Here you will find answers to the most frequently asked questions related to renting and managing properties through our company. If you cannot find the answer to your question, please do not hesitate to contact us at poptavky@flet.cz.
Our fee is 15% of the rent collected.
Subtenants pay us rent every month + advance payments for HOA services and utilities. We then send 85% of the rent and the full amount of the advance payments to the owner. Our fee is therefore calculated and paid only from the rent.
We guarantee you income only when the apartment is occupied by a subtenant. When the apartment is vacant, being prepared, or being reoccupied, you do not receive any income. However, we do not receive any remuneration at this time either, so we are highly motivated to have the apartment occupied as soon as possible at the highest possible price.
Thanks to the percentage-based calculation of the fee, both you as the owner and we earn more when the rent increases. We believe that this arrangement is fair and sustainable in the long term. If we did not fill apartments in a timely manner, owners would not be satisfied. We are able to refill 75% of apartments by the date the previous subtenant leaves the apartment. We usually fill the remaining apartments within two weeks after the previous subtenant's contract ends.
Rent is always determined solely by the current market situation. Thanks to the large number of apartments under our management, our colleagues in the leasing department have a clear overview of the current price level in all locations in Prague. At the same time, we use tools that show us information about apartments with very similar parameters that have been advertised in a given urban area over the past 3 months. Based on these findings, we set an ambitiously high price, which we then work with if necessary.
Many owners do not realize that if they insist on a higher price, e.g., CZK 1,000–2,000 higher than the real price, and the apartment remains vacant for two months, the resulting loss in rent (the difference in price) will take more than a year to recoup. If I want to rent an apartment for CZK 14,000 and it is vacant for two months, I will lose CZK 28,000 during those two months. With a price difference of CZK 2,000, it will take exactly one year to "make up" for this loss. With the average rental period in Prague (1.5 years), delays between subtenants due to pressure for a higher price simply do not pay off.
Yes, we will arrange a mandate agreement, introduce ourselves to the tenant, and inform them of the change in bank account to ensure that the tenant continues to pay rent. Once we get to know each other a little better, we will transfer the tenant to our sublease agreement.
For small and medium-sized jobs, such as painting, cleaning, window servicing, appliance replacement, floor replacement, door replacement, etc., the time frame can be 10–14 days. For more demanding jobs (such as kitchen or bathroom renovations), expect a time frame of 4–6 weeks. The duration of a complete renovation is individual.
The price is determined by the market. Once the apartment is ready, the owner is referred to the advertising department, where brokers determine the highest possible rent.
We choose IKEA products primarily because they simplify and streamline the user planning process, are made from materials and components that remain available even after a long period of time, and are easily replaceable.
Alza is a large online store selling appliances, which specifies a wide time range for delivery, during which someone must be present to accept the delivery. If someone is waiting there at a rate of CZK 400/hour, it is not worth it. In addition, the courier will not test the appliance on site and will not bring it into the apartment. This means that the owner must deal with any complaints, damage, or cosmetic defects themselves. Our technician, on the other hand, will pick up the washing machine, bring it into the apartment, connect it, secure it, and test the program, waiting until it finishes. Our technician will take away the old appliance and remove all boxes and packaging material. Another advantage is that if the appliance is damaged or something happens to it during the warranty period, we will take care of the situation and the owner does not have to worry about anything.
Due to time constraints, we do not use the services of companies that provide turnkey renovations. We will outline our practice in the following example of implementation:
The kitchen is being renovated. On this occasion, representatives of our company accompany the craftsman to the apartment, where they provide him with a template for creating a price quote and conclude an agreement with him containing a list of activities and purchases that will need to be secured during the course of the work. When disconnecting the kitchen, it is usually necessary to replace electrical wiring and sockets or water pipes. This is done separately by an electrician and a plumber, who not only carry out the work but also check the new connections of the appliances. We check the price calculation and quality. If something is wrong, we will not accept the work. Only then does the carpenter begin to assemble the kitchen. Next, accessories such as LED strips or tiles are installed, and minor masonry work is carried out, such as finishing new wiring or leveling walls. It is therefore possible that up to five different tradespeople may be involved in a single construction project over time, each of whom is only responsible for their own work. Thanks to their flexibility, we are usually faster than one large general contractor. If you wanted to do this yourself or, for example, centrally at Ikea, you would have to find an electrician, plumber, etc. yourself, and on average, such a project would take 2-3 months longer. This means you would lose 2-3 months' rent and a lot of your time.
Of course, the owner can prepare the apartment themselves. However, in 95% of cases, this takes longer, resulting in lost future rent. It also happens that, due to the poor quality of the work performed, which does not meet our standards, we then have to arrange for repairs, which means additional costs. If we take care of the preparation ourselves, we save the owner time and take responsibility for the work performed. At the outset, the owner receives photo documentation and a price quote with the recommended procedure from us. After the budget is approved and the invoice is paid, the owner does not have to worry about anything until the finished apartment is photographed.
You will receive the money no later than the 2nd day of the following month, together with the payment for the entire current month. The rent, minus our commission and 100% of the amount we have set for energy and service deposits, will be transferred to your bank account specified in the contract.
Advance payments for actual invoices are always paid directly by the customer, according to the requirements of the supplier, i.e. the owner of the apartment. For advance payments, please set up direct debit or standing orders and send each invoice received for energy and SVJ to sprava@flet.cz. Your advance payments for energy from suppliers will probably be different from those of the subtenant. After the end of the contractual relationship with the subtenant, we will make a settlement based on the subtenant's actual consumption.
Set advance payments with individual suppliers individually to avoid unpleasant underpayments in the annual settlement. Please contact the supplier directly.
You don't have to. We have already reported the actual number of subtenants and their contact details to the owners' association. If they contact you, please forward the message to sprava@flet.cz.
All subtenants must have liability insurance selected by us up to CZK 10 million and approximately CZK 200,000 in household insurance.
If the subtenant fails to pay within 15 days of the due date, we send them immediate notice of termination and take back the apartment into our management within a few days.
From that moment on, the problematic subtenant is recorded in our system and will no longer be accommodated within our portfolio.
Yes, we do so in the case of an apartment occupied by a new subtenant whom we do not know, or in cases where we want to make sure that everything is in order in the apartment. We therefore always visit new apartments after 6 months of subletting. At the same time, we make a record of energy consumption, the condition of the apartment, and any unreported pets. We discuss everything necessary with the apartment owner.
If a subtenant reports damage to apartment equipment, typically a refrigerator, dishwasher, or washing machine, we will send a technician to the apartment to verify the actual condition and attempt to perform repairs, which the subtenant pays for themselves as part of "minor repairs." If the technician determines that the equipment cannot be repaired or that it is financially disadvantageous to do so, our property management manager will contact you with a proposal and cost estimate for replacement. We will take care of everything related to this, and you will only pay the agreed-upon amount in advance.
If the subtenant expresses interest in extending the sublease agreement 2–3 months before its expiration and agrees to the new terms and conditions, a new agreement is signed. Each agreement is created individually by our specialists based on market rental prices, the subtenant's consumption, and their new requirements (e.g., an increase in the number of people). All new information is included in the new agreement. If the subtenant is not interested in extending the agreement, the contractual relationship ends with the expiry of the current agreement, the handover/takeover of the property is arranged, and at the same time, approximately 6 weeks before the end of the original subtenant's term, the apartment is advertised again and a new subtenant is sought. In 75% of cases, we find a new subtenant before the original subtenant leaves the apartment.
We increase rents if price maps and the market allow us to do so as part of the contract renewal process. At the same time, depending on the subtenant's actual consumption to date, we may also increase advance payments. If we find out from a routine check in the apartment or a new SVJ regulation that the advance payments need to be increased, we will increase them with an addendum starting the following month.
The contractual relationship between us and the subtenant may be terminated upon expiry of the contract or upon notice given by the subtenant with three months' notice. In the event of a serious breach of contract, termination without notice may occur.
During handover, we inspect the apartment according to the handover protocol, virtual tours, and photographs.
We will deduct any damages from the security deposit. If the security deposit is insufficient and the damage is greater, we will send an invoice to the subtenant or resolve the matter with the insurance company. If this is also insufficient, we will create an internal fund from which we can pay the remaining difference.
If the subtenant fails to pay the last rent, we help collect the rent, but we never send the money to your account until we receive it ourselves. The subtenant faces an additional penalty for failing to pay the last rent. At the same time, we work with a lawyer who specializes in debt collection.
Advance payments for energy, including condominium fees, are paid by the investor. If, for example, we wanted to transfer the energy to ourselves, we would increase the basic tariff charges as a company, and the subtenant would pay more money for the same consumption, leaving you with less rent.
We prepare bills based on the subtenant's actual consumption and unit rates from invoices from energy and service providers. We always refund overpayments and underpayments to the account we have on file in our system after payment by the counterparty.
We do three types of billing:
1. billing for continuing subtenants;
2. billing for terminating subtenants, which we process as soon as we have the relevant documents and invoices (for terminating subtenants, we bill the deposit based on available invoices and, where possible, we retain a deposit for re-billing energy advances based on actual invoices);
3. the aforementioned recalculation with actual documents from suppliers, thereby ensuring that the subtenant has paid for their actual consumption.
We send you billing details and examples of situations with each bill.
We will prepare it as soon as we have the documentation from all suppliers, the homeowners' association, and the tradespeople.
You don't have to, but if your advance payments are significantly lower than the amount you receive from your subtenant, we recommend increasing them. An investor who has set their energy or service advance payments too low runs the risk of incurring a shortfall, even though the subtenant may have a surplus at the same time.
You must pay the outstanding amount. Please send the invoice to our email address sprava@flet.cz. We will save it for future billing.