Property Owner FAQs

Ready for us to manage your properties? The fastest way is to sign the management agreement online with DocuSign. Or start owner onboarding: send us your ownership and property details, and we will fill out the agreement and send you the DocuSign ready to sign.

Prefer to talk first? Call (785) 841-7300 for a free consultation and property evaluation, and see our marketing in action on the live rental map.

Per the management agreement, owners maintain:

• General public liability insurance of at least $300,000, with $1 million recommended.
• Fire and extended coverage hazard insurance equal to the full replacement cost of the structure and improvements, covering personal property at the property and loss of rental income.

Location Properties carries its own general liability policy of at least $1 million at no cost to owners. Owners remain responsible for submitting and pursuing their own insurance and warranty claims; we gladly provide any information we have to help with a claim. You will also give us a copy of your insurance policies and your insurance agent's contact information when management begins.

One simple percentage of rent actually collected, so we only succeed when you do. No setup games, no hidden line items.

• Residential properties: 7–9% of monthly rent collected.
• Multi-unit properties: 6–9%, dropping to 6% when we manage 25 or more contiguous units.
• Commercial properties: custom pricing quoted after a brief review of property type, square footage, and scope of services.

Fees are charged only on rent successfully collected. We have found that we charge the lowest monthly fee in the area among reputable property management companies. See the full breakdown on the Management Services page.

25% of each of the first two full months' rent after a new tenant is found. It is all-inclusive of the whole process:

• Advertising the property (we spend tens of thousands of dollars each year in print and online to generate tenant leads)
• Scheduling and showing the property to potential tenants, including fuel for the property managers and bonus incentives for them to show properties throughout the week, sometimes evenings and weekends
• Applications, tenant screening, and background checks
• The check-in and check-out process, including the check-out and check-in condition reports with photos when applicable
• Security deposit reconciliations

This is one of the most common questions we get. After a new tenant is found, the Leasing Fee – Find Tenant is charged as 25% of each of the first two full months' rent. So it appears as an expense on your owner report, and subtracts from your income, during each of the two months after the new tenant is found and moved in, rather than as one lump sum.

Once those two months pass, the leasing fee drops off and your reports return to the normal monthly management fee. And remember: if that tenant later renews, there is no renewal fee (see the next question).

No leasing fee is charged when your existing tenants stay: if all the same tenants renew under the automatic renewal clause in the lease, or a single simple amendment extends the lease, there is no charge. The standard management fee simply continues on the new rent.

A modest $100 new-lease fee applies only in years when terms are renegotiated resulting in a brand-new lease with the existing tenants, or when a roommate change requires a new lease. This helps pay staff to work with tenants to renew and stay another year.

If you find a tenant yourself without any marketing or showings by Location Properties during that leasing cycle:

• No leasing fee if you handle the lease, the check-in and check-in report, and you (or the tenant) send the security deposit to us.
• The leasing fee is reduced to 25% of one month's rent if you found and referred the tenant and we then handle any of the lease, check-in, check-in report, or deposit collection.

Each month you receive your Full Month Income & Expense Report for the prior month. It reflects the full prior month's financials and excludes liabilities such as security deposits and prepaid rent. If you need a version including those liabilities, request one through the contact form and we will send it to you.

You can also view real-time income, expenses, and property balances anytime by logging into your Owner Portal.

Between the 10th and 15th of each month, we send property owners the funds available on account, with the maintenance reserve subtracted, by EFT direct deposit (or mailed check). You will also receive a notice of the pending EFT for the month-to-date funds available the day it was sent.

In most months, available funds go out by direct deposit. Occasionally, expenses exceed available funds and no owner draw is issued that month. If you would like a month-to-date accounting of the income and expenses behind a pending EFT, ask through the contact form and we can generate one; otherwise the details appear on next month's full report.

The amount deposited, called an “Owner Draw”, is the funds we were holding for you on that day, less any expenses incurred since the last disbursement, and less the maintenance reserve. The monthly report reflects the full prior month's financials, whereas the EFT represents the funds available at the time of transfer, so the two are measured on different dates.

To reconcile, match your bank deposit to the Owner Draw amount listed for the period ending on the date we sent it (usually between the 10th and 15th), not the amount at the end of the month. The direct deposit you receive this month will appear as the Owner Draw on next month's report.

• Beginning Cash Balance — cash we were holding for your property at the start of the period (the prior period's ending cash).
• Additions to Cash — money that came in: tenant rent payments, owner contributions, tenant reimbursements, or refunds from utility companies.
• Subtractions from Cash — maintenance expenses, management fees, leasing fees, and other deductions.
• Property Reserve — the maintenance reserve we hold per the management agreement; see the Maintenance section below.
• Available for Payment — what could have been sent to you on that day. It is usually near zero right after owner draws go out; a negative number means expenses exceeded the reserve and is typically replenished by the next month's rent.
• Total Income — likely the amount you will report as income for the period.
• Total Expense — likely the amount you will report as expenses for the period.
• Owner Draw — money we sent to you.
• Owner Contribution — money you sent to us, posted as a credit to one of your properties.
• Prepayment / Prepayment Applied to Balances — rent paid early is held as a prepayment, then automatically applied when the rent comes due on the 1st, so income lands in the “correct” month.

We don't typically pay insurance premiums, property taxes, or mortgage-related expenses; you or your mortgage escrow pay those directly, so report those expenses in addition to what is on our statement.

• Repairs, Cleaning, and Maintenance — upkeep charges, usually posted within a week or two of the invoice or timesheet, so they can appear a week or two after the work. Occasionally vendors invoice late, and hardware store invoices (like Home Depot) sometimes post after we reconcile the account.
• Mowing and Landscaping — typically during vacancies, cleanups beyond tenant lease duties, multi-unit buildings, larger landscaping projects, or lawn fertilizer (owner-paid).
• Utilities — utilities during vacant periods (we keep them on to prevent frozen pipes and mold), City of Lawrence sewer/storm/trash bills that go to owners regardless of vacancy, and shared utilities at multi-unit properties.
• Leasing Fee – Find Tenant — the tenant placement fee described above.
• Management Fee Expense — the monthly management fee per your agreement.
• Supplies — items purchased for the property (usually these show under Repairs instead).
• Reimbursements from Tenants — income when tenants pay you back for expenses beyond normal wear and tear.
• Utility Reimbursements from Tenants — income when tenants reimburse utility costs we or you paid, such as pro-rata shares on landlord-paid leases or bills incurred when tenants didn't switch utilities into their name.

When more than one maintenance person works on a project at the same time, we invoice each person's labor separately on owner statements. Some work takes two or more people to do safely or efficiently; other times one person picks up supplies while the others keep working. So similar-looking line items are usually two people on the same job, not a double charge.

That said, if anything ever looks like a duplicate billing for supplies or labor, let us know through the contact form and we will be glad to double-check it.

A balance shown like ($250.00) means expenses exceeded available funds that period. Three easy ways to handle it:

• Let future rent cover it — if a tenant is actively paying, the next month's rent typically replenishes the shortage.
• Send funds online — log into your Owner Portal and click Send Funds to post an owner contribution to the property.
• Request a payment link — we can send you a link in a task so you can send funds directly.

We regularly audit and reconcile our credit card and bank statements, especially online payments to utility companies and City of Lawrence rental licenses. In rare cases, a charge from a prior month had not yet been posted to a property, so the audit adds it later, which can create a negative starting balance. For example, a $15 rental license fee paid in a prior month but posted the next month makes the beginning balance ($15.00).

If your beginning balance doesn't match your last report's ending balance, request an updated year-to-date report through the contact form.

Owner Draw = money we sent to you. Owner Contribution = money you sent to us, posted as a credit to one of your properties.

When we manage more than one property for you and one has a positive balance while another is negative, our accounting software automatically evens them out with corresponding journal entries: an Owner Draw from the positive property and an equal Owner Contribution to the negative one. Effectively it is your money moving from one property to the other, so your year-end income and expense reporting per property is not affected.

• Prepayments: tenants who pay before the 1st are posted as “Prepayment” and applied to rent on the due date, so income lands in the right month.
• Lease signings: a new tenant's initial payment can post in the month they sign rather than the first month of the lease (less common now with the prepayment system).
• Move-outs: the month after a move-out often has extra repair and cleaning expenses, and then any amounts charged against the tenant's deposit appear as income a month or so later when the deposit is reconciled.

Your full-year income and expense report shows all income and expenses for the year and is the ideal report to forward to your accountant or tax preparer. If we have your mailing address and Social Security number or Tax ID, we also mail a 1099 and report the rental income to the IRS as required by law.

If your information has changed, fill out an IRS W-9 form and mail it to Location Properties, 3300 Clinton Parkway Court, Suite 110, Lawrence, KS 66047, or reach out through the contact form and we will arrange a secure way to send it.

Since we don't typically pay insurance premiums, property taxes, or mortgage interest, report those expenses in addition to what is on our statement.

Logging in is encouraged because it gives you the freedom to stay updated about your properties anytime, 24/7. At Location.ManageBuilding.com (also linked from the Owner Portal button on this site) you can:

• View real-time income, expenses, and property balances
• View your history of owner draws and contributions
• Download your management agreement and other important documents
• Run key financial reports on demand
• View tenant applications: click Leasing, then Applicants, select the applicant (or View by Group), and click View Report. Then contact the property manager working on the lease to discuss approval.
• Sign leases and renewals online — the lease signing process is integrated with the platform. For consistency in policies and procedures, we use full lease forms instead of renewal amendments, even for existing tenants.
• Send funds to a property (see below)

Buildium (our software provider) also offers mobile app access for rental owners, so you can check your investment from your phone.

Go to Location.ManageBuilding.com and enter your email address and password. First time? Use the temporary password we emailed you and follow the on-screen instructions to change it.

Need a reset? Request one through the contact form and we will send it. The reset link expires within an hour, so request it just before you plan to log in.

We prefer online payments because they post quickly to your property in our accounting system. Log into your Owner Portal and click Send Funds (available on the Financials, Ledger, and Requests pages). Select the property you are contributing to, fill out the payment information (EFT/eCheck or credit card) and a memo, review, and confirm. You will receive an email confirmation once the funds are sent.

You are also welcome to mail a check payable to Location Properties, 3300 Clinton Parkway Court, Suite 110, Lawrence, KS 66047.

Security deposits are held in a liability account and are not treated as income unless part of the deposit is withheld for damages or unpaid rent. That is why deposits held do not appear as income on your monthly or annual reports or your 1099.

Since tenant prepayments and security deposits are both liabilities, some reports combine them into a single liability total at the end of the month. If you or your accountant need a rent roll showing security deposits and prepayments held (many ask at year-end), request it through the contact form with the note “Need rent roll with security deposit & prepayment info” and we will gladly send it.

Withheld amounts show up as income on your report, usually about a month after move-out, under Reimbursement from Tenants, with the corresponding repair and cleaning expenses listed on your statement. So the month after tenants move out often shows the expenses of getting the unit ready, and the following month shows the income charged against the deposit.

Two legal limits to know: we cannot withhold for normal wear and tear or improvements (those are owner expenses), and we must depreciate items like carpet when charging a tenant for damage, so the charge is replacement cost minus age-related wear. Claiming depreciation on your tax return helps you recover expenses like this. We do our best to keep it fair and legal for both landlord and tenant.

In the rare cases where damages exceed the deposit, we first attempt collection ourselves: calling, texting, sending statements, and giving the tenant a period of time to pay. If they don't pay after a few months, we turn the balance over to a collection firm. Any funds we receive from the collection agency, after their fees, are treated like rent income and applied to the next month's income for the owner.

Listings are distributed across multiple platforms, shown in person with a 24-hour appointment scheduling call center, and every applicant goes through tenant screening and background checks. We prepare and execute the lease and document the move-in with inspections, securing reliable, long-term tenants who care for your property.

You can review applications yourself in the Owner Portal and discuss approval with the property manager working on the lease.

Rent cannot be raised during a lease, so renewal time is when rent adjustments happen. Each year, about 4 months prior to the end/renewal of the lease, our property managers reach out to you as the owner and ask what you would like us to offer the tenant for renewal terms.

• Our typical leases automatically increase the rent by 2% each year, and you can direct us to make the renewal offer higher or lower.
• If the renewal offer is more than 2%, we send a non-renewal of the automatic renewal and then send the tenant an offer with the new terms.
• If the renewal stays at the 2% increase, we simply run our normal renewal process.

Some owners choose to renew at the same rate as the prior year, but we caution against that: property taxes, insurance, and maintenance costs seem to go up each year, and the 2% annual increase helps cover them.

When a tenant moves out and the home goes on the open market, we move the rent toward market rates for that type of property and area, based on the information available at the time and in collaboration with you.

We handle online payment processing, late payment follow-up, and security deposit compliance, and our team has eviction and court experience when a situation requires it.

Our responsive maintenance team and coordinated vendors handle repairs with quality control on all work. Tenants have a 24/7 emergency maintenance hotline, and we handle maintenance follow-up after city inspections. Work requiring a license (HVAC, electrical, plumbing, permit work) is bid to third-party licensed contractors.

Yes, for anything significant. Per the management agreement, we obtain your prior approval for any non-recurring repair expected to exceed $500 per unit.

The exception is emergencies where time is of the essence to stop further damage or protect the occupants: no heat, no AC, water leaks, sewer backups, and similar. In those cases, repairs (including furnace, air conditioner, and water heater replacements using our regular vendors) proceed right away, because keeping those systems running is a property owner's obligation and keeps tenants safe.

Your owner portal ledger shows a continuously updated accounting of costs, with invoice copies scanned in for your review.

Yes. For homes or units intentionally left vacant (or while you are out of town), we offer a flat monthly rate to have a property manager or maintenance team member walk through and check the interior and exterior condition, either twice a month or weekly. Ask us for current rates through the contact form.

While a property is vacant, we recommend turning the water heater to Low or Vacation mode and shutting off the main water valve. (We do not check on pets, animals, or sprinkler systems.)

The Property Reserve is your money that we hold, per the management agreement, so we can draw on it for repairs in any given month. The standard reserve is $300 per unit (sites with more than four units may have a lower agreed per-unit amount). Each month the reserve is replenished first, from rents or within ten days of a statement, and the remaining balance after expenses is sent to you as your owner draw.

The reserve is fully refundable when management ends: because vendor invoices can trail the work, any remaining reserve funds are returned within ninety (90) days after cancellation of the agreement, less any fees or expenses still due for the property.

Want to save up for a bigger project like windows, carpet or plank flooring, a fence, siding, a water heater, or a furnace? We can increase your reserve at your request to build funds for a contractor. You are also welcome to pay outside contractors directly, or prepay us online through Send Funds for larger projects.

Owning rental property is a valuable long-term investment, and planning for both routine and occasional expenses protects it. Here is a realistic overview for Kansas single-family homes; all items are if and when needed:

Every year (routine)

• HVAC filter changes; minor plumbing and electrical repairs (leaky faucets, light fixtures, toilet parts, shut-off valve checks)
• Yard cleanups, brush and limb removal, tree and bush trimming, gutter cleaning, pest control (owner responsibility even when tenants mow)
• Seasonal weed-and-feed lawn treatments (owner-paid; keeps turf from going to weeds or dust patches)
• Tub and sink caulking touch-ups; minor paint, screens, and door adjustments
• Annual city rental license or inspection fees; appliance service calls

Around years 3–5

• Paint touch-ups or full repaint if needed; re-caulking tubs and showers
• Toilet rebuilds or replacements; shut-off valve replacements; water heater servicing
• Small roof repairs; fence maintenance; appliance replacements (microwave, dishwasher, disposal)
• Carpet and flooring: cleaning is our priority over replacement unless you direct otherwise

Around years 7–10

• Flooring replacement with moderate-to-heavy tenant use; major appliance refresh (washer/dryer, refrigerator)
• Exterior siding, trim, or gutter refresh; deck replacement or major repair; partial roof or flashing updates
• Full HVAC replacement (10–15 year life), roof replacement (20–30 years), water heater (7–10 years), window/door upgrades, kitchen and bath updates

Kansas-specific factors

• Hot summers, cold winters, and freeze-thaw cycles contribute to wood rot and exterior deterioration
• Wildlife (squirrels, birds, and especially woodpeckers) can damage siding, fascia, and vents
• Clay soil expansion/contraction and wind damage make proactive exterior inspections worthwhile

Smart planning: set aside roughly 8–12% of annual rental income for maintenance and capital improvements. We can establish and manage a maintenance reserve account for your property on request, so funds are ready for projects, capital improvements, or emergencies.

In general, we don't recommend buying or renewing third-party home warranty policies. Our experience in Lawrence is that most local vendors and repair companies do not work with warranty companies due to low and slow pay, and the national 800-number scheduling process is frustrating for tenants: we have had tenants left without heat or a working appliance waiting on parts approvals, and one warranty technician told an occupant it needed repair but he “only comes to Lawrence once a week.”

Instead, we work with prompt local contractors who are motivated by their continued business with us. We suggest saving the annual warranty fee and putting it toward a maintenance reserve. That said, if you already have a paid or renewed policy, we will do our best to use it for you when possible.

At houses and townhomes, tenants typically handle mowing, trimming, and weed removal per the lease. Even so, owners should budget for periodic yard cleanups, brush and limb removal, and bush or tree trimming, which are owner responsibilities not chargeable to tenants.

We also strongly recommend seasonal weed-and-feed lawn treatments about six times a year, paid by the owner, to keep the lawn healthy; Kansas lawns deteriorate into weeds or dust patches without them. At multi-unit buildings, mowing is typically coordinated and paid through the property.

Repairs (fixing a leaking faucet, replacing a broken window pane, painting a small area) are generally deductible in the year completed. Improvements (a full roof replacement, new siding, a major kitchen remodel) typically must be capitalized and depreciated over time.

Residential rental property depreciates over 27.5 years under federal law (which Kansas follows), while components have shorter useful lives:

• Flooring and carpet: 5–7 years
• Appliances: 5–10 years
• Interior/exterior paint: 3–7 years
• Water heater: 7–10 years
• HVAC system: 10–15 years
• Fencing/decking: 10–15 years
• Cabinetry/countertops: 10–20 years
• Roof: 20–30 years

Maintain detailed expense and depreciation records, allocate large improvements to the correct schedule, and coordinate with your accountant or tax preparer each year under IRS Publication 527 and Kansas Department of Revenue guidelines. This is general information, not tax advice.

Although tenants can be charged for damage they caused, Kansas law and federal tax guidelines require the charge to reflect the actual repair or replacement cost minus the depreciated value of the item. For example, if carpet has a 7-year useful life and a tenant damages it in year 6, the tenant can only be charged roughly one-seventh of the replacement cost. Deducting for age-related wear first keeps deposit charges fair and legal, and claiming depreciation on your tax return helps recover the rest.

Yes. We coordinate city-required rental compliance end to end:

• Licensing form submission and processing
• Inspection scheduling and coordination
• Inspection and licensing fee payments
• Follow-up repairs to meet compliance standards
• Local registered property manager agent services
• Ongoing monitoring of changing municipal requirements

Kansas law (K.S.A. 12-1808) and Lawrence city code make property owners responsible for maintaining the sidewalks adjacent to their properties. The city's right-of-way accessibility program inspects sidewalks zone by zone and marks hazards with paint: white paint means the hazard was caused by city-owned infrastructure (street trees, manholes, valves) and the city repairs it at no cost to you; pink paint means the repair is the owner's responsibility.

If you receive a sidewalk notice for a property we manage, please let us know through the contact form and we will coordinate the best way to get us a copy.

We highly recommend using the city's contractor when offered. The city's cost-partnering covers demolition and removal, excavation, grading, design, traffic control, permitting, and ADA curb ramps, with a two-year warranty, and the owner pays only the material and installation cost of their marked hazards. Invoices are due within 90 days; unpaid amounts can be spread over five years on the property tax bill (with interest). It is difficult to find individual contractors for small concrete jobs in Lawrence, and self-repairs must meet city specs and permits without the program's pricing or warranty.

Current program details, zone maps, and hazard definitions are at lawrenceks.gov/mso/ada, or call Municipal Services & Operations at (785) 832-7800. The 2026 phase focuses on the Pinckney and Sunset Hill neighborhoods.

Yes. Bryan Hedges is also a licensed real estate broker. Explore investment property opportunities in Lawrence, get a free home value estimate, or learn about selling a property at BryanHedges.com.

The standard agreement runs for one year from the date last signed and then automatically renews on the same terms until canceled. After the first year, either you or Location Properties may cancel at any time with sixty (60) days' notice to the other by mail and email. If an owner cancels before the end of the first year, the agreement calls for paying the management fees for the months remaining to reach the one-year date.

Per the agreement's Notices section, cancellation notice is mailed by U.S. mail to our office at Location Properties, 3300 Clinton Parkway Court, Suite 110, Lawrence, KS 66047, in addition to electronic notice. The easiest way to start the conversation is a message through the contact form or a call to (785) 841-7300; we will confirm the effective date with you. Your own agreement controls if its terms differ, so check your copy (downloadable in the owner portal).

Effective on the termination date, we cease performing management duties. We notify the tenants that we will no longer be collecting rent or taking maintenance requests as of the end of our management. For any active leases, you will want to notify the tenants of their next steps, such as where to make rent payments for the month after management ends, and that we will send you their security deposit for you to reconcile with them at the end of the lease.

We deliver to you, as soon as possible after termination:

• All rents and income of the property on hand and in any bank account that are your monies, after payment of any amounts owed under the agreement;
• Any monies due you that are received after termination; and
• All materials, supplies, keys, contracts, documents, and financial records pertaining to the property that you reasonably request.

The wrap-up timeline in the agreement:

• Within 45 days: any remaining payment then due and owing to you.
• Within 60 days: the profit and loss statement for the fiscal year (or the portion ending on the termination date).
• Within 90 days: any remaining maintenance reserve funds, less fees or expenses still due, since some vendor invoices arrive after the work.

If the property is still occupied and we hold the tenants' security deposits, the agreement directs us to disburse the deposits to you as soon as possible after cancellation.

From there, you work with the tenants to establish a new lease and security deposit agreement that does not involve Location Properties, and you become responsible for following through with all lease terms, including reconciling the security deposit according to Kansas Landlord Tenant Law at the end of the lease and disbursing any monies owed to contractors or tenants.

You may market the property for sale at any time during the agreement, either through our affiliated brokerage, Realty Executives – Hedges Real Estate (Bryan Hedges), or through a real estate company of your choice. If the property sells, the management agreement terminates upon the closing of the sale, even during the first year, and the wrap-up process above applies.

Showings to prospective buyers, appraisers, and inspectors are coordinated by you or your real estate agent; staff time spent on sale-related activities is billed hourly per the agreement. Thinking of selling to another investor with the tenants in place? We are glad to help with that conversation and can often keep managing for the new owner.