Two Management Plans
Two Types of Property Management Plan
- NVWM Realty Homeowner Maintenance Plan
This is our traditional management program. NVWM Realty acts as the local contact in Las Vegas on behalf of homeowners, and therefore are able to immediately address any requests or issues. Services included in the program include leasing, responding to repair requests, resolving tenant complaint issues, corresponding with homeowner associations and home inspections. Under this plan, we collect management fees based on a percentage of the rental income. No management fees will be collected when the house is vacant.
- 3JM All-Inclusive Property Management Program
Under the terms of this program, the homeowner shall agree to authorize 3JM to act as the 2nd Landlord. The investor will receive a pre-determined fixed amount of rent each month. 3JM will accept all risks on behalf of the investor regarding potential repairs or uncollected rent for the property. 3JM profits from the difference in rent. The 3JM All-Inclusive Management Program is only available to homes that meet our requirements. Not all homes will be qualified through this Management Program.
- Comparison Chart
| 3JM | NVWM Realty | Notes | |
| Description | 3JM acts as 2nd Landlord on behalf of the Homeowner | NVWM Realty acts on behalf of the Homeowner to correspond with Tenants | 3JM will not collect any additional fees from the Homeowner; will operate as a sublease |
| Difference in Income | 3JM collects the difference in rent | NVWM Realty collects a management fee | NVWM Realty collects a management fee, like standard Property Management offices |
| Vacancy | 3JM still pays rent to investors for vacant properties | NVWM Realty will not collect management fees on properties that have been vacant for the entire month | If a Tenant does not pay rent, but has been occupying the property for over 5 days or more, the Homeowner will still be required to pay the management fee for the entire month. |
| Leasing Fee | None | $600 per Lease
(includes $300 for listing fee and $300 to the agent that procures the Tenant) |
3JM selects the Tenant on behalf of the investor. NVWM Realty presents all Tenant applications to Homeowners for Homeowners to select the Tenant. |
| Management Fee | None | Fee is collected based on a percentage of the rent; No management fees will be collected on vacant homes. | Fees are collected, regardless of the size or age of the property. |
| Repair Costs | $550/year (Under 3JM Home Warranty). No additional costs to Homeowner. | Repair Authorization Plan
$550/ year |
|
| Move-out Cleaning | Included with the 3JM All-inclusive Management Program. No additional costs to Homeowner. | When Tenant’s security deposit is insufficient, Homeowner shall be liable for the fee. | Cleaning and repairs may possibly lead to damage in appliances (i.e. replacing dishwasher, faucets, etc.) |
| Disputes | 3JM will resolve all issues. No additional costs to meownerHomeowner. | Most disputes result from uncollected rent. In the event of an eviction, Homeowner will be liable to pay court related fees, moving fees, storage fees, etc. If the Homeowner chooses to pursue to collect the unpaid rent, attorney representation will be recommended. |
NVWM Realty vs. Other Management Companies
NVWM Realty developed its own eviction program. The cost of each eviction is $500.00, which is less than most management companies and/or attorneys.
NVWM Realty will collect a fixed amount of management fee each month, based on a percentage of the rental income: The year or size of the house is not considered, and there will be no additional fees.
- NVWM Realty is a full-time licensed Property Management Company consisting of its own Property Management team, and NOT just a side job for real estate agents.
- Investors may choose between the NVWM Realty’s Traditional Property Management Program or 3JM’s All-inclusive Property Management Program.
Pros and Cons:
NVWM Realty Home Maintenance Plan
| Pros | Cons |
| Landlord has the option to select the Tenant. Good quality Tenants reduce the wear and tear of the home | Landlord shall bear any and all consequences caused by a bad Tenants (i.e. uncollected rent, eviction, etc.) |
| The rate of return with this program is higher than the 3JM’s All-Inclusive program. | No rent will be collected when the house is vacant |
| Repair costs will be within expected range. Most fees will be covered under the Home Warranty. | |
| All properties will qualify under this Program. |
3JM All-Inclusive Property Management Program
| Pros | Cons |
| Landlord does not need to worry about no rent collected on vacant homes | In comparing the two types of Management programs, NVWM Realty’s Traditional Property Management program is able to achieve a higher return |
| Landlord does not need to worry about any repair issues | Not all homes will qualify for this program. An investor may not be able to get his expected rate of return under this program due to the purchase price and location of the property |
| Because the income is fixed, the Landlord is able have a better vision of their finances |
Potential Risks
Under the 3JM program, 3JM accepts the risk of any potential vacancies, repairs, tenant complaints, etc. Not every incident will be reported to the Homeowner. The Homeowner will receive an annual report of property related events that have occurred during that year. 3JM guarantees a fixed income for the Homeowner and requests all Homeowners to purchase a Homeowner policy for investors that includes coverage for fire, theft and litigation.
Under the NVWM Realty Plan, the Homeowner will carry additional risks aside from repairs.
Note:
Property taxes and homeowner’s insurance are paid by the Homeowner.