How does Knox Frictionless Ownership work?
Knox turns a home you own into an income property and a passive investment for you. We do the work. You sit back, collect income, and watch your investment grow. We take care of the rest. It really is that simple.
How much does it cost to put my home on the Knox Platform?
Knox charges a flat fee calculated as a percentage of the rent collected. We do not charge any additional fees such as rental commissions or maintenance markup. We’re happy to provide a quote for you.
Do I have to chase rent payments? What if a tenant pays late?
You’ll never have to chase a rent payment. Knox takes care of this for you. In fact, we collect all rent electronically and automatically. So, late payments are rare.
How does Knox manage my cash flow?
Knox holds a reserve account for each unit in the program. We never co-mingle funds. We establish a minimum balance in this account that is spelled out in our agreement with you. When rent is collected it is automatically deposited into your reserve account. The expenses for your property are paid out of this account. At the end of the quarter, if your account balance is above the minimum balance, we send you the rest.
On a quarterly basis, Knox will also send you a statement that details every penny collected and spent on your behalf. At the end of the year, we’ll send you a 1099 for your taxes. This will enable you to account for every single appropriate expense available to you as an investment property owner.
Beyond a percentage of the rent, what other costs might I incur once my property is enrolled the Knox Platform?
All properties have carrying costs. Taxes, insurance, mortgage, condo fees, etc. You would incur these costs whether your home is on the Knox Platform or not. We simply manage the payment of these costs on your behalf. Maintenance costs are the main expense beyond recurring costs. Knox has pre-negotiated rates with maintenance providers to save our clients money. All costs are managed and paid on your behalf by Knox from your reserve account.
What does the Knox Platform include?
In short? Everything it takes to operate an income property. Rentals, legal, background and credit checks, rent collection, bill pay, accounting, tenant relations, move-in and move-out, maintenance management, insurance program and rate optimization, preventative maintenance, access to preferred financing, and much more.
When I sign up, am I locked in forever?
We ask for an initial commitment of 2 years. After that, you can take your property off of the Knox Platform by giving us 6 months notice before the end of the then-current lease.
What if my property needs some renovations before it’s ready to rent?
We’ll manage those for you! Lots of homes aren’t quite ready to rent when you move out. Knox has a team of maintenance contractors who can fix up your home so that it rents for the right price and tenants are happy and stick around.
What happens when there’s a problem with my property?
The tenant will contact Knox and our team will respond quickly. We’ll assess the issue, start a request in our system, and assign an appropriate maintenance provider to the issue. We’ll coordinate with the contractor and the tenant so that they can gain access to the home at a convenient time and fix the problem.
Does Knox charge 1 month’s rent to the tenant or the owner when you rent the unit?
Neither. Knox does not charge a separate fee for rental services.
Rental agents and property managers will often charge one party, or both, a month’s rent. This is paid upon move-in, no matter how long the tenant sticks around or how reliably they pay their rent. Knox charges a percentage of rent collected each month. We get paid when you get paid. Thus, our interests are aligned and we both want to avoid vacancies.
How is Knox different from a traditional property manager?
- Knox has bundled all of the services you need to own income property into a single product. This does include the functions of a classic property manager with a few changes that align our interests with yours in a better way. By bundling all of these, you no longer need to hire a property manager, lawyers, insurance brokers, mortgage brokers, contractors, and more. We are your single resource. Let’s break this down:
- Knox offers financing options. Property managers don’t. Our mortgage division helps make sure you have the right mortgage options. We also make sure you have the financing you need to buy the home you’re moving into.
- Knox insurance saves you money. Property managers don’t offer insurance. Our insurance division is designed to make sure you’re getting the right coverage. We consider your liabilities and make sure every tenant carries renters’ insurance.
- Fixed percentage fee structure. Knox charges you one fixed percentage fee per month. We don’t charge owners or tenants a month’s rent every time the unit turns over. We don’t charge a per incident fee. We don’t charge for evictions. We don’t charge for lease renewals. We don’t mark up vendor costs. Just one fixed percentage fee.
- Our incentives are aligned with the homeowner. If we can’t collect rent on your behalf, we don’t get paid. By contrast, a rental
agency,gets paid a full month’s rent when the renter moves in, even if they break their lease a few months later. Sometimes they charge both the tenant and the property owner a month’s rent.
- We manage 100% of the finances for your property. Knox collects rent, pays the bills on your behalf, and sends you the net profit. At the end of the year, we send you
a 1099which accounts for every penny. This makes it simpler to file your taxes.
- We don’t make money on maintenance. Most property management companies have a maintenance and construction division. This is part of how they make money from you. Alternatively, they may be marking up the costs of 3rd party maintenance contractors. Knox has pre-negotiated preferred rates with maintenance providers. Their costs are passed through to property owners with zero
- Automation and data. Knox has combined technology, automation, and data to deliver income property ownership in a way that it’s never been offered before. We call this Frictionless Ownership. It’s our goal to make owning income property like owning a share of stock. You own the value growth and see dividends on a quarterly basis, but do none of the work. That’s it.