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 focus is usually on residential properties (but commercial property management companies do exist of course. Property rental agencies serving the 23801 area provide a long list of services to help you renting your home. It’s a long punchlist of tasks that a expert Property Management Company will handle; in fact (if you’re a detailed follow through kind of people person, you might even want to look at 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”!
- Locate a renter
- Handle contracts
- Keep you out of jail by helping you obey government housing laws
- Show your property to interested 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 timely
- Help with evictions
- Deal with tenant inquiries
- And a lot on top of that.
It’s everything but the kitchen sink! Points to think about if you are questioning if you should rent your home on your own or hire a Property Management Company near the 23801 area.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management Company ?
You’ve figured out that goodleasing agentswho provide services to the 23801 area in Richmond aren’t without cost.
Rental companies will charge a fee, roughly, between 5% and 9% of the monthly gross income for the home. The usual fee for a single family rental property is closer to 8-10%. The cost for a property of 10 units or more is usually between 3% and 7%.
If your house is not occupied, it’s normal to pay a tenant finding fee to locate and place a new tenant 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 expert professional input on market rents and having a professional agent deal with locating a renter might mean you might get higher rents, which means a professional leasing agent likely will end up covering all or part of their charge because of increased rents.
HOW CLOSE IS YOUR RENTAL HOME?
The more miles between you and your investment property,the more stressful it is to look after. If your main address is in Florida and your property is in the 23801 area, it will be harder for you to find tenants,to handle tenant complaints,to quickly respond to difficulties, to address maintenance issues, and even to ensure payment is collected by due date.
The amount of time it takes you to go back and forth the property and the expense of travel will also add up. In situations such as these, hiring a goodRichmond property management firm? can make a lot of sense and actually save you money.
IS THERE THE MONEY TO HIRE A Property Management Company ?
You’ve discovered that top notchproperty managerswho provide service to the 23801 area in Richmond aren’t without cost.
Property management firms will charge a fee, roughly, between 5% and 10% of the monthly rents for the house. The normal fee for a single family investment is closer to 8-10%. The cost for a building of 10 units on up is usually between 4% and 8%.
If your home is vacant, it’s typical to pay a tenant finding fee to locate and place a new tenant in your rental home. Depending on the property management company this can range from 50%-100% of one month’s rent.
Something to think about: Having expert professional input on market rents and having a professional handle locating a renter might mean you get higher rents, which means a professional leasing agent may end up covering all or part of their cost because of higher rents.
IS YOUR VACANCY RATE HIGH?
Good Property Management Company are capable finding and screening renters quickly and will have a network of capable, affordable Richmondrepairmen to deal with problems. Most certified leasing agents will also comprehend landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondreal estate, but don’t know anything about property management, hiring a certified Property Management Company can be a smart choice for you. Learning as you go can become very draining financially.
For a real estate investor who is starting out, hiring the wrong repairman or taking too long to fill an empty home can rapidly eat into your potential income. There are big legal liability problems you can run into if you don’t know about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of rental management charges!
HOW CAN A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN 23801?
Property management companies who service the 23801 area can do a lot of things for you as the homeowner, which could include the following:
SUGGEST AND SUPERVISE VENDORS
Rental management pro’s should be capable to suggest vendors to do repairs and cosmetic work that maximize profitability while providing great return on investment.
DEALING WITH LEASES
Many they are responsible for setting the duration of the lease and making sure it has all the necessary provisions to protect the client. This includes deciding the total of damage deposit needed.
Professional property managers are often engaged to observe vacant properties to ensure there has been no vandalism and to oversee standard maintenance. They also make sure contractors and other repairmen are finishing their work in a timely manner.
Most residential property managers are tasked with for marketing the property to fill vacancies. leasing agentsare aware of to promote and what to include in their ads. Rental agents also have insight into what attracts tenants, so they may suggest making minor improvements to help makeover the house.
Professional rental agents are often hired to observe empty houses to make sure there has been no destruction and to oversee regular maintenance. They also make certain vendors and other repairmen are completing their work in a reliable manner.
HANDLE DETAILED INSPECTIONS
You want to make certain to have before and after photos and written documentation, so you can easily handle tenant deposits and differences of opinion when they move out. Many tenants will act shocked when you subtract fees from their deposit, so having comprehensive documentation will help cut down on the amount of fighting they do with you.
MANAGE MAINTENANCE ITEMS AND MINOR UPGRADES
Property managers are customarily in charge of the physical care of the residence, including scheduled maintenance and emergency repairs.
DEALING WITH COMPLAINTS
Nearly all managers are paid to address repair situations, noise disturbances and have the needed relationships to deal with emergency situations.
DEALING WITH MOVE OUTS
When a tenant leaves, the rental agent is responsible for inspecting the house, looking for damages and determining what amount of the damage deposit mayl be refunded to the tenant. After move out, the rental agent is in charge of cleaning the unit, fixing any damages and finding a new tenant.
At times when there are repairs required, the rental agent may handle it themselves or will employ a third party to handle the issue it. They often have a big network of reliable electricians,carpenters,plumbers and other types vendors.
SUGGEST AND SUPERVISE VENDORS
Rental management agents should be able to offer recommendations on maintenance and small work that maximize monthly rent while providing excellent return on investment.
RE-LEASE YOUR PROPERTY
Once contract expires ask current tenants to continue their lease for one more rental period
One of the main responsibilities of the leasing agents is to manage renters. They are engaged in many roles, from locating the renters and dealing with issues to dealing with evictions.
At times when there is a problem needed, the rental agent must attend to it themselves or may find a third party to handle the problem it. They sometimes have a big black book full of experienced electricians,carpenters,plumbers and other types vendors.
Question: Do all leasing agencies charge basically the same way?
Not every pricing structures are identical. Some rental agencies in the 23801 area might charge a flat 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. Cost can also change depending on the size and quantity of properties you own.
To illustrate, if you own several apartment buildings, you might get a quantity discount that a person with a single home or apartment might not get.
Question: Should I try to save cash by managing my home myself? Or hiring the cheapest leasing agent possible?
Answer: With the best unit managers, paying a little bit more is a smart investment, because it helps increase the value of your property, and they help attract quality renters; studies have proven employing a property agentcan reduce your vacancy rate by 50%. Conversely, going lowball with a leasing agency can wind up being very costly.
Question: What are Other fees made by property management companies?
At times, you may see some charges passed on to you – especially when the manager is charging a low monthly %. Illustrations could include an advertising charge in connection with finding a renter, an annual inspection fee, and some sort of reserve, so that the management firm has some cash on hand to take care of unanticipated, but immediate, costs.
You may want to look into how you share pet deposits collected and bad check charges (generally whoever gets stuck with the most bank costs deserves 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: What types of Maintenance can property management companies help with?
Some residential property management in the 23801 area have their own maintenance employees, full-time. The majority of subcontract this work out to various vendors. Some residential property management charge a flat rate to manage any work done by contractors. Some will add on to the contractors fee. Make sure you know how it operates with your house management firm!
Question: How much do rental managers cost?
Answer: As you might guess, the answer is “it depends.” Leasing agencies vary quite a bit, and much of the response depends on what a company does for you.. Exactly what do you want a property manager to accomplish for you?
Usual % of Monthly Rent Contract. As a baseline, expect to be charged a typical Residential property management company between 7 – 11% of the monthly rental value of the unit. This is referred to as management fee, or monthly management charge. Generally the higher you charge for rent, the lower the percentage fee is. To illustrate if your rental charges are $2,300 per month for your rent house, you will normally pay a lower percentage fee than another person whose house rents for $700 each month.
You do not pay this management fee until payment is received. Look specifically at your contract regarding whether the management charge is based on ‘rent collected’ or ‘rent due’. If the fee is tied to rent received, it means the Leasing agency doesn’t get paid if you don’t get paid. Conversely, if it’s based on ‘rent due’, then you owe whether or not rent is received from the tenant usually.
Fixed Fee Agreements
Some agencies may charge, say,$75- $150 per month flat rate. There is nothing dictated bylaw in this; it’s decided by the firm owner.
You would not owe money on a flat rate contract typically until rent is received.
QUESTION: How Can a Lease Management Agency help an owner with the Tenant Move In Procedure?
- Draw up leasing documents
- Affirm 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 initial month’s rent and security deposit
QUESTION: How Might a Home Management Agency Help With Tenant Vetting and Choosing?
Screening Applicants- A leasing agent will review the prospective tenant applications to find the tenant that is the ideal fit for your property. They have a reliable vetting process, including running credit checks and criminal background checks, which can decrease your chances of being charged with discrimination. Professional residential property agents have seen hundreds, even thousands, of renters, so they have a good idea of how to select the correct applicants; those who will pay their rent on time, have a longer tenancy and create fewer problems. Perform a background check to confirm identity, wages, credit history, rental history, etc. Assess renter per pre-decided tenant standards Inform applicants who may have been declined
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine precisely what maintenance services are a part of with your fees. It may be that when something needs repair, some labor charges are a part of with your monthly flat rate or percentage charge (for illustration, changing out lighting switch plates and fixing faucet handles) while others are billed individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be specifically expressed in your agreement. Consider that these fees might require you toraise your rental rate, which could make finding – and keeping – renters harder. Keep in mind, property management charges can be negotiated. Depending on how much you’re willing to pay, you might be able to get a lower price by sacrificing certain services and handling them on your own.
What can a RichmondResidential Property Management Agency Do to Market Your Property?
- Get investment property ready for rental
- Clean home and emphasize interior attractiveness
- Manage landscaping to maximize curb appeal
- Develop ads customized for the home and advertising platform.
- A sample of the mediums regularly used are:
- Paid and no charge rental listing websites
- Print magazines
- Installing a lock box
- MLS listings
- Property fliers
- Work with other agents and leasing agents to find a tenant
- Provide a 24/7 hot-line where potential tenant can listen to detailed information about the house
- Take phone calls from prospects for questions and viewings
- Welcome potential renters for appointments throughout the week and weekend.
- Provide potential renters with rental applications that are legally in line with fair housing laws
- Collect applications with application payment
QUESTION: Do Residential Property Management Companies Help With Move Out?
Yes, a Home Management Firm can Help With Move outs. Services might include:
- Inspect investment home. and complete a document on the home’s condition when the tenant moves out
- Provide occupant with a version as well as noted deductions
- Return the balance of the damage reserves to the tenant
- Transfer remaining amount of the owner’s portion of the renter deposit to the homeowner or keep in owner reserves for repairs.
- Turn over house and oversee required repairs or upgrades
- Re-do the locks
- Put the property back on the market for rent
QUESTION: What Inspection Services Do Rental Managers Provide?
- Insure periodic inspections (Inside and outside) on a predetermined schedule noting repair needs, safety hazards, code issues, lease violations, etc.
- Send owner periodic reports on the condition of the property
Question: What are typical procedures regarding Late Payment Charges?
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 in some way.
QUESTION: What are Marketing Charges?
Some rental agencies charge a marketing fee. This is an initial fee to market your vacant house. This charge is typically $250-500. Most agencies don’t charge this charge, so shop around!
Empty Property fee Some firms charge One month’s rent up front. You could run into this fee if you’re attempting to engage the leasing agency while the unit is empty. 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 marketing, repeatedly showing the property to prospective tenants, as well as the cost of preparing lease documents (which can take a long time).
Question: What are typical procedures regarding Late Payment Fees?
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 Services Are Included in A Typical Property Management Contract?
Be sure you determine precisely what maintenance services are a part of with your charges. It could be that when something needs repair, some labor charges are included with your monthly fixed rate or percentage charge (for illustration, changing out lighting switch plates and replacing faucet handles) while others are billed individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be specifically stated in your agreement. Keep in mind that these fees could require you toraise your rental rate, which could make finding – and keeping – tenants harder. And remember, property management fees can be negotiated. Depending on what you’re willing to pay, you may be able to get a lower price by sacrificing particular services and dealing with them on your own.