Owner Information

Frequently Asked Questions For Property Owners

Why work with a NARPM property manager?

NARPM® property managers have heightened expertise and industry knowledge to assist them in doing the best possible job. They are real estate professionals who know first-hand the unique challenges of managing rental property in today’s constantly changing economic and legislative environment. And they know how to manage those challenges to everyone’s benefit. They can maximize rents and income for you; and they will manage the property efficiently, professionally and economically.

A NARPM® member stands apart from other property managers and landlords. Unlike many of them, NARPM® members:

  • Have access to numerous educational opportunities.
  • Adhere to the highest Standards of Professionalism and Code of Ethics.
  • Know the landlord/tenant laws for your city, state and federal governments.
  • Know rent values and vacancy factors.
  • Have rental applications and consistent screening policies to meet legal obligations.
  • Perform thorough move-in and move-out property evaluations.
  • Are personally familiar with reputable painters, electricians, roofers, chimney cleaners, carpenters, landscapers, furnace and appliance repairmen, and other maintenance professionals.
  • Are able to effectively negotiate with tenants, handle difficult issues and enforce the terms of the rental agreement.
  • Have the ability to recover NSF checks, evict tenants and collect bad debts.

Your rental property is a very valuable asset. Entrust it to someone that can help you maximize your investment and minimize your headaches!
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How do I know if I'm getting a good tenant?

Tenant screening is done by a NARPM affiliate company named Moco-Inc, out of Seattle. They do a thorough credit check, national background check, employment and residence verification for every adult who will be living in the house. Their recommendation on whether to accept or not accept an applicant is used to make our final decision.
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What happens if the tenant doesn't pay the rent?

We follow a strict procedure which includes legal notice of contract breach, personal contact with the tenant in an effort to work things out and ultimately a court hearing, judgment and eviction if necessary. We take all steps possible to resolve any rent payment issues without legal action. If it becomes clear that the tenant is unable or unwilling to pay any more rent, you will be notified to discuss options for removing them from your property.
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When will I receive my disbursement check?

Rents are due in our office on the first of each month. Our leases specify that if rent is not received by the third of the month, a late fee is assessed. In order to avoid violating trust accounting laws, we need to wait until rent checks clear before we can send payment to you.

Owner disbursement checks are mailed or deposited on or before the 10th of the month. We email or mail owner statements mid month, and you may also access your Owner Portal 24/7 on our website view your monthly statements.
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Who collects the rent?

Lighthouse Cove Property Management collects all rental payments from tenants, and then uses these funds to manage the monthly operations of your property. Any residual income remaining is dispersed to your account.
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What happens to the tenant's security deposit?

All security deposits are placed in a separate escrow account at a FDIC insured banking institution where they remain until the tenant moves out. Deposits minus any damage noted are refunded within 14 days of the end of the tenancy as required by Washington State Landlord Tenant Law.
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Who pays the recurring monthly bills?

LCPM can make any or all recurring payments for you such as your HOA fee, lawn maintenance contract, pest control contract, etc. During a vacancy we will pay utility bills. However, we do not make mortgage or insurance payments.
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Am I informed of all repairs you make on my property?

Our standard management agreement includes emergency service consent as well as authorization of non-emergency repairs up to $300 dollars. For non-emergency repairs estimated to exceed this threshold, no work is initiated without your approval. However, we need to keep in mind that WA State Landlord Tenant Law provides us with specific timelines on repairs being done, so time is of the essence when dealing with repairs at your property.
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How do I know the repair people will do quality work?

LCPM utilizes a large network of licensed and bonded local contractors, most of which have been doing work for us for many years. We are experts in finding you the best price for the job, and require all our third party vendors to have the highest level of professionalism and quality.
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How often will my home be inspected?

At the beginning of each new tenancy, a 17 page move-in inspection is completed which provides LCPM and tenants with a detailed summary of the condition of your home. Throughout the tenancy our team will conduct general exterior and interior inspections. Upon vacating, the same initial report is used to record the condition that the property was left in. Any discrepancies that do not fall under normal wear and tear are rectified at the tenants’ expense.
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I want to sell my property; can you list it for me?

LCPM’s primary focus is managing residential property. In the event you have made the decision to sell, we have strategic partnerships with local real estate agents and will refer one to you. Please email, fax or call us for further information.
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What types of rental properties do you manage?

We specialize in residential homes and multi-family housing throughout Kitsap County.
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What areas do you handle?

Our Property Management service area includes Kingston, Suquamish, Poulsbo, Silverdale, Bremerton, Port Orchard and Gorst. We do not generally go past these boundaries as we have found it too far to go to efficiently manage your property.
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What services do you provide?

LCPM is a full service management company. We handle everything pertaining to your rental property. We assess rent amounts, we coordinate repairs, place ads, meet and screen prospective tenants, place a tenant in the home, provide a monthly statement and surplus check to the owner, annual tax statements and maintenance inspections. We also provide emergency repair service and internet advertising including interior and exterior pictures of your rental home.
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How much will my house rent for?

We are asked this question more than any other by new owner prospects. Of course it depends on a lot of factors.

The more expensive your home, the lower the ratio of sales to rent value. For example, a $240,000 three bedroom home may rent for $1000 to $1300 per month depending on the neighborhood, the competition and the condition, while a $340,000 home may only rent for $1400 to $1700. This is a very generalized range but will in fact hold true in most instances.

Sales values raced past rent values in the mid to late 90's in Kitsap County. Many owners who have purchased in the past 8 years, and made a small down payment, cannot lease the home for an amount that will cover the carrying costs - especially in newer neighborhoods that are not yet built out. You also might not have enough equity to sell without bringing money to the closing table. If you are in this situation, you are not alone. Some of our new clients are "involuntary landlords", forced into leasing their home by market conditions. The good news is, if you can ride out the market, you are likely to be much better off in a few years than if you sell your home now at a deeply discounted price. The most important thing to know is that the rental market is indifferent to your mortgage payment amount. The rental market does not care that you might have a negative cash flow, and will punish with extended vacancy owners who overprice their rental homes. When you hire us as your property manager, we will look at the rental market in your particular area, survey the competing homes, and make sure your home is priced so that it will be viewed favorably against the competition.
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What if I want you to use my plumber, A/C company, etc.?

We already have a stable of very qualified and reasonably priced vendors that we have used for many years. If you would like to nominate a service company to be added to our vendor list, they can contact us and we will interview them and let them know what documentation and references we need, what our invoicing and payment policy is, etc. We cannot guarantee however that your favorite company will be sent on all service calls to your home. Our concern is always to resolve repair problems in the most efficient way possible with the best available vendor at the time. We can't keep track of a pre-established roster of vendors assigned to certain properties - it would be a cumbersome and inefficient property management system and would not achieve the best service to the tenant and your investment property.

Our professional reputation as property managers, both with tenants and owners, is largely, if not almost entirely, determined by the effectiveness with which we handle maintenance. We follow a practice that is most likely to insure the best possible response and resolution to maintenance and repair problems for your property.
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I want you to use my American Home Shield warranty for all covered repairs, is that ok?

No. Sorry, but we won't use American Home Shield or any other warranty company to make repairs at your home. The logistics and communication problems we have encountered with past attempts to use the warranty companies are not acceptable for the level of property management service we strive to achieve.

American Home Shield contracts all its work out of Seattle, and since Kitsap County is “out of the way”, they will schedule work on this side of the water when they get to it. This is after they go through their ridiculous "second opinion" process. This does not fit out standards of efficiency and we just won’t do it. We hold all of the home warranty companies in extremely low regard and believe, overall, that their plans are a rip-off (read the fine print in your service contract) and border on fraud. If you want your home warranty company to be used for the repairs and maintenance of your rental property, we are unfortunately not the property management company you should hire.
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Are you a licensed Property Manager?

We have three licensed Real Estate Brokers in the office, and all three are members of the National Association of Residential Property Managers. There is no specific Property Management License in Washington, but professional property managers must have a WA state real estate license in order to manage property for multiple owners.
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Will you use my brother, neighbor, friend to do maintenance work? They are really good.

No. That is unless your neighbor, brother or friend is licensed, bonded and insured in the State of Washington. The potential for liability is just too large for us to consider, and honestly, what would you prefer? To pay a few bucks more to get a job done by a professional, who is insured in case he inadvertently burns down the house, or to get sued by a tenant because their jewelry went missing when your brother happened to be at the house – regardless of whether he took it or not – do you want that liability?.
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Is the cost of property management deductible?

Yes, the cost of management services is deductible, just like your mortgage interest, property taxes and the cost of repairs.

(See your tax advisor for details.)
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Why shouldn't I manage my property myself? Or have by neighbor, friend or family member “look over it”

The Benefits of Hiring a Professional Property Manager

  • You don't have to hire someone to clean, paint, or make repairs.
  • You don't have to advertise, take rental calls, and show the property.
  • You don't have to screen applications and be apprehensive about who to pick.
  • You don't have to execute a rental agreement, worry about adding addendums, fill out the move-in inspection report, and deposit money.
  • You don't have tenants calling at all hours of the day and night.
  • You don't have to confront tenants on tough issues like collecting rent or taking better care of the property.
  • You don't have to collect NSF checks.
  • You don't have to serve legal notices or start an eviction.
  • You don't have to schedule and fill out the move-out inspection report.
  • You don't have to mail the tenant's accounting report and refund check.
  • You don't have to start the process all over again.

You don't have to worry about the property or be shocked by its condition when you hire a Professional Property Manager. Professional Property Managers are dedicated to selecting quality tenants and keeping your investment in good repair with minimal cost. We want your real estate investment to be a success, not a failure. One last benefit - your leasing and management fees are usually a tax deduction.

Are there good reasons for managing your own rental property? Are they worth the risk? What Distinguishes a Professional Property Manager from other Landlords?

  • Do you know all of the landlord/tenant laws for your city, state, and federal government?
  • Do you know rent values, vacancy factors, and time on the market in your area?
  • Do you have a rental application and consistent screening policies that meet all of your legal obligations?
  • Do you take the time to perform thorough move-in/move-out written inspections and routine property inspections?
  • Do you personally know reputable painters, electricians, roofers, chimney cleaners, carpenters, furnace and appliances repairmen who are licensed, affordable, and reliable?
  • Do you effectively confront and negotiate with the tenant and enforce the terms of your rental agreement?
  • Do you have the ability to recover NSF checks, evict tenants, and collect bad debts?

A Professional Property Manager Does!

The National Association of Residential Property Managers (NARPM®)

NARPM® is a professional organization that promotes education, designations, and networking as a resource to empower its members with knowledge and skill.

A NARPM® member subscribes to and honors a Code of Ethics and Standards of Professionalism.

A NARPM® member subscribes to and honors a Code of Ethics and Standards of Professionalism.

  • Over 2200 Members Nationwide and Internationally
  • Local Chapters Offer Educational Programs and Guest Speaker meetings
  • Affiliate Vendor Member Programs
  • Monthly Educational Newsletters
  • Midyear and Annual Education Events

I am a professional property manager and proud member of the National Association of Residential Property Managers. Visit the NARPM® website at www.NARPM.org.
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What is the cost to have LCPM manage my property?

LCPM charges 50% of one full months rent if we are placing the tenant, and then 10% of one full months rent every month thereon. If the property already has tenants, then there is no placement fee charged. We pay for everything upfront – advertising, marketing, showings, paperwork – you pay nothing until the property is rented. For those with multiple properties (6 or more) we have a graduated scale of fees.
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What do I need to do to get my property ready for rental?

WeWe have found that the better a property shows the faster we can rent it. Paint should be in good shape with any marred areas or large nail holes repaired and touched up. Carpets need to be professionally cleaned, appliances need to be in good working order, and a thorough professional deep cleaning gets the property ready to show. Septic tanks should have been pumped within the last year, and all chimneys need to have been cleaned and inspected within the last year. We have a network of people who can help you out with any of these things if you need.
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Do I have to pay for every repair?

When a tenant reports a repair or we discover a repair need during an inspection we first determine the possible cause. From there we determine which party is responsible. If damage was caused by the tenant then they will be billed for the cost to repair automatically. If there is a repair need due to normal wear and tear then we will coordinate the repair and pay for it out of the owners account. The owner Portal will have copies of all paid invoices for any given owner.
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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.
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Will I ever be contacted by Tenants, City, Neighbors, Homeowners Associations, etc?

No. As a full service management firm LCPM 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.
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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; LCPM can handle the whole process for you.
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Are there administrative fees or other service charges up and above the property management and leasing fees?

Just one and it is optional. For an additional $5 a month ($60 a year per property), should a tenant need to be evicted from your property, LCPM will shoulder the rest of the costs, which start at about $500. If you opt out, you are responsible for all eviction costs, which include court hearings, postings as well as attorney fees.
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What are the policies regarding pets?

Statistics indicate that 75% of renters own pets. Restricting pets reduces the number of available, qualified tenants. Pets will be screened and pet references checked out. In general, a well behaved cat or dog causes little wear and tear on a home and yard. An additional pet deposit is always required for cleaning/misc costs.
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Is it possible to refuse to rent to families with children?

In federal, state, and local Fair Housing regulations children come under the protective class of “familial status”. It is unlawful to discriminate against children in any way.
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What is the average length of tenancy?

Most rental agreements are set for a one year term. At the end of the lease term the owner can decide to renew to the tenant (if the tenant wishes to remain), vacate the tenant, or allow the tenant to remain on a month-to-month term.
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How do I get started?

If you are not currently under contract with another property management or real estate company, we can begin right away. If you are currently under contract, you will need to terminate their services according to your agreement with them. We are happy to pick up keys, obtain the security deposits and necessary documents from the discontinued company, or we can do it for you if you so choose. If not, once you have completed all necessary forms and returned those to us, we will get started.
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