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 usually on residential properties (but commercial property management agencies do exist certainly. Property rental agencies serving the Sandston area offer a multiplicity of services to help you renting your house. It’s an overwhelming punchlist of tasks that a expert Property Management Company will oversee; in fact (if you’re a detailed follow through kind of people person, you may even want to look at 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?”
Home Management Company RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Handle legal contracts
- Keep you legal by helping you comply with housing laws
- Show your house to prospective renters in order to rent your house
- Oversee move in and move out
- Collect money and get you paid!
- Handle follow up if payments are timely
- Assist with evictions
- Respond to tenant questions
- And a lot more than that.
It’s everything but the kitchen sink! Points to think about if you are questioning if you should rent your house on your own or hire a Property Management Company near the Sandston area.
IS THERE THE MONEY TO PAY A Property Management Company ?
You’ve figured out that top notchproperty managerswho provide services to the Sandston area in Richmond aren’t without cost.
Property management agencies will charge a fee, roughly, between 5% and 10% of the monthly rents for the home. The normal fee for a single family rental home is closer to 8-10%. The cost for a apartment of 10 units on up is usually between 3% and 7%.
If your investment property is empty, it’s typical to pay a tenant finding fee to procure and place a new tenant in your investment property. Depending on the property management company this can range from 50%-100% of a month’s rent.
One thing to consider: Having expert professional input on market rents and having a pro handle locating a renter could mean you can get higher rents, which means a good rental agent might end up covering all or part of their charge because of increased rents.
HOW MANY INVESTMENT PROPERTIES IN Sandston DO YOU HAVE TO TAKE CARE OF?
As the total homes you own increases, so does your workload. The more tenants you have, the more maintenance concerns, tenant complaints, and vacancies you will have to handle. In addition, if your homes are dispersed across multiple areas, your time commitment will multiply as you will have to oversee the cash flow of each particular rental as well as physically commute from property to property to deal with concerns.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondinvestment homes, but don’t know anything about leasing management, hiring a professional Property Management Company can be a wise choice for you. Learning on the job can become extremely costly.
For a real estate investor who is just beginning, hiring a sketchy repairman or taking too long to fill a vacancy can rapidly eat into your returns. There are huge legal liability problems you can encounter if you aren’t educated about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of leasing management charges!
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you want to deal in Richmondrental properties, but don’t know a single thing about rental management, hiring an experienced Property Management Company can be a smart choice for you. Figuring it out on the job can become very draining financially.
For a property investor who is just beginning, hiring a bad repairman or taking too long to fill a vacancy can quickly eat into your profits. There are large legal liability problems you can encounter if you aren’t aware about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of leasing management charges!
DO YOU HAVE THE TIME TO CARE FOR YOUR INVESTMENT PROPERTY in the Sandston area?
If you are employed at a full-time job while you are looking after a rental home and simply can’t give your your rental home the focus it needs, the viability of your investment could depend on paying for a great property management company in Richmond
In addition, realize that time is definitely money and overseeing a rental property takes energy. If you feel like the every day obligations of residential property management are impinging on time that could be more profitably spent making more money at your day job, or looking for other investments, paying for an outside property management agency may be the right move for you.
HOW WILL A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE IN Sandston?
Property managers who service the Sandston area will do a lot of things for you as the home investor, which could include the following areas:
RESPONSIBLE FOR OVERSEEING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the leasing agentmust operate within the set budget guidelines for the unit. In certain emergency situations when the occupants or property are in need of upgrade, they may move ahead to order fixup or likewise without further delays. Maintaining Records- the leasing agent needs to thorough records about the the property. This might include all income and expenses; notations of all inspections, signed contracts, repair requests, any complaints, notation of work done, amount paid for repairs, maintenance charges, documentation of rent collected and insurance charges.
KNOWLEDGE OF LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A experienced rental agent will have a complete knowledge of statewide and national laws relating to the best methods to: Reviewing the applicants. Escrow damage deposits Terminate a lease Oversee evicting a tenant Obey with house safety protocols Counsel in the occasion the event of a legal disagreement or lawsuit Refer owner to a qualified attorney when needed Be up on and abide by the most recent local, state and federal legislation that apply to renting and maintaining rental properties.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there aresome employees in the property, such as a desk clerk or security guard, the property manager is in charge of being sure they are doing their job. The property manager may determine their compensation and possibly terminate them.
DEALING WITH MOVE OUTS
If a tenant ends his tenancy, the property manager is in charge of inspecting the house, looking for damages and determining what amount of the damage reserves willl be given to the renter. After move out, the property manager is responsible for cleaning the property, fixing any areas of concern and locating a new tenant.
Many agents are responsible for recommending the duration of the agreement and making sure it has all the required provisos to look out for the client. This includes deciding the amount of security deposit required.
Deliver financial management services Make payment for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Specific accounting of expenses via invoices and receipts Preserve all past records (paid invoices, paperworks, inspection reports, warranties, etc.) Oversee yearly reports, organized for tax purposes as well as needed tax paperwork including a 1099 form Advise owner on legal tax deductions related to their rental property. Deliver formatted monthly cash-flow reports which provide a detailed accounting of income and specific expenses
DEALING WITH CONTRACTS
Many agents are responsible for determining the length of the agreement and making sure it has all the needed provisions to look out for the client. This includes determining the amount of security reserves needed.
MANAGE MAINTENANCE ITEMS AND REPAIRS
Leasing agents are customarily responsible for the physical management of the property, including regular maintenance and unexpected work to be done.
RESPONSIBLE FOR MAINTENANCE ITEMS AND MINOR UPGRADES
Property managers are usually in charge of the physical management of the home, including regular maintenance and unexpected repairs.
Other Employees- if there aresome employees in the property, such as a concierge\desk manager or security guard, the property manager is in charge of being certain they are paying attention to details. The property manager may determine their wage rates and even fire them.
Professional rental managers are many times hired to overlook empty houses to make sure there has been no vandalism and to oversee standard maintenance. They also make sure vendors and other repairmen are completing their work in a reliable manner.
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.
PROPERTY MANAGERS HELP YOU SET THE CORRECT RENT LEVELS
Rental agents are responsible for determining the initial rent level, and collecting payment from tenants. Great rental managers know how to set the correct rent level todirect renters to your rental property. They hopefully have a specific understanding of the Richmond area, where the property is located and have reviewed at comparable houses in the general Richmond market.
Professional leasing agents are frequently hired to overlook vacant properties to make sure there has been no vandalism and to perform regular maintenance. They also make sure vendors and other repairmen are finishing their work in a reliable manner.
QUESTION: How Will a Property Management Agency Help an owner with House Standard Maintenance?
Rental property management agents are in charge of overseeing preventative house maintenance to keep your house in top notch shape. Some of things that can be under consideration:
- Direct and oversee company employed maintenance crew
- Decide on a preventative maintenance plan to identify and handle repair concerns
- Identify a collection of licensed, bonded and legally insured contractors who have been vetted for good pricing and quality performance that is up to requirements.
- Delegate jobs to different parties such as (in-house employees, handyman and professional contractors) based on whom could do the best job for the best price.
- Maintain outdoor areas
- Debris and snow removal
- Removing trash and debris
- Maintain and monitor a 24 hour emergency repair hot-line
- Larger renovation or remodeling projects
- Offer suggestions on how the project can maximize rental returns.
- Take responsibility for initial pricing estimates
- Solicit several different bids for the work to be done
- Perform as general contractor managing the work
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a property manager in the Sandston area is creating into a partnership. In the long run, the charges aren’t as crucial as the interaction between you and the manager and quality of the service your agent delivers. A good firm can take control of the management of the home, for example, and turn out getting you a lot rental value and price appreciation than you thought possible. That said, you need to be willing to provide them the resources to accomplish.
Question: Should I attempt to save money by going FRBO? Or hiring the least expensive property manager I can?
Answer: With the best investment property agents, paying a little bit more is a smart investment, because it helps increase the value of your unit, and they help attract top notch renters; studies have proven hiring a investment property agentcan cut your vacancy rate by 50%. Conversely, going lowball with a residential property management firm can wind up being very costly.
Question: What do do rental agents cost?
Answer: As you might guess, the response is “it depends.” Property management firms vary widely, and a good deal of the answer depends on what a firm does for you.. Just what do you want a property manager to do for you?
Normal Percentage of Rent Contract. As a baseline, expect to be charged a typical Leasing agency between 6 – 11% of the monthly rent of the house. This is called a management fee, or monthly management payment. Usually the higher you charge for rent, the lower the percentage fee is. For example if your rental charges are $2,300 per month for your rental home, you will usually pay a lower percentage fee than another person whose unit rents for $1000 per month.
You do not pay this percentage charge until payment is collected. Look specifically at your agreement regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the charge is based on rent received, it means the Leasing 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 renter normally.
Flat Rate Agreements
Some firms may charge, say,$75- $150 each month fixed rate. There is nothing dictated bylaw in this; it’s decided by the firm owner.
You would not owe money on a flat rate contract typically until rent is collected.
What can a RichmondRental management Agency Do to Market Your House?
- Get home ready for rental
- Clean home and maximize interior appeal
- Manicure yard to increase street appeal
- Create marketing materials specifically created for the house and advertising platform.
- A few of the channels commonly utilized are:
- For pay and no charge rental listing websites
- Print publications
- Installing a lock box
- MLS listings
- Partner with other professionals and property management agents to locate a renter
- Provide a 24-hour phone where interested tenant can listen to specific information about the property
- Take phone calls from prospects for questions and appointments
- Meet interested renters for appointments during the week and weekend.
- Provide prospective tenants with tenant applications that are legally compliant with fair housing laws
- Collect applications with application fee
QUESTION: What is a New Renter Placement or “Lease up” Charge?
Some rental agencies in the Sandston 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 % of the first month’s rent for any new tenant placed is not abnormal. Nevertheless, you shouldn’t typically run into significant multiple up-front fees.
Generally a placement fee is not due until the renter is found, meaning you don’t have to pay out of pocket to pay this.
Question: What do Inspections of my home cost?
Some property management companies will bill for inspections, others will give you one or more without charge annually. This is a walk through of your property to see how the tenant is keeping it up. Fees can range from $75-200 for each inspection.
Question: What are typical procedures regarding Late Payment Fees?
At times renters pay date. Look at your contract to see if those late payment fees go to you as the owner, to the leasing agency, or are shared in some way.
What can a RichmondProperty Management Agency Do to Market Your Home?
- Get home ready for renting out
- Clean house and emphasize interior attractiveness
- Take care of exterior to optimize street appearance
- Prepare marketing materials specifically created for the home and advertising medium.
- A sample of the channels often utilized are:
- For pay and no fee rental listing websites
- Print publications
- Install a lock box
- Multiple Listing Service listings
- Partner with other realtors and rental agents to find a tenant
- Provide a 24/7 hot-line where potential renters can listen to specific information about the home
- Take phone calls from prospects for questions and viewings
- Meet interested renters for appointments throughout the week and weekend.
- Provide prospective tenants with rental applications that are legally compliant with government regulations
- Collect applications with application fee
Question: What are Other charges made by property management companies?
At times, you could see some costs passed on to you – especially when the manager is charging a low monthly percentage. Illustrations might include an marketing charge in connection with finding a tenant, a yearly inspection charge, and some sort of reserve, so that the management firm has some cash on hand to handle unanticipated, but urgent, costs.
You may want to check into how you split up pet deposits collected and bad check fees (basically whoever gets hit with the most bank fees deserves the bulk of this one!) Also, pay attention to who gets to hang onto the income from vending machines and coin-operated washers and dryers, if any.
Question: Do residential property management help with evictions?
Some renters are deadbeats. Some get fired and become unable to pay their rent, while others turn out to be flakey and a disturbance or pain in the neck at your unit. Most certainly a property agent will levy a fee to initiate the laborious paperwork involved with evicting a renter which is typically around $300-$400 per eviction, plus any associated court fees.And an evictionoftentimes last several months, so be prepared to not receive any rental income until they are out. On top of that, you might find there is repair work to do on your house.
Usually, you are better off providing your tenant incentives to leave the property early and avoid suing them, as aggravating as that is. You can skip many difficult situations with thorough renter screening done upfront.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, a landlord signs a contract with a rental agency for a certain 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 rental agency is in the breaking of the contract in any way.
QUESTION: How Might a Rental Property Firm Help an investor with Property Regular Maintenance?
Leasing agents are in charge of overseeing preventative home maintenance to keep your property in excellent status. Some of things that might involved:
- Manage and oversee company employed maintenance crew
- Establish a preventative maintenance plan to locate and deal with repair concerns
- Locate a collection of licensed, bonded and completely insured vendors who have been reviewed for fair bidding and good performance that is up to requirements.
- Assign jobs to various parties such as (in-house employees, handyman and professional contractors) based on who will do an excellent job for the best price.
- Maintain outdoor areas
- Leaf and snow removal
- Disposing of trash and debris
- Maintain and oversee a 24/7 emergency repair hotline
- Bigger renovation or remodeling projects
- Provide suggestions on how the project can optimize rental returns.
- Take responsibility for preliminary pricing estimates
- Solicit multiple independent estimates for the work
- Act as general contractor overseeing the work
Question: What do Inspections of my home cost?
Some rental agencies will charge for inspections, some will give you an inspection or more free per year. This is a visual inspection of your unit to see how the tenant is treating it. Fees can range from $75-200 for each inspection.