Regardless if you call them a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The focus is typically on residential properties (but commercial property management agencies are out there of course. Property rental agencies serving the North Side area offer a variety of services to help you renting your house. It’s an overwhelming punchlist of tasks that a expert 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 Company RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Handle contracts
- Keep you out of jail by helping you obey Fair Housing laws
- Show your home to interested renters in order to rent your house
- Handle 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 from soup to nuts! Factors to consider if you are questioning if you should rent your home on your own or hire a Property Management Company near the North Side area.
IS YOUR VACANCY RATE HIGH?
Excellent Property Management Company are skilled at locating and reviewing renters rapidly and will have a network of reliable, cost effective Richmondmaintenance companies to deal with difficulties. Most certified leasing agents will also understand landlord-tenant law, thereby reducing the risk of legal issues.
WILL YOU HAVE THE TIME TO OVERSEE YOUR RENTAL PROPERTY in the North Side 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 requires, the profitability of your investment might depend on employing a full time property management company in Richmond
Also, realize that time is definitely money and managing a rental home takes effort. If you feel like the every day obligations of rental management are impeding on time that could be better spent making more money at your day job, or hunting down other property to buy, paying for an outside property management company may be the best move for you.
DO YOU HAVE THE AVAILABILITY TO MANAGE YOUR RENTAL HOME near the North Side area?
If you have a full-time job while you are looking after a rental home and simply cannot give your investment home the time it needs, the profitability of your investment might depend on hiring a full time property management company in Richmond
In addition, realize that time is money and overseeing a investment home takes time. If you feel like the every day duties of residential property management are impeding on time that could be more profitably spent making more money at your other job, or hunting down other properties, employing an outside property management agency may be the wisest move for you.
CAN YOU AFFORD TO PAY A Property Management Company ?
You’ve discovered that greatproperty managerswho provide services to the North Side area in Richmond aren’t without cost.
Rental management agencies will charge a fee, on average, between 5% and 10% of the monthly rents for the house. The typical fee for a single family rental home is closer to 8-10%. The fee for a property of 10 units on up is typically between 5% and 8%.
If your investment property is empty, it’s normal to pay a lease up 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 think about: Having expert professional input on market rents and having a professional agent handle locating a tenant might mean you might get higher rents, which means a great property manager might end up covering all or part of their fee because of increased rents.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management Company ?
You’ve figured out that goodproperty managerswho provide services to the North Side area in Richmond aren’t free.
Property management companies will charge a fee, roughly, between 5% and 10% of the monthly rents for the house. The typical fee for a single family rental property is about 8-10%. The fee for a apartment of 10 units on up is typically between 3% and 8%.
If your investment property is empty, it’s typical to pay a lease up fee to locate and place a new renter in your investment property. Depending on the property management company this can fluctuate from 50%-100% of one month’s rent.
Something to consider: Having expert professional input on market rents and having a professional deal with locating a renter might mean you get higher rents, which means a good rental agent may end up covering all or part of their fee because of higher rents.
HOW CAN A RENTAL MANAGEMENT COMPANY HELP ME MANAGE MY PROPERTY NEAR North Side?
Property managers who service the North Side area can do a lot of things for you as the home investor, which can include the following areas:
One of the more important duties of the property managers is to manage tenants. Agents are engaged in many capacities, from identifying the renters and addressing problems to initiating the eviction process.
Professional rental agents are many times hired to look after empty houses to make sure there has been no destruction and to execute routine maintenance. They also make certain contractors and other outsourced workers are finishing their work in a reliable manner.
IN CHARGE OF OTHERS
Other Employees- if there aresome employees in the unit, such as a concierge\desk manager or security personnel, the rental agent is in charge of making sure they are paying attention to details. The property manager may set their compensation and possibly terminate them.
Nearly all agents are paid to oversee maintenance requests, noise disturbances and possess the necessary contacts to take care of difficult situations.
IN CHARGE OF OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations property managers are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the rental agentmust operate within the set budget guidelines for the unit. In particular emergency situations when the occupants or house are in need of upgrade, they may move ahead to order repairs or likewise without further delays. Maintenance of Documents- the leasing agent should keep complete records regarding the property. This need to include all income and expenses; notations of all inspections, completed contracts, maintenance requests, any complaints, records of maintenance done, costs of repairs, maintenance charges, record of rent collection and insurance costs.
At times when there is a problem required, the rental manager must handle it themselves or must hire a third party to handle the problem it. They sometimes have a large black book full of trustworthy electricians,carpenters,plumbers and other types vendors.
RE-LEASE YOUR INVESTMENT HOME
Once lease expires ask existing renters to extend their rental agreement for one more rental period
SUGGEST AND SUPERVISE VENDORS
Rental management pro’s should be able to recommend vendors to do repairs and cosmetic improvements that maximize profitability while providing excellent ROI.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the property, such as a concierge\desk manager or security personnel, the property manager is in charge of being certain they are on their toes. The leasing agent may establish their salaries and even let them go.
SUGGEST AND SUPERVISE VENDORS
Home management pro’s should be ready to offer recommendations on maintenance and cosmetic work that maximize profitability while providing good ROI.
One of the main responsibilities of the rental agents is to oversee renters. They are involved in many capacities, from finding the tenants and addressing complaints to dealing with the eviction process.
IN CHARGE OF OVERSEEING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations rental agents 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 danger, they may move ahead to order repairs or likewise without concern for the budget. Upkeep of Documents- the rental agent should keep detailed paperwork regarding the house. This might include all income and expenses; records of all inspections, completed agreements, maintenance requests, any problems noted, notation of maintenance done, amount paid for fix up, maintenance costs, documentation of rent collected and insurance costs.
PROPERTY MANAGERS HELP YOU SET MARKET RENT LEVELS
Rental agents are responsible for determining the initial rent level, and collecting rent from renters. Excellent property managers know how to set the right rent level todirect renters to your home. They hopefully have a specific understanding of the Richmond area, where the property is located and have examined at comparable houses in the general Richmond area.
Most residential property managers are tasked with for promoting the home to fill vacancies. Residential property managersknow where to advertise 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 improve the house.
QUESTION: Do Rental management Companies Help With Move Out?
Yes, a Rental management Company can Assist With Move outs. Services might include:
- Inspect investment property. and fill out a report on the home’s status when the client moves out
- Provide occupant with a photocopy as well as noted charges
- Return the balance of the damage deposit to the renter
- Mail remaining portion of the owner’s portion of the renter deposit to the homeowner or hold in owner reserves for work to be done.
- Clean home and handle needed repairs or upgrades
- Re-key all locks
- Re-List 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 maintenance requirements, safety concerns, code issues, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
QUESTION: Will Rental Agencies Handle Evictions in the North Side area?
- Filing necessary documents to initiate and complete an eviction action
- Representing owner in court
- Coordinating with police enforcement to remove renter and tenant’s things from house
QUESTION: How Will a Rental Property Agency Assist an owner with House Routine Maintenance?
Property managers are in charge of managing preventative home maintenance to keep your house in top notch status. Some of things that might involved:
- Direct and oversee a company maintenance team
- Create a preventative maintenance policy to locate and handle maintenance issues
- Locate a network of licensed, bonded and legally insured contractors who have been reviewed for reasonable pricing and quality performance that is up to requirements.
- Assign jobs to different parties such as (in-house employees, handyman and professional contractors) based on who will do a good job for the best price.
- Oversee outdoor areas
- Leaf and snow removal
- Disposing of trash and debris
- Set up and monitor a 24 hour emergency repair hot-line
- Larger renovation or rehab projects
- Provide suggestions on how the project can optimize rental profits.
- Take responsibility for initial cost estimates
- Secure several different estimates for the work to be done
- Act as general contractor overseeing the work
QUESTION: How May a Rental Management Firm assist an owner with the Renter Move In Procedure?
- Prep leasing agreement
- Pin down 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 renter and have tenants sign a report verifying the condition of the property prior to move-in.
- Collect first month’s rent and security deposit
QUESTION: What is a New Tenant Placement or “Lease up” Fee?
Some property management companies in the North Side area could charge a new tenants placement charge or have a bonus structure for getting a tenant into an agreement. Afee of 50 to 100 % of the first month’s rent for any new tenant placed is not abnormal. However, you shouldn’t generally bump into high multiple up-front charges.
Typically a lease up charge is not paid until the renter is secured, which means you don’t have to come out of pocket to pay this.
QUESTION: What types of Maintenance can property management companies help with?
Some leasing agencies in the North Side area have their own maintenance employees, full-time. Most refer this work out to various subcontractors. Some residential property management charge a flat rate to oversee any work with subcontractors. A few will upcharge the contractors bill. Make sure you know how it works with your house management firm!
QUESTION: What is a New Renter Placement or “Lease up” Fee?
Some residential property management companies in the North Side area might charge a new tenants placement charge or have a bonus structure for getting a tenant into an agreement. Acharge of 50 to 100 % of the first month’s rent for any new tenant placed is not unusual. However, you shouldn’t typically bump into significant multiple up-front charges.
Normally a placement charge is not paid until the renter is secured, meaning you don’t have to pay out of pocket to pay this.
QUESTION: Will Rental Agencies Handle Evictions in the North Side area?
- Filing necessary documents to start and complete an unlawful detainer lawsuit
- Representing owner in court
- Coordinating with police authorities to remove renter and tenant’s possessions from unit
QUESTION: What are Marketing Charges?
Some property management companies charge a marketing fee. This is an initial charge to market your empty home. This fee is usually $200-400. Many companies don’t charge this charge, so shop around!
Vacant House fee Some firms charge One month’s payment up front. You might run into this fee if you are trying to engage the rental agency while the investment property is empty. This gives them the cash to pay a realtor a commission for placing a renter in the unit, or to pay the costs of advertising, repeatedly showing the home to prospective renters, as well as the cost of preparing lease paperwork (which can take hours).
QUESTION: How Would a Residential Property Management Firm Help With Tenant Screening and Choosing?
Vetting Applicants- A leasing agent will screen the prospective tenant applications to find the applicant that is the best fit for your property. They have a consistent screening process, which includes running credit checks and criminal background checks, which can reduce your likelihood of being accused of bias. Professional property managers have seen hundreds, even thousands, of tenants, so they have a good concept of how to select the best applicants; those who will pay their rent on time, have a longer tenancy and create much fewer problems. Perform a background check to confirm identity, wages, credit history, rental history, etc. Grade tenant per pre-decided applicant standards Communicate with applicants who were turned down
Question: What are Random charges made by property management companies?
In some cases, you could see some fees passed on to you – especially where the manager is charging a small monthly percentage. Examples could include an advertising charge in connection with finding a tenant, a yearly inspection charge, and some sort of reserve, so that the management agency has some money on hand to take care of unanticipated, but immediate, costs.
You may want to look into how you divide pet deposits collected and bad check charges (generally whoever gets stuck with the greatest amount of bank fees deserves the lion’s share 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 are Random fees made by property management companies?
In some cases, you might see some costs passed on to you – especially when the manager is charging a small monthly percentage. Illustrations could include an advertising fee in connection with finding a renter, a yearly inspection fee, and some sort of reserve, so that the management company has some cash on hand to take care of unanticipated, but immediate, costs.
You might want to look into how you share pet deposits collected and bad check fees (generally whomever gets stuck with the greatest amount of bank costs deserves 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: What are Advertising Charges?
Some leasing agencies charge a advertising fee. This is an initial fee to advertise your vacant investment property. This fee is typically $$150-400. Most firms don’t charge this fee, so shop around!
Vacant Home fee Some agencies charge One month’s payment up front. You may run into this fee if you’re trying to engage the rental agency while the property is empty. This gives them the money to pay a real estate agent a commission for placing a renter in the home, or to pay the costs of advertising, repeatedly showing the investment property to prospective renters, as well as the expense of preparing lease paperwork (which can take a long time).
Question: What do do property managers charge?
Answer: As you might guess, the response is “it depends.” Property management firms vary a lot, and a good deal of the answer is dependent on what they do for you.. Just what do you want a rental agent to do for you?
Normal Percentage of Rent Agreement. As a baseline, expect to pay a usual Leasing agency ranging from 6 – 10% of the monthly rent of the home. This is referred to as management charge, or monthly management payment. Usually the greater you charge for rent, the lower the percentage fee is. For example if your rent is $2,500 per month for your property, you will typically pay a lower percentage fee than someone else whose property rents for $1000 each month.
You are not charged this management fee until rent is collected. Look carefully at your agreement regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the fee is tied to rent collected, it means the Rental management agency doesn’t get paid if you don’t get paid. On the other hand, if it’s based on ‘rent due’, then you owe whether or not rent is received from the tenant typically.
Fixed Fee Agreements
Some agencies may charge, say,$75- $150 per month fixed rate. There is nothing required bylaw in this; it’s decided by the property management company owner.
You wouldn’t owe money on a flat rate contract usually until rent is received.