The Spectrum Group of AZ at Thompson's Realty

The Spectrum Group of Arizona is a
multi-faceted business owned and operated
by a Christian couple in the Phoenix metro
area in the great state of Arizona. We want to
be your FIRST CALL whenever a need
arises.

Office:
480-393-0434

Fax:
888-395-3558

spectrumgroupaz@gmail.com

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Owner Frequently Asked Questions:

#1 How much can you rent my property for?

There are many key factors to consider when determining what price to list your rental property at. We can say
based on our experience higher priced homes that appeal to a smaller target audience take longer to rent then
lower priced ones. We will help you determine your rental rate based on market stats of like homes in the area. In
many areas competitive pricing and incentives drive the rental market. Ultimately, you decide what to list your
property at, we just provide our professional opinion.

#2- How much will it cost for your company to manage my property on a monthly basis?

The Spectrum Group of Arizona at Thompson's Realty follows a flat rate fee property management model. What this
means for you is no surprise fees for routine property management activities such as late rent collection, property
visits, tenant communication, repair coordination etc.* If you would like to read about fees that other property
management companies spring on their clients that we do not, please visit here

Set Up Fee- For owners wishing to have us service 5 or fewer properties** the initial set up fee is $500. This fee
covers all of the initial set up of a property management file with our company which includes administrative
paperwork, banking, marketing materials, social media blasts, initial property inspection and report with pictures for
file, as well as professionally maintained account ledgers and history for each property We offer a low manager to
account ratio to our clients which provides for a focused dedicated approach to each client, so you never feel like
just
a number in a vast file cabinet somewhere.

Leasing Fee- Tenant placement is an additional $500. This is often referred to as a "Leasing Fee" by other
companies. This fee covers the commission that is accompanied by placing your property on the Multiple Listing
Service (MLS) We also work hard for our portion of this fee by screening applicants including income verification,
residency verification, scrutinizing their credit history report, searching public records for evictions and seeking out
any criminal records.

Monthly service fee- is then $100 per month. Monthly management fees are not collected on vacant properties.

How we work for this fee:
•        Rent collection and dispersement

•        Enforcement of all terms and conditions of the rental agreement

•        Periodic interior and exterior inspections of the property for tenant care

•        Hiring and supervising repairs and maintenance by qualified personnel to maintain property value

•        Paying all approved bills for the owner in a timely manner

•        Creation of accurate and timely monthly statements including a year-end summary statement for the owner's
tax preparation

•        A 24 hour message center for tenant's emergencies, or owners questions

Single point of contact for owners, tenants and contractors.

*Repair Reserve- Owners must also fill a "repair reserve fund" with the brokers office to be no less than $300 per
property. Any extraneous fees associated with legal proceedings in the event of eviction of tenants or collections,
repairs above and beyond the reserve amount remain the responsibility of the owner.

**Clients with more than 5 properties are welcome to meet with our team to discuss your needs and obtain a free
quote.

#3 When will I get paid?

As per our lease agreement with tenants rent is due on the 1st of the month. After The Spectrum Group at
Thompson's Realty receives the rent funds, dispersement occurs. This includes paying the management fees and
any maintenance bills that occurred in that month (we also make any deposits needed to keep the repair reserve at
its minimum balance) Once this happens a monthly dispersement sheet is prepared and a check is cut and mailed
to the owner. If rent is received on time we strive to complete this by the 7th of each month.

#4 Am I contacted to approve of any repairs that are required at my property before costs are incurred?

Yes, Spectrum Group AZ will contact owners when a repair cost exceeds the amount agrred upon in the property
management agreements. It is strongly recommended that you hold a Home Warranty as this will help stabilize
maintenance costs and prevent any unforeseen emergencies from being a shock to your pocket book. If you do
purchase a Home Warranty simply, provide us with that information and we will handle repairs directly through them
on your behalf and deduct the service call fee from your reserve fund. With each monthly distribution statement the
owner will see what if any repairs were done on the property.

#5 How are repairs handled?

We have a wide network of professionals to contact depending on the specific need at the property, the location of
the property and the timeframe the issue needs to be handled in. When a tenant contacts us with an issue we will
choose someone from our list to give us a quote or estimate for the job. If under the amount agreed upon in your
property management agreement we will approve it. If above that amount we will contact you for approval. We work
with only licensed and insured contractors that have done business with us in the past and we are confident that
any job will be handled with quality work at a reasonable price. We also welcome the names and info on any
preferred vendors you may wish to have us utilize. In the event that those individuals are not licensed, we would
simply request your acknowledgement and approval to use them prior to sending them to do any job on your behalf.

#6 Am I responsible for minor maintenance such as light bulbs, air filters, smoke detector batteries,
pest control and landscaping?

Each property owner views these responsibilities differently so we customize our lease agreement to represent your
desires. Some owners want to provide landscaping or pool service to insure the upkeep is to their standards This
can be done monthly, quarterly or semi-annually. In some cases your HOA may provide some of these services.
Others prefer that the tenant be responsible for these aspects of home maintenance. We do require a security
deposit, non refundable cleaning deposit, and if applicable a pet deposit (from the tenants) in order to remedy
any issues that the tenant would have been responsible for that they did not handle properly while living there.

Most owners offer at minimum a semi annual pest control service to their tenants. Light bulbs, air filters, batteries
etc would be the responsibility of the tenant and would be highlighted in their lease.

The owner is responsible for all normal “wear & tear” maintenance. Any repair that is caused by the tenant due to
neglect is the responsibility of the tenant.

#7 How long will my house be vacant?

Each owner we work with brings different variables to the table that we weigh to determine vacancy rates. Based on
the type of home, its location, amenities and its price range we can offer you our professional
opinion of how long it will take to place a tenant. We work hard to place a quality tenant as soon as possible.

#8 What do I need to do to "ready my home" for the rental market?

Register the property as a rental property with the appropriate county assessor Maricopa or Pinal
All personal belongings need to be removed and stored off premises
Professional cleaning that includes details such as appliances, windows and all cabinets & cupboards
Professional cleaning of all floors.
All appliances, fixtures, windows in working order- all repairs completed

In general, people want to rent clean quality homes in good neighborhoods. Amenities such as window treatments,
ceiling fans, landscaping with some grass, automatic sprinklers, and shrubs, along with tile flooring instead of vinyl
are also desirable.

We will do an initial property visit and give you our professional opinion of what needs to be done. We can also
coordinate these services for you as part of our services rendered in our set up fee, but the cost of the actual
services and fees would be the responsibility of you the owner. It should be noted, especially when placing your
property on the rental market for the first time- even those who prepare ahead of time, may find a tenant discovers
a repair once they move in that was missed in the transition. These are usually small things that are not noticeable
until you actually live in a place.

#9 How is my property secured while it is vacant?

As we market your home in search of a quality tenant, we will utilize an iBox which requires an ActiveKEY to obtain
the keys to your property. Only members of the Arizona Regional Multiple Listing Service (ARMLS) own keys to
these lockboxes. The boxes electronic features allow it to keep track of which keys are used (who) and when (date)
as well as how often the key to your home is accessed from the box. This information is also helpful in our
marketing of the property.

#10 Who is responsible for my home owners association dues?

As the home owner any Home Owner Association dues that the property is subject to are your responsibility. This is
something that can be "rolled into" a monthly rent amount. However, you are ultimately responsible for paying this
bill and making sure payment is sent to the appropriate association each time it is due.

#11 What about HOA violations? Who pays for those?

If the tenant violates the Rules of the Association we ask that you fax a copy of the violation to us at 888-395-3558.
Once we receive the violation, we contact the tenant and send them a copy of the notice and a letter that explains
what needs to be done to repair the violation. Depending on the violation, we will inspect the property to insure the
violation is repaired. If a second violation occurs and the owner is fined by the HOA, then the tenant will be billed
for the violation. The owner will need to pay the violation to the HOA so a lien is not placed against the home. If the
tenant fails to reimburse the owner for the violation, then the fee will be deducted from the tenant’s security deposit
at time of move-out.

#12 Who is responsible for the utilities while the home is vacant?

Utilities will need to be turned on in the owner’s name. Several utility companies offer the owner the ability to
schedule services as a "default" name on the account, that way if the tenant should ever schedule utilities 'off', the
landscaping and pool (if applicable) will constantly be protected with utilities never lapsing. Some municipalities
such as unincorporated areas at the edges of the city offer separate sewer services that are only available in the
home owner’s name, if this is the case we can build the cost for this bill into monthly rent. The tenant is responsible
for all utilities while they are living in the home. (Unless this is an incentive offered by you the owner in our
marketing strategy-or unless they are services provided by the HOA)

#13 Can I require my tenant to have renters insurance?

No, you cannot require the tenant to have renters insurance but our lease recommends that they do. The owner is
not liable for a tenant’s personal belongings.

#14 What is the procedure when a tenant doesn't pay rent?

All rents are due on the 1st day of the month and late on the 2nd.

We do not allow grace periods and expect all of our residents to have their full rent to us on or before the 1st.(in the
event of an extenuating circumstance the property owner and manager may agree to extend a grace period to a
tenant) We will send 5 day notices on the 2nd of the month for any rent not received.This is a written demand letter
delivered by certified mail to the property notifying the resident to make payment immediately to avoid an eviction
proceeding. If rent is not received after the legal notice period. (which when sent via certified mail is 10 days from
date letter sent) then our attorneys file a motion in the local Justice Court for a hearing and judgment against the
resident for non-payment and removal from the property. If payment is not received from the resident at the hearing
or as per the judgment, then an order from the Judge to remove the tenant is issued to the Court’s Constable and
within a week the property is returned to us

#15 Who pays for the eviction process?

Although the tenant may be held responsible for the legal costs, the owner will be initially billed for filing fees and
attorney’s costs. Any judgement issued by the court may be sent to a collection company upon agreement from the
property owner.

#16 Will the tenants ever contact me?

We will never give the tenants your contact information. The only way they would contact you is if you first
contacted them. However, with the use of public records and the ease of obtaining information via the internet, it
may be possible to find you. If this happens, you can refer them to us.

#17 Am I allowed to go to the home when it has a tenant in it?

You are free to drive by whenever you like, however the Landlord Tenant Act requires 48 hour notice be given to
the tenant before entering the property We encourage you to contact us if you feel a property visit is necessary.

#18 What other issues are covered in the Landlord Tenant Act?

Please access the complete document here Arizona Landlord Tenant Act and let us know if you have any specific
questions

#19 What if a tenant wants out of their lease?

If a tenant desires to terminate their lease prior to the ending date of their contract or the agreed upon renewal
date, the following action can be taken upon direction of the owner
:
•        The tenant will be responsible to pay rent through the end of the lease

OR
•        They are responsible for rent until the property is re-rented. In addition, the tenant will pay the tenant
placement fee. The owner will have no costs if this should occur.

#20 What work is necessary on a typical move-out? Re-key? Cleaning?

Spectrum Group AZ staff try to schedule a move out walk through with all tenants. If this is not possible then we will
inspect the property within 48 hours of move out. We will photograph and write a synopsis of the property for the
records and to help justify any reduction of the tenant’s security deposit if applicable.

Certain tasks must be completed to prepare the property for the next tenant once a tenant has moved out at the
end of their lease period. Similar steps as when you readied the property the first time will be taken to get your
property ready again such as:

•        Professional cleaning that includes details such as appliances, windows and all cabinets & cupboards
             -this will be paid for with the non refundable cleaning deposit that we charged the previous tenants
•        Professional cleaning of all floors.
             -Also covered with the cleaning deposit from previous tenants-if needed we will withhold a portion of
              their security deposit or if applicable pet deposits.
•        All appliances, fixtures, windows in working order- all repairs completed
             -certain wear and tear is expected, some paint touch ups, blind replacements, new air filters,
               light bulbs, etc are all covered by the owner - Any excessive damage from nuisance or neglect on the
               part of the tenant will be deducted from their security deposit.
•        We always re-key the property to reduce the owner’s liability.
              -this would be charged to the owner

#20 How long is the contract between myself and The Spectrum Group at Thompson's Realty?

The standard term of management agreement is one year. Owners with unique circumstances are encouraged to
contact our office to discuss. We hope to be your property manager for as long as you hold the property as an
investment, so will strive to always provide the best service possible.

#21 Who do I contact?

Our office number is 480-393-0434 and we can be reached via email at spectrumgroupaz@gmail.com