Commerical Owner Questions & Concerns
ESQPMG utilizes the latest in advanced technology communication and accounting systems so we can provide our commercial clients and tenants with the best available, most efficient, and effective service available in our marketplace. We use the number #1 property management and accounting software in North America called AppFolio Property Manager – NASDAQ: APPF.
How does ESQPMG screen commercial tenant applicants?
ESQPMG utilizes proprietary AppFolio software to investigate and prepare a report which evaluates credit history, past background issues along with a comprehensive business background check. We collaborate with our owner/clients on each step of the vetting process including individual and business related financials. We will not be satisfied with a commercial tenant applicant until our client is.
Who signs the commercial lease agreement?
ESQPMG and the owner decide who signs the lease as the landlord – either as an agent for the owner or the owner themselves depending on the owner preference. The owner will receive a copy of the fully executed lease and a copy will be retained in the owner’s file permanently stored on a server with our cloud-based accounting system.
Who chooses the commercial tenant?
ESQPMG and the owner collectively select the most qualified tenant.
Who decides maintenance cost controls? What about emergencies?
If maintenance issues arise ESQPMG will delegate repairs up to $1,000 without consent of the owner based on our experience. If the repair is over $1,000 the owner will be contacted and ESQPMG will obtain bids before a decision is made regarding the repair. In the event of an emergency all attempts to contact the owner will be made, however, to prevent injury to person or property an emergency repair will be made to mitigate damages as soon as reasonably possible.
Who holds the Commercial Tenant Security Deposit during the tenancy?
ESQPMG holds the security deposit in a separate trust account as mandated by law. This process is designed to help prevent potential problems for owners who sometimes fail to maintain the proper balances in their security deposit trust accounts.
Who returns the Commercial Tenant security deposit and when?
The California Civil Code 1950.7 dictates the California law regarding requirements and returns of security deposits. ESQPMG will follow the letter of the law with regard to tenant rights, landlord rights, landlord obligations, and course of conduct. There are limited restrictions against landlords demanding large security deposits – basically whatever the market will bear is the limit. California Civil Code Section 1950.7;.
What happens if the tenant is late with rent or doesn’t pay rent?
If a tenant hasn’t paid by the 3rd call, an email notification, and a written letter via US mail. There is also a late fee charged at this time of $_____________ and higher $______________for subsequent late fees. California Code of Civil Procedure Section 1161(2)-(4). If the tenant doesn’t respond with a payment or a valid, legal excuse by the 5th of the month, a three-day notice to pay or vacate will be issued and the eviction process will begin. ESQPMG will also notify the tenant that ESQPMG intends to report the late payment to a national credit bureau. ESQPMG intends to report negative credit information to a credit bureau and will disclose this policy to the tenant. ESQPMG will also notify the tenant of its intent before or within 30 days after reporting the negative payment history. California Code of Civil Procedure Section 1161(2)-(4); California Civil Procedure Section 1785.26.
Does ESQPMG provide a property condition report before commercial tenant move-in and after the tenant vacated?
Yes, ESQPMG provides a pre-tenancy condition report, and a post-tenancy condition report, complete with photos and damage description (if any). We save each and every photo, video in a DropBox folder saved on the cloud for an accurate record of the condition of the property.
What if the commercial tenant or tenant guests causes damage?
If damage to the property can be proved against the tenant or their guests, the owner is within their rights to withhold the cost to repair and/or replace the damage from the tenant’s security deposit. ESQPMG includes language that a commercial tenant must maintain ‘and’ surrender the leased premises in good condition – which is documented at the beginning of the leasehold by photographs, videos and checklists.
What happens during an emergency condition?
ESQPMG is on call 24-hours for emergencies. During business hours ESQPMG will send a vendor out immediately. If after hours the tenant’s call will go to a 24-hour call service. After assessing the emergency condition action will be taken either immediately or early the next morning if not life threatening.
What happens when major work is required on the property?
ESQPMG will collaborate with a commercial owner on any work that is necessary to re-lease a commercial unit.
Does ESQPMG obtain more than one bid for work?
ESQPMG obtains competitive bids for all work, unless it is minor maintenance under $1,000. Excessive requests by owners for more than three bids for work will result in a service charge for ESQPMG’s time in obtaining the bids. ESQPMG’s best judgment will be used during these situations and sometimes less than three bids will be obtained if it is determined that the bids received and fair and competitive for the work required.
Does ESQPMG inspect completed work?
Yes. However, some landscaping projects, minor leaks, and other minor repairs will not be inspected if the contractor is reputable and provides digital photographs of the work performed. These small projects will typically be inspected when ESQPMG is getting the property ready to market the property for rent and/or showing to prospective tenants.
Does the owner get copies of receipts for work completed?
Yes. All receipts and invoices will be included in the monthly invoices and/ or reports sent to owner. A copy will also be included in the owner’s file permanently stored on a server with our dynamic accounting system.
Who determines the rental rate?
ESQPMG determines the “present” going market rental rate based on comparable rentals in the surrounding commercial marketplace. ESQPMG will consult with the owner to collaborate and together determine a lease price to advertise. When the rental rate is competitive there will be many applicants and a quick rental agreement. If not, the property may sit for a while. ESQPMG will recommend to the owner to reduce the advertised rate if the property is not leasing.
What forms does a commercial owner need to fill out to get started?
Once the owner notifies ESQPMG of their desire to engage our services we will provide the owner with a Property Management Agreement to get started.
Does ESQPMG require owners to maintain a balance in their accounts for maintenance charges or miscellaneous expenses?
Yes. ESQPMG requires a $1,000 balance in the owner’s account to pay for minor maintenance and miscellaneous expenses.