No matter if 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 are out there certainly. Property rental agencies serving the Glen Allen area offer a variety of services to help you renting your house. It’s an overwhelming punchlist of jobs that a great Property Management Company will deal with; 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?”
Home Management Company RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Oversee legal contracts
- 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 rental payments and get you paid!
- Handle collections if payments are late
- Assist with evictions
- Respond to tenant inquiries
- And a lot on top of that.
It’s everything but the kitchen sink! Points to contemplate if you are questioning if you should rent your home on your own or hire a Property Management Company near the Glen Allen area.
HOW HIGH IS YOUR VACANCY RATE?
Good Property Management Company are capable locating and reviewing renters quickly and will have a network of capable, affordable Richmondmaintenance companies to handle problems. Most certified leasing agents will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE THE AVAILABILITY TO MANAGE YOUR RENTAL HOME in the Glen Allen area?
If you are employed at a full-time job while you are dealing with a rental home and simply cannot give your your rental property the time it requires, the viability of your investment might depend on hiring a professional property management company in Richmond
In addition, realize that time is definitely money and overseeing a investment home takes time. If you feel like the real life duties of rental management are impinging on time that could be more enjoyably spent making more money at your day job, or searching for other properties, employing an outside property management agency may be the smartest move for you.
HOW MANY INVESTMENT PROPERTIES IN Glen Allen DO YOU OWN?
As the total homes you own multiplies, so does the time it takes to manage them. The more renters you have, the more repair issues, renter headaches, and empty properties you will have to handle. Additionally, if your properties are spread across multiple locations, your energies committed will increase as you will have to manage the cash flow of each single investment home as well as physically commute from property to property to resolve problems.
CAN YOU AFFORD TO HIRE A Property Management Company ?
You’ve figured out that top notchleasing agentswho provide service to the Glen Allen area in Richmond aren’t free.
Property management firms will charge a fee, on average, between 5% and 10% of the monthly gross income for the property. The normal fee for a single family rental home is closer to 8-10%. The cost for a building of 10 units or more is usually between 3% and 8%.
If your home is vacant, it’s not unusual to pay a tenant finding fee to procure 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 consider: Having experienced property manager input on market rents and having a pro deal with locating a renter can mean you might get higher rents, which means a great property manager might end up covering all or part of their charge because of increased rents.
DO YOU HAVE THE AVAILABILITY TO OVERSEE YOUR INVESTMENT PROPERTY near the Glen Allen area?
If you are employed at a full-time job while you are investing in a investment home and simply can’t give your investment home the focus it needs, the profitability of your investment could depend on paying for a professional property management company in Richmond
In addition, realize that time is definitely money and taking care of a investment home takes time. If you feel like the every day requirements of property management are impinging on time that could be more profitably spent making more money at your full time job, or hunting down other properties, hiring an outside property management company may be the best move for you.
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY HOME NEAR Glen Allen?
Property managers who service the Glen Allen area can do a number of things for you as the homeowner, which can include the following areas:
RE-LEASE YOUR PROPERTY
Once lease ends persuade existing tenants to extend their rental contract for one more rental period
Deliver financial management services Make payments for the sake of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific accounting of expenditures via invoices and receipts Manage all past documents (paid invoices, leases, inspection documentation, warranties, etc.) Deliver annual reporting, structured for tax needs as well as needed tax paperwork including a 1099 form Educate owner on relevant tax write offs related to their rental property. Prepare easy to read monthly cash-flow reports which offer a detailed accounting of income and itemized expenses
RESPONSIBLE FOR OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations property managers are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the rental managermust operate within the set budget guidelines for the property. In certain emergency situations when the renters or home are in disrepair, they may use their discretion to order repairs or similar without further delays. Upkeep of Paperwork- the leasing agent is required to detailed records about the the house. This might include all income and expenses; records of all inspections, completed contracts, repair requests, any complaints, notation of work done, charges for repairs, maintenance expenses, documentation of rent collected and insurance costs.
HANDLE CAREFUL INSPECTIONS
You want to be sure to take before and after photos and written records, so you can quickly handle tenant deposits and differences of opinion when they leave your home. A good number of renters will act shocked when you subtract charges from their deposit, so having accurate documentation will help cut down on the amount of disagreeing they do with you.
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.
This is where a leasing agent earns their keep. Home management firms make sure you get your money by collecting rent each month on time and strictly enforcing late charges.
INCREASING OR ADJUSTING RENT:
The rental 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.
Professional rental managers are many times employed to observe empty homes to make sure there has been no destruction and to oversee regular maintenance. They also make certain contractors and other outsourced workers are finishing their work in a timely manner.
OFFER GENERAL REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different issues such as accepting pets, permitting smoking etc. Some things are very specific to the Richmond market, so having a local market expert who knows the Glen Allen area in particular is crucial.
Provide financial management services Handle payment for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Detailed records of expenses via invoices and receipts Maintain all past records (paid invoices, leases, inspection documentation, warranties, etc.) Oversee annual reports, structured for tax purposes as well as needed tax paperwork including a 1099 forms Counsel owner on appropriate tax write offs related to their rental home. Deliver simple monthly cash-flow reports which specify a detailed breakdown of income and detailed expenses
RESPONSIBLE FOR MAINTENANCE AND MINOR UPGRADES
Property managers are typically in charge of the physical management of the home, including regular maintenance and unexpected repairs.
RESIDENTIAL PROPERTY MANAGERS HELP YOU DETERMINE THE CORRECT RENT LEVELS
Rental agents are responsible for establishing the initial rent level, and collecting payment from tenants. Top level rental managers know how to set the market rent level toattract renters to your rental property. They hopefully have a specific understanding of the Richmond area, where the home is located and have looked at comparable properties in the general Richmond area.
DEALING WITH MOVE OUTS
If a tenant leaves, the manager is in charge of inspecting the unit, looking for issues and deciding what portion of the damage reserves mayl be refunded to the renter. After move out, the property manager is in charge of cleaning the house, repairing any damages and finding a replacement tenant.
At times when there are repairs required, the rental manager may handle it themselves or may contract with an outside firm to handle the issue it. They often have a screened black book full of licensed electricians,carpenters,plumbers and other contractors.
Question: Should I try to save money by going FRBO? Or hiring the cheapest rental agent I can?
Answer: With the best house managers, paying a little bit more can be a smart investment, because it helps increase the value of your investment property, and they help attract quality tenants; studies have proven hiring a investment property agentcan reduce your vacancy rate by 50%. Conversely, going lowball with a property management company can end up being very costly.
Question: Should I try to save cash by going FRBO? Or finding the cheapest rental agent I can?
Answer: With the best investment property managers, paying a little bit more can be a wise investment, because it helps enhance the value of your house, and they help retain quality renters; studies have proven employing a house agentcan reduce your vacancy rate in half. On the other hand, going cheap with a rental agency can wind up being very costly.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you establish exactly what maintenance services are a part of with your charges. It might be that when something needs repair, certain labor charges are a part of with your monthly flat rate or percentage charge (for illustration, changing out lighting switch plates and replacing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
No matter what, everything should be clearly stated in your contract. Consider that these charges could require you toincrease your rental rate, which might make finding – and keeping – tenants more difficult. Keep in mind, home management fees can be negotiable. Depending on how much 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.
QUESTION: What types of Maintenance can property management companies help with?
Some rental agencies in the Glen Allen area have in house maintenance employees, full-time. The majority of subcontract these jobs out to miscellaneous subcontractors. Some rental agencies charge a fixed fee to oversee any work done by contractors. Some will add margin to the contractors bill. Be sure you know how it operates with your home management firm!
QUESTION: What types of Maintenance can rental agencies help with?
Some leasing agencies in the Glen Allen area have their own maintenance crews, full-time. Most contract these jobs out to miscellaneous vendors. Some residential property management charge a flat rate to supervise any work with subcontractors. Some will upcharge the subcontrcontractor’s fee. Be certain you know how it operates with your unit management agency!
QUESTION: How May a Property Management Company assist an owner with the Tenant Move In Process?
- Prepare leasing agreement
- Confirm move in date with tenant
- 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 renter 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: What types of Maintenance can property management companies help with?
Some property management companies in the Glen Allen area have in house maintenance crews, full-time. Most refer this work out to miscellaneous subcontractors. Some leasing agencies charge a fixed fee to manage any work with subcontractors. A few will add margin to the subcontrcontractor’s bill. Be certain you know how it operates with your home management firm!
Question: What are typical procedures regarding Late Payment Fees?
Sometimes renters pay after the due date. Look at your contract to see if those late payment fees go to you as the owner, to the property management company, or are shared in some way.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a investment property manager in the Glen Allen area is creating into a partnership. In the long run, the fees aren’t as important as the interaction between you and the manager and quality of the service your manager provides. A good firm can take charge of the oversight of the property, for example, and wind up providing you much more rental value and price appreciation than you might be possible. However, you need to be prepared to get them the resources to accomplish.
QUESTION: How Might a Residential Property Management Company Assist With Tenant Vetting and Choosing?
Screening Applicants- A rental agent will review the potential renter applications to find the tenant that is the ideal fit for your property. They have a consistent vetting process, including running credit checks and criminal background checks, which can reduce your possibility of being charged with breaking the law. Experienced residential property agents have seen hundreds, even thousands, of renters, so they have a better idea of how to choose the ideal tenants; tenants who will pay their obligations on time, have a longer tenancy and create fewer problems. Perform a background check to authenticate identity, salary, credit history, rental history, etc. Evaluate tenant in relation to pre-decided renter criteria Communicate with tenants who were rejected
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some rental agencies in the Glen Allen area may charge a new tenants placement charge or have a extra commission incentive for getting a tenant into a lease. Acharge of 50 to 100 percent of the first month’s rent for any new renter placed is not atypical. Nevertheless, you shouldn’t typically bump into unreasonable multiple up-front fees.
Generally a placement fee is not paid until the renter is signed, which means you don’t need to pay out of pocket to pay this.
QUESTION: How Should a Residential Property Firm Assist an investor with House Routine Maintenance?
Rental agents are responsible for overseeing preventative home maintenance to keep your home in good shape. Examples of what may involved:
- Provide and oversee a company maintenance crew
- Create a preventative maintenance plan to locate and deal with maintenance needs
- Locate a team of licensed, bonded and completely insured contractors who have been vetted for reasonable bidding and excellent performance that meets requirements.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on who could do a good job for an excellent price.
- Maintain outdoor areas
- Leaf and snow removal
- Removing trash and debris
- Maintain and monitor a 24/7 emergency repair hotline
- Larger renovation or remodeling projects
- Provide recommendations on how the project can maximize rental profits.
- Take responsibility for initial pricing estimates
- Secure a few different quotes for the work
- Perform as general contractor managing the work
QUESTION: Will Leasing Agencies Handle Evictions in the Glen Allen area?
- Filing relevant paperwork to initiate and complete an eviction action
- Representing owner in court
- Working with with police enforcement to remove renter and tenant’s stuff from home
Question: What do Inspections of my home cost?
Some residential property management will charge for inspections, others will give you an inspection or more without charge per year. This is a visual inspection of your house to see how the renter is keeping it up. Fees can range from $50-175 per inspection.