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 usually on residential properties (but commercial property management firms are out there of course. Property rental agencies serving the 23261 area offer a long list of services to help you renting your home. It’s a long list of tasks that a top notch Property Management Company will oversee; in fact (if you’re a good follow through kind of people person, you may 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 Firms RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Handle legal paperwork
- Keep you out of jail by helping you comply with Fair Housing laws
- Open your property to prospective renters in order to rent your house
- Deal with move in and move out
- Collect rental payments and get you paid!
- Handle collections if payments are late
- Assist with evictions
- Answer renter inquiries
- And so much more.
It’s everything but the kitchen sink! Items to think about if you are asking if you maybe should rent your home on your own or hire a Property Management Company near the 23261 area.
CAN YOU AFFORD TO HIRE A Property Management Company ?
You’ve discovered that top notchleasing agentswho provide services to the 23261 area in Richmond aren’t free.
Rental management firms will charge a fee, roughly, between 5% and 10% of the monthly gross income for the house. The usual fee for a single family investment is closer to 8-10%. The cost for a building of 10 units or more is on average between 5% and 7%.
If your house is empty, it’s not unusual to pay a lease up fee to find and place a new tenant in your rental property. Depending on the property management company this can range from 50%-100% of a single month’s rent.
One thing to keep in mind: Having experienced property manager input on market rents and having a certified agent handle locating a renter might mean you get higher rents, which means a professional property manager likely will end up covering all or part of their charge because of higher rents.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you would like deal in Richmondreal estate, but don’t know anything about property management, hiring a certified Property Management Company can be the right choice for you. Figuring it out on the job can become extremely expensive.
For a property investor who is starting out, hiring the wrong repairman or taking too long to fill a vacancy can easily eat into your returns. There are big legal liability concerns you can encounter if you don’t know about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
DO YOU HAVE THE MINDSET TO DEAL WITH RENTERS?
Is the challenge of dealing with evictions, tenant complaints and maintenance issues stressful for you? Leasing agents are experienced in resolving landlord-tenant conflict. Property Management Company have an understanding of Richmond legal issues and can perform as go between for problems. In addition, if the renter knows they are dealing with a third party, they are likely to act more professionally as well.
You do not have to hire a property management agency just because you are new to property investing in 23261, have a lot of homes or are having trouble filling vacancies. Many people manage their own homes. Personal experience can often be the greatest instructor and everyone has to start learning somewhere. If you teach yourself about residential real estate, get the input of others and have a strong desire to manage your real estate well, its likely, you will come out on top.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management Company ?
You’ve figured out that greatproperty managerswho provide service to the 23261 area in Richmond aren’t free.
Residential property management firms will charge a fee, ballpark, between 5% and 9% of the monthly gross income for the home. The usual fee for a single family rental home is about 8-10%. The fee for a building of 10 units on up is on average between 3% and 7%.
If your investment property is empty, it’s normal to pay a lease up fee to procure and place a new renter in your rental home. Depending on the property management company this can fluctuate from 50%-100% of a month’s rent.
Something to think about: Having expert professional input on market rents and having a professional handle locating a tenant might mean you might get higher rents, which means a professional leasing agent likely will end up covering all or part of their fee because of higher rents.
DO YOU HAVE THE AVAILABILITY TO MANAGE YOUR RENTAL PROPERTY in the 23261 area?
If you are employed at a full-time job while you are dealing with a rental property and simply cannot give your investment home the focus it demands, the success of your investment might depend on paying for a professional property management company in Richmond
Additionally, realize that time is definitely money and managing a investment home takes time. If you feel like the every day obligations of property management are impeding on time that could be more profitably spent making more money at your full time job, or looking for other investments, hiring an outside property management agency may be the right move for you.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY HOUSE IN 23261?
Rental management companies who service the 23261 area may do a number of things for you as the home investor, which may include the following:
PROPERTY MANAGERS HELP YOU DECIDE MARKET RENT LEVELS
Leasing agents are responsible for establishing the initial rent level, and collecting rent from renters. Great leasing agents know how to set the right rent level toattract tenants to your rental property. They hopefully have a specific understanding of the Richmond area, where the property is located and have looked at comparable houses in the general Richmond market.
TAKE CARE OF PROFESSIONAL INSPECTIONS
You want to make sure to take before and after photos and written records, so you can easily handle renter deposits and disagreements when they move out. Many renters will act amazed when you take out fees from their deposit, so having comprehensive documentation will help cut down on the amount of fighting they do with you.
PROPERTY MANAGEMENT COMPANIES HELP YOU SET THE CORRECT RENT LEVELS
Leasing agents are responsible for determining the beginning rent level, and collecting payment from tenants. Excellent rental agents know how to set the right rent level toattract tenants to your home. They hopefully have a specific understanding of the Richmond area, where the property is located and have reviewed at comparable houses in the general Richmond area.
MANAGE MAINTENANCE ITEMS AND REPAIRS
Rental property management agents are usually in charge of the physical care of the property, including consistent maintenance and unexpected work to be done.
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.
SUGGEST AND SUPERVISE VENDORS
Home management agents should be able to offer recommendations on maintenance and cosmetic improvements that maximize monthly rent while providing good ROI.
Professional leasing agents are frequently engaged to overlook empty properties to ensure there has been no destruction and to oversee regular maintenance. They also make certain contractors and other repairmen are finishing their work in a reliable manner.
DEALING WITH EVICTIONS
When a renter does not pay as agreed or in some way breaks the terms of the lease, the rental property management agent realizes understands the proper way to file and proceed forward with an eviction.
COLLECTING RENTAL PAYMENTS:
This is where a property manager earns their money! Rental management firms make sure you get paid by collecting rent every month on time and strictly enforcing late penalties.
RESIDENTIAL PROPERTY MANAGERS HELP YOU DETERMINE MARKET RENTAL RATE
Rental agents are responsible for determining the initial rent level, and collecting rent from renters. Top level rental agents know how to set the correct rent level toattract renters 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 market.
DEALING WITH EVICTIONS
When a tenant does not pay as agreed or otherwise breaks the terms of the lease, the property manager realizes understands the legal approach to file and proceed ahead with an eviction.
MANAGE MAINTENANCE ITEMS AND REPAIRS
Property managers are typically responsible for the physical management of the home, including scheduled maintenance and unexpected repairs.
HANDLING MOVE OUTS
If a renter moves out, the manager is responsible for inspecting the property, looking for problems and determining what portion of the security reserves willl be given to the renter. After move out, the manager is responsible for cleaning the unit, repairing any issues and finding a new renter.
SUGGEST AND SUPERVISE VENDORS
Home management pro’s should be able to offer recommendations on repairs and small work that maximize monthly rent while providing good return on investment.
Question: What are Miscellaneous charges made by property management companies?
In some cases, you could see some charges passed on to you – especially where the agent is charging a small monthly %. Illustrations might include an marketing charge in connection with placing a tenant, an annual inspection fee, and some sort of reserve, so that the management company has some money on hand to take care of unexpected, but urgent, costs.
You may want to check into how you divide pet deposits collected and bad check fees (basically whoever gets stuck with the most bank fees deserves the lion’s share of this one!) Also, notice who gets to keep the income from vending machines and coin-operated washers and dryers, if any.
Question: Do all leasing agencies charge basically the same way?
Not all fee structures are identical. Some residential property management in the 23261 area may charge a fixed monthly rate – which again varies according to area, duties performed, and the total value of the rental – while others charge a percentage rate, as noted above. Cost can also change depending on the size and number of homes you own.
To illustrate, if you own a few homes, you might get a “bulk” discount that a person with a single house or apartment might not get.
QUESTION: How Would a Rental management Company Help With Renter Screening and Selection?
Vetting Applicants- A property manager will review the potential tenant applications to find the tenant that is the best fit for your house. They have a reliable vetting process, including running credit checks and criminal background checks, which can decrease your possibility of being accused of bias. Professional rental agents have seen hundreds, even thousands, of renters, so they have a good idea of how to choose the best tenants; renters who will pay their rent on time, have a longer tenancy and create less headaches. Perform a background check to authenticate identity, income, credit history, rental history, etc. Grade applicant per pre-decided renter criteria Inform tenants who were rejected
Question: Do property management companies help with evictions?
Some renters are deadbeats. Some become unemployed and become unable to pay their rent, while others prove to be irresponsible and a problem or nuisance at your property. Most likely a property manager will impose a charge to complete the long process of evicting a renter which is customarily around $350-$400 per eviction, not counting any associated courtroom fees.And an evictioncan take several months, so be mentally ready to not receive any rental income until they move out. In addition, you could find there is fix up work to do on your home.
Usually, you are better off offering your renter financial reasons to leave the home early and avoid taking them to court, as maddening as that is. You can skip many difficult situations with painstaking tenant screening done beforehand.
QUESTION: What types of Maintenance can leasing agencies help with?
Some leasing agencies in the 23261 area have in house maintenance crews, full-time. The majority of refer this work out to various vendors. Some residential property management charge a flat rate to oversee any work done by contractors. A few will add on to the subcontrcontractor’s invoice. Make certain you know how it works with your property management firm!
Question: Do property management companies help with evictions?
Some tenants are deadbeats. Some get fired and become unable to pay their rent, while others turn out to be flakey and a problem or nuisance at your property. Most certainly a home manager will impose a fee to go through the laborious paperwork involved with evicting a renter which is customarily roughly $350-$700 per eviction, plus any relevant court costs.And an evictionoftentimes take several months, so be mentally ready to not get any rental payments until they are out. On top of that, you may find there is repair work to be done on your property.
Usually, you are better off offering your renter cash incentives to leave the property early and avoid taking them to court, as maddening as that might seem. You can avoid many difficult situations with thorough renter vetting done upfront.
Question: What are Random fees made by property management companies?
At times, you may see some charges passed on to you – especially where the manager is charging a low monthly %. Examples could include an advertising fee in connection with finding a tenant, an annual inspection fee, and some sort of reserve, so that the management agency has some money on hand to take care of unexpected, but urgent, costs.
You may want to look into how you divide pet deposits collected and bad check fees (basically whomever gets hit with the greatest amount of bank fees should get 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 is a New Renter Placement or “Lease up” Charge?
Some rental agencies in the 23261 area could charge a new renters placement charge or have a extra commission incentive for getting a renter into a lease. Acharge of 50 to 100 percent of the first month’s rent for any new renter placed is not abnormal. Nevertheless, you should not typically bump into high multiple up-front charges.
Typically a lease up charge is not due until the renter is signed, which means you don’t have to come out of pocket to pay this.
Question: Do all rental agencies charge basically the same way?
Not every pricing structures are the same. Some leasing agencies in the 23261 area may charge a fixed monthly rate – which again varies according to area, duties 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 quantity of properties you own.
To illustrate, if you own several houses, you might get a “bulk” discount that a person with a single unit or apartment might not receive.
QUESTION: Do Property Management Companies Take Care of Evictions in the 23261 area?
- Filing relevant documentation to begin and process an unlawful detainer action
- Representing owner in court
- Working with with police enforcement to evict tenant and tenant’s things from unit
What can a RichmondResidential Property Management Firm Do to Market Your Property?
- Get investment property ready for rental
- Clean property and maximize interior appeal
- Manage landscaping to maximize street appearance
- Prepare marketing materials customized for the house and marketing platform.
- A sample of the mediums commonly utilized are:
- For pay and no fee rental listing websites
- Print publications
- Install a lock box
- MLS listings
- Property fliers
- Work with other realtors and property management agents to secure a renter
- Provide a 24/7 hot-line where potential tenant can listen to detailed information about the home
- Take phone calls from prospects for questions and showings
- Welcome prospective tenants for showings during the week and weekend.
- Provide interested tenants with rental applications that are legally compliant with fair housing laws
- Gather applications with application payment
Question What Services Are Included in A Typical Property Management Contract?
Be sure you establish precisely what maintenance services are included with your charges. It could be that when something needs repair, certain labor costs are included with your monthly fixed rate or percentage charge (for example, changing out light bulb and fixing faucet handles) while others are charged individually (such as replacing broken window panes and installing new sinks).
Regardless, everything should be specifically expressed in your contract. Consider that these fees might require you toincrease your rents, which could make finding – and keeping – tenants more difficult. Keep in mind, home management charges can be negotiated. Depending on what you’re willing to pay, you might be able to get a better price by giving up certain services and handling them on your own.
QUESTION: What are Marketing Charges?
Some residential property management charge a marketing fee. This is an upfront fee to advertise your vacant home. This charge is typically $$150-450. Most firms don’t charge this charge, so shop around!
Empty Property fee Some firms 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 unit is empty. This gives them the money to pay a realtor a commission for finding a renter in the investment property, or to pay the costs of advertising, repeatedly showing the home to prospective renters, as well as the expense of preparing lease documents (which can take a long time).
QUESTION: Will Residential Property Management Companies Handle Evictions in the 23261 area?
- Preparing necessary paperwork to begin and complete an unlawful detainer lawsuit
- Representing owner in court
- Coordinating with police authorities to remove renter and tenant’s stuff from unit