Whether you call them a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The focal point is usually on residential properties (but commercial property management companies are out there of course. Property rental agencies serving the 23060 area offer a variety of services to help you renting your home. It’s a huge punchlist of tasks that a expert Property Management Company will oversee; in fact (if you’re a good follow through kind of people person, you might even want to look at 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 Companies RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Oversee contracts
- Keep you out of jail by helping you comply with housing laws
- Show your home to possible tenants in order to rent your house
- Oversee move in and move out
- Collect rent and get you paid!
- Handle collections if payments are late
- Assist with evictions
- Answer tenant questions
- And a lot more than that.
It’s everything but the kitchen sink! Points to contemplate if you are considering if you maybe should rent your home on your own or hire a Property Management Company near the 23060 area.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management Company ?
You’ve discovered that top notchproperty managerswho provide service to the 23060 area in Richmond aren’t without cost.
Residential property management firms will charge a fee, on average, between 4% and 10% of the monthly rents for the house. The normal fee for a single family rental home is about 8-10%. The fee for a property of 10 units or more is usually between 5% and 8%.
If your investment property is not occupied, it’s typical to pay a tenant finding fee to locate and place a new renter in your rental property. Depending on the property management company this can range from 50%-100% of a month’s rent.
Something to think about: Having experienced property manager input on market rents and having a professional agent handle locating a renter could mean you get higher rents, which means a great property manager might end up covering all or part of their cost because of higher rents.
WILL YOU HAVE THE TIME TO MANAGE YOUR RENTAL HOME near the 23060 area?
If you are employed at a full-time job while you are looking after a rental home and simply can’t give your investment home the time it demands, the viability of your investment could depend on paying for a full time property management company in Richmond
In addition, realize that time is money and managing a investment home takes time. If you feel like the every day requirements of residential property management are impeding on time that could be more profitably spent making more money at your day job, or looking for other investments, paying for an outside property management agency may be the smartest move for you.
DO YOU HAVE THE MINDSET TO DEAL WITH RENTERS?
Is the stress of dealing with evictions, renter complaints and maintenance concerns stressful for you? Property managers are skilled in dealing with landlord-tenant difficulties. Property Management Company have an understanding of Richmond landlord-tenant law and can perform as the middle-man for issues that arise. In addition, if the renter is aware they are working with a third party, they may behave more professionally as well.
You do not have to hire a property management agency just because you are a beginner to property investing in 23060, have a lot of units or are having trouble filling vacancies. Many people manage their own homes. Personal experience can often be the best instructor and everyone has to start learning somewhere. If you educate yourself about real estate, ask the advice of others and have a powerful desire to oversee your real estate with excellence, chances are good, you will succeed.
HOW MANY RENTAL UNITS IN 23060 DO YOU HAVE TO TAKE CARE OF?
As the number of investment properties you own goes up, so does your workload. The more renters you have, the more maintenance concerns, tenant complaints, and empty properties you will have to deal with. Additionally, if your homes are spread across multiple cities, your time spent will go up as you will have to manage the cash flow of each single investment home as well as physically commute from property to property to resolve concerns.
HOW MANY INVESTMENT PROPERTIES IN 23060 DO YOU HAVE TO MANAGE?
As the number of homes you own goes up, so do your responsibilities. The more renters you have, the more maintenance issues, renter headaches, and vacancies you will have to deal with. Additionally, if your properties are spread across multiple areas, your energies committed will go up as you will have to take care of the cash flow of each particular rental as well as physically commute from property to property to handle problems.
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOME IN 23060?
Property management companies who service the 23060 area will do a lot of things for you as the home investor, which could include the following areas:
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations leasing agents are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the property managermust operate within the set budget guidelines for the property. In certain emergency situations when the tenants or house are in danger, they may use their discretion to order fixup or similar without further delays. Upkeep of Records- the rental manager should keep complete records about the the house. This might include all income and expenses; records of all inspections, signed leases, upgrade requests, any problems noted, notation of work done, amount paid for repairs, maintenance charges, record of rent paid and insurance charges.
DEALING WITH MOVE OUTS
If a renter ends his tenancy, the agent is responsible for inspecting the unit, checking for issues and assessing what portion of the security deposit willl be refunded to the renter. After move out, the property manager is in charge of cleaning the property, fixing any issues and locating a new renter.
COLLECTING RENTAL PAYMENTS:
This is where a leasing agent earns their money! Residential property management companies make sure you get paid by collecting rent every month on time and strictly enforcing late penalties.
When a renter does not pay as agreed or otherwise violates the terms of the lease, the property manager realizes is experienced with the best way to file and proceed forward with an eviction.
Professional leasing agents are often engaged to look after empty properties to make sure there has been no destruction and to execute regular maintenance. They also make sure vendors and other repairmen are completing their work in a timely manner.
TAKES CARE OF TAXES
The property manager may help the house owner with understanding on how to complete taxes for the house. The rental manager can additionally file taxes for the house
Professional property managers are frequently engaged to look after empty homes to ensure there has been no destruction and to perform standard maintenance. They also make certain vendors and other repairmen are finishing their work in a timely manner.
PROPERTY MANAGERS HELP YOU DETERMINE THE CORRECT RENTAL RATE
Property managers are responsible for setting the beginning rent level, and collecting rent from renters. Excellent rental managers know how to set the correct rent level todirect tenants to your investment property. They hopefully have a specific understanding of the Richmond area, where the home is located and have looked at comparable houses in the general Richmond area.
RESPONSIBLE FOR HANDLING TAXES
The rental manager can assist the property owner with understanding on how to handle taxes for the property. The rental manager might also file taxes for the property
MANAGE MAINTENANCE ITEMS AND MINOR UPGRADES
Rental agents are usually charged with caring for the physical oversight of the residence, including consistent maintenance and emergency repairs.
Most rental agents are responsible for advertising the house to fill vacancies. Residential property managersknow where to advertise and what to include in their advertisements. leasing agents also understand what is motivating to tenants, so they can suggest making cosmetic improvements to help improve the home.
DEALING WITH EVICTIONS
When a renter does not pay on time or otherwise violates the terms of the contract, the rental agent knows understands the proper approach to give notice and move ahead with an eviction.
Deliver financial management services Handle payments on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Specific records of expenditures via invoices and receipts Preserve all past paperwork (paid invoices, leases, inspection documentation, warranties, etc.) Oversee annual reports, organized for tax purposes as well as required tax paperwork including a 1099 form Counsel owner on relevant tax deductions related to their investment home. Deliver simple monthly cash-flow statements which provide a detailed breakdown of income and specific expenses
DEALING WITH EVICTIONS
When a tenant does not pay as agreed or otherwise violates the terms of the contract, the rental agent knows understands the best method to give notice and move forward with an eviction.
Question What Services Are Included in A Typical Property Management Contract?
Make certain you determine exactly what maintenance services are included with your charges. It might be that when something needs repair, certain labor charges are a part of with your monthly flat rate or percentage charge (for illustration, changing out light bulb and fixing faucet handles) while others are billed individually (such as replacing broken window panes and installing new sinks).
No matter what, everything should be specifically expressed in your agreement. Consider that these charges may require you toraise your rents, which might make finding – and keeping – renters harder. Keep in mind, home management fees can be negotiated. Depending on how much you’re willing to pay, you might be able to get a better price by sacrificing particular services and handling them on your own.
QUESTION: How Might a Rental Management Company assist an owner with the Renter Move In Process?
- Prep rental agreement
- Confirm move in date with applicants
- Review lease guidelines with tenant regarding things like rental payment terms and required property maintenance
- Ensure all agreements have been properly executed
- Perform detailed move in inspection with tenant and have renters sign a report verifying the condition of the property prior to move-in.
- Secure first month’s rent and security deposit
Question: What are typical procedures regarding Late Payment Charges?
Sometimes tenants pay after the due date. Look at your paperwork to see if those late payment charges go to you as the owner, to the property management company, or are shared somehow.
Question: What are Miscellaneous fees made by property management companies?
At times, you might see some charges passed on to you – especially when the manager is charging a low monthly %. Illustrations could include an marketing fee in connection with finding a renter, an annual inspection charge, and some sort of reserve, so that the management agency has some cash on hand to take care of unexpected, but immediate, expenses.
You may want to look into how you split up pet deposits collected and bad check fees (generally whomever gets stuck with the most bank costs deserves the bulk of this one!) Also, notice who gets to keep the income from vending machines and coin-operated washers and dryers, if any.
Question: Should I attempt to save money by managing my home myself? Or hiring the cheapest property manager I can?
Answer: With the best house agents, paying a little bit more is a wise investment, because it helps enhance the value of your property, and they help retain top notch renters; studies have proven employing a home agentcan cut your vacancy rate by 50%. On the other hand, going cheap with a rental agency can wind up being very expensive.
QUESTION: Do Property Management Firms Assist With Move Out?
Yes, a Residential Property Management Firm can Help With Move outs. Services might include:
- Inspect rental home. and complete a report on the property's status when the client moves out
- Provide tenant with a version as well as estimated damages
- Return the remainder of the damage reserves to the tenant
- Mail left over amount of the owner’s portion of the renter deposit to the homeowner or hold in owner reserves for repairs.
- Turn over house and perform needed repairs or upgrades
- Re-key the locks
- Re-List home back on the market for rent
QUESTION: What Inspection Services Do Rental Managers Provide?
- Insure timely inspections (Inside and outside) on a regular schedule noting maintenance needs, safety violations, code violations, lease violations, etc.
- Send owner periodic reports on the condition of the property
Question: Do all rental agencies charge basically the same way?
Not every fee structures are the same. Some property management companies in the 23060 area may charge a fixed monthly rate – which again varies according to area, activities performed, and the total value of the property – while others charge a percentage rate, as noted above. Cost can also fluctuate depending on the size and number of properties you own.
To illustrate, if you own several apartment buildings, you might get a “bulk” discount that a person with a single property or apartment might not get.
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 prove to be irresponsible and a disturbance or nuisance at your home. Most certainly a home agent will impose a fee to initiate the long process of evicting a renter which is typically roughly $350-$600 per eviction, plus any associated courtroom charges.And an evictionoftentimes last a couple months, so be ready to not get any rental payments until they are out. In addition, you could find there is repair work to do on your home.
Usually, you are better off offering your renter cash incentives to vacate the home early and skip taking them to court, as aggravating as that is. You can skip many problem situations with detailed renter screening done beforehand.
QUESTION: What types of Maintenance can leasing agencies help with?
Some property management companies in the 23060 area have their own maintenance employees, full-time. Most subcontract this work out to various vendors. Some property management companies charge a fixed fee to supervise any work done by subcontractors. A few will add margin to the contractors invoice. Make certain you understand how it works with your unit management firm!
Question: Should I attempt to save cash by going FRBO? Or hiring the least expensive property manager I can?
Answer: With the best property agents, paying a little bit more is a smart investment, because it helps enhance the value of your unit, and they help attract quality renters; studies have shown hiring a property managercan reduce your vacancy rate in half. On the other hand, going lowball with a leasing agency can end up being very costly.
QUESTION: How Would a Home Management Firm Assist With Tenant Vetting and Choosing?
Screening Applicants- A leasing agent will screen the potential renter applications to discover the applicant that is the best fit for your home. They have a proven screening process, which includes running credit checks and criminal background checks, which can reduce your possibility of being accused of breaking the law. Experienced property managers have seen many tenants, so they have a good concept of how to select the correct applicants; renters who will pay their rent on time, have a longer tenancy and create much fewer problems. Perform a background check to confirm identity, salary, credit history, rental history, etc. Evaluate applicant in relation to pre-defined renter standards Inform tenants who may have been rejected
Question: Should I attempt to save cash by going FRBO? Or hiring the least expensive property manager I can?
Answer: With the best home agents, paying a little bit more is a smart investment, because it helps enhance the value of your home, and they help attract top notch renters; studies have proven employing a home agentcan cut your vacancy rate by 50%. On the other hand, going lowball with a leasing agency can wind up being very expensive.
Question: What are Other charges made by property management companies?
In some cases, you could see some costs passed on to you – especially when the manager is charging a small monthly percentage. Illustrations could include an advertising charge in connection with placing a tenant, a yearly inspection charge, and some sort of reserve, so that the management firm has some cash on hand to handle unexpected, but urgent, expenses.
You may want to check into how you divide pet deposits collected and bad check fees (generally whomever gets stuck with the most bank fees should get the lion’s share of this one!) Also, pay attention to who gets to keep the income from vending machines and coin-operated washers and dryers, if any.
Question: What are typical procedures regarding Late Payment Fees?
Occasionally renters pay date. Look at your paperwork to see if those late payment charges go to you as the owner, to the rental agency, or are shared in some way.