Knox FAQs for Realtors®
How Do I Know Knox Won’t Take my Clients
Knox does not list homes for sale. We also do not represent buyers. We created our Realtor® partnership program to help you close more buy sides with property investors. Our goal is to make our shared clients so happy that they keep coming back to you to buy more investment units and those units are all placed on the Knox Platform.
Why would I send a seller to Knox rather than just selling their home?
Don’t! Sell the home. It is not our goal to replace the sale of a home. Most commonly, Realtors® work with Knox when:
- The homeowner, who you represented as a buyer, has no interest in selling, but wants to turn their home into an investment unit.
- A client wants to buy an investment property, and/or when your client wants to grow their investment property portfolio, and you want to make it easy for them to do so. You help them find the properties to acquire and add to their portfolio. Knox does the rest.
- A home you’ve listed will not sell. The homeowner won’t agree to more price reductions. The best choice for the homeowner is to rent the home out and consider selling some time in the future.
How will Knox help me find more investor buyers as customers?
In the coming days and weeks, we’re going to be providing you with a set of tools. You’ll use these tools to let your contacts and past clients know that you can help them find investment property to purchase. Plus, you have a partner who will make it easy and profitable to own those investments post close. When you help you customers build wealth, they’ll come back to you over and over again.
I understand that there’s an application process. What does that look like?
Not every unit is right for the Knox Platform. For each unit, we start by running the numbers. The homeowner should know what the economics of the property look like and be OK with the expected investment returns. Next, we visit each home. The units we take onto the platform are well maintained, rent well, and make tenants happy. If we do not believe that a property should be a rental, we’ll politely tell the clients the facts and recommend that they sell instead and we’ll direct them back to you.
How does Knox Frictionless Ownership work?
Knox turns clients home into an income property and passive investment. We do the work. The homeowner sits back, collects income, and watches their investment grow. We take care of the rest. It really is that simple.
How much does it cost to put a 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 quotes.
How does Knox manage a homeowners 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 the homeowner. When rent is collected it is automatically deposited into the reserve account. The expenses for the property are paid out of this account. At the end of the quarter, if the account balance is above the minimum balance, we send the homeowner the rest.
On a quarterly basis, Knox will also send a statement that details every penny collected and spent related to the property. At the end of the year, we’ll send a 1099 for the homeowner’s taxes. This will enable the homeowner to account for every single appropriate expense available 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. The homeowners would incur these costs whether the home is on the Knox Platform or not. We simply manage the payment of these costs on the homeowner’s 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 the homeowner’s behalf by Knox from the property’s 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 a homeowner signs up, are they 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 the property needs some renovations before it’s ready to rent?
We’ll manage those for the homeowner! Lots of homes aren’t quite ready to rent when the owner moves out. Knox has a team of maintenance contractors who can fix up the home so that it rents for the right price and tenants are happy and stick around.
What happens when there’s a problem with the 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 a homeowner needs 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 the homeowner in a better way. By bundling all of these, the homeowner no longer needs to hire a property manager, lawyers, insurance brokers, mortgage brokers, contractors, and more. We are the single resource. Let’s break this down:
- Knox offers financing options. Property managers don’t. Our mortgage division helps make sure the homeowner has the right mortgage options. We also make sure they have the financing they need to buy the home they are moving into.
- Knox insurance saves them money. Property managers don’t offer insurance. Our insurance division is designed to make sure they are getting the right coverage. We consider liabilities and make sure every tenant carries renters’ insurance.
- Fixed percentage fee structure. Knox charges 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, 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 the property. Knox collects rent, pays the bills on behalf of the owner, and sends them the net profit. At the end of the year, we send
a 1099which accounts for every penny. This makes it simpler to file the homeowner’s 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. 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. The homeowner owns the value growth and sees dividends on a quarterly basis, but do none of the work. That’s it.