Cherokee Real Estate Company
Property Management Services
(Why you should consider us)

Chances are you have never heard of the Texas Property Code. Should you have? Well, if you own rental property you should know about it. Unfortunately the state of Texas has no mechanism for communicating the Code to people who own or manage rent property. What is the significance of the Code? If you own rent property and fail to comply with the Code, you are at risk of being in violation of the law or losing a lawsuit with a tenant. It could mean the difference between wining or losing in an eviction process or other legal action with a tenant. An ounce of prevention is indeed worth a pound of cure.

Cherokee Real Estate Company, Inc. oversees approximately 70 residential and commercial rental properties and it is our business to stay abreast of the laws that govern the leasing of real estate. We have been managing property since 1991 and have the necessary tools to do a competent job of overseeing rental property.

Cherokee Real Estate Company, Inc.
Property Management Practices and Policies

1. The fee for managing property is ten (10) percent of the gross monthly rent. There are no finders fees unless we are asked to simply procure a tenant without managing the property

2. The property management fee is based on actual rents collected. When there is no rent revenue there is no fee.

3. The company will show the property and procure and screen all tenant prospects. Prospects are required to fill out an application. The information on the application is verified to the extent the company believes necessary. Any criteria used are applied under state and federal housing guidelines.

4. All lessees are put on a lease and security deposit agreement. The minimum lease term acceptable is six months; the maximum is twelve. Leases may be renewed at the end of the lease term or they simply become month-to-month leases.

5. Forfeited security deposits are the property of the owner.

6. All unanticipated maintenance expenses, as well as expenses for normal wear and tear are borne by the owner except where the tenant is responsible for the maintenance problem or damage caused by the tenant. This does not include yard work, where a detached house is involved; nor does it include keeping the interior of the home neat and clean. These activities are the responsibility of the lessee. At the request of the property owner, variations to this standard can be incorporated into the lease.

7. The company will advertise the property for lease and deduct expenses for same from rent proceeds.

8. The company will see that repairs not the responsibility of the lessee are taken care of and deducted from rent proceeds. If a major repair expense appears necessary the owner will be consulted prior to proceeding with the work. The company has no dollar threshold it uses when deciding to consult with an owner. A case by case judgment is made; however the owner may wish to establish a dollar repair amount that triggers a call to the property owner prior to beginning a repair.

9. The company retains all security deposits in a non-interest bearing trust account and refunds them to the vacating lessees if the property has been left in the same condition in which it was taken, normal wear and tear excepted. There may be instances where partial deposit refunds are made. All rent revenues are also deposited into this account. The company retains security deposits in a trust account for three reasons:
   • security deposits, by law, may not be co-mingled with company funds.
   • to serve as a cushion for expenses incurred by the company in managing the property.
   • to avoid a situation where a property owner would refuse to refund a deposit where it should rightfully be returned to the lessee.

10. After the first of the month, after collecting all rents owed, the owner is sent a rendering of all income and expenses along with a check of net proceeds to the owner. Late payment fees are also delivered to the owner. This rendering is acceptable for tax purposes.

11. If an owner has any special requirements of a lessee they will be incorporated into the lease so long as they do not violate federal, state or local statutes dealing with fair housing or any other pertinent laws. It is recommended that units not permit pets (other than assisted living animals) nor smoking.

12. The Texas Property Code requires the installation of functioning smoke detectors, keyless locking devices in all access doors, stops on sliding doors and peep holes in doors lacking glass. There may be other statutory requirements. The company will only manage property that complies with the Code.

13. Federal law requires the disclosure of any knowledge of lead-based paint in any kind of residential dwelling constructed prior to 1978 and the distribution of literature covering the known hazards of lead-based paint. The company has the necessary forms and uses them when appropriate.

14. The company adheres to the letter and spirit of all fair housing statutes.

15. If the landlord so desires, the company will enter into a property management agreement.

Click here to go to our site of available properties and an explanation of rental policies for prospective tenants.