Regardless if you call them a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The focus is typically on residential properties (but commercial property management companies are out there certainly. Property rental agencies serving the 22546 area offer a multiplicity of services to help you renting your home. It’s a huge punchlist of jobs that a good Property Management Company will oversee; in fact (if you’re a good follow through kind of people person, you might even want to consider a job as a property manager yourself!.) Here’s just a partial list of what property managers do if they are asked “will you help me rent my house?”
Property Management Firms RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Handle legal contracts
- Keep you out of jail by helping you follow government housing laws
- Show your home to possible tenants in order to rent your house
- Oversee move in and move out
- Collect monies and get you paid!
- Handle collections if payments are late
- Help with evictions
- Deal with tenant inquiries
- And a lot on top of that.
It’s everything but the kitchen sink! Issues to contemplate if you are questioning if you maybe should rent your house on your own or hire a Property Management Company near the 22546 area.
DO YOU HAVE THE AVAILABILITY TO MANAGE YOUR INVESTMENT PROPERTY in the 22546 area?
If you have a full-time job while you are dealing with a investment home and simply cannot give your investment home the attention it needs, the profitability of your investment might depend on hiring a full time property management company in Richmond
In addition, realize that time is money and overseeing a rental property takes energy. If you feel like the every day duties of property management are impinging on time that could be more profitably spent making more money at your other job, or looking for other properties, paying for an outside property management agency may be the best move for you.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management Company ?
You’ve figured out that top notchrental agentswho provide services to the 22546 area in Richmond aren’t without cost.
Rental firms will charge a fee, on average, between 4% and 10% of the monthly gross income for the property. The normal fee for a single family rental property is about 8-10%. The charge for a apartment of 10 units or more is typically between 5% and 7%.
If your house is vacant, it’s not unusual to pay a tenant finding fee to procure and place a new renter in your investment property. Depending on the property management company this can fluctuate from 50%-100% of a single month’s rent.
Something to consider: Having experienced property manager input on market rents and having a professional agent deal with locating a renter could mean you might get higher rents, which means a great rental agent likely will end up covering all or part of their cost because of higher rents.
HOW MANY INVESTMENT PROPERTIES IN 22546 DO YOU HAVE TO MANAGE?
As the number of investment properties you own increases, so do your responsibilities. The more tenants you have, the more maintenance concerns, renter headaches, and empty properties you will have to handle. Additionally, if your units are spread across multiple cities, your time commitment will go up as you will have to take care of the cash flow of each individual property as well as drive from property to property to handle concerns.
WILL YOU HAVE THE TIME TO CARE FOR YOUR INVESTMENT PROPERTY near the 22546 area?
If you have a full-time job while you are looking after a investment home and simply cannot give your investment home the attention it needs, the viability of your investment may depend on employing a professional property management company in Richmond
Also, realize that time is money and managing a investment home takes time. If you feel like the day to day requirements of property management are stepping on on time that could be better spent making more money at your full time job, or looking for other investments, hiring an outside property management firm may be the smartest move for you.
HOW FAR AWAY IS YOUR INVESTMENT PROPERTY?
The more miles between you and your property,the more stressful it is to take care of. If your primary residence is in Michigan and your rental property is in the 22546 area, it will be more difficult for you to find renters,to handle renter complaints,to quickly respond to emergencies, to take care of maintenance issues, and even to ensure payment is collected on time.
The amount of time it takes you to get to the property and the cost of travel will also mount. In situations such as these, hiring a greatRichmond property management company can make some sense and will likely save you some dough.
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN 22546?
Property managers who service the 22546 area will do many things for you as the home investor, which may include the following areas:
CONTENDING WITH EVICTIONS
When a tenant does not pay rent or in some way breaches the terms of the lease, the property manager knows is experienced with the proper way to give notice and move forward with an eviction.
A key responsibility of the property managers is to oversee tenants. Managers are engaged in all capacities, from locating the tenants and dealing with problems to initiating the eviction process.
At times when there is a problem needed, the rental agent may handle it themselves or will contract with someone to handle the problem it. They often have a screened list of experienced plumbers, electricians, carpenters and other types contractors.
HANDLE PROFESSIONAL INSPECTIONS
You want to make sure to have before and after photos and written records, so you can easily handle tenant deposits and differences of opinion when they move out. A lot of renters will act shocked when you take out fees from their deposit, so having comprehensive documentation will help cut down on the amount of arguing they do with you.
TAKES CARE OF TAXES
The rental agent will provide the home owner with knowledge of how to complete taxes for the property. The rental agent might also mail in taxes for the home
TAKES CARE OF TAXES
The rental agent may provide the house owner with understanding on how to handle taxes for the investment property. The leasing agent may additionally file taxes for the property
IN CHARGE OF OVERSEEING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations property managers are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the leasing agentmust operate within the set budget guidelines for the unit. In particular emergency situations when the occupants or home are in need of upgrade, they may move ahead to order repairs or similar without concern for the budget. Maintaining Documents- the rental agent is required to detailed documentation related to the house. This need to include all income and expenses; lists of all inspections, signed agreements, maintenance requests, any problems noted, documentation of maintenance done, amount paid for fix up, maintenance expenses, documentation of rent collection and insurance costs.
OVERSEE MAINTENANCE ITEMS AND REPAIRS
Property managers are customarily charged with caring for the physical management of the house, including consistent maintenance and unexpected work to be done.
COLLECTING RENTAL PAYMENTS:
This is where a property manager earns their money! Rental management agencies make sure you get your money by collecting rent each month on time and strictly enforcing late fees.
IN CHARGE OF OTHERS
Other Employees- if there aresome employees in the property, such as a concierge\desk manager or security personnel, the rental manager is in charge of being sure they are on their toes. The rental manager often will set their compensation and possibly fire them.
IN CHARGE OF OTHERS
Other Employees- if there are other employees in the unit, such as a concierge\desk manager or security personnel, the property manager is responsible for being sure they are on their toes. The property manager can determine their compensation and even terminate them.
RESPONSIBLE FOR HANDLING TAXES
The property manager will provide the home owner with understanding on how to complete taxes for the property. The property manager might additionally file taxes for the house
KNOWLEDGE OF LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A good property manager should have a exhaustive knowledge of local and federal laws relating to the proper ways to: Screen the applicants. Escrow security deposits Terminate a rental agreement Oversee evicting a tenant Comply with home safety laws Counsel in case of of a legal disagreement or lawsuit Recommend owner to an experienced lawyer when needed Be up on and follow the latest local, state and federal laws that are applicable to renting and maintaining rental properties.
Other Employees- if there aresome employees in the unit, such as a desk clerk or security personnel, the rental manager is responsible for making sure they are paying attention to details. The rental agent can determine their salaries and possibly fire them.
Question: Do leasing agencies help with evictions?
Some tenants are deadbeats. Some lose their jobs and become unable to pay their rent, while others prove to be flakey and a problem or pain in the neck at your investment property. Most likely a property agent will levy a charge to initiate the tedious process of evicting a renter which is customarily roughly $200-$500 for each eviction, not counting any associated court costs.And an evictioncan last a couple months, so be mentally ready to not receive any rental income until they move out. On top of that, you could find there is repair work to be done on your unit.
Generally speaking, you are better off giving your tenant financial reasons to leave the house early and avoid suing them, as aggravating as that might seem. You can avoid many problem situations with thorough tenant screening done beforehand.
Question: Do rental agencies help with evictions?
Some tenants just don’t work out. Some lose their jobs and become unable to pay their rent, while others turn out to be irresponsible and a disturbance or pain in the neck at your investment property. Most certainly a investment property manager will impose a charge to complete the long paperwork involved with evicting a tenant which is usually around $250-$400 for each eviction, plus any associated court costs.And an evictioncan go on for several months, so be prepared to not receive any rental payments until they move out. On top of that, you may find there is fix up work to do on your unit.
Generally speaking, you are better off providing your renter financial reasons to leave the home early and skip suing them, as aggravating as that might seem. You can avoid many difficult situations with painstaking tenant vetting done beforehand.
Question: What are typical procedures regarding Late Payment Charges?
At times tenants pay after the due date. Read your paperwork to see if those late payment fees go to you as the owner, to the residential property management, or are shared in some way.
Question What Services Are Included in A Typical Property Management Contract?
Make certain you establish precisely what maintenance services are a part of with your fees. It could be that when something needs fixing, certain labor charges are included with your monthly flat rate or percentage charge (for example, changing out lighting switch plates and fixing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
No matter what, everything should be specifically stated in your contract. Keep in mind that these charges might require you toincrease your rents, which could make finding – and keeping – renters more difficult. And remember, home management fees can be negotiable. Depending on what you’re willing to pay, you might be able to get a better price by sacrificing particular services and dealing with them on your own.
Question: What do Inspections of my home cost?
Some property management companies will bill for inspections, others will give you an inspection or more free annually. This is a walk through of your property to see how the renter is keeping it up. Fees can range from $100-175 per inspection.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a unit agent in the 22546 area is entering into a partnership. In the long run, the fees aren’t as critical as the communication between you and the manager and quality of the service your agent provides. A competent agency can take control of the oversight of the house, for example, and wind up providing you a lot rental value and price appreciation than you might be possible. However, you need to be prepared to provide them the resources to accomplish.
Question: What are typical procedures regarding Late Payment Fees?
Sometimes renters pay after the due date. Read your contract to see if those late payment charges go to you as the owner, to the rental agency, or are shared somehow.
Question: Do all property management companies charge basically the same way?
Not all pricing structures are the same. Some rental agencies in the 22546 area might charge a fixed per-month rate – which again differs according to area, duties performed, and the total value of the home – while others charge a percentage rate, as noted above. Price can also differ depending on the size and quantity of properties you own.
For example, if you own a few apartment buildings, you might get a “bulk” discount that a person with a single property or apartment might not receive.
QUESTION: What are Advertising Charges?
Some rental agencies charge a advertising fee. This is an initial fee to advertise your empty investment property. This fee is typically $200-500. A majority of companies don’t charge this fee, so shop around!
Vacant Property fee Some companies charge One month’s payment up front. You may run into this fee if you are trying to hire the property management company while the home is empty. This gives them the cash to pay a realtor a commission for finding a tenant in the unit, or to pay the costs of advertising, repeatedly showing the property to potential tenants, as well as the cost of preparing lease documents (which can take a long time).
QUESTION: What is a New Renter Placement or “Lease up” Fee?
Some rental agencies in the 22546 area may charge a new renters placement charge or have a bonus structure for getting a tenant into an agreement. Acharge of 50 to 100 percent of the first month’s rent for any new tenant placed is not abnormal. Nevertheless, you should not normally run into high multiple up-front fees.
Typically a placement fee is not paid until the tenant is secured, which means you don’t have to pay out of pocket to pay this.
QUESTION: How Can a Property Management Company Assist With Renter Screening and Choosing?
Vetting Tenants- A residential property agent will review the potential renter applications to find the tenant that is the best fit for your home. They have a reliable vetting process, including running credit checks and criminal background checks, which can decrease your possibility of being accused of bias. Experienced leasing agents have seen hundreds, even thousands, of tenants, so they have a good concept of how to identify the ideal renters; renters who will pay their bills on time, have a longer tenancy and create less issues. Perform a background check to verify identity, income, credit history, rental history, etc. Assess tenant in relation to pre-defined applicant standards Communicate with tenants who were rejected
Question: What are typical procedures regarding Late Payment Charges?
Sometimes renters pay after the due date. Read your paperwork to see if those late payment charges go to you as the owner, to the leasing agency, or are shared somehow.
QUESTION: Do Residential Property Management Companies Assist With Move Out?
Yes, a Property Management Company can Help With Move outs. Actions might include:
- Inspect investment home. and fill out a report on the house’s condition when the client moves out
- Deliver renter with a photocopy as well as estimated damages
- Return the remainder of the damage reserves to the renter
- Forward left over amount of the owner’s portion of the tenant deposit to the owner or keep in owner reserves for work to be done.
- Clean house and oversee required repairs or upgrades
- Re-key the locks
- Re-List property back on the market for rent
QUESTION: What Inspection Services Do Property Managers Provide?
- Perform timely inspections (Inside and outside) on a predetermined schedule looking for maintenance requirements, safety issues, code problems, lease infractions, etc.
- Send owner periodic reports on the condition of the property
QUESTION: What types of Maintenance can rental agencies help with?
Some property management companies in the 22546 area have in house maintenance employees, full-time. Most refer this work out to miscellaneous vendors. Some rental agencies charge a fixed fee to oversee any work with subcontractors. A few will add on to the contractors bill. Be sure you understand how it works with your home management firm!