Owner FAQs

Common Questions

• What services do you offer as a property management company?

  At Kosmix, we provide full-service property management. That includes marketing, resident screening, leasing, rent collection, maintenance coordination, and clear financial reporting. Whether you own one rental or several, we focus on keeping things organized, compliant, and running smoothly so ownership feels manageable instead of stressful.

• What types of properties do you manage?

  We primarily manage single-family homes, condos, and small to mid-sized multi-family properties, along with select commercial spaces. We work with both first-time owners and experienced investors who want professional, hands-on management without being involved in the day-to-day details.

• Do you manage furnished or short-term rentals?

  Our primary focus is long-term residential management. We are expanding into furnished and short-term rentals by first operating and refining systems on company-owned properties. This allows us to work out the details before offering the service more broadly. We’ll share updates as that service becomes available.

• How much do property management services cost?

  Our fee is a flat percentage of collected rent and includes the full scope of management services. There are no surprise add-ons for standard tasks. Pricing details are available upon request, and we’re happy to review pricing based on your specific property.

• How do you determine market rent?

  We use a combination of recent rental data, local market comparisons, current leasing activity, and pricing tools. We look at what similar homes are actually renting for and adjust based on condition, features, and demand. If the market shifts, we adjust pricing to stay competitive and reduce vacancy.

• How do you screen residents?

  We review applications as a full profile, not a single score. Screening includes credit behavior, verified income, rental history, background checks where permitted, and landlord references. The goal is to place residents who demonstrate stability and the ability to maintain long-term tenancy.

• What risks come with renting out my property?

  Rental ownership involves legal and operational responsibilities, including compliance with housing laws, maintenance obligations, and resident protections. We provide an Owner Risk Disclosure outlining these considerations to avoid surprises.

• What laws should I be aware of?

  Rental properties are governed by local, state, and federal laws. Kosmix helps ensure compliance with fair housing rules, habitability standards, screening requirements, and resident rights throughout the management process.

• Do California property managers need to be licensed?

  Yes. Property management in California must be performed under a licensed real estate broker. Kosmix Property Management operates under a California Real Estate Broker license and complies with all licensing requirements.

• Are all property management companies basically the same?

  Not really. Some firms focus mainly on rent collection, others expect owners to stay closely involved, and some operate remotely with limited local presence. Kosmix provides full-service, locally managed oversight, covering leasing, maintenance coordination, compliance, reporting, and day-to-day operations.

• Do you help clients buy or sell real estate?

  In many cases, yes. Since we already manage your property, we’re familiar with its condition, performance, and timing, which can be helpful when buying or selling. Availability depends on the situation and scope. All our acquisitions and sales are conducted as a Broker Associate for Fathom Realty.

• Can I negotiate the management agreement?

  Our agreement is generally month-to-month with no early termination penalties, giving owners flexibility without long-term lock-ins.

• Can you take over if a resident is already in place?

  Yes. We can assume management of an occupied property. We review the lease, work with the resident, and bring the account into compliance before continuing management.

• Are you the right fit for every owner?

  Not always, and that’s intentional. Kosmix works best with owners who want full-service management and value well-maintained properties, clear systems, and professional oversight.

• How soon can you begin?

  Usually within a few days. Once the property is reviewed, pricing is agreed on, and paperwork is completed, we take over management right away.

• How do I get started?

  Email info@kosmixpm.com with your name and property address. A team member will walk you through the next steps.

• What lease terms do you offer?

  One-year leases are most common, but terms may vary based on market conditions and owner preferences.

• Do I review or sign the lease?

  Yes. Owners typically review and sign leases and related documents. Most documents are signed electronically, though hard copy signings can also be accommodated.

• Do I pay a fee if the property is vacant?

  No. Management fees are tied to collected rent, so there’s no fee during vacancy.

• Do you offer placement guarantees?

  Yes, if a resident breaks the lease within the first year, we replace the resident at no additional leasing cost.

• Do you handle evictions?

  Yes. We manage evictions when necessary and focus on screening practices to reduce the likelihood of eviction.

• Do you inspect the property?

  Yes. Routine assessments are performed to monitor the condition and address issues early.

Leasing Requirements

• How up to date does my property need to be to rent quickly?

  This matters more than most owners expect. Homes that are clean, functional, and reasonably up to date tend to lease faster, attract stronger applicants, and often command better rent.

  What qualifies as “rent-ready” varies by neighborhood and price point, but common expectations today often include:

  • Fresh, neutral interior paint
  • Cleaned or updated flooring
  • Updated light fixtures, ceiling fans, and outlet covers
  • Well-maintained, working appliances
  • Modern bathroom fixtures and hardware
  • A clean, bright, and odor-free condition
  • Appropriate landscaping and curb appeal
  • New HVAC filters
  • A working refrigerator and stove (required in California as of January 1, 2026)

  We track local rental trends in your specific submarket and provide a clear, prioritized list of updates that actually impact leasing results. When needed, we can also coordinate prep work to get the home market-ready without over-improving.

• Do I need to provide a washer and dryer?

  No. California law does not require owners to provide a washer and dryer. If an owner provides them, routine maintenance generally remains the owner’s responsibility, unless damage is caused by misuse. Lease clauses attempting to shift normal maintenance to the resident are often difficult to enforce. If a resident installs their own washer and dryer with approval, the resident is responsible for maintenance, repairs, and removal at move-out.

• Is a refrigerator required in California rentals?

  Yes. As of January 1, 2026, California law generally requires landlords to provide a working refrigerator and stove. These appliances are considered part of the home’s habitability standards and must be maintained in a safe operating condition throughout the tenancy.

• Do I have to consider Section 8 applicants?

  Yes. In California, housing vouchers are a lawful source of income, which means applicants cannot be denied solely because they participate in Section 8. Voucher participation does not guarantee approval, and all applicants are evaluated using the same screening standards.

• Do I have to accept pets?

  No. Owners are not required to allow pets. That said, many renters have them, and properties that prohibit pets often take longer to lease. Most Kosmix clients allow pets under reasonable conditions. Service Animals and Emotional Support Animals must be accommodated as required by law, even in properties with a no-pets policy.

• How do you screen pets?

  Before allowing pets, we review practical factors such as type, size, and number of animals. We request photos and require approved pets to be listed on the resident’s renters’ insurance policy. Service Animals and Emotional Support Animals are handled separately and verified in accordance with California law and applicable fair housing guidelines.

• Do locks need to be rekeyed after a resident moves out?

  California law does not require landlords to automatically rekey locks between tenancies, but it is widely considered a best practice for safety and liability reasons. In situations involving a court-issued restraining order, locks must be changed within 24 hours of receiving a written request. We generally recommend rekeying between residents whenever feasible to reduce risk and enhance security.

• When can an owner enter an occupied property?

  California law allows entry with at least 24 hours’ written notice during normal business hours for lawful purposes such as repairs, inspections, or showings. In true emergencies that pose an immediate risk to people or property, advance notice is not required. All entries are handled in compliance with California law while balancing the owner’s rights and the resident’s right to privacy.

• Is there a maintenance reserve fund?

  Yes. At the start of management, owners provide a $600 maintenance reserve. This reserve remains your money and is held in the Kosmix broker trust account in full compliance with California trust accounting requirements. The reserve is used to cover approved expenses or urgent repairs that arise before rental income is received, helping prevent delays and keep the property running smoothly. Upon management's end, the remaining reserve is returned to you, less any outstanding charges.

Rent Collection & Security Deposits

Consistent cash flow matters. Kosmix manages rent collection using clear systems, reminders, and timely follow-up to keep payments on track. We don’t get paid until you get paid.

• How is rent collection handled?

  Rent is collected through the secure resident portal accessible through our website. Payments are processed and tracked, and any late rent is addressed promptly in accordance with the lease terms and applicable law.

• When do owners receive their funds?

  Rent is due from residents on the 1st of each month. After payments are received and the monthly accounting cycle is completed, owner funds are distributed by ACH direct deposit, typically on or about the 11th of the month. This timing allows payments to clear, expenses to be processed, and reporting to be finalized so distributions are accurate and reliable.

• How much security deposit do you charge?

  As of July 1, 2024, California law generally limits security deposits to one month’s rent. In limited cases, small landlords may charge up to two months, except for military applicants, who are still capped at one month. The deposit includes security, cleaning, and keys. First month’s rent is separate, and last month’s rent cannot be collected upfront.

• Who holds the security deposit?

  Security deposits are held in the broker trust account in compliance with California DRE requirements. For lease-only services, and not ongoing property management, the security deposit is paid by cashier’s check directly to the owner.

• Who handles the return of the security deposit?

  Kosmix handles the move-out inspection and return of the security deposit on the owner’s behalf. Inspections include photo documentation, and residents may request to be present. Any lawful deductions are itemized in writing with supporting documentation, and the remaining balance is returned within 21 calendar days of move-out, as required by California law.

• Will my distribution schedule change during offboarding?

  Yes. To ensure accuracy, the final monthly distribution is briefly held while all expenses, management fees, transfers, and final invoices are completed. Once everything is fully reconciled, the remaining rent proceeds, reserves, and any applicable security deposits are released together with the final owner statement.

Maintenance & Repairs

We address maintenance issues promptly to protect the property, prevent minor problems from becoming costly ones, and ensure a positive experience for residents.

• How do you handle property maintenance and repairs?

  Residents submit maintenance requests through their secure online portal, which is also accessible from our website, kosmixpropertymanagement.com. When appropriate, requests may begin with third-party phone triage, as some issues can be resolved without sending a vendor to the property. If an on-site repair is needed, we review the scope of work and estimated cost, coordinate qualified and vetted local vendors, and remain involved until the repair is completed properly. Residents are kept informed throughout the process to reduce repeat requests and unnecessary service calls.

• Do you offer emergency maintenance services?

  Yes. We provide an emergency contact for urgent maintenance issues outside standard business hours. This ensures critical situations are addressed promptly, even when our office is closed. Non-urgent questions and routine maintenance matters are handled during normal business hours. We are committed to responding to all communications on the same business day they are received.

• Can I purchase a home warranty for my rental property?

  We generally do not recommend third-party home warranty programs. In our experience, warranty companies often result in longer response times compared to working directly with vetted local vendors. Coverage is frequently limited, and out-of-pocket costs commonly exceed the initial service fee. These delays and limitations can lead to resident frustration without providing meaningful cost savings. If your rental property is currently covered by a home warranty, it may still be eligible for management. Your Kosmix account representative can review the warranty details with you.

• Can I use my own vendors for repairs?

  Yes, with some limitations. When a property is occupied, all vendors must be properly screened to meet safety, insurance, and compliance requirements. Owners are welcome to recommend trusted vendors, and we’re happy to evaluate and qualify them for use when appropriate.

Reporting & Taxes

Clear, consistent reporting is part of how we help owners stay informed and prepared year-round.

• What reports will I receive, and how often?

  Owners receive detailed monthly financial reports showing rent collected, expenses paid, and overall account activity. These reports provide a clear snapshot of how your property is performing. We also provide a comprehensive year-end statement to simplify accounting and tax preparation. If you need a custom or property-specific report, just let us know — we’re happy to help.

• Why aren’t sales or local taxes reported as rental income to the IRS?

  Certain taxes are treated as pass-through amounts. These funds are collected and remitted on the owner’s behalf and are not considered taxable rental income. As a result, they are not included as income on your 1099 or reflected as income or expenses on the year-end statement.

• When will I receive my 1099 and year-end statement?

  Your year-end statement and 1099 will be uploaded to the Kosmix Owner Portal and emailed to you by mid-February. All tax documents are issued no later than February 28. A $50 processing fee applies to each 1099 issued.

• Why am I taxed on prepaid rent for the current calendar year?

  Federal tax rules require that all income received by December 31 be reported for that tax year, even if the rent applies to a future period. Any rent received before January 1 must be reported as income for the prior year.

• My name or tax ID is incorrect. How is this corrected?

  Please contact your property manager or our main office as soon as possible. Once we receive the corrected information, a revised 1099 will be issued to both you and the IRS, as required.

• Why do the amounts reported on my 1099 differ from my earnings statements?

  Differences most commonly occur due to prepaid rent. Monthly earnings statements reflect activity for that specific month, while the 1099 reports income based on when funds were actually received.

• Why are move-out or turnover charges shown as income?

  When a resident’s security deposit is applied toward unpaid rent or damages and transferred to the operating account, those funds must be treated as income for tax reporting purposes.

• Why did I receive a California Form 592-B?

  If you own rental property in California but reside outside the state, California law generally requires withholding on rental income. Form 592-B reports the amount withheld. When legally permitted, we apply available exemptions to minimize this withholding.

• Why didn’t I receive a 1099?

  In most cases, this happens because required tax documentation, such as a W-9 or W-8, is missing or incomplete. Please submit the appropriate form to your property manager or our office so we can issue your 1099.

• Why is there a withholding line item on my earnings or tax report?

  In certain situations, we are legally required to withhold a portion of rental income. Common reasons include missing or incomplete tax forms or ownership by a non-U.S. resident without the required documentation.

• Where can I send questions that aren’t answered in the FAQ?

  Please email info@kosmixpm.com with the subject line “Question,” and a member of our team will answer your question.