Whether you call them a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The emphasis is typically on residential properties (but commercial property management agencies do exist certainly. Property rental agencies serving the Fort Lee area provide a long list of services to help you renting your house. It’s an overwhelming punchlist of jobs that a top notch Property Management Company will oversee; in fact (if you’re a detailed follow through kind of people person, you may even want to consider 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?”
Property Management Companies RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Deal with legal paperwork
- Keep you legal by helping you obey government housing laws
- Open your property to possible renters in order to rent your house
- Deal with move in and move out
- Collect rent and get you paid!
- Handle collections if payments are not on time
- Help with evictions
- Respond to tenant inquiries
- And so much more than that.
It’s everything but the kitchen sink! Items to think about if you are wondering if you maybe should rent your home on your own or hire a Property Management Company near the Fort Lee area.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you would like deal in Richmondrental homes, but don’t know a single thing about leasing management, hiring an experienced Property Management Company can be a wise choice for you. Figuring it out as you go can become extremely draining financially.
For a real estate investor who is starting out, hiring a bad repairman or taking too long to fill an empty home can rapidly eat into your potential income. There are huge legal liability problems you can run into if you aren’t educated about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
IS THERE THE MONEY TO HIRE A Property Management Company ?
You’ve figured out that greatproperty managerswho provide service to the Fort Lee area in Richmond aren’t without cost.
Rental management firms will charge a fee, on average, between 5% and 9% of the monthly rents for the home. The typical fee for a single family investment is closer to 8-10%. The charge for a building of 10 units or more is usually between 3% and 8%.
If your investment property is empty, it’s not unusual to pay a tenant finding fee to procure and place a new renter in your investment property. Depending on the property management company this can fluctuate 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 deal with locating a tenant can mean you can get higher rents, which means a great rental agent likely will end up covering all or part of their cost because of higher rents.
DO YOU HAVE THE TIME TO MANAGE YOUR RENTAL PROPERTY near the Fort Lee area?
If you are employed at a full-time job while you are looking after a rental property and simply cannot give your your rental home the attention it demands, the viability of your investment could depend on hiring a professional property management company in Richmond
Additionally, realize that time is money and managing a rental property takes energy. If you feel like the real life duties of residential property management are stepping on on time that could be more profitably spent making more money at your day job, or hunting down other property to buy, hiring an outside property management agency may be the right move for you.
DO YOU HAVE THE PATIENCE TO WORK WITH RENTERS?
Is the challenge of messing with evictions, renter problems and repair issues taking a toll on you? Rental agents are experienced in resolving landlord-tenant difficulties. Property Management Company have an understanding of Richmond landlord-tenant law and can perform as a buffer for difficulties. Additionally, if the renter knows they are dealing with a third party, they may behave more professionally as well.
You don’t have to pay for a property management company because you are brand new to real estate investing in Fort Lee, have a lot of properties or are having problems filling empty units. Many people manage their own homes. Personal experience can often be the best teacher and everyone has to start learning somewhere. If you teach yourself about residential property investing, ask the advice of others and have a powerful desire to manage your real estate well, chances are good, you will prosper.
HOW MANY INVESTMENT PROPERTIES IN Fort Lee DO YOU HAVE TO MANAGE?
As the total homes you own goes up, so do your responsibilities. The more renters you have, the more maintenance issues, renter complaints, and empty properties you will have to take care of. In addition, if your units are spread across multiple locations, your time commitment will increase as you will have to take care of the issues of each individual property as well as physically commute from property to property to handle concerns.
HOW CAN A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOME IN Fort Lee?
Rental management companies who service the Fort Lee area can do a number of things for you as the homeowner, which could include the following:
OVERSEEING MOVE OUTS
When a tenant leaves, the property manager is in charge of inspecting the property, checking for problems and assessing what amount of the security reserves mightl be returned to the tenant. After move out, the manager is in charge of cleaning the house, fixing any issues and finding a new tenant.
OFFER SOLID REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different issues such as accepting pets, allowing smoking etc. Some things are very specific to the Richmond market, so having a local area expert who knows the Fort Lee area in particular is crucial.
RE-LEASE YOUR HOUSE
Once lease terminates get current tenants to extend their rental agreement for one more rental period
Nearly all they are paid to oversee maintenance situations, noise complaints and have the necessary relationships to deal with emergency situations.
PERFORM PROFESSIONAL INSPECTIONS
You want to make sure to take before and after photos and written documentation, so you can easily take care of damage deposits and disputes when they move out. A good number of tenants will act dumbfounded when you remove damages from their deposit, so having careful files will help reduce the amount of fighting they do with you.
DEALING WITH CONTRACTS
Many agents are responsible for recommending the duration of the lease and making sure it has all the required provisions to protect the client. This includes deciding the amount of damage reserves needed.
At times when there are repairs required, the property manager must attend to it themselves or may hire a third party to handle the problem it. They sometimes have a screened team of licensed carpenters,plumbers,electricians and other vendors.
Most leasing agents are responsible for marketing the property to fill vacancies. leasing agentsknow where to market and what to include in their ads. Rental agents also have insight into what is motivating to renters, so they can suggest making cosmetic improvements to help makeover the property.
Professional leasing agents are many times contracted to look after empty properties to ensure there has been no vandalism and to oversee routine maintenance. They also make sure contractors and other repairmen are completing their work in a timely manner.
MANAGE MAINTENANCE AND MINOR UPGRADES
Property managers are typically in charge of the physical management of the home, including scheduled maintenance and emergency work to be done.
RESIDENTIAL PROPERTY MANAGERS HELP YOU SET MARKET RENT LEVELS
Rental agents are responsible for establishing the beginning rent level, and collecting payment from tenants. Top level property managers know how to set the right rent level todirect tenants to your home. They hopefully have a specific understanding of the Richmond area, where the property is located and have examined at comparable homes in the general Richmond market.
Many they are responsible for setting the length of the lease and making sure it has all the necessary clauses to look out for the client. This includes determining the total of damage reserves required.
TAKE CARE OF PROFESSIONAL INSPECTIONS
You want to be sure to take before and after photos and written records, so you can accurately deal with renter deposits and disputes when they leave your home. Many renters will act amazed when you remove fees from their deposit, so having careful documentation will help cut down on the amount of arguing they do with you.
At times when there is a problem needed, the rental agent may attend to it themselves or will contract with someone to take care the problem it. They sometimes have a big list of trustworthy carpenters,plumbers,electricians and other contractors.
QUESTION: What are Advertising Charges?
Some residential property management charge a advertising fee. This is an upfront charge to advertise your vacant house. This fee is typically $250-400. A majority of firms don’t charge this fee, so shop around!
Vacant House charge Some firms charge 1 month’s rent up front. You might run into this fee if you are attempting to engage the property management company while the home is empty. This gives them the cash to pay a realtor a commission for finding a tenant in the house, or to pay the costs of marketing, repeatedly showing the investment property to potential tenants, as well as the expense of preparing lease paperwork (which can take hours).
QUESTION: How Should a Rental Management Firm help an owner with the Renter Move In Process?
- Prepare leasing documents
- Confirm move in date with renter
- Review lease guidelines with renter 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 initial month’s rent and security deposit
Question: Do all property management companies charge basically the same way?
Not all pricing structures are the same. Some rental agencies in the Fort Lee area may charge a flat per-month 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 fluctuate depending on the size and number of units you own.
To illustrate, if you own a few houses, you may get a quantity discount that a person with a single property or apartment might not receive.
Question: What Is The Normal Term Of A Property Management Agreement?
Typically, an owner signs a contract with a residential property management firm for a certain length of time – 12 or 24 months, for example – with an option to renew. Paperwork could be prepared so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the rental agency is in the breaking of the agreement in any way.
Question What Services Are Included in A Typical Property Management Contract?
Make certain you determine precisely what maintenance services are a part of with your charges. It might be that when something needs repair, some labor costs 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 window panes and installing new sinks).
No matter what, everything should be specifically expressed in your agreement. Keep in mind that these charges could require you toraise your rental rate, which might make finding – and keeping – renters harder. Keep in mind, home management charges can be negotiated. Depending on how much you’re willing to pay, you may be able to get a better price by sacrificing certain services and dealing with them on your own.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, an owner signs an agreement with a property management company for a certain length of time – 12 or 24 months, for example – with an option to renew. Contracts can be drawn up so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the residential property management firm is in breach of the contract in any way.
Question: Do residential property management help with evictions?
Some renters are flakes. Some lose their jobs and become unable to pay their rent, while others prove to be flakey and a disturbance or nuisance at your home. Most certainly a home manager will impose a charge to initiate the laborious paperwork involved with evicting a tenant which is typically roughly $300-$600 per eviction, plus any applicable legal costs.And an evictionmay take a few months, so be ready to not receive any rental payments until they the legal action is complete. On top of that, you may find there is repair work to do on your unit.
Typically, you are better off providing your tenant cash incentives to vacate the investment property early and avoid taking them to court, as aggravating as that might seem. You can skip many difficult situations with painstaking tenant screening done upfront.
QUESTION: Do Residential Property Management Agencies Help With Move Out?
Yes, a Property Management Agency can Help With Move outs. Activities might include:
- Inspect investment property. and fill out a document on the home’s status when the tenant moves out
- Deliver renter with a photocopy as well as noted charges
- Return the remainder of the damage reserves to the tenant
- Forward remaining amount of the owner’s share of the renter deposit to the owner or hold in owner reserves for work to be done.
- Turn over home and handle needed repairs or upgrades
- Re-do all locks
- Put the home back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Handle periodic inspections (Inside and outside) on a predefined schedule watching out for repair requirements, safety concerns, code problems, lease infractions, etc.
- Prepare owner periodic reports on the condition of the property
QUESTION: What are Advertising Fees?
Some rental agencies charge a advertising fee. This is an initial fee to advertise your vacant home. This fee is usually $250-400. Most companies don’t charge this charge, so shop around!
Vacant Property charge Some agencies charge One month’s payment up front. You could run into this fee if you’re attempting to engage the leasing agency while the investment property is vacant. This gives them the money to pay a realtor a commission for finding a renter in the unit, or to pay the costs of advertising, repeatedly showing the investment property to prospective tenants, as well as the expense of preparing lease paperwork (which can take hours).
Question What Services Are Included in A Typical Property Management Contract?
Make certain you determine precisely what maintenance services are included with your charges. It could be that when something needs fixing, certain labor costs are included with your monthly fixed rate or percentage charge (for example, changing out lighting switch plates and fixing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
No matter what, everything should be clearly expressed in your contract. Consider that these charges might require you toraise your rental rate, which might make finding – and keeping – renters more difficult. And remember, unit management fees 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 much should I price shop the fees my property management company charges me?
Ultimately, hiring a unit agent in the Fort Lee area is entering into a partnership. In the long run, the charges aren’t as crucial as the communication between you and the manager and quality of the service your manager provides. A good company can take charge of the maintenance of the property, for example, and turn out providing 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 do it.
QUESTION: How Can a Property Management Firm Assist With Renter Vetting and Choosing?
Screening Tenants- A property manager will sort through the prospective tenant applications to discover the tenant that is the ideal fit for your home. They have a reliable vetting process, which includes running credit checks and criminal background checks, which can decrease your chances of being charged with discrimination. Professional leasing managers have seen hundreds, even thousands, of renters, so they have a better idea of how to select the correct tenants; renters who will pay their bills 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 per pre-decided applicant standards Inform applicants who were declined
QUESTION: What is a New Tenant Placement or “Lease up” Fee?
Some residential property management companies in the Fort Lee area might charge a new tenants placement charge or have a extra commission incentive for getting a tenant into an agreement. Afee of 50 to 100 percent of the first month’s rent for any new renter placed is not atypical. Nevertheless, you should not typically run into unreasonable multiple up-front fees.
Typically a lease up fee is not paid until the renter is secured, which means you don’t have to pay out of pocket to pay this.
Question: What are typical procedures regarding Late Payment Fees?
At times renters pay date. Read your agreement to see if those late payment fees go to you as the owner, to the residential property management, or are shared in some way.