change. Landlord/Tenant
laws, personnel, policies and procedures change according to events that take place. Service Star
Realty works diligently and continually to improve services and personnel training as well as
remaining current with all landlord/tenant legislation.
Once again, thank you for choosing Service Star Realty as your Property Management Company. We
look forward to a successful business relationship.
2813 E Camelback Rd. #400 Phoenix AZ 85016 ▪ phone: 480-426-9696 fax: 1-866-443-9826
.com
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A copy of your management agreement is included with the Service Star Realty Owner Manual. Refer
to it as needed and keep it with this information for a handy reference.
It is important that Service Star Realty receives all critical information as we begin management.
Please return the appropriate forms to us via FAX or email or US mail.
Owner Information Request
This information enables Service Star Realty to set up your account.
Insurance Authorization Form
This form requests that the insurance company issue a copy of your property
insurance to Service Star Realty and that they name Service Star Realty as
“additional insured” on your policy. We request they furnish Service Star Realty with
a certificate within 15 days of signing the management contract.
IRS Form W9 or W8ECI
IRS requires us to have a W-9 or W8ECI on file for all owners before we issue
payment to them. We made these forms available to you on our website under Tax
Forms.
Lead-Based Paint Disclosure Form
If your property was built before 1978 we are required to supply your tenant with
this form. Please refer to page 11.
Keys to your property
We require three keys to all doors at your property. We charge $10 for copies if not
provided.
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Service Star Realty is a property management company operating in Phoenix, Arizona, specializing in
full-service property management. The company has been operating since 2011 and is actively
involved in the Phoenix area real estate community.
Service Star Realty mission statement
The mission of Service Star Realty is to provide quality service in property management and real
estate sales in the Phoenix Area community, demonstrating integrity and professionalism.
Service Star Realty principals
The owners/principals of Service Star Realty are David Swaim and Dora Pinter. David Swaim is the
broker of Service Star Realty. They collectively have over 50 years of experience in the real estate
industry. They provide the guidance and direction of Service Star Realty and personally oversee all
contracts, policies, and procedures, and work to educate their personnel to provide excellent service
to all clients.
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Communication is a key to success in any relationship. We work constantly to improve
communications with all of our clients or prospective clients. This includes everyone – owners,
tenants, applicants, vendors, buyer, sellers, and the public.
Company communication
On the next page, you will find all general office information such as addresses, telephone numbers,
email addresses, website, and office hours.
Service Star Realty personnel communicate by:
Telephone
Fax
Email
Written correspondence
Service Star Realty website: www.LeaseAZ.com
Service Star Realty stays current with business technology. The Service Star Realty website has
proved to be a tremendous asset. Here are a few of the benefits of the Service Star Realty website:
Prospective tenants can search our site for available rentals, download our application, apply
to rent online, and take online video tours of some of our properties.
Owners, Tenants and Vendors can access important information, such as a work orders,
account ledgers and lease documents.
Owners can obtain forms, view their up-to-the-moment account balance and all monthly
income statements online.
Tenants can pay rent on-line with ACH and automatic debit.
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General office information
Service Star Realty General Information
Address information
Mailing address
Street address
Communication
Office Phone
FAX
Email
Website
Office Hours
Property Management
Monday – Friday
8am to 4pm
Saturday and Sunday
Closed
Holidays
Closed
Emergencies
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Service Star Realty personnel
We have a complete staff to assist you. What Service Star Realty has found effective for servicing
tenants is “Teamwork.” Together Everyone Achieves More. There is a convenient chart of the team
and their contact information below.
Property Manager: The Property Managers focus on managing all the many facets of tenancy
and handling the details when the tenant moves.
Tenant Coordinator: The Tenant Coordinator handles tenant concerns, applications, lease
appointments, violation letters to be immediately available to our residents.
Turnover and Maintenance Coordinator: The Turnover Coordinator works with our vendors
to handle all repair and maintenance requests as well as the make ready of your property.
Accounting Manager: The Accounting Manager sets up your trust account, owner portal,
accepts rent payments in our accounting software, pays your bills and issues your monthly
statements and owner draws.
Leasing Team: The leasing team consists of experienced and licensed Real Estate agents.
They are responsible for all facets of advertising your home and finding a suitable tenant for it.
Team
Position
Name
Phone + Ext.
Email
Management
Team
Property
Manager
David Swaim
480-466-6458
David@LeaseAZ.com
Property
Manager
Dora Pinter
480-280-9934
Dora@LeaseAZ.com
Broker
Business
Development
and Sales
David Swaim
480-466-6458
David@LeaseAZ.com
Office Team
Tenant
Coordinator
Deborah Joy
Valentine
480-426-9696
Ext 104
Deborah@LeaseAZ.com
Accounting
Manager
Lisa Eline
Ext 105
Or
480-666-9277
Lisa@LeaseAZ.com
Turnover and
Maintenance
Coordinator
Shanta
Campbell
Ext 106
Or
480-939-3075
Shanta@LeaseAZ.com
Leasing
Leasing Agent
Carey Murray
480-426-9797
Carey@LeaseAZ.com
Leasing Agent
Nick Nieves
480-426-9797
Nick@LeaseAZ.com
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It is important that you let us know of any significant change that can affect your account. Service Star
Realty needs to know when you are moving, if you have a problem with your account, if your social
security number has changed to a Tax ID, or any other important information. To assist in
communicating, we ask you to regularly update any changes. You can do this on your owner portal.
Email
Service Star Realty encourages all owners to use email to contact us. It is fast and effective.
Special note: When using email, we request that you put the “property address” in the subject line.
This helps us identify your message, and avoid oversight or deletions of messages.
Owner vacation notice
Service Star Realty respectfully requests that owners notify us of vacations that are two weeks and
over. Another alternative is to inform your Emergency contact listed on the Owner Information Form.
The purpose in asking for this information is only so Service Star Realty is prepared in the event of an
emergency repair or major problem concerning the owner’s property and/or tenant.
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A successful business relationship works both ways. Service Star Realty takes their management
responsibilities seriously and requests owners to do the same.
Owner responsibilities are:
Notify Service Star Realty of any ownership change or eminent owner information.
Supply Service Star Realty with accurate information so we can service the management account
properly.
Register you property with the county assessor as a residential rental unless it is a multifamily
building consisting of more than 4 units. You will find a link to the assessor’s website on
www.LeaseAZ.com. If your property is not registered at the time we are setting up your account,
Service Star Realty will take care if this for you at a nominal fee of $30. We will automatically
perform this service to help you avoid a possible penalty of $1000 plus back taxes. Also, ARS 33-
1902 allows your tenant to break their lease if the property is not registered!
Review online or printed statements at least monthly and notify Service Star Realty of any
discrepancies found as soon as possible.
Support Fair Housing Laws and guidelines, as well as all necessary legislation.
Maintain a current insurance policy for their property, include Service Star Realty as “additional
insured”, and furnish Service Star Realty with certificates.
Review your property insurance yearly and update as needed.
Exercise responsibility for required maintenance and the safety of their tenants.
Treat Service Star Realty personnel with courtesy and notify Service Star Realty principals if there
are problems with Service Star Realty personnel so these problems can be resolved quickly.
Give us notice when owner leaves on vacation for longer than two weeks.
Furnish us with copies of your Home Warranty and any other building or appliance warranties you
may have in place. If the owner has a Home Warranty, Service Star Realty accepts no liability for
the timeliness of the repairs once the warranty company has been contacted.
Set up Owner Portal with banking information in a timely manner.
Comply at Owner’s expense with all applicable state, county and municipal swimming pool barrier
laws or regulations prior to the property being occupied.
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Owner shall not enter the property unless accompanied by Service Star Realty.
Owner shall refer all inquiries, including, leasing, lease renewals and sales, regarding the property
to the broker and all negotiations with be conducted solely by or under the direction of Service
Star Realty.
Provide to Service Star Realty copies of relevant documents pertaining to the property, including
but not limited to covenants, conditions and restrictions, association documents, service contracts,
lease agreements, claims, litigation, personal property list, notices, special assessments.
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What is included in Service Star Realty Property Management services
Service Star Realty has outlined details on our policies and procedures in future pages of this manual.
However, there are so many details and aspects of managing property, that we can only include the
basics in this manual. If you have more questions, please contact your management team.
Again, these are general guidelines and when necessary, policies will change. Please bear in mind
that we are unable to do “everything” that is required to service a property under our management
fees.
What is NOT included in Service Star Realty Property Management services
Because Service Star Realty provides owners with a very wide range of services, it can be easy to
request something that we cannot perform. Some tasks go beyond the normal scope of property
management or require additional fees/services. There are also areas licensed real estate agents
dare not tread, unless they have obtained the proper licensing or degrees. We ask that you remember
this when making a request. The following items are EXAMPLES of services not specified in the
Property Management Service Agreement:
providing on-site management services, home inspections, appraisals, refinancing,
modernization, fire or major damage restoration or rehabilitation requiring a permit from a
General Contractor, obtaining or giving income tax, accounting, or legal advice,
representation before public agencies, advising on proposed new construction, debt
collection, counseling, or attending Homeowner Association meetings.
If you have any questions on what is included or not included in property management, please let us
know. We have more information on additional services later in this manual.
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It is very important in the field of Property Management, that Service Star Realty follow local, state,
and federal legislation and guidelines. Our company takes pride in our industry, and we further
implement guidelines and policies of several organizations, such as the National Association of
Residential Property Managers, NARPM, and the National Association of Realtors, NAR®, as well as
the Arizona Association of Realtors AAR. Additionally, we train all personnel by requiring them to
read and follow the Service Star Realty Property Management Policy and Procedures Manual.
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Department of real estate requirements
The Arizona Department of Real Estate requires licensing for all persons conducting Property
Management and Real Estate Sales in our state. Service Star Realty requires all personnel that are
Brokers, Property Managers, and Real Estate Agents to have an Arizona Real Estate license.
Code of ethics
Service Star Realty follows the Code of Ethics outlined by NARPM and NAR®. Service Star Realty
considers this a top priority in conducting business.
Drug-free policy
Service Star Realty has a drug-free policy for all personnel, vendors, and tenants. Service Star Realty
incorporates this policy into Service Star Realty rental/lease agreements, tenant, personnel, and
vendor documentation.
Legislation
Service Star Realty adheres to the laws and guidelines of federal, state, and local legislation, and
incorporates this into all documentation, policies, and procedures. Here are some of the agencies and
acts Service Star Realty follows:
Fair Housing (HUD) – Service Star Realty supports and follows Fair Housing laws and guidelines;
the Service Star Realty office displays Fair Housing signage
Equal Opportunity – Service Star Realty is an Equal Opportunity employer; the Service Star Realty
office displays Equal Opportunity signage.
SCRA Act – Serviceman’s Civil Relief Act/Soldiers’ and Sailors’ Act of 1940
URLTA - Uniform Residential Landlord Tenant Act
FCRA - Fair Credit Reporting Act
EPA – Environment Protection Agency
Any other local or state legislation that may apply to a specific city.
Lead-based paint
Lead-based paint became a major issue in the 1990s that prompted mandatory requirements for
residential housing and continues today. Service Star Realty follows all mandated federal and state
guidelines for lead-based paint. All properties prior to January 1, 1978 require disclosure to all tenants
and owners. Tenants sign lead-based paint disclosures prior to renting a property and Service Star
Realty provides them with the required EPA Pamphlet, Protect Your Family from Lead in the Home as
published by The Environmental Protection Agency. Service Star Realty then forwards the required
disclosure to owners for signature.
Property owners and/or Property Managers must also notify tenants, in writing, of any scheduled work
necessary for lead-based paint on the property.
Mold issues
Service Star Realty regards mold issues as a top priority in property management. Owners should be
aware that mold is another leading issue in the property management industry and failure to act if
tenants report or discover mold can lead to costly lawsuits. Several cases regarding mold have
awarded damages to tenants in the millions of dollars.
This is an area of extreme liability and Service Star Realty takes action if a tenant reports mold.
Service Star Realty notifies owners as soon as practical of any mold issues so Service Star Realty
and/or the property owner can take the proper steps.
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When you enter into a management agreement, Service Star Realty establishes an account for you
and your property. Service Star Realty recognizes the importance of accurately collecting and
disbursing funds. The bookkeeping program used by Service Star Realty is a specialized software
designed to handle the many facets of property management and accurate record keeping, and
complies with the requirements of the Arizona Department of Real Estate.
Banking
Service Star Realty holds your account in a trust fund mandated by the state of Arizona. Service Star
Realty accounts for each owner’s funds separately in the trust account and does not co-mingle funds
with broker monies, following Department requirements mandating all accounts to maintain a positive
balance. So Service Star Realty in turn requires each property owner to be responsible to fund all
expenditures in advance of their becoming due. To better enable Service Star Realty to pay
expenditures as they become due, owner’s accounts have a required ‘minimum balance’ or
maintenance reserve. Owners can replenish these funds via check or electronic transfer.
Monthly statements
All daily bookkeeping transactions are available for you to view online on our website. While online,
you can print a statement of your choice from our site. If you have difficulty reading your monthly
statement or logging into the program, please contact your management team. We are happy to
assist you and answer your questions.
Disbursement of monthly funds
Service Star Realty disburses available rental funds to owners electronically by the 15
th
of each
month. If this day falls on the weekend, Service Star Realty issues funds on the next business day.
(Service Star Realty does not disburse funds on weekends and holidays). Service Star Realty cannot
issue owner checks unless there are sufficient funds in the owner’s account. Unless otherwise
agreed, ‘available rental funds’ are all monies over the maintenance reserve of $300 and any
additional recurring monthly expenses.
Service Star Realty distributes available owner funds via ACH direct deposit into an owner’s bank
account.
End of year procedures
At the end of each year, Service Star Realty is required to file 1099’s for income received over $600.
Please note that this amount is for “total income received,” and not the yearly total of owner
disbursements. The Internal Revenue Service dictates the “total income received” requirement.
Please note that security deposits are not included in this amount.
It is necessary that you supply Service Star Realty with the necessary Social Security/Tax ID
information so the 1099 is accurate. Service Star Realty will send the 1099 for the rent by January 31
for the previous tax year. If there is a change in your tax information such as a new trust or address,
please notify us in writing or update your contact information on your portal.
Service Star Realty also issues 1099s for disbursements to vendors for work over $600.00. Therefore,
owners do not have to issue 1099s for work completed and paid through the Service Star Realty trust
account. Owners are responsible for issuing 1099s to any vendor paid through the owner’s personal
account.
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The last statement of the year will reflect “total amounts” for income and expenses that have
transpired throughout the year, such as management fees, leasing fees, landscape, utilities, repairs
and maintenance, etc. The amounts will not reflect any funds issued through the owners personal
account. Owners can submit their last statement to their tax person along with other information for
income tax reporting. Service Star Realty does not issue statements to the owner’s tax preparers.
Billing rights summary
If you think your bill is wrong, or if you need more information about a transaction on your bill, contact
us immediately but no later than within 60 days from when the error occurred. The Federal Fair Credit
Billing Rights govern all of our practices and they require you to provide the following information so
that we can address the problem and correct the error as quickly as possible:
*Your name and managed property address.
*The dollar amount of the suspected error, and
*Describe the error and explain, if you can, why you believe there is an error. If you need more
information, describe the item you are unsure about.
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Preparing to rent the property
When prospective tenants view your vacancy, Service Star Realty wants the property to look its best
and compete with area rentals. An Annual Property Review (APR) maintenance report and rental
market survey is completed. The Service Star Realty management team will contact you to discuss
the details of your vacant property and any necessary maintenance.
Setting the rent
Supply and demand determines rent. If there are multiple rentals available in the area of your
property, it is necessary to be very competitive. If very few are “for rent” in the same area, it can make
it easier to rent the property. Markets change and Service Star Realty advises owners on the “current
rental market.”
How long will the property be vacant?
This is the most commonly asked question Service Star Realty receives from owners. There is no way
to predict how long a property will remain on the market, even in the best market conditions. However,
Service Star Realty works diligently to rent the property as quickly as possible. The most important
objective is to have “a quality tenant.”
Service Star Realty, or any other property management company, can rent properties “quickly” if they
do not have standards for obtaining good tenancy. However, bad tenants will only create more
expense and another unwanted vacancy; therefore, waiting for the “right tenant” is worth the
additional time it can take to rent the property.
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Internet/website
Service Star Realty has found that the Internet and the Service Star Realty website,
www.LeaseAZ.com as well as the MLS receives tremendous exposure. Additionally, we routinely
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market our listings on other popular websites, including Hotpads, Tulia, Zillow, Rentals.com, Craigslist
and a host of other sites.
Interoffice marketing
As a member of the Regional MLS, Service Star Realty works closely with many leasing agents.
When calling, prospective tenants quickly receive all the information, including when and how they
can see a property. With the cooperation of so many agents, your property will receive maximum
exposure!
Signage
Service Star Realty displays “For Rent” signs prominently where permitted. Signs promote calls to
our office, but they also direct people to our website where they can learn all about your property.
Video Tours
Service Star Realty has pioneered filming a 3-5 minute showing of your property, and making this
video available in our advertising.
Showings and applications
We arrange showing times for your property. When prospective tenants see the property, the
management team answers questions and distributes applications. Applications are available in the
Service Star Realty office, at the property showings, and ONLINE on our website.
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Tenant screening
Thorough screening is crucial to successful Property Management. Service Star Realty requires all
applicants to fill out a detailed application and submit it for processing/approval. A credit check is NOT
enough! Our company conducts a careful review of their criminal, eviction, work, and rental history.
All applicants must submit verifiable information on their income to show they can support the
property. Rental history or previous home ownership is carefully checked. Cross-referencing all three
areas: credit, tenant history, and income, provides the answers to qualify or disqualify prospective
applicants. If a pet is allowed on the property, the screening includes the pet (please review the
upcoming pet policies).
Cosigners
Service Star Realty normally does not accept cosigners. Service Star Realty policy is that the
applicants should have the ability to rent on their own merits. However, sometimes there are
conditions that may warrant taking a cosigner on a property.
Pets
Statistics show that more than half of all tenants have pets. By excluding pets from their property, an
owner will substantially reduce the available number of tenants – which can prolong vacancy time! As
such, Service Star Realty policy is to allow pets at all properties unless specific written instructions to
the contrary are provided.
Many tenants have or want pets. It is legal for property owners to discriminate against pets. You may
wish to do so. However, whether you have or have not decided to allow a pet in your property, the
Service Star Realty application has a place for prospective tenants to list pets and how many. It is
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important NOT to discourage full disclosure on pets while taking an application. Service Star Realty
does not place inappropriate pets in a property.
Service animals
Special note: “Service animals” for handicapped/disabled persons are NOT pets by Federal law, and
owners cannot discriminate against handicapped/disabled persons with a service animal. Fair
Housing legislation does NOT allow owners or property managers to collect deposits of any kind for
service animals.
However, Landlords can still process applicants who are handicapped or disabled on the same criteria
as other applicants: income, credit, and tenant history. If they fail to qualify in these areas, the
landlord/manager can still deny the application, handicapped or not.
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Rent and security deposits
Service Star Realty verifies that all funds have cleared prior to issuing possession to a tenant.
Service Star Realty does not allow “payments” on security deposits – we require all funds paid in full
prior to renting the property. This eliminates prospective tenants who really do NOT have the
necessary funds for renting. These funds will be held in Broker’s Trust Account on behalf of the tenant
until they complete their lease terms.
Rental/lease agreements
Once Service Star Realty receives funds, a thorough rental/lease agreement with the applicant is
completed.
If the accepted applicants are a foreign nationality and cannot read and understand the
documentation, they must supply an interpreter at their expense of legal age for signing the
rental/lease agreements. Service Star Realty will automatically pursue lease renewals unless the
owner notifies us in writing not to do so. Renewal fees are due for each written lease renewal or
monthly tenancy beyond the initial lease term.
Video documentation
A vital part of the tenancy is a detailed video taken before each tenancy, documenting the condition of
the property when they move in. Unless extenuating circumstances prevail, the Service Star Realty
team completes the video before the tenant takes possession of the property. When the tenant moves
out of the property, there is a sound basis for the security deposit refund or claim.
Maintenance addendum
Tenants immediately receive the “Service Star Realty Maintenance Addendum.” This detailed booklet
gives them additional information on how to care for the property, report repairs, maintain the
property, make timely payments, how to give proper notice to vacate, leave the property in good
condition, and more.
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Collecting rent
If Service Star Realty writes the lease, rents are due on the first day of the month and late if not
received in the Service Star Realty office by the fourth of the month.
Service Star Realty recognizes that many things can happen where it concerns rent; rent can really be
lost “in the mail”; employers can delay the tenant’s paycheck, there are real tenant emergencies, and
more. Therefore, we make a serious effort to determine why the tenant is having a problem. To
encourage timely payments Service Star Realty enables Tenants to pay their rent ONLINE on our
website. Service Star Realty can automatically draft rental funds from the Tenants bank account
each month.
Notice to pay or quit
If Service Star Realty does not receive rent by the due date, Service Star Realty prepares and
delivers a 5-day eviction notice to pay or quit, as the law allows. Service Star Realty makes every
effort to mail and post notices properly should legal action be required.
Other notices
There are other notices that may be involved with tenants. Service Star Realty serves notices as
situations warrant, such as a notice to clean up the landscape, HOA violations, a notice to enter the
property, a notice to perform survey/inspections, a notice regarding an illegal pet, illegal tenants, etc.
These tenant violations may be in the form of a letter or a legal notice form. Often these notices are
simply to correct minor tenant problems and most tenants comply.
Tenant problems
Service Star Realty has years of experience handling the myriad of tenant difficulties that can occur.
The Service Star Realty policy is to obtain good tenants, thus eliminating many tenant problems in the
future. However, even good tenants have problems. Service Star Realty treats each problem with
common sense approach, follows landlord/tenant law, and uses the appropriate documentation. If the
situation is serious, Service Star Realty contacts the owner, and works to find a solution for the
problem. One of the reasons you hired a property manager is for “peace of mind.” This is what
Service Star Realty recognizes and works to prevent legal issues from arising.
Legal action – Eviction Protection Program
As we all know, evictions can happen to any landlord no matter how well a tenant is screened.
Circumstances change in people's lives and they are not able to pay the rent. This is especially true
when people lose their job, get a divorce or have a serious injury. When a tenant cannot afford to pay
the rent, they also find it difficult to move, requiring the landlord to go through the costly procedure of
evicting the tenant.
The current economic slowdown has created a drastic increase in the number of evictions filed in
Arizona courts. At Service Star Realty, we protect our landlord clients from the high costs of an
eviction. For a small monthly fee of $10.00 per unit, this Eviction Protection Program will cover the
cost of all evictions up to $1500 of legal fees.
In the event any Renter procured by Service Star Realty under any lease shall default in the payment
of rent or shall hold over in possession for longer than the lease term stated in any such lease,
Service Star Realty shall have the right and sole discretion to institute legal proceedings for eviction,
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unlawful detainer or other civil action against such Renter, and all other persons occupying the
property, in Owner's name, place and stead. Included in this agreement is Service Star Realty
Standard Eviction Protection: Up to $1500.00 in the aggregate for all Notice And Appearance Fees,
attorney fees and legal costs to file an eviction for possession only; except that Service Star Realty
shall not be responsible for any such costs or fees in the event either (a) that such Renter shall
demand jury trial, or (b) that such Renter shall make a counterclaim against Owner.
Any recovery by Owner of attorney fees, unpaid rent, damages or other charges or expenses shall be
paid to Service Star Realty. The foregoing Eviction Protection shall only be valid while a management
agreement is in effect and while the property is being actively marketed for re-lease by Service Star
Realty. Owner represents and agrees (a) that this clause contains the complete and entire
agreement of the parties regarding the Eviction Protection being provided by Service Star Realty, (b)
that Owner shall fully cooperate in the institution, prosecution and collection of any such litigation; (c)
that this Eviction Protection plan is not an indemnity or insurance contract of any kind; (d) that Owner
waives any claims against Service Star Realty in the event Service Star Realty for any reason,
decides not to file such litigation; and (e) that Owner fully and clearly understands the terms and legal
effect of this provision.
Service Star Realty current policy for determining when to file an eviction is to file an eviction when a
tenant is past due more than 50% of a month’s rent and is at least 15 days late. If a tenant does not
pay the final month’s rent due per the terms of their lease, Service Star Realty will evaluate tenant’s
performance history and the dollar amount of their security deposit when deciding whether to file an
eviction.
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Preventative maintenance
The best approach to maintenance is “preventative maintenance.”
At the beginning of the tenancy, Service Star Realty has already started with educating the tenant by:
Completing a detailed Service Star Realty Rental Agreement, which includes a thorough outline
of what tenant responsibilities are regarding maintenance as well as owner obligations
Completing a move-in video documenting the condition of the property before the tenant takes
possession
Supplying tenants with the “Service Star Realty Maintenance Addendum,” which provides
additional instructions on how to care for the property and how to report maintenance issues.
We want the tenant to know from the beginning of their tenancy how the landlord expects them to
“care for the property.” This approach can prevent costly maintenance.
Next, we use “preventative maintenance” techniques when work is required and utilize competent
contractors. Often the minor expenditures save the most money such as doorstops, new filters,
checking appliances, testing smoke alarms, adjusting doors, window latches, deadbolts, caulking and
grouting and more. Many small repair items can prevent maintenance that is more expensive.
Consider the cost of repairs like holes behind doors, clogged heaters and air-conditioners, appliance
problems, dry rot, safety issue and more. Then of course, there are the major issues in a home such
as the roof, the exterior condition of the building, carpeting, interior and exterior paint, etc. When left to
deteriorate, it usually means the owner will have to spend more in the future.
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It is equally important to keep up with maintenance while the tenant occupies the property. Often
people think no news is good news; this can be just the opposite. Instead, “delayed news can become
very bad news.” This is why, in our tenant instructions, we require them to report maintenance issues
immediately.
The Service Star Realty management teams contact owners regarding maintenance above the
current $300 minimum that is listed in the Service Star Realty Management contract, unless the
situation is an emergency.
Over the years as fuel costs and inflation rise, Service Star Realty reserves the right to adjust the
maintenance minimum as needed to properly maintain an owner’s property.
Emergencies/disaster
Service Star Realty operates a 24/7 emergency maintenance line with trained staff to answer the
phone who can properly handle any emergency situations.
When an emergency and/or disaster strikes, Service Star Realty has policies in place for the property
and tenants. Service Star Realty notifies the property owner as soon as practical. The nature of the
emergency and/or disaster determines the action needed by Service Star Realty.
There are times when a property manager must “act” in order to prevent great financial risk to the
owner. For example, when a property is flooding, action is necessary, particularly if the property
owner is not immediately available.
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Notice to vacate
When there is a notice to vacate, the move-out procedures with tenants are as critical as when
Service Star Realty moves in a tenant. The preparation for this really began when the tenant moved in
with a detailed rental agreement, video and Maintenance Addendum. These documents communicate
the landlord’s expectations on how to leave the property when they move out.
Communication with owners and tenants
Service Star Realty notifies the owner when a tenant gives notice to vacate. Owners can assume that
Service Star Realty will automatically proceed with re-renting the property. Service Star Realty
immediately places the property on the market to rent unless the owner notifies Service Star Realty in
writing to take other measures.
Service Star Realty also responds to the tenant’s notice to vacate with a letter detailing and reminding
them of the steps to complete a successful move out. Rent is required until the end of the notice
period.
Changing the locks
Service Star Realty will always re-key the premises after a tenant vacates to limit liability.
Tenant move-out video
Service Star Realty conducts a move-out video similar to the one performed when the tenant moved
into the property. Service Star Realty records any maintenance required and discloses a list of
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damages to the vacating tenant. Digital photographs and videos taken when the tenant moves out are
compared to move-in media to document the condition of the property and support any deductions
from the security deposit.
Security deposit refunds
Proper handling of the security deposit refund is crucial. Any tenant deductions are determined in a
timely manner, and a security deposit transmittal is prepared in accordance with state laws. Law
requires that we return all security deposits with the proper accounting for any deductions within 14
business days of tenant returning possession of the property.
Collections
Once a tenant vacates our leased premises, Service Star Realty’s rent collection efforts will conclude
with the preparation of a final statement of claim sent to the last known address of the tenant. Service
Star Realty’s contractual management service does not however include debt collection after a tenant
vacates the leased premises. Within 30 days after a tenancy ends, Owners can request the collection
account to be sent to companies with expertise in debt collection, and Service Star Realty will supply
consumer collection companies with the necessary documentation needed to collect. If after 30 days
the owner has not informed us that he has engaged a collection company, at Service Star Realty’s
sole discretion, Service Star Realty may attempt to collect the debt, and will earn half of any monies
recovered for their collection efforts and legal costs.
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The following are “additional services” offered by Service Star Realty to each property owner. They
are not included in the fees for managing and/or leasing the property.
Quarterly A/C filter change and interior overview
This is a great program Service Star Realty offers to make sure the AC filters get changed at least
once a quarter and it lends Service Star Realty the opportunity to take a quick candid look at the
condition of the property. The handymen will change the filters and visually inspect the property for
cleanliness, unauthorized occupants, pets, and damages. If we notice any problems, we will issue a
ten-day notice to the tenants to correct any non-compliance. Owners can sign up for an entire year at
a time and the charge for this service is $35 a visit.
Annual Property Review (APR)
Service Star Realty maintains properties as part of their property management services. This survey
goes beyond overseeing normal maintenance. A licensed contractor will perform this inspection, and
the purpose is to check the property thoroughly each year in order to perform necessary or
preventative maintenance. Photos of the property are made available for your review, as well as an
inspection report. Cost for this service is currently $145.
The APR is generally scheduled 60-90 days prior to every lease anniversary date, to afford Service
Star Realty and the owner the opportunity to evaluate the condition of the property before a lease
renewal is negotiated. Please notify Service Star Realty if you are interested in this service.
Supervision of extraordinary maintenance
Although not always taken, Service Star Realty reserves the right to charge an hourly fee for
supervising work requiring extraordinary maintenance. The definition of extraordinary maintenance is
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as follows: rehabilitation work that exceeds $3000.00 for insurance claims, and major systems
replacements. (Examples include major tree work, vandalism, renovation, etc.)
Service Star Realty will consult with licensed contractors for bids and solutions. Then Service Star
Realty contacts the property owner for authorization and/or decision regarding the maintenance.
Real Estate services
Unless you have been referred to Service Star Realty by another real estate agency, Service Star
Realty is available to assist you in buying more investment property or selling your property when
ready, including those requiring 1031 exchanges.
A free market analysis is available at any time with no obligation. Please contact your property
management team to provide you with the information or services you need.
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It is the goal of Service Star Realty to satisfy your management needs and engage in a successful
business relationship, but some things do change over time. Owners sell properties; people give
notices. If this happens, the Service Star Realty cancellation policy is to resolve your account in a
professional, timely, and pleasant manner.
Please review the following policies for cancellation.
Written notice
Owners are advised that lease renewals are frequently negotiated with tenants during the 10
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month of a lease, and advertising for new tenants may begin as early as 60 days prior to lease
expiration. Cancellations of the management contract may be subject to any lease renewal and
new leases. For this reason, it is imperative that Owners give written notice of cancellation at
least 90 days prior to lease expiration to avoid any conflict!
The Service Star Realty policy is to give cancellation of management by certified US Mail.
If an owner sends a cancellation of management by certified US mail, Service Star Realty must
receive the notice within three business days of the date of the notice.
Notice to current tenants
Service Star Realty will notify current tenants the date Service Star Realty will no longer manage
the property and that Service Star Realty forwards all security deposits to the owner.
It is the owner’s responsibility to advise tenants where to make future rental payments and work
requests after the notice period.
Distribution of documents
Service Star Realty will supply current tenant documentation to the owner.
If the owner has employed new management, it is the owner’s responsibility to instruct them to
pick up documents, keys, and any other necessary materials at the Service Star Realty office.
Final distribution of funds
Service Star Realty will distribute funds, including security deposits, and final statements to the
owner within thirty-five days of the terminating date of management, except for monies needed for
unpaid obligations incurred during the property management term.
Service Star Realty will issue a 1099 for funds collected during the current tax year when the tax
year ends.
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We hope you have found the Service Star Realty Owner Manual informative and useful. If you feel
there is any other information Service Star Realty can provide, let us know so we can include it in the
future.
Again, we want to thank you for your business and we look forward to a successful management
relationship.