FREQUENTLY ASKED QUESTIONS

Can you really add 10% to my NOI in 6 months?

Yes we can. We have over 4 decades of experience in managing properties; adding value; letting quality tenants move in who will pay the rent on time and treat the property with respect; and keeping costs in line. If we don't raise your NOI by 10% in 6 months, we will return every cent that you paid us in management fees.*

Is percentage-of-rents fee structure or flat-fee-per-unit structure better?

Most property management companies charge a percentage of the rents for their services, which can lead to conflicts of interest. PROPFOX charges a flat fee per unit fee, so that you know exactly what the fee will be. It just seems unfair that percentage-fee based managers will profit on the investment that the property owners make to increase rents.

Do property managers charge for units that are vacant or not receiving rents?

The argument for percentage based fee structure is that it will incentivise managers to keep the units performing. This may lead to managers placing any tenant in the unit just to keep their fee coming. PROPFOX does not charge for non-performing units, but our sole mission is to add value to your property by keeping excellent, respectful, paying tenants in place.

What is the best way to screen tenants?

The best property managers will check a potential tenants' credit history, criminal record, employment status, rental history and more. PROPFOX is so confident in our screening process that we have a 12 month free replacement guarantee.

I just inherited a property and don't know what to do with it yet — what should I do?

The property still needs to be maintained, secured, and managed while you decide whether to sell, rent, or keep it. PROPFOX'S Estate & Interim Property Management service steps in on a month-to-month basis — no long-term contract required — to handle that in the meantime. When you're ready to make a decision, PROPFOX is already there with full knowledge of the property to help out.

* NOI Improvement Guarantee — Terms. "Current NOI" means the annualized Net Operating Income of the Property as represented and claimed by the Owner as of the date of this engagement, calculated as gross rental income less operating expenses. For purposes of this calculation, Current NOI shall reflect a deduction for an imputed property management fee at Propfox's standard rate, regardless of whether the Property was self-managed or professionally managed prior to this engagement. This adjustment ensures an apples-to-apples comparison, since self-management still carries a real cost in the owner's time and effort even when no fee is paid.

"Improved NOI" means the annualized Net Operating Income of the Property, calculated using the same methodology as Current NOI, measured at the conclusion of the sixth (6th) full month of Propfox management.

If Improved NOI does not exceed Current NOI by at least ten percent (10%), Propfox will refund 100% of management fees paid during the guarantee period, subject to the following conditions:

1. The Owner has approved and permitted implementation of Propfox's recommended value-add and expense-reduction measures;

2. Propfox has continuously managed the Property for the full 6-month guarantee period; and

3. The Property has not experienced an Unforeseen Vacancy or Force Majeure Event materially affecting NOI during the guarantee period.

Unforeseen Vacancy means any vacancy arising from circumstances outside Propfox's reasonable control, including but not limited to a tenant's unexpected early lease termination, tenant default, eviction proceedings, or a tenant's death, incarceration, or abandonment of the unit.

Force Majeure Event means any event beyond the reasonable control of Propfox or the Owner, including but not limited to fire, flood, natural disaster, extreme weather, war, terrorism, civil unrest, pandemic or public health emergency, government-mandated shutdown or eviction moratorium, or other act of God.

If an Unforeseen Vacancy or Force Majeure Event occurs during the guarantee period, Propfox may, at its discretion, extend the guarantee period by a period of time equal to the disruption, or exclude the affected month(s) from the NOI calculation, in order to fairly measure performance under normal operating conditions.