Hawk Management does not own the properties we manage. As a licensed California real estate broker, we act as an agent for property owners and landlords, providing a full-service management experience for tenants renting those properties.
In regard to the costs and charges for renting a property, we are committed to a fair, transparent, legally compliant, and full disclosure process for tenants; including in relation to any and all fees charged, and potential security deposit charges at the time of move-out.
Any and all fees or payment obligations charged by Hawk Management will be legitimate and reasonable, not misleading, unfair or deceptive. Furthermore, all fees and payment obligations shall be clearly and conspicuously disclosed as is practical and as stated in this document.
The creation and administration of these policies have been designed after reviewing both state and federal laws, best industry practices, commentary by ‘HUD Fee Policy’, ‘HUD Use of Housing Vouchers’, the California State Attorney General's Office, the ‘Biden-Harris Administration Takes on Junk Fees in Rental Housing to Lower Costs for Renters’, ‘HR.6542 - No Hidden Fees Act of 2023’, ‘FTC Action Against Invitation Homes For Deceiving Renters’, attorney recommendations, ‘White House Blueprint For A Renters Bill of Rights’, ‘FTC and State of California action against Graystar’, and other resources.
Our residential lease agreement may be viewed here.
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Overview on Company Policy on Fee Disclosure, and Definition of Mandatory and Non-Mandatory Fees
1. All mandatory fees (fees charged to all tenancies regardless of the tenants actions or conduct) and payment obligations charged to tenants will be clearly and conspicuously stated and disclosed as follows:
- Within each property listing description on the company website (www.hawkmgmt.com)
- On 3rd party vacant property syndication sites, as permitted by those syndicators
- On the company pre-application webpage
- In the Residential Lease Agreement
2. All non-mandatory fees (fees which may be charged to tenancies based on the tenants action, inaction, or other conduct) shall be clearly and conspicuously stated and disclosed within the appropriate sections of the lease agreement.
Below is a list of fees which Hawk Management may charge to tenants, a description of the fee, information on where and how the fee will be clearly and conspicuously disclosed to tenants during and after the leasing process, and who the fee is retained by (property manager or owner).
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Mandatory Fees (fees charged to all tenancies regardless of the tenants actions or conduct)
Rent:
As a third-party property management company, Hawk Management does NOT own the properties we manage. As such, Hawk Management does NOT retain the rent we receive from tenants. Rather, those rents are collected on behalf of our property owners and per the terms of the tenant lease agreement. Net funds are then dispersed to the owner-clients per the terms outlined in our Property Management Agreement. Rents are paid out to owner-clients on approximately the 20th calendar day of each month as part of our monthly trust accounting process.
Disclosure of Rent Amount:
- The applicable rent amount shall be clearly stated and disclosed in all direct online property advertising including www.hawkmgmt.com and all online syndications as those syndication sites allow.
- This rent amount shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property.
- This rent amount shall be clearly stated in the lease agreement.
Retention of Rent Funds:
Tenant rent collected is paid out to third-party owner-clients. Hawk Management charges a percentage of that rent to the owner-client as part of our full-service property management offering.
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Non-mandatory Fees (fees which may be charged to tenancies based on the tenants actions, inactions, or other conduct)
Application Fee:
Hawk Management shall accept portable tenant screening reports (PTSR) as required and in accordance with the law. Hawk Management provides PTSR submission information to the public and applicants on the weblink below:
https://www.hawkmgmt.com/portable-tenant-screening-reports
Should applicants provide a PTSR to Hawk Management, then NO application fee will be charged to the applicant.
Should an applicant NOT provide a PTSR, but rather apply online, then each applicant over the age of 18 years will complete a rental application and will pay a non-refundable application fee of $60 per adult. The cost of $60 is based on the average expenses of what Hawk Management incurs and shall comply with California Civil Codes § 1785.10 and § 1950.6.
Disclosure of Application Fees:
- This application fee amount shall be clearly stated and disclosed in all online property advertising including www.hawkmgmt.com and all online syndications as those syndication sites allow.
- This application fee amount shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property.
One Application Fee Per Lifetime Policy:
- Hawk Management shall only require one application fee for any adult applicant per the lifetime of that applicant. Once a person has paid an application fee, they may reapply for any property, at any time, without charge.
- This policy shall be clearly stated on the Hawk Management website resident benefit page.
- This policy shall be clearly stated at the beginning of the rental process on the pre-application page.
Retention of Application Fee:
The application fee is retained by Hawk Management as remuneration for expenses incurred in the applicant screening process. This is disclosed to owner-clients in section 5.1 11(b) of the Residential Property Management Agreement.
Late Fee:
Any late fees charged to the tenant pursuant to the tenant's lease agreement shall be charged in compliance with California Civil Code § 1671 and California Civil Code § 1950.5. The late fee charged shall not exceed 6% of the outstanding rental amount due for the month in question.
Hawk Management may, in its sole discretion, waive legally chargeable late fees from time to time should we, in our sole discretion, determine that the tenant is facing a difficult situation and they do not have a history of late payments.
Disclosure of Late Fees:
- This late fee amount shall be clearly stated and disclosed in Section 1.9 of the Residential Lease Agreement.
Retention of Late Fee:
Any late fees collected are retained by Hawk Management as remuneration for company expenses incurred in the collection and accounting process of rent due. This is disclosed to owner-clients in section 5.1(5) of the Residential Property Management Agreement.
Other Non-mandatory Fees:
The below listed fees may be charged to a tenant for the reasons stated below.
NSF Returned Check Fee:
As stated and disclosed in Section 1.9 of the Residential Lease Agreement:
“If Resident passes a check on insufficient funds, Resident will be liable to Owner/Agent for the amount of the check and a service charge of $35, not to exceed $25 for the first check passed on insufficient funds, and $35 for each subsequent check passed on insufficient funds.”
If charged and collected, this fee is retained by Hawk Management to offset bank charges and accounting expenses when processing NSF payments.
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Customary Property Management Industry Fees NOT Charged by Hawk Property Management
Fees Not Charged by Hawk Management:
Although sometimes customary to the property management industry, Hawk Management shall NOT generally charge any of the below listed fees to our residents as we consider these fees may constitute junk fees:
- Any annual fees
- Bank processing fees
- Billing fees
- Convenience fees
- Coordination fees
- Credit card payment processing fee - this is charged by the credit processor
- Holding fees
- Lease renewal fee
- Monthly or one-time pet fees
- Move out coordination fee
- Online or electronic payment portal fee
- Parking fees
- Pest control fees
- Pet admin fees
- Pet deposits
- Pet rent
- Property holding fee
- Property inspection fee
- Rent processing fee
- Rekeying fee - unless tenant lost the keys
- Reservation fee
- Service fees
- Scheduling fees
- Utility set up, transfer, or oversight fee
Note on Pet Fees:
Hawk Management recognizes that many California tenants have pets. Although our individual property owners may be involved in setting some of the pet policies specific to the property they own, and although California law specifically allows for some pet fees to be charged, Hawk Management shall NOT charge any pet fees, pet rent, or pet deposits.
When applying to rent a property, the applicant will pay a $25 per pet application fee which shall be paid directly to PetScreening. PetScreening is a third-party screening company and is in no way affiliated with Hawk Management.
This pet application fee shall NOT be charged if the applicant/tenant obtains approval for the animal as an assistance animal, meaning a service animal or emotional support animal in compliance with federal and state Fair Housing laws. No pet application fees shall be charged to process such requests.
Hawk Management's pet policy for applicants and tenants shall be clearly stated on the company website and shall fully comply with California laws.
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Security Deposits and Withholdings
Although tenant security deposits are NOT a tenant fee, because it is money collected from a tenant to be held for potential damages or charges under the lease, such security deposit money is addressed below:
- Tenant security deposits legally belong to the tenant and are NOT considered a fee paid from the tenant to the owner or to Hawk Management.
- The amount of a tenant security deposit charged on a new move-in shall not exceed two-hundred percent (200%) of the monthly rental rate, or the maximum allowed by law.
- All tenant security deposits shall be held by Hawk Management in our security deposit trust account as required by California law.
- Individual property owners may NOT hold tenant security deposits without prior approval of Hawk Management. This shall be disclosed in Section 6 of the Residential Lease Agreement.
Disclosure of Security Deposit Amounts:
- Security deposit amounts shall be clearly stated and disclosed in all online property advertising including www.hawkmgmt.com and all online syndications as those syndication sites allow.
- Security deposit amounts shall also be clearly stated and disclosed at the beginning of the rental application process and before the applicant has applied to rent a property.
- This security deposit amount shall be clearly stated in the lease agreement.
Security Deposit Withholding:
It is the goal of Hawk Management to return the full amount of a tenant’s security deposit at the conclusion of the tenancy, and ONLY withhold for items which are clearly and legally chargeable to the tenant and charged in good faith.
- All tenants will be provided a move-in condition report to complete at the time of move-in, noting any items that are damaged or not properly functioning.
- At the end of a tenancy, Hawk Management will complete a security deposit disposition and return all allowable security deposit money to the tenant. This process will be overseen by the Executive Property Manager assigned to the property, who is a licensed California real estate agent.
- The Executive Property Manager will utilize documentary support for withholdings, including: (i) the move-in checklist completed by the tenant, (ii) a move-out inspection survey, (iii) photos, (iv) invoices, receipts, bids, or estimates.
- Any retention of tenant security deposit funds shall be described and itemized on the tenant’s security deposit disposition statement and mailed to the tenant within 21 days of vacating a property.
- All security deposit withholdings shall comply with California Civil Code Section 1950.5 and all other state requirements.
What Tenants Will NOT Be Charged For:
- Tenants will NOT be charged for maintenance, repairs, cleaning, painting, or other items related to ‘normal wear and tear’, as defined under California statute.
- Tenants shall NOT be charged for property upgrades or improvements.
- Tenants shall NOT be charged for rekeying locks.
- There shall be NO standard charges against a tenant’s security deposit.
Security Deposit Withholding Disputes:
Hawk Management acknowledges that the determination of charges against a tenant’s security deposit may sometimes appear to be subjective. Therefore, Hawk Management will provide the tenant an opportunity to dispute any charges to their security deposit. If a tenant disputes these charges, Hawk Management will provide the tenant with a ‘security deposit dispute form’ to complete and return.
All submitted dispute forms will be reviewed and responded to by the VP of Property Management.
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Conclusion
We believe that when property management is performed with integrity and transparency, both tenants and landlords benefit. As a family owned and operated business since 2013, we are committed to serving both tenants and landlords. As a leader in the California property management space we believe the above policies and practices will help set a standard for property management companies who are dedicated to financial fairness and integrity.
The above statements and policies are made and will be enforced in order to align with the terms of the Property Management Agreement, the tenant Lease Agreement, and all laws governing property management in California. Should any statement or policy in this document contradict the Property Management Agreement, the tenant Lease Agreement, or California state law, the items in this document shall be subordinate.
This policy has been reviewed by Hawk Management’s legal counsel.