Reedy and Company Frequently Asked Questions

Nike Opens Its Largest Distribution Center Worldwide In Tennessee– Nike News NIKE, Inc. today announced the opening of the new North America Logistics Campus – Memphis (NALC-Memphis), its largest distribution center worldwide. Located in Memphis, Tenn., this state-of-the-art, 2.8 million square foot facility holds all three product lines – footwear, apparel and equipment – under one roof and distributes Nike and Jordan Brand products to individual consumers, wholesale customers and Nike’s own retail channels.

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COVID’s 5 Least & Most Impacted Multifamily Markets - Memphis is 3rd least effected!–

Bigger Pockets According to Yardi Matrix most recent publication, “COVID-19: A Game Changer for Multifamily”, nationally, rents have dropped by 0.4% since the arrival of COVID. This past week I decided to focus on some key areas of data: which markets have seen the largest increases and decreases to rents during the onset months of COVID-19, as well as the current unemployment rates and demand for apartments within those respective markets. Factors such as employment and demand are two key components to take into consideration when evaluating which markets to invest in, as you well know. I thought you might find the data helpful in keeping up with current market trends. Interpretation can of course go in several direction, but what’s most interesting about this current trend is it seems the markets with less demand for multifamily housing display a more direct and severe impact, which is why you are more likely to see operators being forced to lower rents. Remaining vigilant of market conditions can allow you to modify your strategy, and adjust to ensure you can still achieve your overall investment goal even in challenging circumstances!

3. Memphis, Tennessee · 2-Month Rent Change Post C19: +1.3% · Current Unemployment Rate: 7.2% · Percentage of Renters: 42%

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Amazon buys more land in Raleigh from Belz– Memphis Business Journal Amazon.com Services LLC just bought more land for its Raleigh project, where it plans to employ more than 1,000 people. Amazon — the fifth-most-valuable company in America, according to Fortune — had purchased 98 acres for the project from Belz Investment Co. in November, paying $3 million. Last week, Amazon paid $1.8 million for about 65 additional acres that surround the land it bought in November. Read More...

Frommer’s Best Places to Go in 2019– Frommers.com Memphis, Tennessee As Elvis once sang, “Happy, Happy Birthday, Baby.” In 2019, the birthplace of rock ‘n’ roll is throwing itself a 200th birthday shindig with concerts and historical exhibits throughout the year. We think peak fun will arrive in spring, with the annual Memphis in May, featuring live music, food, art, and film. The festival usually showcases a different country each year, but in 2019, for the first time, it will honor its own hometown and its founding contributions to rock, soul, and blues—a perfect occasion for the rest of us to join the party.

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QUALITY PROPERTY MANAGEMENT QUALITY PROPERTY MANAGEMENT

An expert team, dedicated to balancing the needs of our residents, along with the interest of our investors.

Reedy & Company Realtors, LLC is a full service, Memphis, TN based property management company, managing and leasing more than 2,400 properties in the Mid-south for the last 12 years. We have established an excellent reputation for property management in the area. Whether it is a middle class rental home or a luxury condominium, renters in today’s market expect a certain level of service from their landlord. The experts on our team are able to offer services and amenities that not only meet but exceed tenants’ expectations. We believe in providing an absolutely AWESOME experience for tenants and owners alike, with communication at the forefront of our efforts. Reedy and Company employs a staff of full time leasing consultants to find and screen prospective tenants, ensuring a more dependable collection and tenancy rate. In addition, we maintain a staff of 25+ maintenance workers (licensed and insured), so we are able to quickly and efficiently resolve any maintenance issues that you may have at your rental property. When you choose Reedy and Company, you not only have a team working for you, but a team that will ensure that you receive the attention that you deserve as an owner. Your rental property represents a large financial commitment whether it is a single family home, an apartment complex or just a single condominium unit. Our goal as your Memphis property management firm is to maximize your immediate profits while increasing the long term value of your properties. We believe in sound financial practices and our eyes are always on your bottom line.

What Sets Reedy & Company Apart?

Personal Service with Proactive Communication High Occupancy In-house Leasing Department In-house Accounting Department In-house Collections Department

with a 97% Average Collection Rate In-house Maintenance Department (Fully-Stocked Warehouse / Licensed Contractors) Open 6 Days a Week

Reedy and Company is a full service company, so if the occasion arises that you would like to sell your home, we are able to facilitate the purchase and sale of the property too, as Reedy and Company, LLC is a fully licensed real estate company. We will care for your home as you do.....No matter your needs, our team is dedicated to meeting them for you!

Frequently Asked Questions How can I communicate with Reedy and Company?

The most effective way to communicate with our Client Services team is to send an email. This method allows for time tracking and a paper trail to refer back to as needed for all parties. Additionally, our team is often seeking information from other departments, acting as a liaison. Sometimes a phone call is much easier than a lengthy email thread, so if it helps you can always schedule a time that works for both of us. With that in mind, we are always just an email or phone call away. It is best to email your Portfolio Manager directly so that we can serve you most efficiently. Christy Tanner- ctanner@reedyandcompany.net Jill Childress- jchildress@reedyandcompany.net Keri Corley- kcorley@reedyandcompany.net You can email our Client Services Team at cs@reedyandcompany.net

How is my property being marketed?

Marketing is primarily done online and is syndicated to as many rental sites as possible including our website. Professional photography is done, at owner cost of $100, as outlined in our management agreement. This sets our marketing apart from other homes in the rental marketplace. Our tenants are always grateful for having the chance to see the home at its best, assisting them in making a decision more quickly. While we have success with marketing online, we also place a FOR RENT sign in the yard of the property to capitalize on drive-by traffic. In-house lists are customized and prepared on a daily basis for prospects to pick up or receive by email based on their specific search parameters.

How long will it take to find a tenant for my vacant property?

The average vacancy is 30-45 days, this includes some properties that are rented day 1 and others that are vacant for longer periods of time. There is no real rhyme or reason to the variables of time, vacancy is affected by a number of conditions to include but are not limited to: location, comparable and other available properties in the area, price, size, layout, yard, mechanicals (central heat and air), the condition of the property, whether or not a property can be rented by Section 8 according to the condition for inspection, season (weather, holidays, school dates, etc). We are constantly reviewing prospect feedback to remove any barriers that may keep the property from leasing.

What is the tenant screening process?

Each tenant 18+ is required to apply and to meet the following criteria:

● Financial verification of net income with a minimum of 3x the rent ● Tenant must show proof that they can get utilities in their name (this would not be possible with outstanding utility judgment or delinquency) ● Rental history verification (no recent evictions, judgments, housing delinquency)

● 1st-time renters will be required to pay an additional month’s deposit ● Reference check (5 unique references for each applicant 18+) ● Criminal background check ● Credit check - the score is not the ultimate determination but is based on an evaluation of their overall spending and payment history

What is the pet policy and associated fees/pet rent? How will I know if the tenant has any?

Pets are defined as cats and dogs. Other animals require written consent, in advance. There are breed restrictions and limitations on # of pets as shown in the lease, uploaded to your portal. Tenants are required to register each pet and a $300 non-refundable pet fee is required, per pet. The non-refundable pet fee is split 50/50 between the owner and management. Additionally, the tenant will pay a $25 pet rent (per pet, per month) for the term of the lease or until the pet is no longer onproperty. This income will be visible on your monthly statement less management fees. Details of this policy and agreement can be found on the lease uploaded in your owner’s portal.

How will I know if my home is rented?

This is one of the many notifications you will receive by email from our Client Services team. We will be excited to share this news with you once the deposit is paid and a move-in date has been determined. The lease is not signed on this date, the home is secured with a security deposit and move-in agreement. The lease is signed on move-in day and will be uploaded to your Owner Portal within a week after movein.

What is the tenant responsible for? (extermination, maintenance, lawn, etc.)

A: The tenant is responsible for general pest control to include bed bugs, fleas, roaches, etc. Owners are responsible for rodents and large-scaled infestations caused by nature, not related to tenant hygiene. As indicated in the lease, tenants will be billed for minor maintenance requests ($250 or less) unless it is found to be an infrastructure type of request which is the responsibility of the owner regardless of amount.

Please see the example of this below: Example – cost $100: dishwasher is holding water, tech finds plumbing damage behind the system not caused by tenants, just due to wear and tear, age, etc. This is the owner’s responsibility. Example – cost $100: dishwasher is holding water and tech finds the garbage disposal is clogged with debris. This is the tenant’s responsibility. Any maintenance rendered on a property will be billed, in advance, to the owner and placed on the tenant ledger for repayment (if applicable). Once payment is received from the tenant, reimbursement to the owner is made and will be visible on the monthly statement and live tenant rent roll available on the owner’s portal. Ultimately, the property is expected to be returned in the same condition, with normal wear and tear considered. Please see the tenant addendums within the lease, titled “Maintenance Requests” for additional items considered the tenant’s responsibility. Please note: If the tenant provides a police report for damage to doors, windows, locks, and any other areas of the property both interior and exterior, owners are responsible to repair the reported damage. Tenant renter’s insurance will only cover their personal belongings and not the structure.

When will the security deposit be deposited in my account?

The tenant pays the security deposit to Reedy and Company and the funds are held in an escrow account for the duration of the lease. The deposit is only paid to the owner if there is a balance due at the termination of the lease for unpaid rent, damages, other and will be reflected on the owner’s statement after processing, within 1-2 statement cycles depending on the move-out date and how it coincides with month-end.

What do I need to know about Section 8?

There is a great deal of information to share with you about this subsidy program. Please see ‘Section 8 101’ in the Documents section of the owner portal. We believe this program can be a viable and worthwhile program to owners and tenants alike but there are added risks and reduced overall control. Please take the time to read the Section 8 101 for full understanding.

When will I receive my statement and rental income?

Statements and owner deposits are initiated on the same day, on or around the 6th business day of each month, for the month prior. Example: April income and statements are released on or around the 6th of May. Your property management income will begin in the month following your closing and the income for the month you closed in will be included on the HUD-Closing Statement, handled by the closing attorney and your realtor. Example: You closed on the property April 27. The HUD should reflect income for 4/27-4/30 paid out to you, reducing the amount received by the Seller. Reedy and Company will not report this transaction on the statement for April, your 1st statement will be in June for May income.

When is rent due, and what happens if my tenant does not pay?

Rent is due on the 1st of each month and is considered late on the 5th. Between the 5th and 15th of each month, our collections team works tirelessly to reach the tenant through all available communication. If collection or arrangements are not made by the 15th (or Monday following if the 15th falls on a Sunday) we will seek legal action to collect or regain possession of the property, whichever comes first. There is no required action by you as the owner. We will ensure that you receive notification of all payments received, continued balances, and if legal action is required. Please note: you may receive multiple notifications of payments received as some tenants pay in increments. Section 8 payments will always come separate from the tenant’s portion.

What if legal action is required?

You will receive a notification that the legal process has started. We will manage this process entirely on your behalf and the process can take up to 60 days. (Section 8 tenants or those who file bankruptcy could take longer and additional costs for bankruptcy will be incurred by the owner) Initiating legal counsel (filing the FED) does not mean that eviction is imminent, it does, however, ensure that we properly position you as the owner to claim possession of the property if the tenant does not do as instructed by the court to include clearing the delinquent balance. There is a $350 legal and professional fee for the above-stated process, charged at the time of filing, whether or not the tenant is actually physically evicted. This fee is billed to the owner but is ultimately the responsibility of the tenant to reimburse the owner.

If the delinquency is not cleared, and the tenant is physically evicted there are additional costs involved. The set-out process is managed by a third-party and fees are based on how long it takes to remove the items left in the property for the actual set-out. Generally speaking, these fees do not exceed $250 though there is no way for us to gauge this in advance and will again be billed to you with the intention of reimbursement by the tenant.

What if the tenant vacates and the security deposit does not cover the balance?

We will forward the final balance to an outside collections attorney who works independently to garnish and collect. This does not always yield a full collection nor is it a quick process but there is a reasonable return on this effort. The fees associated with this process will be taken from the amount collected and you will receive the difference.

What is the renewal process for occupied properties?

Approximately 120 days prior to lease expiration, a full market review is done to evaluate the viability of increasing the target rent for renewal. It is always our goal to increase the market-declared rent without creating a financial hardship for the tenant. At this time the tenant will receive an invitation to renew with the new rental amount and a request to establish an agreeable date with the tenant to perform an occupied home inspection. The tenant’s renewal is contingent upon allowing us to complete this inspection, for the benefit of our investors. We believe that an agreeable tenant is indicative of a tenant who is proud of how they are caring for the home. A tenant that refuses us entry may have something to hide from us.

The inspection report will be provided along with any recommendations within 2 weeks following the inspection. Additionally, the renewal lease, once signed, will be added to your owner portal documents for your reference. Please note: If the tenant is Section 8 and decides to renew, we will submit the documents with the suggested rental amount; however, we cannot guarantee that they will approve the increase as they conduct their own market analysis and renewal inspection, according to their schedule.

What happens if my tenant decides not to renew?

You will receive a notification from us stating that the tenant has provided their notice to vacate (generally 30-60 days) in accordance with their lease. On occasion, the tenant will revert to month-tomonth first and then proceed with a suitable notice. Upon receipt of the notice, we place the property on the coming soon list in hopes of pre-leasing the property before it is vacant. For the safety of all involved (current and prospective tenants), we do not show occupied property. Photos and information will be provided but viewing the property, in person, will only be permitted after the property becomes vacant.

Many times, after placing notice to vacate, a tenant will rescind and decide to renew instead. We will let you know if this occurs in your portfolio.

What happens when my property becomes vacant?

Once the property becomes vacant, we will immediately begin full-fledged marketing as described above. Within the week, our maintenance team will inspect the home and determine what work needs to be done in order to make the home rent-ready for the next tenant. You will receive a scope of work along with photos for approval. Please keep in mind that your timely correspondence in this is key to turning the home quickly, and full payment is expected in order to begin. Please note: Pre-inspections for scope purposes are not offered as occupied properties are not suitable for doing so. Scopes of work can include mechanicals, roof, wall repair and paint, flooring, countertops, cabinetry. It is often difficult to get a true sense of what is needed while a property has personal belongings and furniture in place - the results can be vastly different.

Who manages my utilities?

There are differences in how utilities are managed based on whether they are located in Tennessee or Mississippi. In Tennessee, Reedy and Company will manage utility connection for vacant properties and bill the owner accordingly. Keep in mind that MLGW (Memphis, Light, Gas, and Water) requires a $200 Security Deposit and a $42 connection fee for all properties with next day connection ($52 if same day connection is available). This is non-negotiable. When the property becomes occupied, the tenant is required to transfer utilities into their name and MLGW will issue a refund of the $200 deposit to Reedy and Company on your behalf within 60 days. In Mississippi, Reedy and Company will manage water connection year-round, regardless of whether or not the property is occupied or vacant. Walls Water Association and Horn Lake Utilities requires that the owner is listed as the responsible party at all times; we will manage this connection and bill you accordingly, deposits vary based on the company. In order to connect new services, we will need for you to provide us with a copy of the recorded deed. Other utilities will be managed similarly to TN with varying deposits, as assigned by the utility company per property. It is important that you let us know, when you are transferring a property to us from another management company/owner, whether you currently have the utilities in your name, the tenants, or the prior property manager.

If it is in another property manager’s name or utilities are off:

We will add your property to the Owner’s Reconnect Program offered by the Tennessee utility company to ensure that transferring between tenants upon move-out is managed by us and utilities are easily transferred to an incoming tenant.

If in your name (single-family home or duplex):

If the utilities are in an owner’s name, the utility company will not allow it to transfer to the property manager. So, we will need for you to complete a designated agent form listing a number of our staff as designated agents on the property. Without this, the utility company cannot provide us access to the bills, shutoff, transfer, or other imperative actions. If you wish to have us pay the bills on your behalf, we are happy to do so, you will simply update the address on the account to 4701 Summer Avenue Memphis, TN 38122. Alternatively, you can continue to receive and pay the bills directly, if you prefer. Once the tenant moves in, the utilities will transfer to the tenant. When the tenant moves out, we will add your property to the Owner’s Reconnect Program, in our name where it will remain any time the property is vacant. IMPORTANT: Our lease allows 3 days for the tenant to transfer utilities into their name. Please do not disconnect service from your name before the 3 days, we would then be in violation of the lease agreement.

If you have a multi-family property (5 or more units in one complex):

We will especially have interest in knowing who’s name the house account is in. Is the property already on the Owner’s Reconnect Program? Copies of the house bills are extremely helpful, please ensure these are provided to Client Services by email cs@reedyandcompany.net or directly to your Portfolio Manager. We will work out the details of the transfer according to the current situation. IMPORTANT: There is a great deal of information that we must provide along with a bond instead of the above-mentioned security deposit when setting up a multi-family property on the Owner’s Reconnect Program. We will provide you with all of the necessary forms and ask that you complete them thoroughly to help us expedite the set up. It does take patience, and a notary, but it is a one-time thing and will be worthwhile in the end.

Who is responsible for paying insurance, my mortgage, taxes, HOA, etc.?

It is the owner’s responsibility to ensure that all costs associated with home ownership are paid independently. As outlined in the management agreement, there are times where we can pay such expenses (for properties that we manage) on an emergency basis for a fee of $50 per transaction, assuming your portfolio has the funds to cover such expenses.