7.3 HRSR 06-05-2017
Request for Action
ToItem Number
Housing and Redevelopment Authority7.3
Agenda Section Meeting DatePrepared by
General BusinessJune 5, 2017Amanda Othoudt, EDD
Item Description
Reviewed by
Acuity Group Management Contractfor 426 Main Cal Portner, City Administrator
Street
Reviewed by
Action Requested
Approve, by motion, a management contract with Acuity Group for 426 Main Street.
Background/Discussion
At their November 7, 2017, meeting, the HRA expressed interest i
along east Main Street connecting to Highway 169 for a potential
with the Mississippi Connections Plan.
The HRA approved a purchase agreement for the property located at 426 Main S on May 1, 2017,
and subsequently closed on the property on May 26, 2017.
Staff has been working with Acuity Group, a property management
426 Main Street on behalf of the HRA.
Acuity Group will provide full management services for the prope
Conducting a site visit of the property to assess what needs to be done (if anything) prior to
renting to a tenant.
Advertise property on numerous websites and social media venues, including
www.ACGProperty.com
Show property to qualified, prospective tenants.
Draft lease agreement and all other required paperwork. Hold security deposit in trust and a pet
deposit if there is one. Move tenants into home.
Tenants may make rent payments, as well as maintenance requests, online. Acuity Group also has
a 24 /7 emergency service line to handle all after hours emergency issues when they arise.
Regular maintenance. Acuity Group works first to troubleshoot phone calls with tenant prior to
sending out a technician. Owners are always given option to handle themselves or have Acuity
Group arrange to resolve the issue.
Owners are paid via ACH or mailed a check monthly for rent, less any outstanding bills.
Monthly owner statements are uploaded to each owners portal acc
made. Owners have access to their portal at all times.
Every six months,Acuity goesout to the property to inspect condition, check for any damage
and touch base with the tenants.
At the end of year they send out 1099 to owners as well as CRP to all adult tenants.
Lease renewal / tenant move-out requires 60 day notice (2 full months) and are in touch with all
tenants between 60-90 days prior to end of lease to get things in place.
No payment is requiredto Acuity Group until theyrent theproperty. There is a great need forrental
properties in this area. According to Acuity group, the last several properties they secured tenancy for
took less than 2 weeks to complete and they have some of the most stringent tenant criteria in the
rental industry.
Monthly management fee = $100.00
Placement Fee = 100% of rent value
Lease Renewal Fee = 25% of rent value
Acuity Group also manages two properties owned by Elk River Municipal U
results with the company.
Financial Impact
The HRA will receive monthly rental income of $1,100 less the monthly management fee of $100.
Attachments
Acuity Group Management Contract
N:\Departments\Community Development\Economic Development\HRA\Administrative\Agenda\2017\06.05.2017\7.3 sr Management
Agreement.docx