No matter if you describe them as a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The emphasis is normally on residential properties (but commercial property management firms do exist certainly. Property rental agencies serving the Richmond City area offer a variety of services to help you renting your home. It’s an overwhelming list of tasks that a good Property Management Company will deal with; in fact (if you’re a great follow through kind of people person, you might 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”!
- Locate a tenant
- Deal with contracts
- Keep you out of jail by helping you obey Fair Housing laws
- Open your property to prospective renters in order to rent your house
- Handle move in and move out
- Collect monies and get you paid!
- Handle follow up if payments are timely
- Help with evictions
- Respond to renter questions
- And a lot more than that.
It’s everything from A to Z! Factors to consider if you are wondering if you should rent your home on your own or hire a Property Management Company near the Richmond City area.
DO YOU HAVE A HIGH VACANCY RATE?
Good Property Management Company are skilled at finding and reviewing renters quickly and will have a network of capable, affordable Richmondmaintenance companies to handle problems. Most experienced property managers will also understand landlord-tenant law, thereby reducing the risk of legal issues.
IS THERE THE MONEY TO HIRE A Property Management Company ?
You’ve figured out that greatrental agentswho provide service to the Richmond City area in Richmond aren’t without cost.
Residential property management companies will charge a fee, roughly, between 5% and 10% of the monthly gross income for the house. The customary fee for a single family rental home is estimated at 8-10%. The fee for a property of 10 units or more is on average between 4% and 7%.
If your home is vacant, it’s normal to pay a lease up fee to procure and place a new tenant 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 agent deal with locating a tenant can mean you can get higher rents, which means a professional leasing agent likely will end up covering all or part of their cost because of higher rents.
HOW MANY RENTAL HOMES IN Richmond City DO YOU OWN?
As the number of homes you own increases, so do your responsibilities. The more renters you have, the more maintenance issues, renter complaints, and empty properties you will have to deal with. In addition, if your homes are dispersed across multiple cities, your energies committed will increase as you will have to oversee the issues of each particular rental as well as drive from property to property to handle concerns.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you want to deal in Richmondreal estate, but don’t know the first thing about leasing management, hiring a professional Property Management Company can be a smart choice for you. Learning as you go can become very expensive.
For a single family home investor who is starting out, hiring a bad repairman or taking too long to fill a vacancy can rapidly eat into your potential income. There are large legal liability problems you can encounter if you don’t know about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of rental management charges!
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management Company ?
You’ve figured out that top notchleasing agentswho provide services to the Richmond City area in Richmond aren’t without cost.
Rental firms will charge a fee, roughly, between 5% and 10% of the monthly rents for the property. The customary fee for a single family rental property is closer to 8-10%. The charge for a apartment of 10 units on up is typically between 3% and 8%.
If your home is empty, it’s not unusual to pay a lease up fee to locate and place a new tenant in your investment property. Depending on the property management company this can range from 50%-100% of a single month’s rent.
One thing to think about: Having experienced property manager input on market rents and having a pro handle locating a tenant could mean you might get higher rents, which means a great rental agent likely will end up covering all or part of their fee because of increased rents.
HOW WILL A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN Richmond City?
Property managers who service the Richmond City area can do a number of things for you as the homeowner, which could include the following:
RE-LEASE YOUR HOUSE
Once lease expires get current renters to re-up their lease for another rental period
DEALING WITH EMERGENCIES
Nearly all agents are compensated to oversee maintenance situations, noise issues and possess the required contacts to take care of emergency situations.
At times when there are repairs required, the property manager may handle it themselves or must contract with someone to take care the problem it. They many times have a screened black book full of reliable carpenters,plumbers,electricians and other vendors.
PERFORM DETAILED INSPECTIONS
You want to make certain to take before and after photos and written documentation, so you can accurately handle tenant deposits and differences of opinion when they leave your home. A lot of renters will act shocked when you take out damages from their deposit, so having accurate files will help cut down on the amount of fighting they do with you.
Deliver accounting services Handle payments for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Detailed records of expenses via invoices and receipts Maintain all past documents (paid invoices, leases, inspection documentation, warranties, etc.) Deliver yearly reporting, structured for tax purposes as well as needed tax paperwork including a 1099 forms Advise owner on qualified tax write offs related to their rental home. Prepare easy to read monthly cash-flow statements which offer a detailed accounting of income and itemized expenses
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there aresome employees in the property, such as a janitor or security personnel, the property manager is in charge of being sure they are on their toes. The property manager may establish their compensation and even fire them.
OFFER GENERAL REAL ESTATE ADVICE:
Chat with you about the pros and cons\pluses and minuses of different issues such as accepting pets, permitting smoking etc. Other are very specific to the Richmond area, so having a local area expert who knows the Richmond City area in particular is critical.
TAKE CARE OF PROFESSIONAL INSPECTIONS
You want to be sure to take before and after photos and written documentation, so you can quickly take care of renter deposits and disagreements when they leave your home. Many renters will act shocked when you remove charges from their deposit, so having accurate files will help reduce the amount of arguing they do with you.
OFFER SOUND REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different issues such as accepting pets, allowing smoking etc. Other are very specific to the Richmond area, so having a local market expert who knows the Richmond City area in particular is crucial.
Most residential property managers are tasked with for advertising the home to fill vacancies. Rental agentsknow where to promote and what to include in their ads. Rental agents also understand what attracts renters, so they can suggest making cosmetic improvements to help makeover the house.
Provide financial management services Make payments on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Specific records of expenditures via invoices and receipts Preserve all past paperwork (paid invoices, agreements, inspection reports, warranties, etc.) Deliver yearly reporting, coordinated for tax purposes as well as needed tax documents including a 1099 form Educate owner on legal tax deductions related to their investment home. Prepare easy to read monthly cash-flow reports which offer a detailed accounting of income and detailed expenses
Other Employees- if there aresome employees in the apartment, such as a desk clerk or security guard, the leasing agent is responsible for being sure they are on their toes. The rental agent often will determine their salaries and even let them go.
INCREASING OR ADJUSTING RENT:
The property manager 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.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the property, such as a janitor or security personnel, the leasing agent is in charge of being sure they are on their toes. The rental manager can determine their wage rates and possibly terminate them.
Question: What are Miscellaneous charges made by property management companies?
In some cases, you may see some costs passed on to you – especially when the agent is charging a low monthly %. Illustrations could include an advertising fee in connection with finding a renter, an annual inspection charge, and some sort of reserve, so that the management company has some money on hand to take care of unexpected, but immediate, costs.
You might want to check into how you divide pet deposits collected and bad check charges (generally whomever gets stuck with the greatest amount of bank costs should get the lion’s share of this one!) Also, notice who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
What can a RichmondRental management Firm Do to Market Your Home?
- Get house ready for rental
- Clean house and emphasize interior appeal
- Manage landscaping to emphasize street appeal
- Prepare advertisements tailored to the house and marketing medium.
- A sample of the channels regularly used are:
- Paid and no fee rental listing websites
- Print publications
- Installing a lock box
- Multiple Listing Service listings
- Partner with other agents and property management agents to secure a tenant
- Provide a 24-hour phone where potential tenant can listen to specific information about the property
- FieldAnswer calls from prospects for questions and appointments
- Greet potential renters for showings during the week and weekend.
- Provide interested tenants with tenant applications that are legally compliant with fair housing laws
- Collect applications with application fee
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, an owner signs an agreement with a rental agency for a specific length of time – 12 or 24 months, for example – with an option to renew. Contracts can be prepared so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the residential property management firm is in breach of the contract in any way.
Question: What are Random charges made by property management companies?
In some cases, you may see some fees passed on to you – especially when the agent is charging a small monthly percentage. Illustrations might include an marketing fee in connection with finding a tenant, an annual inspection charge, 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 check into how you split up pet deposits collected and bad check charges (generally whoever gets stuck 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 all leasing agencies charge basically the same way?
Not all pricing structures are identical. Some property management companies in the Richmond City area might charge a flat monthly rate – which again varies according to area, activities performed, and the total value of the property – while others charge a percentage rate, as noted above. Cost can also differ depending on the size and quantity of homes you own.
For example, if you own a few apartment buildings, you might get a “bulk” discount that a person with a single unit or apartment might not receive.
What can a RichmondProperty Management Firm Do to Market Your Home?
- Get property ready for renting out
- Clean house and maximize interior attractiveness
- Manage landscaping to emphasize street appearance
- Prepare ads customized for the home and marketing platform.
- A few of the mediums normally utilized are:
- For pay and no fee rental listing websites
- Print publications
- Install a lock box
- MLS listings
- Property fliers
- Coordinate with other professionals and rental agents to find a tenant
- Provide a 24/7 hot-line where prospective renters can hear to specific information about the home
- Take phone calls from prospects for questions and viewings
- Greet interested tenants for showings during the week and weekend.
- Provide interested renters with tenant applications that are legally compliant with fair housing laws
- Collect applications with application payment
Question: What do Inspections of my home cost?
Some residential property management will bill for inspections, some will give you one or more without charge annually. This is a visual inspection of your home to see how the renter is treating it. Charges can range from $25-175 per inspection.
Question: What are typical procedures regarding Late Payment Charges?
Occasionally tenants pay after the due date. Look at your agreement to see if those late payment fees go to you as the owner, to the residential property management, or are shared somehow.
QUESTION: What types of Maintenance can leasing agencies help with?
Some leasing agencies in the Richmond City area have in house maintenance crews, full-time. Most subcontract this work out to miscellaneous vendors. Some property management companies charge a flat rate to oversee any work with contractors. A few will upcharge the contractors bill. Make certain you understand how it works with your property management firm!
Question: What do Inspections of my home cost?
Some residential property management will bill for inspections, others will give you one or more free annually. This is a visual inspection of your house to see how the tenant is treating it. Charges can range from $50-200 per inspection.
Question: Should I try to save money by managing my home myself? Or hiring the cheapest leasing agent I can?
Answer: With the best property agents, paying a little bit more is a smart investment, because it helps enhance the value of your house, and they help attract top notch renters; studies have proven employing a house managercan reduce your vacancy rate by 50%. Conversely, going cheap with a property management company can end up being very costly.
Question: Should I attempt to save cash by managing my home myself? Or finding the least expensive leasing agent I can?
Answer: With the best house managers, paying a little bit more is a smart investment, because it helps increase the value of your house, and they help attract quality renters; studies have shown hiring a house managercan cut your vacancy rate by 50%. On the other hand, going lowball with a residential property management firm can end up being very expensive.
QUESTION: Do Residential Property Management Companies Take Care of Evictions in the Richmond City area?
- Preparing relevant documents to initiate and complete an eviction lawsuit
- Representing owner in court
- Interacting with with police enforcement to remove tenant and tenant’s things from home
QUESTION: How Can a Rental management Company Help With Renter Screening and Selection?
Vetting Tenants- A property manager will sort through the prospective renter applications to discover the tenant that is the ideal fit for your property. They have a consistent vetting process, which includes running credit checks and criminal background checks, which can reduce your likelihood of being charged with breaking the law. Professional leasing managers have seen hundreds, even thousands, of renters, so they have a good idea of how to select the best renters; those who will pay their bills on time, have a longer tenancy and create less headaches. Perform a background check to authenticate identity, salary, credit history, rental history, etc. Evaluate applicant per pre-decided renter standards Inform tenants who were turned down