Regardless if you describe them as a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The emphasis is normally on residential properties (but commercial property management agencies are out there certainly. Property rental agencies serving the 23116 area provide a long list of services to help you renting your home. It’s an overwhelming list of jobs that a great Property Management Company will deal with; in fact (if you’re a great follow through kind of people person, you might even want to investigate a job as a property manager yourself!.) Here’s an incomplete list of what property managers do if they are asked “will you help me rent my house?”
Property Management Company RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Deal with legal paperwork
- Keep you legal by helping you obey government housing laws
- Open your property to prospective renters in order to rent your house
- Handle move in and move out
- Collect money and get you paid!
- Handle follow up if payments are not on time
- Help with evictions
- Answer tenant questions
- And a lot more than that.
It’s everything from soup to nuts! Areas to contemplate if you are wondering if you should rent your house on your own or hire a Property Management Company near the 23116 area.
WILL YOU HAVE THE TIME TO MANAGE YOUR RENTAL PROPERTY near the 23116 area?
If you have a full-time job while you are dealing with a rental home and simply cannot give your investment home the energy it demands, the success of your investment might depend on hiring a good property management company in Richmond
In addition, realize that time is money and overseeing a investment home takes effort. If you feel like the day to day requirements of leasing management are impinging on time that could be better spent making more money at your full time job, or hunting down other investments, paying for an outside property management company may be the smartest move for you.
IS THERE THE MONEY TO HIRE A Property Management Company ?
You’ve figured out that greatleasing agentswho provide service to the 23116 area in Richmond aren’t free.
Property management agencies will charge a fee, roughly, between 4% and 10% of the monthly rents for the property. The typical fee for a single family rental property is about 8-10%. The charge for a apartment of 10 units or more is on average between 4% and 7%.
If your house is vacant, it’s not unusual to pay a tenant finding fee to procure and place a new tenant in your rental property. Depending on the property management company this can fluctuate from 50%-100% of a month’s rent.
One thing to keep in mind: Having expert professional input on market rents and having a certified agent handle locating a tenant can mean you can get higher rents, which means a good leasing agent may end up covering all or part of their cost because of higher rents.
DO YOU HAVE THE TEMPERAMENT TO DEAL WITH TENANTS?
Is the pressure of dealing with evictions, renter problems and maintenance issues stressful for you? Rental managers are skilled in dealing with landlord-tenant conflict. Property Management Company have an understanding of Richmond landlord-tenant law and can perform as the middle-man for issues that arise. Additionally, if the tenant knows they are working with a third party, they are likely to behave more cordially as well.
You do not have to hire a property management agency because you are brand new to property investing in 23116, have a lot of properties or are having difficulty 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 residential property investing, get the input of others and have a strong desire to manage your investment with excellence, chances are, you will come out on top.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondrental properties, but don’t know a single thing about rental management, hiring a certified Property Management Company can be a good choice for you. Learning on the job can become very costly.
For a real estate investor who is just beginning, hiring the wrong repairman or taking too long to fill a vacancy can quickly eat into your profits. There are big legal liability concerns you can run into if you aren’t educated about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of leasing management charges!
DO YOU HAVE A HIGH VACANCY RATE?
Great Property Management Company are skilled at locating and screening renters rapidly and will have a network of reliable, affordable Richmondrepairmen to deal with emergencies. Most professional property managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOME IN 23116?
Residential property managers who service the 23116 area may do a lot of things for you as the home investor, which could include the following:
OVERSEEING MOVE OUTS
If a renter moves out, the manager is responsible for inspecting the unit, looking for problems and assessing what amount of the damage reserves willl be returned to the renter. After move out, the property manager is in charge of cleaning the home, repairing any areas of concern and finding a replacement renter.
Many managers are responsible for setting the duration of the lease and making sure it has all the necessary clauses to protect the client. This includes deciding the total of security deposit needed.
Many agents are responsible for recommending the duration of the lease and ensuring it has all the required clauses to look out for the client. This includes deciding the total of security deposit required.
Deliver accounting services Handle payment for the owner (Mortgage, insurance, HOA dues, etc.) Specific accounting of expenses via invoices and receipts Preserve all past documents (paid invoices, leases, inspection documentation, warranties, etc.) Oversee annual reporting, structured for tax purposes as well as needed tax documents including a 1099 forms Educate owner on legal tax write offs related to their investment home. Provide formatted monthly cash-flow documents which offer a detailed breakdown of income and specific expenses
OVERSEEING MOVE OUTS
When a tenant ends his tenancy, the rental agent is in charge of inspecting the unit, checking for damages and deciding what portion of the damage reserves mayl be given to the renter. After move out, the manager is in charge of cleaning the home, fixing any damages and locating a new tenant.
HANDLE DETAILED INSPECTIONS
You want to make sure to have before and after photos and written records, so you can quickly deal with tenant deposits and differences of opinion when they leave your home. A good number of tenants will act shocked when you take out charges from their deposit, so having comprehensive documentation will help reduce the amount of disagreeing they do with you.
SUGGEST AND SUPERVISE VENDORS
Home management professionals should be able to offer recommendations on maintenance and cosmetic improvements that maximize profitability while providing good return on investment.
PERFORM DETAILED INSPECTIONS
You want to make sure to take before and after photos and written documentation, so you can quickly deal with renter deposits and disputes when they leave your home. A lot of tenants will act amazed when you subtract charges from their deposit, so having comprehensive documentation will help cut down on the amount of disagreeing they do with you.
Deliver accounting services Make payments for the owner (Mortgage, insurance, HOA dues, etc.) Detailed accounting of expenses via invoices and receipts Manage all past documents (paid invoices, paperworks, inspection reports, warranties, etc.) Deliver annual reporting, coordinated for tax purposes as well as mandatory tax documents including a 1099 forms Advise owner on appropriate tax write offs related to their rental home. Deliver simple monthly cash-flow reports which provide a detailed accounting of income and detailed expenses
Most rental agents are tasked with for advertising the property to fill vacancies. Rental agentsknow where to promote and what to include in their ads. Rental agents also have insight into what attracts tenants, so they may suggest making cosmetic improvements to help makeover the property.
IN CHARGE OF OTHERS
Other Employees- if there are other employees in the property, such as a janitor or security personnel, the rental agent is in charge of being sure they are doing their job. The property manager often will determine their wage rates and even fire them.
INCREASING OR ADJUSTING RENT:
The leasing agent can increase the rent by a fixed percentage each year, according to individual state and/or municipal law. They can also decrease the rent if they (and you) decide that’s necessary.
Professional rental agents are frequently employed to observe vacant houses to make sure there has been no destruction and to execute routine maintenance. They also make certain vendors and other repairmen are finishing their work in a timely manner.
Other Employees- if there aresome employees in the property, such as a desk clerk or security personnel, the rental manager is in charge of being sure they are paying attention to details. The leasing agent may set their compensation and even terminate them.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, an owner signs a contract with a residential property management firm for a specific length of time – 12 or 24 months, for example – with an option to renew. Agreements can be drawn up so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the residential property management firm is in breach of the agreement in any way.
Question: Do all residential property management charge basically the same way?
Not every fee structures are the same. Some rental agencies in the 23116 area may charge a fixed per-month rate – which again differs according to area, duties performed, and the total value of the house – while others charge a percentage rate, as noted above. Price can also fluctuate depending on the size and number of properties you own.
To illustrate, if you own several apartment buildings, you may get a “bulk” discount that a person with a single home or apartment might not receive.
QUESTION: What types of Maintenance can rental agencies help with?
Some rental agencies in the 23116 area have their own maintenance employees, full-time. Most subcontract these jobs out to various subcontractors. Some rental agencies charge a flat rate to manage any work done by contractors. Many will add margin to the subcontrcontractor’s fee. Make certain you understand how it works with your unit management company!
Question: How much do property managers cost?
Answer: As you might guess, the response is “it depends.” Residential property management companies vary quite a bit, and much of the answer depends on what a firm does for you.. Exactly what do you want a rental manager to accomplish for you?
Typical % of Rent Agreement. As a starting point, expect to be charged a usual Property management company ranging from 7 – 10% of the monthly rental value of the unit. This is referred to as management fee, or monthly management payment. Generally the higher you charge for rent, the lower the percentage fee is. To illustrate if your rent is $2,100 each month for your rent house, you will usually pay a lower percentage fee than another person whose unit rents for $800 each month.
You do not pay this percentage fee until payment is received. Look specifically at your contract regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the fee is based on rent collected, it means the Residential property management company won’t get paid if you don’t get paid. Conversely, if it’s based on ‘rent due’, then you pay whether or not rent is collected from the renter typically.
Fixed Payment Contract
Some firms may charge, say,$75- $150 per month flat rate. There is nothing dictated bystatute in this; it’s decided by the firm owner.
You would not owe money on a fixed rate agreement typically until rent is collected.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you establish exactly what maintenance services are included with your fees. It might be that when something needs repair, certain labor costs are included with your monthly fixed rate or percentage charge (for illustration, changing out lighting switch plates and fixing faucet handles) while others are billed individually (such as replacing broken window panes and installing new sinks).
Regardless, everything should be clearly expressed in your contract. Keep in mind that these fees could require you toincrease your rental rate, which might make finding – and keeping – renters harder. Keep in mind, home management fees can be negotiable. Depending on how much you’re willing to pay, you might be able to get a lower price by giving up certain services and dealing with them on your own.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a house manager in the 23116 area is creating into a partnership. Over the long haul, the charges aren’t as important as the interaction between you and the agent and quality of the service your agent provides. A great agency can take charge of the oversight of the unit, for example, and wind up getting you a lot rental value and price appreciation than you thought possible. That said, you need to be prepared to get them the resources to accomplish.
Question: Should I attempt to save money by managing my home myself? Or hiring the cheapest rental agent I can?
Answer: With the best investment property managers, paying a little bit more is a wise investment, because it helps enhance the value of your unit, and they help retain top notch renters; studies have shown employing a house managercan reduce your vacancy rate in half. Conversely, going lowball with a residential property management firm can wind up being very costly.
Question: Should I attempt to save money by going FRBO? Or finding the least expensive rental agent possible?
Answer: With the best property agents, paying a little bit more is a wise investment, because it helps enhance the value of your investment property, and they help attract top notch tenants; studies have shown employing a investment property agentcan reduce your vacancy rate in half. On the other hand, going cheap with a leasing agency can wind up being very costly.
Question What Services Are Included in A Typical Property Management Contract?
Be sure 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 light bulb and fixing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be specifically stated in your contract. Keep in mind that these charges could require you toraise your rents, which might make finding – and keeping – renters harder. And remember, property management charges 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 dealing with them on your own.
QUESTION: How Can a Property Management Firm Assist With Renter Screening and Choosing?
Vetting Applicants- A residential property agent will screen the potential tenant applications to find the applicant that is the best fit for your property. They have a reliable vetting process, which includes running credit checks and criminal background checks, which can reduce your chances of being charged with discrimination. Professional property managers have seen hundreds, even thousands, of renters, so they have a better concept of how to choose the ideal applicants; renters who will pay their rent on time, have a longer tenancy and create much fewer problems. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Evaluate renter in relation to pre-decided renter standards Communicate with tenants who may have been declined
Question: What are Random charges made by property management companies?
In some cases, you may see some costs passed on to you – especially where the agent is charging a small monthly percentage. Examples could include an advertising fee in connection with finding a tenant, a yearly inspection charge, and some sort of reserve, so that the management firm has some cash on hand to handle unanticipated, but immediate, expenses.
You may want to look into how you divide pet deposits collected and bad check charges (basically whoever gets hit with the most bank fees deserves the lion’s share of this one!) Also, notice who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
Question: Do all rental agencies charge basically the same way?
Not all fee structures are the same. Some rental agencies in the 23116 area might charge a flat monthly rate – which again differs according to area, activities performed, and the total value of the home – while others charge a percentage rate, as noted above. Cost can also fluctuate depending on the size and number of homes you own.
For example, if you own a few homes, you may get a “bulk” discount that a person with a single house or apartment might not receive.
QUESTION: How Can a Property Management Company Help With Renter Screening and Selection?
Vetting Applicants- A property manager will screen the prospective tenant applications to discover the tenant that is the ideal fit for your home. They have a proven vetting process, which includes running credit checks and criminal background checks, which can decrease your chances of being charged with bias. Experienced rental agents have seen hundreds, even thousands, of renters, so they have a good idea of how to select the right applicants; renters who will pay their obligations on time, have a longer tenancy and create less headaches. Perform a background check to confirm identity, salary, credit history, rental history, etc. Evaluate applicant according to pre-defined tenant standards Communicate with tenants who were rejected
QUESTION: How Might a Rental Property Agency Assist an owner with Property Routine Maintenance?
Rental agents are responsible for managing preventative property maintenance to keep your home in top status. Some of things that can be involved:
- Direct and oversee an in-house maintenance team
- Decide on a preventative maintenance approach to identify and address repair issues
- Locate a team of licensed, bonded and completely insured vendors who have been reviewed for fair pricing and good work that meets code.
- Assign work to various parties such as (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
- Oversee outdoor areas
- Leaf and snow removal
- Disposing of garbage and debris
- Set up and monitor a 24/7 emergency repair hot-line
- Larger fix up or remodeling projects
- Provide suggestions on how the project can maximize rental profits.
- Prepare preliminary pricing estimates
- Get a few different bids for the work to be done
- Act as general contractor managing the work