No matter if you describe them as a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The focal point is normally on residential properties (but commercial property management firms do exist certainly. Property rental agencies serving the 23146 area provide a variety of services to help you renting your house. It’s a long punchlist of jobs that a experienced Property Management Company will deal with; in fact (if you’re a detailed 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 Companies RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Handle contracts
- Keep you out of jail by helping you comply with Fair Housing laws
- Show your house to interested tenants in order to rent your house
- Oversee move in and move out
- Collect rental payments and get you paid!
- Handle follow up if payments are late
- Assist with evictions
- Answer tenant inquiries
- And so much on top of that.
It’s everything from soup to nuts! Areas to contemplate if you are considering if you should rent your house on your own or hire a Property Management Company near the 23146 area.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management Company ?
You’ve discovered that goodleasing agentswho provide services to the 23146 area in Richmond aren’t free.
Rental management agencies will charge a fee, ballpark, between 5% and 9% of the monthly rents for the property. The usual fee for a single family investment is estimated at 8-10%. The charge for a building of 10 units on up is typically between 5% and 8%.
If your home is empty, it’s not unusual to pay a tenant finding fee to find and place a new renter in your investment 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 handle locating a renter could mean you get higher rents, which means a good property manager may end up covering all or part of their fee because of higher rents.
HOW MANY INVESTMENT PROPERTIES IN 23146 DO YOU HAVE TO TAKE CARE OF?
As the number of homes 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. In addition, if your units are spread across multiple locations, your energies committed will increase as you will have to take care of the issues of each particular property as well as physically commute from property to property to handle problems.
HOW MANY RENTAL UNITS IN 23146 DO YOU OWN?
As the total homes you own multiplies, so does your workload. The more tenants you have, the more maintenance issues, tenant complaints, and empty properties you will have to take care of. On top of that, if your properties are dispersed across multiple locations, your time commitment will go up as you will have to manage the issues of each single property as well as physically commute from property to property to handle problems.
WILL YOU HAVE THE TIME TO CARE FOR YOUR RENTAL PROPERTY in the 23146 area?
If you work at a full-time job while you are investing in a rental property and simply can’t give your investment home the attention it requires, the profitability of your investment may depend on employing a good property management company in Richmond
Also, realize that time is definitely money and managing a rental home takes time. If you feel like the real life requirements of property management are impinging on time that could be more enjoyably spent making more money at your full time job, or searching for other property to buy, hiring an outside property management firm may be the best move for you.
IS THERE THE MONEY TO PAY A Property Management Company ?
You’ve figured out that goodleasing agentswho provide service to the 23146 area in Richmond aren’t without cost.
Property management agencies will charge a fee, roughly, between 5% and 9% of the monthly gross income for the property. The typical fee for a single family rental property is about 8-10%. The fee for a apartment of 10 units or more is usually between 3% and 8%.
If your house is not occupied, it’s typical to pay a tenant finding fee to find and place a new tenant in your investment property. Depending on the property management company this can fluctuate from 50%-100% of a month’s rent.
Something to keep in mind: Having experienced property manager input on market rents and having a professional handle locating a tenant can mean you can get higher rents, which means a good property manager might end up covering all or part of their charge because of higher rents.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY HOUSE IN 23146?
Rental management companies who service the 23146 area may do a number of things for you as the home investor, which can include the following areas:
RE-LEASE YOUR HOUSE
Once contract expires get current renters to re-up their rental contract for one more rental period
One of the main responsibilities of the leasing agents is to manage tenants. They are involved in many capacities, from locating the renters and addressing issues to initiating the eviction process.
Professional rental agents are often hired to look after vacant properties to ensure there has been no vandalism and to oversee routine maintenance. They also make sure contractors and other outsourced workers are completing their work in a reliable manner.
OVERSEEING MOVE OUTS
If a renter leaves, the manager is in charge of inspecting the house, looking for issues and determining what portion of the damage deposit willl be refunded to the tenant. After move out, the property manager is responsible for cleaning the house, repairing any issues and locating a replacement tenant.
Most residential property managers are responsible for marketing the house to fill vacancies. Rental agentsare aware of to advertise and what to include in their advertisements. Residential property managers also have insight into what is motivating to tenants, so they may suggest making cosmetic improvements to help improve the home.
Nearly all managers are compensated to oversee repair requests, noise complaints and possess the necessary contacts to deal with emergency situations.
DEALING WITH MOVE OUTS
If a renter leaves, the property manager is in charge of inspecting the unit, checking for damages and assessing what portion of the damage reserves mightl be returned to the tenant. After move out, the manager is in charge of cleaning the unit, repairing any areas of concern and finding a replacement renter.
OVERSEE MAINTENANCE ITEMS AND MINOR UPGRADES
Rental property management agents are customarily charged with caring for the physical oversight of the property, including regular maintenance and emergency work to be done.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the unit, such as a desk clerk or security personnel, the rental manager is responsible for being certain they are on their toes. The leasing agent may establish their compensation and even fire them.
DEALING WITH EVICTIONS
When a renter does not pay on time or in some way violates the terms of the lease, the property manager realizes is experienced with the proper approach to file and proceed ahead with an eviction.
DEALING WITH COMPLAINTS
Nearly all they are compensated to deal with maintenance requests, noise complaints and have the required contacts to deal with difficult situations.
TAKE CARE OF DETAILED INSPECTIONS
You want to make certain to have before and after photos and written documentation, so you can accurately deal with tenant deposits and disputes when they leave your home. A good number of renters will act amazed when you remove damages from their deposit, so having comprehensive files will help cut down on the amount of disagreeing they do with you.
EXPERIENCED WITH LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A experienced rental agent may have a complete understanding of statewide and national laws referencing the ideal ways to: Screening the tenants. Manage damage deposits Terminate a rental agreement Oversee evicting a renter Comply with property safety standards Give input in the occasion the event of a legal dispute or lawsuit Send owner to a qualified attorney when necessary Be up on and abide by the most recent local, state and federal laws that relate to renting and maintaining rental homes.
OVERSEE MAINTENANCE AND MINOR UPGRADES
Rental agents are typically responsible for the physical care of the house, including consistent maintenance and emergency repairs.
Question: What are typical procedures regarding Late Payment Charges?
Sometimes tenants pay after the due date. Read your paperwork to see if those late payment charges go to you as the owner, to the rental agency, or are shared somehow.
Question: What are Miscellaneous charges made by property management companies?
At times, you might see some charges passed on to you – especially where the manager is charging a low monthly percentage. Illustrations could include an marketing charge in connection with finding a renter, a yearly inspection charge, and some sort of reserve, so that the management company has some money on hand to handle unanticipated, but immediate, expenses.
You may want to check into how you share pet deposits collected and bad check fees (generally whoever gets stuck with the greatest amount of bank fees should get the bulk 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: Do all property management companies charge basically the same way?
Not every fee structures are the same. Some leasing agencies in the 23146 area might charge a fixed monthly rate – which again varies according to area, duties performed, and the total value of the home – while others charge a percentage rate, as noted above. Cost can also differ depending on the size and number of homes you own.
To illustrate, if you own several homes, you may get a quantity discount that a person with a single house or apartment might not get.
QUESTION: Do Residential Property Management Firms Assist With Move Out?
Yes, a Home Management Company can Help With Move outs. Activities might include:
- Inspect investment property. and complete a document on the property's condition when the tenant moves out
- Provide occupant with a version as well as noted damages
- Return the remainder of the security reserves to the tenant
- Mail any portion of the owner’s share of the tenant deposit to the homeowner or hold in owner reserves for repairs.
- Clean home and handle required repairs or upgrades
- Re-key the locks
- Put the property back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Handle systematic inspections (Inside and outside) on a predefined schedule looking for maintenance needs, safety violations, code violations, lease violations, etc.
- Send owner periodic reports on the condition of the property
Question: Should I try to save cash by going FRBO? Or finding the cheapest property manager possible?
Answer: With the best home agents, paying a little bit more is a wise investment, because it helps increase the value of your unit, and they help attract quality renters; studies have proven hiring a investment property managercan cut your vacancy rate by 50%. On the other hand, going cheap with a rental agency can end up being very costly.
Question: What are Other charges made by property management companies?
At times, you may see some charges passed on to you – especially when the agent is charging a low monthly %. Examples could include an advertising charge in connection with finding a tenant, an annual inspection charge, and some sort of reserve, so that the management company has some money on hand to take care of unexpected, but immediate, costs.
You might want to check into how you divide pet deposits collected and bad check fees (generally whoever gets stuck with the greatest amount of 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: What are typical procedures regarding Late Payment Fees?
Occasionally renters pay after the due date. Read your contract to see if those late payment charges go to you as the owner, to the leasing agency, or are shared somehow.
QUESTION: How Might a Property Management Firm Assist an investor with House Regular Maintenance?
Rental agents are responsible for overseeing preventative house maintenance to keep your house in top notch status. Examples of what might under consideration:
- Provide and oversee company employed maintenance team
- Decide on a preventative maintenance policy to find and address maintenance needs
- Locate a collection of licensed, bonded and fully insured contractors who have been reviewed for good bidding and good work that is up to requirements.
- Delegate work to various parties such as (in-house employees, handyman and professional contractors) based on who may do an excellent job for the lowest price.
- Oversee outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Set up and monitor a 24/7 emergency repair hot-line
- Bigger renovation or rehab projects
- Offer suggestions on how the project can optimize rental returns.
- Take responsibility for initial pricing estimates
- Get several different quotes for the work to be done
- Act as general contractor overseeing the work
QUESTION: What are Advertising Charges?
Some residential property management charge a marketing fee. This is an upfront fee to market your vacant investment property. This fee is typically $200-450. Most firms don’t charge this fee, so shop around!
Vacant House charge Some firms charge 1 month’s payment up front. You might run into this charge if you are attempting to engage the residential property management firm while the unit is vacant. This gives them the cash to pay a real estate agent a commission for finding a tenant in the home, or to pay the costs of marketing, repeatedly showing the unit to potential renters, as well as the expense of preparing lease documents (which can take a long time).
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some residential property management companies in the 23146 area may charge a new renters placement fee or have a extra commission incentive for getting a tenant into a lease. Afee of 50 to 100 percent of the first month’s rent for any new renter placed is not unusual. However, you shouldn’t typically run into unreasonable multiple up-front fees.
Typically a lease up fee is not paid until the tenant is signed, meaning you don’t need to pay out of pocket to pay this.
QUESTION: What are Advertising Fees?
Some residential property management charge a advertising fee. This is an initial charge to market your empty property. This fee is usually $200-500. Most companies don’t charge this charge, so shop around!
Vacant Unit fee Some agencies charge 1 month’s payment up front. You may run into this fee if you are attempting to engage the leasing agency while the property is vacant. This gives them the money to pay a realtor a commission for placing a tenant in the investment property, or to pay the costs of advertising, repeatedly showing the property to prospective renters, as well as the expense of preparing lease paperwork (which can take a long time).
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some property management companies in the 23146 area could charge a new tenants placement charge or have a extra commission incentive for getting a tenant into an agreement. Acharge of 50 to 100 % of the first month’s rent for any new tenant placed is not atypical. Nevertheless, you shouldn’t typically run into unreasonable multiple up-front charges.
Generally a placement fee is not paid until the renter is found, which means you don’t have to pay out of pocket to pay this.
What can a RichmondProperty Management Firm Do to Market Your House?
- Get house ready for rental
- Clean property and maximize interior attractiveness
- Manicure exterior to maximize street appeal
- Create marketing materials specifically created for the house and marketing channel.
- Some of the mediums regularly utilized are:
- Paid and free rental listing websites
- Print magazines
- Install a lock box
- Multiple Listing Service listings
- Coordinate with other realtors and property management agents to secure a tenant
- Provide a 24-hour hot-line where potential renters can listen to specific information about the house
- Take phone calls from prospects for questions and viewings
- Greet prospective renters for appointments throughout the week and weekend.
- Provide interested tenants with tenant applications that are legally in line with government regulations
- Gather applications with application fee
Question: How much do property managers cost?
Answer: As you may guess, the answer is “it depends.” Property management firms vary quite a bit, and much of the response is dependent on what they do for you.. Exactly what do you want a rental manager to accomplish for you?
Usual % of Rent Contract. As a baseline, expect to pay a normal Property management company between 6 – 10% of the monthly rent of the home. This is called a management charge, or monthly management fee. Generally the greater your rent is, the lower the percentage is. To illustrate if your rental charges are $2,300 each month for your rental house, you will typically pay a lower percentage fee than someone else whose house rents for $700 each month.
You do not pay this management charge until payment is received. Look carefully at your agreement regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the fee is based on rent received, it means the Property management company won’t get paid if you don’t get paid. On the other hand, if it’s based on ‘rent due’, then you owe whether or not rent is received from the renter usually.
Fixed Payment Agreements
Some agencies may charge, say,$75- $150 per month flat rate. There is nothing dictated bystatute in this; it’s decided by the company owner.
You would not owe money on a fixed rate contract typically until rent is received.