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 in 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?
Let’s compare a traditional property management company to Knox.
What a property manager does:
A property manager is usually a maintenance company who will take issue calls from tenants when something is broken or they’re locked out. They may also collect rent, but not always. This, they’ll do for 4-8% depending on the company, the level of service, and the unit. Sometimes property managers are construction companies who also do fix-it work. Other times, they’re real estate brokerages with a few contractor/handyman relationships or a handyman on staff. Usually, they’ll either have their own employees do the fix-it work and charge you for the work at a premium rate or they’ll mark up a 3rd party’s rates every time they do a job in your unit. In addition to a property manager, at the very least, you’ll need someone to rent the unit.
They’ll charge 1 month’s rent to find you a tenant. They’ll charge this amount every time the unit turns over, no matter how long the tenant sticks around. This means they make more money when the unit has more turnover. Property owners know that turnover, and the possibility of vacancy, is just about the worst thing that can happen. Sometimes, the property manager and the rental agency are the same company. Some rental agents will claim that they can, “get the tenant to pay their fee.” In reality, when the tenant pays a feel, they’re willing to pay less rent. So, one way or another, the owner is paying.
What Knox does:
- All the books
- Rent Collection
- Reserve Account Management, no commingling funds
- Pay all bills and expenses – mortgage, taxes, insurance, condo fee, etc
- Send you the net profits every 90 days
- Deliver 1099 at the end of the year which makes it easy to file your taxes while making sure you deduct every penny you can.s
- Hire professional real estate photographers – this allows the unit to fetch higher rent.
- Advertise the home.
- Show the home
- Leasing and legal
- Renewals and rent increases
- Background and credit checks
- Property management
- Respond to tenant issues 24hr/day
- Emergency response within 2 hours.
- schedule all other maintenance within 48 hours.
- NO markup on fix-it costs including parts and labor
- Handle evictions, if necessary
- Find you the right insurance policy
- Make sure you have the right policy
- Require every tenant to carry renter’s insurance
- Bundle policies to save money.
- Financing (if needed)
- Refinance so you have the downpayment you need for your next home
- Help you access cash in the home as/when you need it.
- Work with the bank to leverage your w-2s and leases so you qualify for the right note on your next home
Knox treats your home like the financial investment it is. We help you balance cash flow and rate of return to help you meet your financial goals.
We do all the above for a fixed fee of 10% of the rent we collect. We don’t make money unless you make money.