Whether you call them a Property Management Company, home management firms, or rental property management agencies….it all means the same thing. The focus is normally on residential properties (but commercial property management firms do exist of course. Property rental agencies serving the Shockoe Slip area provide a multiplicity of services to help you renting your house. It’s a long punchlist of jobs that a top notch Property Management Company will deal with; in fact (if you’re a detailed follow through kind of people person, you may even want to explore a job as a property manager yourself!.) Here’s a quick 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”!
- Find a tenant
- Oversee legal contracts
- Keep you legal by helping you comply with Fair Housing laws
- Open your house to prospective renters in order to rent your house
- Oversee move in and move out
- Collect monies and get you paid!
- Handle follow up if payments are not on time
- Help with evictions
- Answer renter questions
- And so much more than that.
It’s everything from soup to nuts! Factors to think about if you are considering if you should rent your house on your own or hire a Property Management Company near the Shockoe Slip area.
HOW FAR AWAY IS YOUR RENTAL HOME?
The more distance between you and your investment property,the more difficult it is to look after. If your primary residence is in New York and your property is in the Shockoe Slip area, it will be harder for you to find renters,to handle tenant complaints,to quickly react to problems, to handle maintenance issues, and even to guarantee rent is collected in a timely manner.
The amount of time it takes you to travel to the property and the expense of travel will also add up. In situations such as these, hiring a professionalRichmond property management agency? can make a lot of sense and actually save you some cash.
WILL YOU HAVE THE TIME TO MANAGE YOUR INVESTMENT PROPERTY in the Shockoe Slip 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 home the energy it demands, the success of your investment may depend on employing a great property management company in Richmond
Also, realize that time is money and taking care of a rental home takes time. If you feel like the real life obligations of rental management are impinging on time that could be better spent making more money at your day job, or searching for other properties, employing an outside property management company may be the wisest move for you.
HOW HIGH IS YOUR VACANCY RATE?
Great Property Management Company are skilled at locating and reviewing tenants quickly and will have a network of reliable, cost effective Richmondmaintenance companies to deal with emergencies. Most professional rental agents will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you would like deal in Richmondinvestment homes, but don’t know anything about residential property management, hiring a certified Property Management Company can be a smart choice for you. Figuring it out on the job can become very expensive.
For a real estate investor who is starting out, hiring the wrong repairman or taking too long to fill a vacancy can easily eat into your profits. There are big legal liability issues 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 fees!
CAN YOU AFFORD TO PAY A Property Management Company ?
You’ve figured out that top notchproperty managerswho provide services to the Shockoe Slip area in Richmond aren’t without cost.
Residential property management firms will charge a fee, ballpark, between 5% and 10% of the monthly gross income for the property. The typical fee for a single family rental property is about 8-10%. The cost for a building of 10 units or more is on average between 4% and 7%.
If your home is empty, it’s not unusual to pay a tenant finding fee to find 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.
Something to keep in mind: Having expert professional input on market rents and having a pro handle locating a tenant might mean you can get higher rents, which means a good property manager likely will end up covering all or part of their charge because of higher rents.
HOW CAN A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY PROPERTY IN Shockoe Slip?
Residential property managers who service the Shockoe Slip area can do many things for you as the home investor, which could include the following areas:
EXPERIENCED WITH LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A experienced property manager should have a exhaustive knowledge of local and national laws regarding the ideal methods to: Reviewing potential renters. Escrow damage deposits Terminate a lease Oversee evicting a tenant Comply with property safety laws Give input in case of of a legal disagreement or litigation Recommend owner to an experienced attorney when needed Be knowledgeable about and comply with the latest local, state and federal laws that apply to renting and maintaining investment properties.
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations rental agents 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 certain emergency situations when the renters or house are in danger, they may take action to order fixup or similar without concern for the budget. Upkeep of Documents- the leasing agent should keep complete paperwork regarding the house. This should include all income and expenses; notations of all inspections, completed leases, maintenance requests, any problems noted, notation of repairs, charges for repairs, maintenance costs, documentation of rent collected and insurance costs.
Deliver financial management services Make payment for the sake of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific records of expenditures via invoices and receipts Maintain all past records (paid invoices, leases, inspection documentation, warranties, etc.) Provide annual reports, structured for tax needs as well as needed tax paperwork including a 1099 forms Counsel owner on qualified tax deductions related to their rental home. Provide simple monthly cash-flow documents which offer a detailed accounting of income and specific expenses
At times when there are repairs required, the rental agent may attend to it themselves or may find a third party to handle the problem it. They often have a vetted team of trustworthy plumbers, electricians, carpenters and other types contractors.
RESPONSIBLE FOR TAX PAYMENTS
The leasing agent can help the home owner with education on how to handle taxes for the house. The rental agent may additionally mail in taxes for the house
RESPONSIBLE FOR TAX PAYMENTS
The leasing agent can assist the home owner with education on how to complete taxes for the investment property. The property manager might additionally file taxes for the investment property
Professional rental agents are often contracted to look after vacant properties to ensure there has been no destruction and to oversee routine maintenance. They also make sure contractors and other outsourced workers are completing their work in a timely manner.
DEALING WITH MOVE OUTS
When a tenant ends his tenancy, the rental agent is responsible for inspecting the house, looking for issues and assessing what amount of the damage deposit mayl be refunded to the tenant. After move out, the rental agent is responsible for cleaning the home, fixing any damages and finding a new renter.
Provide financial management services Make payments on behalf of the owner (Mortgage, insurance, homeowner association dues, etc.) Detailed accounting of expenses via invoices and receipts Maintain all historical records (paid invoices, leases, inspection documentation, warranties, etc.) Oversee yearly reports, structured for tax needs as well as required tax documents including a 1099 forms Counsel owner on qualified tax write offs related to their investment property. Deliver formatted monthly cash-flow documents which provide a detailed accounting of income and itemized expenses
OFFER SOUND REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different issues such as accepting various animals, allowing smoking etc. A few things are very particular to the Richmond market, so having a local area expert who knows the Shockoe Slip area in particular is important.
RESIDENTIAL PROPERTY MANAGERS HELP YOU DETERMINE THE CORRECT RENTAL RATE
Property managers are responsible for setting the initial rent level, and collecting rent from tenants. Good rental agents know how to set the market rent level todirect renters to your investment property. They hopefully have a specific understanding of the Richmond area, where the property is located and have looked at comparable homes in the general Richmond market.
Most rental agents are responsible for promoting the house to fill vacancies. Residential property managersknow where to advertise and what to include in their advertisements. leasing agents also understand what attracts renters, so they may suggest making cosmetic improvements to help makeover the house.
SUGGEST AND SUPERVISE VENDORS
Home management agents should be ready to offer recommendations on maintenance and cosmetic work that maximize monthly rent while providing good ROI.
IN CHARGE OF MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations rental agents are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the leasing agentmust operate within the set budget guidelines for the unit. In certain emergency situations when the tenants or property are in disrepair, they may move ahead to order fixup or similar without further delays. Maintenance of Records- the rental agent is required to detailed records about the the property. This might include all income and expenses; notations of all inspections, fully executed contracts, upgrade requests, any complaints, notation of repairs, amount paid for fix up, maintenance expenses, documentation of rent paid and insurance fees.
Question: What do do rental agents cost?
Answer: As you may guess, the answer is “it depends.” Residential property management companies vary widely, and a good deal of the response depends on what they do for you.. Exactly what do you want a rental manager to do for you?
Usual Percentage of Monthly Rent Contract. As a ballpark figure, expect to pay a typical Residential property management company between 7 – 11% of the monthly rent of the home. This is called a management fee, or monthly management fee. Typically the greater your rent is, the lower the percentage is. To illustrate if your rent is $2,000 per month for your rental house, you will usually pay a lower percentage fee than someone else whose house rents for $700 each month.
You do not pay this management fee until payment is collected. Look specifically at your contract regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the charge is tied to rent collected, it means the Property management company doesn’t get paid if you don’t get paid. On the other hand, if it’s determined by ‘rent due’, then you owe whether or not rent is collected from the tenant normally.
Fixed Fee Contract
Some agencies may charge, say,$75- $150 each month flat rate. There is nothing dictated bystatute in this; it’s decided by the property management company owner.
You would not owe money on a fixed rate agreement usually until rent is collected.
QUESTION: What types of Maintenance can leasing agencies help with?
Some residential property management in the Shockoe Slip area have their own maintenance crews, full-time. Most refer these jobs out to miscellaneous vendors. Some property management companies charge a flat rate to manage any work done by subcontractors. Some will add on to the subcontrcontractor’s bill. Make certain you understand how it works with your investment property management agency!
QUESTION: What types of Maintenance can leasing agencies help with?
Some property management companies in the Shockoe Slip area have their own maintenance crews, full-time. The majority of subcontract these jobs out to various vendors. Some property management companies charge a fixed fee to supervise any work with contractors. Some will add on to the subcontrcontractor’s invoice. Be certain you know how it works with your property management firm!
Question What Services Are Included in A Typical Property Management Contract?
Be sure you establish precisely what maintenance services are a part of with your charges. It may be that when something needs fixing, some labor charges are included with your monthly flat rate or percentage charge (for illustration, changing out light bulb and fixing faucet handles) while others are billed individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be clearly stated in your contract. Consider that these charges could require you toraise your rental rate, which might make finding – and keeping – renters more difficult. And remember, house management fees can be negotiable. Depending on what you’re willing to pay, you may be able to get a lower price by giving up certain services and dealing with them on your own.
What can a RichmondRental management Agency Do to Market Your Investment Property?
- Get investment property ready for rental
- Clean house and optimize interior appeal
- Manicure landscaping to increase street appeal
- Prepare advertisements specifically created for the property and advertising medium.
- Some of the platforms often used are:
- Paid and no fee rental listing websites
- Print magazines
- Install a lock box
- MLS listings
- Property fliers
- Work with other agents and rental agents to find a renter
- Provide a 24/7 hot-line where prospective renters can hear to detailed information about the home
- FieldAnswer calls from prospects for questions and appointments
- Welcome prospective renters for showings during the week and weekend.
- Provide potential renters with tenant applications that are legally in line with fair housing laws
- Collect applications with application fee
QUESTION: Will Leasing Agencies Handle Evictions in the Shockoe Slip area?
- Filing necessary documentation to begin and process an eviction action
- Representing owner in court
- Coordinating with police enforcement to remove tenant and tenant’s possessions from property
Question: Should I try to save cash by going FRBO? Or finding the least expensive property manager I can?
Answer: With the best property managers, paying a little bit more is a wise investment, because it helps increase the value of your house, and they help attract quality tenants; studies have shown employing a unit agentcan cut your vacancy rate by 50%. On the other hand, going cheap with a residential property management firm can wind up being very expensive.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a property manager in the Shockoe Slip area is entering into a partnership. Over the long haul, the fees aren’t as critical as the interaction between you and the manager and quality of the service your manager delivers. A good firm can take control of the management of the home, for example, and turn out providing you a lot rental value and price appreciation than you thought possible. That said, you need to be willing to get them the resources to accomplish.
Question: Do residential property management help with evictions?
Some tenants just don’t work out. Some get fired and become unable to pay their rent, while others prove to be irresponsible and a disturbance or nuisance at your house. Most certainly a home manager will impose a fee to initiate the long paperwork involved with evicting a tenant which is typically ballpark cost of $250-$400 per eviction, plus any relevant courtroom fees.And an evictionmay last a couple months, so be prepared to not receive any rental income until they are out. In addition, you may find there is fix up work to do on your investment property.
Typically, you are better off giving your tenant cash incentives to vacate the property early and avoid suing them, as maddening as that is. You can skip many difficult situations with painstaking tenant screening done upfront.
Question: What do Inspections of my home cost?
Some leasing agencies will charge for inspections, others will give you an inspection or more free per year. This is a visual inspection of your unit to see how the renter is keeping it up. Fees can range from $100-225 for each inspection.
QUESTION: How Might a Residential Property Company Assist an investor with Home Routine Maintenance?
Rental property management agents are responsible for overseeing preventative house maintenance to keep your house in top status. Examples of what can be under consideration:
- Provide and oversee company employed maintenance crew
- Create a preventative maintenance approach to locate and handle maintenance needs
- Identify a collection of licensed, bonded and fully insured contractors who have been vetted for good pricing and good performance that meets code.
- Assign work to various parties such as (in-house employees, handyman and professional contractors) based on who will do a good job for the lowest price.
- Maintain outdoor areas
- Debris and snow removal
- Disposing of garbage and debris
- Set up and monitor a 24/7 emergency repair hot-line
- Larger renovation or rehab projects
- Offer recommendations on how the project can maximize rental returns.
- Take responsibility for initial pricing estimates
- Secure several different estimates for the work to be done
- Act as general contractor managing the work
Question: Do leasing agencies help with evictions?
Some renters just don’t work out. Some get fired and become unable to pay their rent, while others prove to be flakey and a disturbance or nuisance at your property. Most likely a house agent will levy a fee to initiate the laborious process of evicting a renter which is usually ballpark cost of $200-$400 per eviction, plus any relevant courtroom fees.And an evictionoftentimes go on for several months, so be mentally ready to not receive any rental payments until they the legal action is complete. In addition, you might find there is repair work to do on your home.
Usually, you are better off providing your tenant cash incentives to leave the home early and avoid suing them, as aggravating as that is. You can skip many difficult situations with complete renter screening done upfront.
Question: Do residential property management help with evictions?
Some tenants are flakes. Some lose their jobs and become unable to pay their rent, while others turn out to be irresponsible and a disturbance or pain in the neck at your investment property. Most certainly a home manager will levy a fee to initiate the tedious process of evicting a renter which is typically roughly $300-$700 per eviction, not counting any applicable courtroom fees.And an evictioncan take several months, so be mentally ready to not get any rental payments until they move out. On top of that, you may find there is fix up work to be done on your property.
Typically, you are better off offering your renter incentives to leave the unit early and skip taking them to court, as maddening as that is. You can skip many difficult situations with complete tenant vetting done beforehand.
QUESTION: What is a New Tenant Placement or “Lease up” Fee?
Some rental agencies in the Shockoe Slip area may charge a new renters placement fee or have a extra commission incentive for getting a renter into a lease. Afee of 50 to 100 % of the first month’s rent for any new renter placed is not unusual. However, you should not generally bump into significant multiple up-front fees.
Generally a placement fee is not paid until the renter is signed, which means you don’t need to come out of pocket to pay this.