FAQs for Property OwnersFAQs for Property Owners

General Questions

What do you mean when you say "Full Service Property Manager"
What areas do you service?
What other types of properties DON'T you manage?
My property has a pool. Is that a problem?
Ok, I'm interested, what do I do now?

Leasing Your Property

How quickly can you lease my property
How much will my property rent for?
What steps do you take to lease my property?

Client Services

What are your Fees?
When will I receive my funds each month?
Will I ever be contacted by Tenants, City, Neighbors, Homeowners Associations, etc.?
As a client, if I ever have a problem or question, whom do I contact?
I am currently having my property managed by a company who is not meeting my needs and I need to make a change. However, I'm not very comfortable doing this. What should I do?

Real Estate Investing

You claim that real estate investing has great returns, but my rent barely covers the mortgage payment. And that's assuming full occupancy, which is unlikely! How can this be such a good deal?
Can Ernst & Haas help me locate and purchase investment property?
What happens if I want to sell my property?
What is a 1031 exchange and how does it work?
Can you tell me how much my property is worth?
Do you provide any investment advisory services?

Maintenance, Inspections, & Insurance

How much maintenance should I expect on my property?
Do you get my approval before ordering maintenance work?
Do you recommend a Home Warranty for my Property?
I've heard that Ernst & Haas does Interior Inspections. What does that accomplish?
How much insurance coverage do I need?

What do you mean when you say "Full Service Property Manager"?

Ernst & Haas handles all aspects of managing your property. This means that when there's a crisis we handle it - no matter what it is. We also do the little things like service your mortgage, deal with your HOA, and process your mail.

What areas do you service?

Ernst & Haas serves Long Beach, Lakewood, Cerritos, and Bellflower.

What other types of properties DON'T you manage?

Ernst & Haas primarily deals with the management of residential and commercial units. We are not able to manage Home Owner Associations, Vacation rentals, mobile homes, and some types of condominiums.

My property has a pool. Is that a problem?

While pools have reputations of being high maintenance and low return items, if managed correctly they can add to the value of your investment. We strongly recommend that all pools have safety fences and that a monthly pool service be furnished to the resident.

Ok, I'm interested, what do I do now?

For more information on our services or to schedule an appointment you can Request a Management Information Package or:
We'll send you a Management Agreement and/or schedule a "no obligation" appointment to view your property so that you can meet us face to face and get our first hand evaluation of your home.

How quickly can you lease my property

Answering this question is like trying to predict the stock market. We've seen the same home rent in several days during one vacancy and then take several weeks during the next. Many factors come into play including location, time of year, price, quality of the applicants, and just being in the right place at the right time. We hate vacant properties but have found that patience wins out over panic every time. Finding a tenant is easy but finding the right tenant is an exercise in persistence and sticking to sound principles.

How much will my property rent for?

Often landlords will set rents depending on how much they need to cover their mortgage, on how much they want, or on what they heard another home is getting. Using such methods almost always creates problems. Arriving at "just the right rent" (not too high, not too low) can be a complicated and difficult process that takes many factors into account. This is one of those areas where there is "no substitute for experience".

Request a free, no obligation, Rent Analysis on your property at:

What steps do you take to lease my property?

There are many ways to lease a home - most of which don't work (like open houses!). Having leased 5,000+ units over the years we employ the things which do work including print advertising, post signs, bootleg signs, referral networks, the internet, and much more.

What are your management fees?

Ernst & Haas' fee is 5-7% of collected Income depending of the size and type of property. These fees cover every service we offer. We hate being ambushed by hidden or "nickel and dime" fees and we don't treat our clients that way. View our Schedule of Fees

When will I receive my funds each month?

Our Firm follows a traditional accounting cycle by collecting rents at the beginning of each month, paying expenses during the fiscal month, and closing out and issuing reports and disbursements at the end of the month. It normally takes about 5 days to compile reports, copies of invoices/correspondence and disbursement checks. There is no mandatory hold period or required reserves. You may request funds be sent to you at anytime during the month.

Will I ever be contacted by tenants, city, neighbors, Homeowners Associations, etc.?

No. As a full service management firm, Ernst & Haas handles all communications concerning your property. In the event that someone tracks you down - refer them to us and we'll take it from there.

As a client, if I ever have a problem or question, whom do I contact?

As an Ernst & Haas client you will have your own personal Property Supervisor who will oversee all aspects of managing your property. Whenever you have a question, you just call, e-mail, or fax your manager and we will promptly respond. Contact our Management Team

I am currently having my property managed by a company who is not meeting my needs and I need to make a change. However, I'm not very comfortable doing this. What should I do?

There are many good property management firms (just as there are many bad ones) and we're not necessarily recommending that you change. However, if you have differences in personality, investment philosophy, or performance expectations with your current property manager you may want to consider a switch. If this is uncomfortable or just a hassle; Ernst & Haas can handle the whole process for you.

You claim that real estate investing has great returns, but my rent barely covers the mortgage payment. And that's assuming full occupancy, which is unlikely! How can this be such a good deal?

Rent is only one component of figuring the return on your real estate investment (and it may not even be the most important). You must also consider:

• Appreciation - Besides being a good hedge against inflation, real estate usually appreciates over the long term. For example, in the years 2004-2008 area real estate homes appreciated by about 4%. When you consider that most properties are mortgaged, a 4% appreciation can be great. For example, if you put $60,000 down on a $300,000 home which then appreciates by 4%, your return on appreciation alone is 100%!
• Tax Savings (State and Federal) - Remember, with an investment property all costs are deductible including fees, maintenance, and insurance. In addition, you may depreciate the cost of the home over 27.5 years. Depending on your tax bracket, these savings can substantially add to your return.
• Future Rent Increases - Typically, as the value of your property rises so does the rent. With your mortgage payment remaining fixed, rising rents will increase your return over the life of the investment.
• Reduction of Principal - Part of your mortgage payment each month goes to reduce your principal. With a rental property, your tenants are, in essence, paying off your mortgage.
• Leverage - Real estate may be the only investment where you can borrow most of its value. In a rising market this leverage will multiply your returns. However, it does not come without a cost in the form of a higher mortgage payment which may temporarily hamper cash flows.

Can Ernst & Haas help me locate and purchase investment property?

Yes. Far and away, the single most important step in a successful real estate investment is the purchase. Not even the best property manager can overcome a poor purchase decision. Over the years, Ernst & Haas has purchased various types of properties for our clients and we know what to look for in an investment property. And you will know what the true rent will be on each property so you can make a sound business decision.

What happens if I want to sell my property?

Obviously we are strong believers in real estate investing, especially given the current market's upside potential. However, in the event that you need to sell we refer you to several Realtors with strong performance records and then work with them closely to make sure that all aspects of the sale are fully coordinated. Before selling you should consider a 1031 exchange (see below).

What is a 1031 exchange and how does it work?

Due to the burdensome tax consequences of selling we also strongly suggest that our clients consider a tax-deferred 1031 exchange as an alternative to selling. A 1031 exchange is a great investment tool that allows you to sell one property and purchase another while paying no taxes. More details on 1031 Exchanges

Can you tell me how much my property is worth?

Property Appreciation is a critical piece of your investment return and is too often overlooked. One of the services we provide is a comparative property valuation for our clients.

Do you provide any investment advisory services?

One criticism of Property Management Firms is that they are little more than "glorified rent collectors". We know that in order for us to prosper, our clients must prosper also and we recognize the importance of adding value to your real estate investment. One way we do this is by offering timely and accurate information and advice. We feel like we know the market and more importantly know about the little things that really make all the difference. We regularly pass this knowledge on to our clients - often on a personalized and individual basis. And don't worry - there's no extra charge!

How much maintenance should I expect on my property?

This is another one of those "it depends" questions with many factors coming into play. However, over the life of the property, maintenance costs should usually average between 8-12% of the rents. Obviously newer properties with higher grade materials (block fences, tile roofs, etc.) are going to have much lower maintenance costs while older homes' costs may be higher. And of course, the quality of the tenant plays a major role in keeping costs down.

Do you get my approval before ordering maintenance work?

Our Maintenance Coordinator closely scrutinizes all maintenance requests and takes great care to minimize your costs. In the event where the cost of a repair is expected to exceed the stated limit (generally $200) you will be contacted for your pre-approval.

Do you recommend a Home Warranty for my Property?

Home warranties cover repair and/or replacement of major mechanical systems and appliances at your property for an annual premium ranging from $300-$400. This takes a lot of the unpredictability out of maintenance costs.

I've heard that Ernst & Haas does Interior Inspections. What does that accomplish?

The interior inspection is one of the most valuable services we offer. We do a formal and comprehensive interior inspection of every home we manage at least once annually. During this process our inspector checks to make sure that the residents are abiding by the lease and that there are no serious threats to the value of the property. He will check for such things as unauthorized pets, residents, maintenance issues, and hazardous conditions. Since we implemented this formal inspection program in 2002, we've identified and eliminated several potentially dangerous situations that could have resulted in injury and even death - followed of course by lawsuits.

How much insurance coverage do I need?

We require that our clients have a minimum of $300,000 in property liability coverage. Anything less is just too risky.