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 emphasis is normally on residential properties (but commercial property management agencies do exist of course. Property rental agencies serving the West Point area offer a multiplicity of services to help you renting your house. It’s an overwhelming list of tasks that a good Property Management Company will oversee; in fact (if you’re a great follow through kind of people person, you may even want to look at a job as a property manager yourself!.) Here’s an incomplete 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 renter
- Handle legal contracts
- Keep you legal by helping you comply with government housing laws
- Show your home to prospective tenants in order to rent your house
- Deal with move in and move out
- Collect rental payments and get you paid!
- Handle follow up if payments are not on time
- Assist with evictions
- Answer tenant questions
- And so much on top of that.
It’s everything from A to Z! Areas to consider if you are wondering if you should rent your home on your own or hire a Property Management Company near the West Point area.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you want to deal in Richmondrental homes, but don’t know a single thing about leasing management, hiring a certified Property Management Company can be a smart choice for you. Learning as you go can become very costly.
For a real estate investor who is starting out, hiring the wrong repairman or taking too long to fill a vacancy can quickly eat into your returns. There are huge legal liability issues you can stumble on if you aren’t aware about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of property management fees!
IS THERE THE MONEY TO PAY A Property Management Company ?
You’ve figured out that goodproperty managerswho provide services to the West Point area in Richmond aren’t free.
Rental management agencies 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 typically between 4% and 8%.
If your home is not occupied, it’s normal to pay a lease up fee to find and place a new tenant in your rental property. 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 pro handle locating a renter could mean you can get higher rents, which means a good leasing agent might end up covering all or part of their charge because of increased rents.
HOW MANY INVESTMENT PROPERTIES IN West Point DO YOU OWN?
As the number of investment properties you own goes up, so does the time it takes to manage them. The more tenants you have, the more repair issues, renter headaches, and vacancies you will have to deal with. On top of that, if your units are dispersed across multiple cities, your time commitment will go up as you will have to take care of the cash flow of each particular property as well as drive from property to property to handle concerns.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondrental homes, but don’t know the first thing about residential property management, hiring an experienced Property Management Company can be a smart choice for you. Learning as you go can become very expensive.
For a real estate investor who is just beginning, hiring a sketchy repairman or taking too long to fill a vacancy can quickly eat into your potential income. There are large legal liability issues 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 property management fees!
HOW CLOSE IS YOUR INVESTMENT PROPERTY?
The more miles between you and your property,the more stressful it is to look after. If your primary residence is in Texas and your rental home is in the West Point area, it will be more difficult for you to find tenants,to handle constant complaints,to quickly respond to emergencies, to address maintenance issues, and even to ensure payment is collected in a timely manner.
The amount of time it takes you to travel to the property and the expense of gas will also add up. In situations like these, hiring a greatRichmond property management company can make a lot of sense and will likely save you money.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY PROPERTY IN West Point?
Property management companies who service the West Point area will do a number of things for you as the home investor, which can include the following:
PROPERTY MANAGERS HELP YOU DECIDE THE CORRECT RENT LEVELS
Property managers are responsible for setting the beginning rent level, and collecting rent from tenants. Top level rental managers know how to set the correct rent level todirect tenants to your rental property. They hopefully have a specific understanding of the Richmond area, where the property is located and have examined at comparable homes in the general Richmond area.
OFFER WISE REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different policies such as accepting various animals, allowing smoking etc. Some things are very specific to the Richmond area, so having a local area expert who knows the West Point area in particular is critical.
This is where a property manager earns their keep. Residential property management firms make sure you get your money by collecting rent each month on time and strictly enforcing late fees.
TAKES CARE OF TAXES
The leasing agent will help the home owner with knowledge of how to handle taxes for the house. The rental manager may additionally mail in taxes for the home
RE-LEASE YOUR HOME
Once agreement terminates get existing renters to re-up their rental contract for another rental period
Most leasing agents are responsible for advertising the home to fill vacancies. leasing agentsknow where to advertise and what to include in their advertisements. leasing agents also have insight into what attracts tenants, so they may suggest making minor improvements to help improve the property.
IN CHARGE OF MANAGING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations property managers 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 property. In certain emergency situations when the tenants or house are in danger, they may use their discretion to order fixup or likewise without additional approvals. Upkeep of Paperwork- the rental agent needs to detailed records about the the home. This might include all income and expenses; records of all inspections, signed contracts, maintenance requests, any problems noted, documentation of maintenance done, amount paid for fix up, maintenance costs, documentation of rent collection and insurance fees.
RESPONSIBLE FOR MAINTENANCE ITEMS AND REPAIRS
Rental property management agents are typically responsible for the physical care of the house, including scheduled maintenance and needed repairs.
Provide accounting services Handle payment on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Detailed accounting of expenses via invoices and receipts Maintain all past documents (paid invoices, agreements, inspection documentation, warranties, etc.) Deliver annual reports, coordinated for tax purposes as well as needed tax paperwork including a 1099 form Educate owner on qualified tax write offs related to their rental home. Deliver formatted monthly cash-flow reports which offer a detailed breakdown of income and detailed expenses
EXPERIENCED WITH LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A trained leasing agent will have a thorough understanding of local and federal laws relating to the ideal methods to: Reviewing the applicants. Handle security deposits End a rental agreement Evict a tenant Obey with home safety regulations Advise in the occasion the event of a legal disagreement or lawsuit Refer owner to an experienced lawyer when necessary Be knowledgeable about and comply with the latest local, state and federal guidelines that relate to renting and maintaining rental properties.
DEALING WITH PROBLEMS
Nearly all agents are paid to address maintenance situations, noise complaints and have the needed relationships to take care of difficult situations.
Most property manager are tasked with for promoting the property to fill vacancies. leasing agentsare aware of to market and what to include in their ads. Rental agents also have insight into what attracts renters, so they can suggest making minor improvements to help makeover the home.
Most rental agents are tasked with for promoting the house to fill vacancies. leasing agentsare aware of to promote and what to include in their advertisements. Residential property managers also understand what attracts tenants, so they can suggest making minor improvements to help improve the house.
DEALING WITH MOVE OUTS
If a renter leaves, the manager is responsible for inspecting the unit, looking for damages and assessing what portion of the damage deposit mayl be refunded to the renter. After move out, the property manager is in charge of cleaning the home, repairing any damages and finding a replacement renter.
Question: How much do property managers cost?
Answer: As you may guess, the answer is “it depends.” Leasing agencies vary widely, and a good deal of the answer is dependent on what a firm does for you.. Exactly what do you want a property manager to do for you?
Typical % of Monthly Rent Agreement. As a starting point, expect to pay a usual Rental management agency ranging from 8 – 10% of the monthly rent of the unit. This is referred to as management charge, or monthly management payment. Typically the greater your rent is, the lower the percentage fee is. For example if your rent is $2,100 each month for your rental house, you will typically pay a lower percentage fee than someone else whose property rents for $800 each month.
You do not pay this percentage charge until rent is collected. Look carefully at your agreement regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the charge 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 based on ‘rent due’, then you pay whether or not rent is collected from the tenant typically.
Fixed Fee Agreements
Some companies may charge, say,$75- $150 per month fixed rate. There is nothing dictated bylaw in this; it’s determined by the firm owner.
You wouldn’t owe money on a flat rate agreement usually until rent is received.
QUESTION: How Might a Residential Property Agency Help an investor with Home Regular Maintenance?
Leasing agents are responsible for managing preventative home maintenance to keep your home in top notch condition. Some of things that can be involved:
- Direct and oversee a company maintenance crew
- Establish a preventative maintenance plan to locate and handle maintenance issues
- Provide a team of licensed, bonded and completely insured contractors who have been vetted for good bidding 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 may do a good job for an excellent price.
- Oversee outdoor areas
- Debris and snow removal
- Disposing of trash and debris
- Set up and monitor a 24/7 emergency repair hot-line
- Bigger fix up or rehab projects
- Take care of recommendations on how the project can maximize rental returns.
- Take responsibility for preliminary pricing estimates
- Get several independent bids for the work to be done
- Act as general contractor overseeing the work
Question: What are Random charges made by property management companies?
In some cases, you might see some charges passed on to you – especially where the agent is charging a low monthly percentage. Examples might include an advertising charge in connection with placing a renter, a yearly inspection charge, and some sort of reserve, so that the management firm has some cash on hand to take care of unanticipated, but immediate, expenses.
You might 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: What are typical procedures regarding Late Payment Fees?
At times renters pay after the due date. Look at your contract to see if those late payment charges go to you as the owner, to the leasing agency, or are shared in some way.
Question: Do all residential property management charge basically the same way?
Not every pricing structures are the same. Some rental agencies in the West Point area may charge a flat per-month rate – which again differs according to area, duties performed, and the total value of the home – while others charge a percentage rate, as noted above. Price can also change depending on the size and number of properties you own.
For example, if you own several homes, you might get a “bulk” discount that a person with a single investment property or apartment might not get.
Question: What do Inspections of my home cost?
Some property management companies will charge for inspections, others will give you an inspection or more without charge annually. This is a visual inspection of your home to see how the renter is treating it. Fees can range from $75-200 per inspection.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are included with your charges. It could be that when something needs fixing, certain labor costs are included with your monthly flat rate or percentage charge (for illustration, changing out light bulb and replacing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
No matter what, everything should be specifically expressed in your agreement. Consider that these charges might require you toincrease your rental rate, which might make finding – and keeping – tenants harder. And remember, unit management fees can be negotiated. Depending on what you’re willing to pay, you may be able to get a lower price by giving up particular services and dealing with them on your own.
QUESTION: Do Residential Property Management Companies Take Care of Evictions in the West Point area?
- Filing necessary documentation to initiate and complete an eviction lawsuit
- Representing owner in court
- Interacting with with law enforcement to remove renter and renters things from property
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a unit agent in the West Point area is creating 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 provides. A competent firm can take control of the oversight of the property, for example, and wind up getting you much more rental value and price appreciation than you thought possible. However, you need to be willing to get them the resources to accomplish.
QUESTION: What types of Maintenance can leasing agencies help with?
Some rental agencies in the West Point area have their own maintenance employees, full-time. The majority of refer these jobs out to various subcontractors. Some rental agencies charge a fixed fee to supervise any work done by outside vendors. Some will upcharge the subcontrcontractor’s bill. Make sure you understand how it works with your home management firm!
QUESTION: How Would a Rental management Agency Help With Tenant Vetting and Choosing?
Vetting Applicants- A rental agent will sort through the prospective tenant applications to discover the tenant that is the ideal fit for your house. They have a reliable vetting process, which includes running credit checks and criminal background checks, which can decrease your chances of being charged with breaking the law. Professional leasing agents have seen hundreds, even thousands, of tenants, so they have a good concept of how to select the ideal renters; tenants who will pay their obligations on time, have a longer tenancy and create less problems. Perform a background check to confirm identity, wages, credit history, rental history, etc. Grade renter per pre-defined renter criteria Communicate with tenants who were turned down
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 irresponsible and a disturbance or nuisance at your unit. Most certainly a investment property agent will impose a fee to go through the tedious process of evicting a renter which is typically roughly $250-$500 per eviction, not counting any relevant legal costs.And an evictionmay take a few months, so be mentally ready to not get any rental payments until they are out. On top of that, you might find there is fix up work to be done on your investment property.
Usually, you are better off offering your tenant cash incentives to vacate the unit early and skip suing them, as maddening as that might seem. You can avoid many problem situations with thorough renter vetting done beforehand.
Question: What are Miscellaneous charges made by property management companies?
At times, you might see some costs passed on to you – especially when the manager is charging a small monthly %. Examples might include an marketing fee in connection with finding a tenant, an annual inspection charge, and some sort of reserve, so that the management firm has some cash 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 hit with the greatest amount of bank fees should get 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: Should I attempt to save money by managing my home myself? Or finding the least expensive leasing agent I can?
Answer: With the best unit agents, paying a little bit more is a wise investment, because it helps enhance the value of your property, and they help retain top notch tenants; studies have proven hiring a property agentcan reduce your vacancy rate in half. On the other hand, going lowball with a residential property management firm can wind up being very costly.