Owner FAQs

Collaborate Real Estate Group will issue an invoice to the resident for any remaining balance. If the resident fails to make the payment, the account will be referred to a third-party collection agency. As the investor, you will be responsible for covering any damage costs that exceed the security deposit to complete all necessary repairs.

In most homes are listed in a “Coming Soon” status on the website when the resident has given notice but is still residing in the home. Prospective residents can apply for the home and be approved for residency; however, they will not sign a lease until they have had an opportunity to view the home in person. Collaborate Real Estate Group does not market occupied homes.

Common damages that a resident may be responsible for include cleaning, carpet cleaning, and landscaping. It is important to note that landlords cannot charge residents for normal wear and tear.

CREG reviews the Inspection Report that was completed at the time of move-out to determine what work is needed to get the property ready for the next resident. CREG works the report to a trusted vendor to get an estimate for repairs based on this report. Once the estimate is received a determination will be made as to what is damaged and what is wear and tear. Any damages will be deducted from the Security Deposit and/or charged to the resident. Normal wear and tear repairs are the responsibility of the property owner/investor.

If the wear and tear portion of the estimate is greater than the previously agreed upon maintenance limit, we will contact you to review the assessment with you for your approval and funding. If the wear and tear estimate falls within the previously agreed upon maintenance limit, the property manager will approve the work to begin.

Most homes managed by CREG are listed as “Coming Soon,” which means they are being marketed once the current resident provides notice but has not yet vacated the home. Prospective residents can apply and pay a deposit prior to the home being available for showings. CREG has ongoing relationships with reliable vendors to promptly address any needed repairs. Homes that are noted as “Coming Soon” and vacant are professionally promoted through our website, and several 3rd party listing services including Zillow, Trulia, Hotpads and Realtor.com. Additionally, CREG performs a weekly review of marketing analytics to ensure there is adequate interest in the property, making suggestions to enhance traffic as needed.

In addition, CREG works closely with you, the property owner, to ensure timely approval of repairs and funding, if necessary. We will also make recommendations regarding rental pricing and pet policies.

CREG has also established move-in guidelines to reduce the loss of revenue due to vacancies. Homes that are pre-leased require a move-in within 7 days of the rent ready date and homes that are vacant require a move-in within 14 days (about 2 weeks) of application approval and lease signing.

Yes, every time a resident moves out, we change the locks. This practice not only safeguards the owner from potential liability but also ensures that incoming residents feel secure in their new home.

Applicants must meet specific qualifications to CREG managed homes, including:

• Age: Must be 18 years or older.
• Income & Credit:
  • Minimum FICO score of 540 and gross income at least 3 times the monthly rent.
  • No FICO score requires income of 5 times the monthly rent.
  • Guarantors must show income of 4 times the rent.
  • Recent bank statements are needed for income verification.
  • Self-employed applicants must prove business ownership and provide bank statements.
• Credit History: A credit report from Experian or TransUnion is processed. A low credit score is not an automatic disqualification, but lack of credit history may lead to a higher security deposit.
• Rental History & Criminal Screening: A national background check is conducted, considering the type and timing of any criminal history. Certain felonies may lead to automatic rejection.

Occupancy standards allow for two persons per bedroom, plus one, and may vary by local laws.

An automated email notification will be sent to you once a lease has been executed on your home.

Turnover expenses will be deducted directly from the property's operating account. Also, if applicable, the resident's security deposit may be used to reimburse the operating account for charges the resident is responsible for.

No. The security deposit is intended to cover damage caused by the residents and their guests, as well as any unpaid administrative fees or rent. CREG processes the security deposit in accordance with state law.

According to standard CREG procedures, residents must provide 30-day notice. However, this requirement may vary based on state laws. Some lease terms may require a minimum of 60 days' notice.

If proper notice is not given, residents will be responsible for paying rent for the duration specified in their lease agreement.

We are a comprehensive leasing and property management company dedicated to upholding fair housing regulations through our established policies and procedures. To mitigate liability risks, we do not permit property owners to lease their homes independently.

Absolutely, CREG adheres to the National Fair Housing Act and the Fair Credit Act, ensuring a consistent screening and application process for all properties and applicants.

Absolutely. Residents must submit a copy of their Renters Insurance and Pet Liability Insurance, if applicable, before being granted access to the property.

For properties where utilities are not supplied by the landlord or homeowners’ association, residents must present proof of utility transfer before CREG grants them access to the property.

As a client of CREG, you can rest easy knowing that you will not need to handle the review and screening of applications. CREG takes care of all the hard work for you. We adhere to the Federal Fair Housing Act when selecting applicants and utilize a trusted professional third-party vendor to assist with processing applications. By entrusting us with the entire application process, you are protected from potential fair housing claims or lawsuits.

Unfortunately, the Fair Credit Reporting Act prohibits us from disclosing personal information about an applicant. Therefore, we are unable to provide you with this information.

CREG is the entity that holds the security deposit. The funds are held in a separate account in accordance with applicable state laws. CREG assumes the risk and responsibility of managing the disposition of the security deposit when the resident vacates the property.

CREG has implemented the following rent-ready standards to ensure that our residents and owners enjoy happy homes and healthy investments. It has been our experience that properties meeting these standards lease more quickly, command higher rents, and attract better-quality residents, leading to reduced vacancies and lower turnover costs. A home is deemed rent ready once all rooms have been inspected, safety issues are resolved, any functional defects are repaired, and the home has been professionally cleaned according to the criteria outlined below:

• Safety - The property needs to adhere to local codes and regulations while prioritizing resident safety. All locks, doors, windows, lockboxes, stairs, entryways, and fire/smoke/carbon monoxide detectors should be functional and secure.
• Functionality - All appliances, heating and cooling systems, water, electric, gas, and cable connections need to be fully functional. Additionally, appliances, light fixtures, bathroom and kitchen fittings, toilets, windows, doors, blinds, shutters, and screens should all be in working condition.
• Cleanliness - The property should be completely free from dirt, stains, grime, odors, clutter, and pests. Outdoor spaces must be kept in excellent condition. All carpets, floors, floorboards, walls, appliances, and other surfaces—both inside and outside—must undergo professional cleaning.
• Cosmetics Improvements - We may suggest enhancements to your property's appearance that can significantly influence rental pricing, overall value, and the quality of life for residents. These improvements could involve eliminating or repairing scuffs, stains, and discolorations, as well as upgrading appliances, paint, fixtures, countertops, and landscaping to align with current trends.

Property turnover, often called a property “turn,” refers to the renovation process that takes place after a resident vacates a home, making it ready for the next renter.

Collaborate Real Estate Group works with industry professionals to help manage this process's complexities.

Absolutely, you have the option to decline pets at your property. However, we highly encourage all owners to permit pets in their rental homes. Pet-friendly properties typically lease about 10 days quicker and experience a 4% lower vacancy rate. Notably, at least 80% of renters are pet owners.

You can check the real-time rent collection status for your property by accessing your Owner’s Portal in AppFolio.

At CREG, we recognize that prompt and dependable rent distributions are essential for the success of your investment. Below is the Rent Collection Process:

• On the first day of each month, rent and all other applicable charges will be added to the resident's ledger.
• Rent is due on the 1st and late as of 5:00 PM on the 5th of the month.
• A Late Rent Notice will be emailed on the 6th of the month to inform residents that their rent is overdue. This notice will also indicate that a Late Fee, as stated in their lease, is now applicable. CREG will persist in contacting residents through email, text, and phone calls until the rent is paid, an eviction process begins, the balance is settled, or possession of the property is regained.
• In addition to the Late Rent Notice sent via email, a Rent Demand Notice will be sent via email, mailed, and posted on the door, as per legal obligations by market. The resident will be responsible for settling the balance by the date specified in the Rent Demand Notice. The resident must settle the balance by the specified deadline. If settlement is not made, CREG will begin Eviction proceedings. eviction proceedings.

Collaborate Real Estate Group starts the renewal process 120 days before your home's expiration month. Part of the renewal process is to complete a home inspection to ensure the home has been well maintained and the resident complies with lease standards. As the Owner, you will receive an automated email notification once the renewal lease has been finalized.

To update your ACH account, please visit your CREG/AppFolio Owner Portal and navigate to Account Settings.

• Visit your CREG/AppFolio Owner Portal and go to the Documents tab.
• Click “Generate Report” and generate custom reporting through our most popular reports such as cash flow and income statements.

To initiate the process, a CREG will need to request the required amount through our internal system. After the request is submitted, you will find it displayed in the center of the main dashboard of your Owner Portal. By clicking "approve," you will be able to enter your banking details, which will be securely saved for future transactions. Transactions are free when using ACH from your checking or savings account. Using a credit or debit card will incur a 2.75% fee pass-through of the third party.

The cash balance displayed at the top of the report reflects the actual cash balance recorded for your property as of the specified date, including any contracted reserves. The cash balance shown near the bottom of the report indicates the actual cash balance for your property as of the listed date, prior to any distributions. You can always expect the cash balance at the top of this report to align with the cash balance at the bottom of your previous earnings report, allowing you to track cash flow from one report to the next.

The minimum cash balance refers to the reserved amount specified in your Property Management Agreement. This figure remains consistent across all reports, as it represents the minimum cash balance maintained in your account. This reserve enables CREG to manage your property more effectively. It is utilized when an invoice arrives after a rent distribution has been completed, eliminating the need to request additional funds from the owner.

The Total Distribution Amount is calculated using the following formula: Cash Balance at the top of your report + Money In - Money Out.

Owner’s Statements are distributed only on the first distribution of each month, which occurs on or before the 10th.

Our team will be ready to start managing your property within 24 hours after the management agreement has been executed.

A required reserve is a customary practice in the industry that enables CREG to manage your home more effectively. Reserves are utilized when an invoice arrives after a rent distribution has already been sent to the owner, eliminating the need to request additional funds from the owner.

You will find copies of the invoices included in the email that accompanies your earnings report.

The Repairs & Maintenance Limit refers to the monetary threshold at which CREG will contact you, the Owner, for necessary approval on a repair. If a repair exceeds this approval limit and is not classified as an immediate emergency, CREG will need the owner's consent. Conversely, if the repair falls below the approval limit, CREG will proceed without seeking owner approval. This limit is in place to help CREG efficiently manage your property and ensure a pleasant environment for your residents.

The best way to contact your portfolio management team is through the CREG portal messaging or by emailing info@collabreg.com. Alternatively, you can call 901-343-6964 for assistance.

Many of our investors often inquire about the necessity of a Certificate of Insurance. When a property manager is engaged, they undertake various services on behalf of the investor, which involves certain risks and liabilities. Typically, property managers carry Errors and Omissions Insurance and General Liability Insurance, but these policies only safeguard them against claims related to their services; they do not provide coverage for claims concerning the property itself.

ONLINE REGISTRATION

• Within the next 24-48 hours, you will receive a link to register online.
• After you have completed your registration, a CREG team member will contact you to discuss your property or properties in detail.

COMMENCEMENT OF THE PROPERTY MANAGEMENT AGREEMENT

• Your PMA will become effective once CREG receives the reserve payment and a copy of the Certificate of Insurance.

PROPERTY INSPECTION

• Within 3 business days of the commencement of the PMA, CREG will schedule an inspection of your property (ies) to ensure that they are in good condition and meet CREG’s Rent-Ready Standards.
• If the property meets Rent-Ready Standards, CREG will begin the process of Leasing your property.

PREPARING THE HOME

• If the home is not in a Rent-Ready status, it must be made ready for move-in before advertising and showing your home. Our team of professionals will prepare an estimate of the repairs needed within one week of the initial property inspection. Once you approve the estimate and provide the funding work on the home will start. We estimate 10-14 days (about 2 weeks) for completion, depending on the scope of work required.

LEASING

• Upon completion of the work, a CREG team member will perform a final Rent-Ready Inspection. If the home passes the Rent-Ready Inspection, the home will be activated for leasing and the process of finding a qualified resident begins.

State and local taxes are treated as pass-throughs since the service provider submits what is collected. As a result, these amounts are not included in the 1099-MISC income total and do not appear in the income or expense sections of the Year-end Tax Statement. For more details, refer to page 4 under “State or local sales taxes” at https://www.irs.gov/pub/irs-pdf/i1099msc.pdf.

Your 1099-MISC and year-end tax statement will be available on your CREG portal by February 15. The 1099-MISC will be mailed to you and submitted to the IRS by January 31. CREG will notify you via email once all tax documents are accessible in your portal.

CREG serves as an agent for the property owner. “Prepaid” rent is collected in the current month and allocated to a future month. According to the law, CREG must report all income received by December 31st, as income for that calendar year. Any income deposited into the operating account on behalf of the owner before midnight on January 1 of the new year must be reported as income for the previous year. For further details, please visit https://www.irs.gov/taxtopics/tc414.

Depending on how much a resident has paid upfront, the amount of "prepaid" rent could surpass an amount equal to a single month's rent. There is no limit to the amount a resident can pay in advance. The following year’s rent will be adjusted as the “prepaid” rent will be subtracted from the total rent amount.

Regardless of when the rent is received, CREG applies management fees monthly. This can lead to situations where residents "prepay" rent in the previous year, but we do not charge management fees until the current year. As a result, the total income (before deducting management fees) will be reflected on the prior year's 1099-MISC.

The primary reason for this discrepancy is related to "prepaid rent," which will not be reflected in the monthly earnings reports.

1. One reason could be that your entity has multiple owners sharing distributions. CREG allocates the income based on your distribution percentage for the 1099-MISC, while the year-end statement reflects the total income for the property.
2. Another possibility is having multiple properties under a single entity. To align with the 1099-MISC amount, you will need to sum the total income from each property.

If you notice any inaccuracies, please contact one of our team members immediately or send us a message through your CREG Owner’s Portal. Correcting this inconsistency will require an updated W-9. Blank W-9 forms are available through the IRS website. Once an updated W-9 Form is received, CREG will forward a corrected 1099-MISC to you and the IRS.

CREG operates as an agent for the owner. If any income is deposited into the operating account on the owner's behalf, we are required to report that income. While you can deduct certain expenses from your year-end statement, CREG does not provide professional tax advice.We recommend that you consult a CPA for guidance on the best way to file your taxes. For additional information, please visit https://www.irs.gov/taxtopics/tc414.

Turnover or move-out amounts might appear under the income section because the resident's security deposit is transferred to your property's operating account, which is then regarded as income. For further details, please visit https://www.irs.gov/taxtopics/tc414.

If you have not received your 1099-MISC form, we may lack your tax information on file (such as W9) or your total income for the year did not surpass $600. Please reach out to info@collabreg.com with the completed document at your earliest convenience so we can issue your 1099-MISC.

In some situations, we are obligated to withhold a portion of your gross income for the IRS. The most common reasons for this withholding include:

• You have not submitted a W-9, or the W-9 you provided is incomplete.

Changing your home address may affect your tax obligations. To ensure your tax information remains accurate, please submit a corrected W9 form to CREG with your new address.

The 1099-MISC will be mailed to you and uploaded to your CREG portal. The year-end statement will only be uploaded to your CREG portal. All documents will be available by February 15th.

Changing your home address can affect your tax liability. To ensure your tax details are accurate, please submit a corrected W-9 form to CREG to update your address. We will revise the address on the 1099-MISC form only if the owner has moved out of state. For in-state address changes, this correction is not necessary, as income will still be reported using the recipient's Tax ID. Upon request, CREG can send a copy of the 1099-MISC to the new address of the recipient.