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 normally on residential properties (but commercial property management firms do exist certainly. Property rental agencies serving the Downtown area provide a variety of services to help you renting your home. It’s an overwhelming list of jobs that a expert Property Management Company will handle; in fact (if you’re a great follow through kind of people person, you may even want to explore a job as a property manager yourself!.) Here’s a quick list of what property managers do if they are asked “will you help me rent my house?”
Home Rental Management Companies RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Deal with legal paperwork
- Keep you legal by helping you comply with government housing laws
- Show your property to possible renters in order to rent your house
- Oversee move in and move out
- Collect money and get you paid!
- Handle follow up if payments are late
- Assist with evictions
- Respond to renter inquiries
- And a lot on top of that.
It’s everything but the kitchen sink! Factors to consider if you are asking if you maybe should rent your home on your own or hire a Property Management Company near the Downtown area.
IS THERE THE MONEY TO HIRE A Property Management Company ?
You’ve figured out that greatrental agentswho provide services to the Downtown area in Richmond aren’t free.
Rental management agencies will charge a fee, ballpark, between 4% and 9% of the monthly rents for the property. The normal fee for a single family rental property is estimated at 8-10%. The charge for a property of 10 units on up is on average between 4% and 8%.
If your investment property is not occupied, it’s not unusual 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 one month’s rent.
Something to keep in mind: Having expert professional input on market rents and having a professional deal with locating a renter could mean you can get higher rents, which means a professional property manager might end up covering all or part of their cost because of increased rents.
HOW MANY INVESTMENT PROPERTIES IN Downtown DO YOU HAVE TO MANAGE?
As the number of units you own increases, so does your workload. The more tenants you have, the more repair issues, renter complaints, and empty properties you will have to handle. Additionally, if your properties are dispersed across multiple locations, your time commitment will go up as you will have to oversee the issues of each individual rental as well as physically commute from property to property to handle problems.
IS THERE THE MONEY TO HIRE A Property Management Company ?
You’ve discovered that goodrental agentswho provide services to the Downtown area in Richmond aren’t without cost.
Rental management firms will charge a fee, ballpark, between 5% and 9% of the monthly gross income for the house. The typical fee for a single family rental home is estimated at 8-10%. The fee for a building of 10 units or more is typically between 3% and 8%.
If your investment property is vacant, it’s normal to pay a tenant finding fee to procure and place a new renter in your rental 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 get higher rents, which means a good leasing agent might end up covering all or part of their fee because of higher rents.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management Company ?
You’ve figured out that top notchrental agentswho provide service to the Downtown area in Richmond aren’t free.
Residential property management companies will charge a fee, ballpark, between 4% and 10% of the monthly rents for the house. The normal fee for a single family rental home is estimated at 8-10%. The charge for a building of 10 units on up is on average between 4% and 7%.
If your investment property is empty, it’s not unusual to pay a tenant finding fee to find 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.
One thing to consider: Having expert professional input on market rents and having a professional agent deal with locating a renter might 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 PATIENCE TO WORK WITH TENANTS?
Is the pressure of dealing with evictions, renter problems and maintenance concerns taking a toll on you? Leasing agents are experienced in resolving landlord-tenant conflict. Property Management Company have an understanding of Richmond legal issues and can serve as a buffer for issues that arise. In addition, if the tenant knows they are working with a third party, they are likely to behave more civilly as well.
You do not have to hire a property management company just because you are brand new to real estate investing in Downtown, have a lot of properties or are having difficulty filling empty units. Many people manage their own homes. Personal experience can many times be the greatest teacher 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 well, its very likely, you will succeed.
HOW WILL A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOME IN Downtown?
Property managers who service the Downtown area can do a number of things for you as the homeowner, which may include the following:
PROPERTY MANAGEMENT COMPANIES HELP YOU DECIDE THE CORRECT RENT LEVELS
Leasing agents are responsible for establishing the initial rent level, and collecting rent from tenants. Excellent leasing agents know how to set the market rent level toattract tenants to your home. They hopefully have a specific understanding of the Richmond area, where the home is located and have examined at comparable properties in the general Richmond area.
TAKES CARE OF HANDLING TAXES
The leasing agent will provide the house owner with knowledge of how to handle taxes for the property. The leasing agent can additionally file taxes for the house
Professional property managers are many times employed to observe empty homes to ensure there has been no vandalism and to perform standard maintenance. They also make certain contractors and other outsourced workers are finishing their work in a reliable manner.
DEALING WITH EVICTIONS
When a renter does not pay on time or otherwise breaches the terms of a lease, the leasing agent knows is experienced with the best way to legally respond and move forward with an eviction.
KNOWLEDGE OF LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A professional property manager will have a complete understanding of local and federal laws referencing the ideal ways to: Reviewing potential renters. Handle damage deposits End a lease Evict a renter Obey with property safety protocols Advise in case of of a legal action or litigation Recommend owner to a seasoned lawyer when necessary Be knowledgeable about and comply with the most recent local, state and federal guidelines that are applicable to renting and maintaining rental homes.
RESIDENTIAL PROPERTY MANAGERS HELP YOU SET MARKET RENTAL RATE
Leasing agents are responsible for determining the beginning rent level, and collecting payment from tenants. Excellent rental managers know how to set the correct rent level toattract tenants to your home. They hopefully have a specific understanding of the Richmond area, where the property is located and have examined at comparable properties in the general Richmond market.
SUGGEST AND SUPERVISE VENDORS
Home management pro’s should be able to suggest vendors to do repairs and cosmetic improvements that maximize profitability while providing good return on investment.
OFFER GENERAL REAL ESTATE ADVICE:
Discuss with you the pros and cons\pluses and minuses of different policies such as accepting pets, permitting smoking etc. A few things are very specific to the Richmond market, so having a local area expert who knows the Downtown area in particular is important.
Professional rental agents are often engaged to look after empty properties to make sure there has been no vandalism and to oversee standard maintenance. They also make sure vendors and other repairmen are finishing their work in a reliable manner.
RESPONSIBLE FOR OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the rental agentmust operate within the set budget guidelines for the building. In certain emergency situations when the tenants or property are in danger, they may take action to order fixup or similar without concern for the budget. Maintenance of Paperwork- the property manager needs to thorough documentation about the the property. This might include all income and expenses; notations of all inspections, fully executed agreements, maintenance requests, any complaints, notation of repairs, amount paid for repairs, maintenance costs, documentation of rent paid and insurance costs.
At times when there are repairs required, the property manager must attend to it themselves or may hire an outside firm to handle the issue it. They sometimes have a big black book full of experienced electricians,carpenters,plumbers and other vendors.
At times when there are repairs needed, the property manager may attend to it themselves or may hire someone to handle the issue it. They often have a vetted team of experienced carpenters,plumbers,electricians and other types vendors.
Most rental agents are responsible for advertising the house to fill vacancies. Residential property managersare aware of to market and what to include in their advertisements. leasing agents also understand what interests renters, so they can suggest making cosmetic improvements to help makeover the property.
PERFORM CAREFUL INSPECTIONS
You want to be sure to take before and after photos and written documentation, so you can accurately take care of renter deposits and disagreements when they move out. Many tenants will act dumbfounded when you subtract charges from their deposit, so having accurate records will help reduce the amount of disagreeing they do with you.
Question: What are Other charges made by property management companies?
At times, you might see some costs passed on to you – especially where the agent is charging a low monthly percentage. Illustrations might include an advertising fee in connection with finding a renter, an annual inspection charge, and some sort of reserve, so that the management firm has some cash on hand to handle unexpected, but urgent, expenses.
You might want to check into how you divide pet deposits collected and bad check fees (generally whomever gets hit with the most bank costs should get 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: Do Residential Property Management Firms Help With Move Out?
Yes, a Residential Property Management Agency can Assist With Move outs. Services might include:
- Inspect investment home. and complete a document on the property's condition when the renter moves out
- Deliver tenant with a photocopy as well as estimated damages
- Return the balance of the security reserves to the tenant
- Forward any amount of the owner’s portion of the renter deposit to the owner or keep in owner reserves for work to be done.
- Turn over home and handle needed repairs or upgrades
- Re-do the locks
- Re-List property back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Perform periodic inspections (Inside and outside) on a predefined schedule watching out for upgrade needs, safety hazards, code violations, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
What can a RichmondRental management Firm Do to Market Your Property?
- Get investment property ready for rental
- Clean home and emphasize interior appeal
- Manage yard to maximize curb appeal
- Prepare advertisements tailored to the home and marketing channel.
- Some of the platforms commonly utilized are:
- Paid and no fee rental listing websites
- Print magazines
- Installing a lock box
- Multiple Listing Service listings
- Property fliers
- Work with other realtors and property management agents to secure a tenant
- Provide a 24/7 phone where interested tenant can hear to specific information about the home
- FieldAnswer phone calls from prospects for questions and appointments
- Meet interested tenants for showings throughout the week and weekend.
- Provide prospective tenants with tenant applications that are legally compliant with government regulations
- Collect applications with application fee
QUESTION: How Can a Residential Property Management Company assist an owner with the Tenant Move In Procedure?
- Prepare rental agreement
- Confirm move in date with renter
- 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.
- Collect first month’s rent and security deposit
QUESTION: How Should a Rental Property Company Assist an owner with House Routine Maintenance?
Rental agents are in charge of managing preventative home maintenance to keep your house in top status. Examples of what may involved:
- Provide and oversee an in-house maintenance team
- Establish a preventative maintenance approach to locate and handle maintenance issues
- Locate a collection of licensed, bonded and legally insured vendors who have been vetted for reasonable pricing and excellent work that is up to code.
- Assign jobs to various parties such as (in-house employees, handyman and professional contractors) based on who will do the best job for a fair price.
- Maintain outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Maintain and monitor a 24 hour emergency repair hot-line
- Bigger renovation or remodeling projects
- Take care of recommendations on how the project can optimize rental profits.
- Prepare initial pricing estimates
- Get a few independent quotes for the project
- Perform as general contractor managing the work
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, a landlord signs a contract with a property management company for a fixed length of time – 12 or 24 months, for example – with an option to renew. Contracts could be prepared so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the rental agency is in breach of the contract in any way.
Question: Do all rental agencies charge basically the same way?
Not all fee structures are the same. Some property management companies in the Downtown area might charge a flat per-month rate – which again differs according to area, activities performed, and the total value of the property – while others charge a percentage rate, as noted above. Price can also differ depending on the size and quantity of homes you own.
For example, if you own a few homes, you might get a “bulk” discount that a person with a single home or apartment might not get.
Question: Do property management companies help with evictions?
Some tenants are flakes. Some lose their jobs and become unable to pay their rent, while others turn out to be flakey and a problem or pain in the neck at your home. Most certainly a house agent will levy a charge to go through the tedious process of evicting a tenant which is typically ballpark cost of $300-$600 for each eviction, not counting any applicable legal charges.And an evictionmay last a couple months, so be ready to not receive any rental income until they move out. On top of that, you could find there is fix up work to do on your house.
Typically, you are better off providing your renter financial reasons to leave the unit early and avoid suing them, as aggravating as that might seem. You can skip many difficult situations with thorough tenant screening done upfront.
Question: Do all residential property management charge basically the same way?
Not every pricing structures are identical. Some property management companies in the Downtown area may charge a flat per-month rate – which again varies according to area, activities performed, and the total value of the house – while others charge a percentage rate, as noted above. Cost can also change depending on the size and number of units you own.
To illustrate, if you own a few apartment buildings, you might get a quantity discount that a person with a single property or apartment might not get.
QUESTION: What types of Maintenance can leasing agencies help with?
Some rental agencies in the Downtown area have their own maintenance employees, full-time. The majority of refer these jobs out to various subcontractors. Some residential property management charge a flat rate to manage any work with subcontractors. A few will upcharge the contractors invoice. Make certain you understand how it works with your property management company!
QUESTION: Will Leasing Agencies Take Care of Evictions in the Downtown area?
- Preparing relevant paperwork to begin and complete an eviction lawsuit
- Representing owner in court
- Interacting with with police enforcement to evict tenant and renters stuff from house
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a investment property agent in the Downtown area is creating into a partnership. Over the long haul, the charges aren’t as important as the communication between you and the manager and quality of the service your agent provides. A great agency can take control of the maintenance of the home, for example, and wind up providing you much more rental value and price appreciation than you might be possible. That said, you need to be prepared to get them the resources to do it.
QUESTION: What types of Maintenance can property management companies help with?
Some property management companies in the Downtown area have their own maintenance crews, full-time. The majority of subcontract these jobs out to miscellaneous subcontractors. Some rental agencies charge a fixed fee to manage any work with subcontractors. Some will add on to the contractors bill. Make sure you know how it works with your unit management firm!
Question: What do do property managers charge?
Answer: As you may guess, the answer is “it depends.” Leasing agencies vary quite a bit, and much of the response depends on what a firm does for you.. Exactly what do you want a rental agent to do for you?
Normal % of Rent Contract. As a ballpark figure, expect to be charged a typical Rental management agency ranging from 6 – 10% of the monthly rental value of the unit. This is referred to as management fee, or monthly management payment. Usually the greater you charge for rent, the lower the percentage fee is. To illustrate if your rental charges are $2,100 per month for your rental house, you will typically pay a lower percentage fee than someone else whose property rents for $900 each month.
You are not charged this management fee until rent is received. Look specifically at your contract regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the charge is tied to rent collected, it means the Leasing agency won’t get paid if you don’t get paid. On the other hand, if it’s determined by ‘rent due’, then you pay whether or not rent is collected from the tenant usually.
Flat Rate Contract
Some firms may charge, say,$75- $150 each month flat rate. There is nothing dictated bylaw in this; it’s determined by the firm owner.
You wouldn’t owe money on a fixed rate contract typically until rent is collected.