Discovery Investments, Inc.

| Serving The Greater San Francisco Bay Area
(510) 584-9080

Owner Frequently Asked Questions

Discovery Investments has been a leader in property management for over thirty years. We proudly manage and maintain properties throughout the greater San Francisco Bay Area. We provide professional property management for both commercial and tenantial buildings, including single family homes.

Our company works with our clients to help them create and implement asset management strategies to maximize return on their properties. Discovery Investments welcomes the opportunity to discuss your individual needs and goals.

When will I receive my monthly property management statement and what information will it contain?

Generally, we close our books on the last day of each calendar month. Your management statements will be available for you to view on our website by the fifteenth of the next month. Your management statements will include: 1) a monthly and year-to-date profit and loss statement for each property, 2) a detailed activity page showing all transactions for each individual property, and 3) copies of all invoices.

When will I receive my monthly owner’s draw?

If you ask us to pay for your monthly expenses, all remaining funds after expenses are paid will be deposited into your predetermined personal account no later than the tenth of the following month. If you elect to pay your property mortgage on your own, you will receive your draw no later than the tenth of the current month. In both cases we will ensure that your operating trust account is replenished to the agreed upon minimum balance.

How do I know my property is being properly maintained?

In addition to property manager visits, our maintenance staff and long term vendors are trained to look out for problems and to report back to us for appropriate action. We also strive to maintain a good working relationship with your tenants to handle the problems associated with your property as soon as they arise. Our annual preventative maintenance program covers inspection and general maintenance of the buildings systems including vacuuming appliances, changing all HVAC filters, caulking bath and kitchen areas, and changing smoke and CO2 detector batteries.

Am I responsible for all repairs requested by the tenant?

Generally, the landlord must do maintenance work which is necessary to keep the rental unit livable. We would also recommend work that would maintain the value of your property. California law makes landlords and tenants each responsible for certain kinds of repairs, although landlords ultimately are legally responsible for assuring that their rental units are habitable. Tenants are required by law to take reasonable care of their rental units, as well as common areas such as hallways and outside areas. Tenants must act to keep those areas clean and undamaged. Tenants also are responsible for repair of all damage that results from their neglect or abuse, and for repair of damage caused by anyone for whom they are responsible, such as family, guests, or pets.

Can I use my own contractors to work on my property?

Yes. We ask all of our clients for their own vendor’s list for their properties if they want to continue to use their vendors. We give your list first priority in servicing your properties. However, if your vendor is unable to handle the situation at hand we can easily cover with our own vendors or staff members.

What needs to be done to my property in order for it to be leased?

People begin to make up their mind about your property the moment they pull up to the curb. If the yard, entrance area and interior look sharp, we will be much more successful in leasing your home. The better the condition of your property, the better quality tenant we can attract for you. This means that the property should be professionally cleaned, and walls should be painted if they are dirty or marred. Carpeting, flooring, window coverings, and appliances should be up-to-date and in good working order. Landscaping should be well maintained. A quality tenant is motivated to take care of your property, and will more likely leave it in good condition when they leave. This means lower operating costs for you.

What control do I have over who leases my property?

As standard practice, once we have screened all applicants, we provide you with our recommendation, but the final decision is yours. Federal and local Fair Housing laws are very specific and clear about the illegality of discrimination. Discovery Investments believes in and upholds all aspects of the Federal, State and local Fair Housing laws. All property showings are conducted by appointment only. Unless requested, we do not hold open houses. This personalized approach allows us to proactively pursue prospects and to find the right tenant. Our screening procedure takes into account an applicant's credit history, employment history, prior rental history and general signs of stability.

How will I know when my property is going to be vacant or when it is leased?

Communication with our clients is our priority. You will be informed as quickly as possible when notice is given by a tenant of their intent to vacate your property and we will keep you informed of the occupancy status of your property from that point to the point you when your property has again been leased. This includes updating you as to the property’s condition and current "rentability." If repairs are required when the unit is vacated, we will alert you to these and provide you with cost estimates.

What happens if a tenant breaks their lease agreement and wishes to move out early?

During orientation, we explain to tenants that one of the conditions of leasing the property is their fiscal responsibility for the entire lease term. If a tenant needs to vacate a property early, we explain that they are contractually responsible for the balance of the lease payments until the property is leased again. They are also responsible for reimbursing the owner for prorated leasing fees. We are then required to lease the property as soon as possible. Well-qualified tenants are inclined to perform under the requirements of the lease agreement to avoid possible damage to their credit.

What is your monthly property management fee?

Our property management fee for commercial and multiple unit residential property is based on a percentage of the gross monthly income. Our fee for single family residences is based on a flat rate. Our fees are competitive for the level and quality of services you will receive.

What is your leasing commission and what does that cover?

For residential properties, our leasing commission is based on a percentage of the first full month's rent for new tenants plus expenses for optional listing services. For commercial properties our leasing commission is a percentage of the total lease amount.

This commission includes, but is not limited to:

  • preparing a marketing plan that includes a custom write-up and photo session for your property to be posted on our company’s website, as well as on other appropriate property leasing websites,
  • showing the property as many times as necessary to lease it,
  • screening potential tenants,
  • preparing the lease documents, and
  • performing the lease sign-in and orientation with your tenants.

Can you help me if I already have a tenant?

Yes. We can take over the management of your property with the tenant in place. We will review the current lease to ensure all necessary disclosures are included and provide any missing items, and make sure that all lease provisions are being enforced.

Why shouldn’t I manage my property myself?

Some owners choose to manage their properties themselves, and many of them are very successful. However, with the time involved in collecting rents, arranging repairs and leasing units, many owners find that their time is more valuable spent elsewhere. A good property manager will make you money on your investment, not cost you money. Other important considerations are the legal aspects of property management. There are a growing and constantly changing number of laws that govern rental properties. In the litigious society that we live in, a property owner cannot afford to handle a problem tenant in an incorrect manner. Our company is well versed in landlord tenant issues, and keeps abreast of applicable Federal, State, and local laws.

What if my tenants have an emergency while you are closed?

Tenants can call our office at (510) 584-9064, and the call will be routed to one of our on-call staff members 24 hours a day.