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 typically on residential properties (but commercial property management firms do exist of course. Property rental agencies serving the Henrico area offer a multiplicity of services to help you renting your house. It’s a long list of tasks that a great Property Management Company will handle; 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 just a partial 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
- Deal with legal paperwork
- Keep you legal by helping you comply with housing laws
- Show your house to interested tenants in order to rent your house
- Handle move in and move out
- Collect money and get you paid!
- Handle collections if payments are timely
- Help with evictions
- Respond to renter questions
- And so much more.
It’s everything from A to Z! Items to contemplate if you are asking if you should rent your house on your own or hire a Property Management Company near the Henrico area.
DO YOU HAVE THE TIME TO OVERSEE YOUR RENTAL PROPERTY in the Henrico area?
If you are employed at a full-time job while you are dealing with a rental property and simply can’t give your your rental property the focus it demands, the viability of your investment could depend on paying for a good property management company in Richmond
In addition, realize that time is money and managing a rental property takes energy. If you feel like the every day requirements of residential property management are impinging on time that could be more enjoyably spent making more money at your full time job, or searching for other investments, hiring an outside property management company may be the right move for you.
WILL YOU HAVE THE AVAILABILITY TO OVERSEE YOUR RENTAL HOME in the Henrico area?
If you have a full-time job while you are dealing with a investment home and simply cannot give your your rental property the energy it demands, the profitability of your investment may depend on employing a great property management company in Richmond
Also, realize that time is definitely money and taking care of a rental home takes time. If you feel like the every day obligations of leasing management are impinging on time that could be better spent making more money at your day job, or searching for other property to buy, paying for an outside property management agency may be the smartest move for you.
CAN YOU AFFORD TO HIRE A Property Management Company ?
You’ve discovered that goodleasing agentswho provide service to the Henrico area in Richmond aren’t without cost.
Rental companies will charge a fee, ballpark, between 5% and 10% of the monthly gross income for the property. The usual fee for a single family investment is closer to 8-10%. The charge for a apartment of 10 units or more is typically between 4% and 8%.
If your house is not occupied, it’s typical to pay a tenant finding fee to locate and place a new renter in your rental home. Depending on the property management company this can range from 50%-100% of a month’s rent.
One thing to consider: 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 leasing agent might end up covering all or part of their charge because of increased rents.
DO YOU HAVE A HIGH VACANCY RATE?
Great Property Management Company are capable locating and screening renters quickly and will have a network of capable, affordable Richmondrepairmen to deal with problems. Most experienced rental managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE THE PATIENCE TO DEAL WITH TENANTS?
Is the pressure of dealing with evictions, renter problems and maintenance concerns stressful for you? Leasing agents are skilled in dealing with landlord-tenant conflict. Property Management Company have an understanding of Richmond legal issues and can act as go between for difficulties. Additionally, if the renter knows they are working with a third party, they are likely to act more cordially as well.
You don’t have to pay for a property management company because you are brand new to property investing in Henrico, have a lot of rental units or are having difficulty filling vacancies. Many people manage their own homes. Personal experience can often be the best teacher and everyone has to begin learning somewhere. If you educate yourself about residential property investing, ask the advice of others and have a strong desire to oversee your home with excellence, its very likely, you will prosper.
HOW WILL A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY PROPERTY NEAR Henrico?
Rental management companies who service the Henrico area can do a lot of things for you as the home investor, which can include the following:
OVERSEEING MOVE OUTS
When a tenant leaves, the agent is responsible for inspecting the home, checking for damages and deciding what portion of the damage deposit willl be returned to the renter. After move out, the agent is responsible for cleaning the house, repairing any issues and finding a replacement renter.
OFFER WISE REAL ESTATE ADVICE:
Chat with you about the pros and cons\pluses and minuses of different issues such as accepting various animals, allowing smoking etc. Other are very specific to the Richmond area, so having a local market expert who knows the Henrico area in particular is crucial.
EXPERIENCED WITH LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A experienced property manager may have a exhaustive understanding of statewide and federal laws relating to the proper ways to: Reviewing potential renters. Manage damage deposits End a rental agreement Oversee evicting a tenant Comply with house safety regulations Advise in case of of a legal dispute or lawsuit Refer owner to a qualified lawyer when needed Understand and follow the latest local, state and federal guidelines that relate to renting and maintaining rental homes.
COLLECTING RENTAL PAYMENTS:
This is where a rental agent earns their keep. Residential property management companies make sure you get paid by collecting rent each month on time and strictly enforcing late charges.
KNOWLEDGE OF LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A trained property manager may have a exhaustive understanding of statewide and national laws referencing the proper methods to: Screen the tenants. Handle damage deposits End a lease Evict a renter Comply with property safety laws Counsel in the occasion the event of a legal action or litigation Send owner to a qualified attorney when necessary Be knowledgeable about and follow the latest local, state and federal laws that apply to renting and maintaining rental homes.
At times when there are repairs needed, the rental agent must attend to it themselves or will contract with a third party to take care the issue it. They often have a large black book full of licensed plumbers, electricians, carpenters and other vendors.
Provide financial management services Handle payments on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Specific accounting of expenses via invoices and receipts Manage all past documents (paid invoices, leases, inspection documentation, warranties, etc.) Oversee yearly reporting, organized for tax purposes as well as mandatory tax paperwork including a 1099 form Counsel owner on relevant tax write offs related to their investment home. Prepare formatted monthly cash-flow documents which offer a detailed accounting of income and specific expenses
RENTAL MANAGEMENT COMPANIES HELP YOU DETERMINE THE CORRECT RENT LEVELS
Rental managers are responsible for establishing the initial rent level, and collecting payment from renters. Top level rental agents know how to set the right rent level todirect renters to your investment property. They hopefully have a specific understanding of the Richmond area, where the home is located and have examined at comparable houses in the general Richmond area.
Professional property managers are often hired to look after empty houses to make sure there has been no destruction and to oversee standard maintenance. They also make certain contractors and other outsourced workers are finishing their work in a reliable manner.
One of the more important duties of the rental agents is to manage renters. Managers are engaged in all capacities, from identifying the tenants and responding to issues to initiating evictions.
Most rental agents are tasked with for advertising the house to fill vacancies. leasing agentsare aware of to market and what to include in their ads. Rental agents also understand what attracts tenants, so they may suggest making cosmetic improvements to help improve the home.
RE-LEASE YOUR HOME
Once lease terminates get current tenants to continue their lease for another rental period
Nearly all managers are compensated to address maintenance requests, noise disturbances and possess the necessary relationships to deal with difficult situations.
At times when there is a problem required, the leasing agent must handle it themselves or will contract with a third party to handle the issue it. They often have a vetted network of licensed electricians,carpenters,plumbers and other types contractors.
Question: What do Inspections of my home cost?
Some rental agencies will charge for inspections, some will give you one or more without charge per year. This is a walk through of your investment property to see how the tenant is treating it. Fees can range from $50-200 for each inspection.
Question: What are Random 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 %. Examples could include an advertising charge in connection with finding a renter, a yearly inspection charge, and some sort of reserve, so that the management company has some money on hand to handle unexpected, but urgent, expenses.
You may want to check into how you divide pet deposits collected and bad check charges (basically whoever gets stuck with the most bank fees should get 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: 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 could be drawn up so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the leasing agency is in the breaking of the agreement in any way.
Question: Should I attempt to save cash by managing my home myself? Or finding the least expensive rental agent possible?
Answer: With the best investment property agents, paying a little bit more can be a smart investment, because it helps increase the value of your house, and they help attract top notch tenants; studies have shown employing a unit managercan reduce your vacancy rate in half. On the other hand, going lowball with a rental agency can wind up being very costly.
Question: What do do rental agents cost?
Answer: As you may guess, the answer is “it depends.” Leasing agencies vary quite a bit, and much of the response is dependent on what a company does for you.. Just what do you want a rental manager to do for you?
Usual Percentage of Rent Agreement. As a starting point, expect to be charged a typical Rental management agency between 6 – 10% of the monthly rent of the property. This is called a management charge, or monthly management payment. Typically the higher you charge for rent, the lower the percentage 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 another person whose home rents for $1000 each month.
You do not pay this management fee until payment is collected. Look specifically at your contract regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the fee is tied to rent received, it means the Rental management 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 received from the renter normally.
Flat Rate Contract
Some firms 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 agreement normally until rent is collected.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are included with your fees. It may be that when something needs repair, certain labor costs are included with your monthly fixed rate or percentage charge (for illustration, changing out lighting switch plates and replacing faucet handles) while others are charged individually (such as replacing broken window panes and installing new sinks).
Regardless, everything should be clearly expressed in your agreement. Consider that these fees could require you toraise your rental rate, which could make finding – and keeping – tenants more difficult. 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 better price by giving up particular services and handling them on your own.
What can a RichmondHome Management Firm Do to Market Your Investment Property?
- Get investment property ready for rental
- Clean home and optimize interior attractiveness
- Manicure yard to optimize curb appeal
- Develop advertisements tailored to the property and marketing channel.
- Some of the mediums commonly used are:
- Paid and no fee rental listing websites
- Print magazines
- Installing a lock box
- Multiple Listing Service listings
- Coordinate with other professionals and property management agents to locate a renter
- Provide a 24-hour hot-line where prospective renters can listen to specific information about the property
- Take calls from prospects for questions and showings
- Greet prospective renters for appointments during the week and weekend.
- Provide prospective tenants with rental applications that are legally compliant with fair housing laws
- Gather applications with application payment
Question: Do all property management companies charge basically the same way?
Not every pricing structures are the same. Some rental agencies in the Henrico area may charge a flat per-month 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. Price can also differ depending on the size and number of homes you own.
For example, if you own several houses, you may get a quantity discount that a person with a single property or apartment might not receive.
QUESTION: How Will a Rental Property Company Help an owner with Property Standard Maintenance?
Rental agents are responsible for overseeing preventative home maintenance to keep your home in good shape. Some of things that can be under consideration:
- Manage and oversee company employed maintenance team
- Establish a preventative maintenance plan to identify and address repair needs
- Identify a team of licensed, bonded and legally insured vendors who have been reviewed for good bidding and good work that meets requirements.
- Delegate work to different parties such as (in-house employees, handyman and professional contractors) based on whom will do a good job for the best price.
- Oversee outdoor areas
- Leaf and snow removal
- Removing trash and debris
- Set up and oversee a 24 hour emergency repair hotline
- Larger renovation or remodeling projects
- Take care of suggestions on how the project can maximize rental returns.
- Prep preliminary pricing estimates
- Get multiple independent bids for the work
- Perform as general contractor managing the work
QUESTION: What types of Maintenance can leasing agencies help with?
Some leasing agencies in the Henrico area have in house maintenance crews, full-time. Most refer this work out to various vendors. Some property management companies charge a fixed fee to supervise any work with outside vendors. A few will add margin to the contractors fee. Make certain you know how it operates with your property management agency!
QUESTION: How Can a Property Management Company assist an owner with the Tenant Move In Process?
- Draw up rental contract
- Confirm move in date with tenant
- 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 tenants sign a report verifying the condition of the property prior to move-in.
- Secure first month’s rent and security deposit
Question: What are Random fees made by property management companies?
At times, you might see some fees passed on to you – especially when the agent is charging a small monthly %. Illustrations might include an advertising fee in connection with finding a tenant, a yearly inspection fee, and some sort of reserve, so that the management agency has some cash on hand to handle unexpected, but immediate, costs.
You might want to check into how you share pet deposits collected and bad check charges (generally whomever gets hit with the greatest amount of bank costs should get the bulk of this one!) Also, notice who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
Question: Should I attempt to save cash by going FRBO? Or hiring the least expensive leasing agent I can?
Answer: With the best property agents, paying a little bit more can be a smart investment, because it helps enhance the value of your house, and they help attract top notch renters; studies have shown employing a house agentcan reduce your vacancy rate by 50%. On the other hand, going cheap with a property management company can wind up being very costly.
QUESTION: How Might a Lease Management Firm assist an owner with the Tenant Move In Procedure?
- Initiate rental 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 renter and have renters sign a report verifying the condition of the property prior to move-in.
- Secure first month’s rent and security deposit