Regardless if you call them Property Management, home management firms, or rental property management agencies….it all means the same thing. The emphasis is typically on residential properties (but commercial property management agencies do exist of course. Property rental agencies serving the 23060 area provide a multiplicity of services to help you renting your home. It’s a long list of jobs that a top notch Property Management will handle; in fact (if you’re a good follow through kind of people person, you might even want to consider 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?”
Property Management RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Handle contracts
- Keep you legal by helping you follow government housing laws
- Open your house to prospective renters in order to rent your house
- Handle move in and move out
- Collect rental payments and get you paid!
- Handle follow up if payments are late
- Assist with evictions
- Answer renter questions
- And a lot on top of that.
It’s everything from A to Z! Points to contemplate if you are asking if you maybe should rent your house on your own or hire a Property Management near the 23060 area.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondrental homes, but don’t know anything about property management, hiring a professional Property Management can be a wise choice for you. Learning as you go can become extremely draining financially.
For a single family home investor who is starting out, hiring a sketchy repairman or taking too long to fill a vacancy can quickly eat into your profits. There are big legal liability issues you can stumble on if you aren’t educated about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of leasing management charges!
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management ?
You’ve figured out that top notchleasing agentswho provide service to the 23060 area in Richmond aren’t without cost.
Residential property management companies will charge a fee, ballpark, between 4% and 9% of the monthly gross income for the house. The typical fee for a single family investment is closer to 8-10%. The charge for a property of 10 units on up is typically between 3% and 7%.
If your home is not occupied, it’s not unusual 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 range from 50%-100% of one month’s rent.
One thing to think about: Having expert professional input on market rents and having a certified agent handle locating a tenant could mean you get higher rents, which means a professional leasing agent likely will end up covering all or part of their charge because of increased rents.
DO YOU HAVE THE MINDSET TO WORK WITH TENANTS?
Is the pressure of messing with evictions, renter complaints and maintenance issues taking a toll on you? Property managers are experienced in dealing with landlord-tenant conflict. Property Management have an understanding of Richmond landlord-tenant law and can serve as the middle-man for issues that arise. Additionally, if the renter is aware they are working with a third party, they are likely to act more civilly as well.
You don’t have to employ a property management company just because you are brand new to property investing in 23060, have a lot of units or are having problems filling vacancies. Many people manage their own homes. Personal experience can many times be the best teacher and everyone has to begin learning somewhere. If you teach yourself about residential real estate, get the input of others and have a strong desire to manage your investment well, chances are good, you will come out on top.
HOW CLOSE IS YOUR RENTAL HOME?
The more miles between you and your investment property,the more difficult it is to manage. If your main home is in New York and your investment property is in the 23060 area, it will be harder for you to find tenants,to handle tenant complaints,to quickly respond to problems, to deal with maintenance concerns, and even to ensure payment is collected on time.
The amount of time it takes you to go back and forth the property and the expense of getting there will also mount. In situations such as these, hiring a goodRichmond property management company can make a lot of sense and may actually save you money.
CAN YOU AFFORD TO PAY A Property Management ?
You’ve discovered that greatproperty managerswho provide services to the 23060 area in Richmond aren’t free.
Rental management agencies will charge a fee, roughly, between 4% and 9% of the monthly gross income for the property. The typical fee for a single family investment is estimated at 8-10%. The fee for a apartment of 10 units or more is usually between 5% and 8%.
If your home is vacant, it’s not unusual to pay a tenant finding fee to locate 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.
Something to think about: Having expert professional input on market rents and having a professional agent handle locating a tenant might mean you can get higher rents, which means a great property manager likely will end up covering all or part of their charge because of higher rents.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY PROPERTY NEAR 23060?
Rental management companies who service the 23060 area will do a lot of things for you as the home investor, which could include the following areas:
OFFER GENERAL REAL ESTATE ADVICE:
Chat with you about the positives and negatives of different issues such as accepting various animals, allowing smoking etc. Other are very particular to the Richmond area, so having a local market expert who knows the 23060 area in particular is important.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the unit, such as a desk clerk or security guard, the property manager is in charge of being certain they are paying attention to details. The rental manager can set their wage rates and even terminate them.
RESPONSIBLE FOR MAINTENANCE ITEMS AND MINOR UPGRADES
Leasing agents are usually in charge of the physical care of the home, including regular maintenance and needed repairs.
KNOWLEDGE OF LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A good rental agent should have a thorough understanding of statewide and national laws referencing the ideal ways to: Screen the tenants. Manage damage deposits End a lease Evict a tenant Comply with house safety standards Advise in the occasion the event of a legal dispute or litigation Refer owner to a seasoned lawyer when necessary Be up on and comply with the most recent local, state and federal guidelines that relate to renting and maintaining rental homes.
IN CHARGE OF MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the rental managermust operate within the established budget guidelines for the unit. In certain emergency situations when the occupants or property are in disrepair, they may move ahead to order fixup or likewise without concern for the budget. Maintenance of Documents- the rental agent needs to detailed documentation related to the property. This should include all income and expenses; lists of all inspections, signed agreements, repair requests, any complaints, notation of repairs, costs of fix up, maintenance expenses, documentation of rent collected and insurance costs.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the apartment, such as a desk clerk or security guard, the rental agent is responsible for being sure they are paying attention to details. The leasing agent may set their wage rates and even terminate them.
Many managers are responsible for setting the length of the agreement and making sure it has all the needed provisos to look out for the client. This includes deciding the amount of security reserves needed.
Many managers are responsible for setting the length of the agreement and ensuring it has all the necessary provisions to protect the owner. This includes determining the amount of security deposit required.
TAKE CARE OF CAREFUL INSPECTIONS
You want to make certain to have before and after photos and written documentation, so you can easily deal with tenant deposits and disputes when they move out. Many tenants will act shocked when you remove fees from their deposit, so having careful documentation will help reduce the amount of fighting they do with you.
PROPERTY MANAGERS HELP YOU DETERMINE THE CORRECT RENTAL RATE
Leasing agents are responsible for establishing the beginning rent level, and collecting rent from renters. Good leasing agents know how to set the market rent level todirect renters to your home. They hopefully have a specific understanding of the Richmond area, where the home is located and have looked at comparable homes in the general Richmond area.
RESPONSIBLE FOR TAXES
The rental agent can provide the home owner with knowledge of how to handle taxes for the home. The rental manager may additionally mail in taxes for the house
SUGGEST AND SUPERVISE VENDORS
Rental management pro’s should be ready to recommend vendors to do maintenance and cosmetic work that maximize profitability while providing great return on investment.
Deliver financial management services Handle payment on behalf of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific documentation of expenses via invoices and receipts Maintain all past documents (paid invoices, agreements, inspection documentation, warranties, etc.) Oversee annual reports, coordinated for tax needs as well as mandatory tax paperwork including a 1099 paperwork Educate owner on qualified tax deductions related to their investment home. Provide formatted monthly cash-flow documents which offer a detailed accounting of income and detailed expenses
Most property manager are tasked with for promoting the house to fill vacancies. Rental agentsknow where to market and what to include in their ads. Residential property managers also have insight into what interests renters, so they may suggest making cosmetic improvements to help improve the property.
Question: What are typical procedures regarding Late Payment Charges?
Occasionally renters pay after the due date. Look at your agreement to see if those late payment charges go to you as the owner, to the residential property management, or are shared somehow.
QUESTION: How Should a Residential Property Company Assist an homeowner with Home Routine Maintenance?
Leasing agents are responsible for overseeing preventative house maintenance to keep your property in excellent condition. Some of things that may under consideration:
- Direct and oversee company employed maintenance crew
- Decide on a preventative maintenance approach to identify and handle maintenance needs
- Identify a team of licensed, bonded and legally insured vendors who have been reviewed for reasonable pricing and good performance that is up to requirements.
- Assign work to various parties such as (in-house employees, handyman and professional contractors) based on who could do an excellent job for a fair price.
- Oversee outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Maintain and monitor a 24 hour emergency repair hot-line
- Larger renovation or remodeling projects
- Offer recommendations on how the project can maximize rental profits.
- Take responsibility for initial pricing estimates
- Get multiple independent bids for the work
- Act as general contractor overseeing the work
QUESTION: How Might a Residential Property Management Company Assist With Renter Screening and Selection?
Vetting Tenants- A rental agent will review the potential tenant applications to find the tenant that is the ideal fit for your home. They have a consistent screening process, including running credit checks and criminal background checks, which can reduce your possibility of being accused of bias. Experienced residential property agents have seen many tenants, so they have a better concept of how to identify the right tenants; renters who will pay their bills on time, have a longer tenancy and create less headaches. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Evaluate tenant according to pre-decided applicant standards Communicate with tenants who were rejected
QUESTION: How Can a Residential Property Management Agency Assist With Tenant Vetting and Selection?
Vetting Tenants- A property manager will review the prospective tenant applications to discover the applicant that is the ideal fit for your property. They have a proven vetting process, including running credit checks and criminal background checks, which can reduce your likelihood of being charged with discrimination. Professional residential property agents have seen hundreds, even thousands, of renters, so they have a better idea of how to identify the best renters; tenants who will pay their rent on time, have a longer tenancy and create much fewer problems. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Grade renter in relation to pre-decided applicant criteria Inform tenants who were turned down
Question What Services Are Included in A Typical Property Management Contract?
Make certain you determine exactly what maintenance services are a part of with your charges. It could be that when something needs repair, some labor costs are included with your monthly flat rate or percentage charge (for illustration, changing out lighting switch plates 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 fees might require you toraise your rental rate, which could make finding – and keeping – tenants more difficult. And remember, investment property management charges can be negotiable. Depending on how much you’re willing to pay, you might be able to get a better price by sacrificing particular services and handling them on your own.
QUESTION: How Might a Home Management Firm Help With Renter Vetting and Choosing?
Vetting Applicants- A residential property agent will review the prospective tenant applications to find the applicant that is the ideal fit for your property. They have a consistent screening process, which includes running credit checks and criminal background checks, which can decrease your chances of being accused of breaking the law. Professional property managers have seen hundreds, even thousands, of renters, so they have a good idea of how to select the ideal applicants; renters who will pay their rent on time, have a longer tenancy and create less headaches. Perform a background check to confirm identity, wages, credit history, rental history, etc. Evaluate applicant according to pre-defined tenant standards Communicate with tenants who were rejected
Question: Do all property management companies charge basically the same way?
Not every pricing structures are the same. Some residential property management in the 23060 area may charge a fixed monthly rate – which again varies according to area, duties performed, and the total value of the property – while others charge a percentage rate, as noted above. Cost can also change depending on the size and quantity of homes you own.
To illustrate, if you own a few apartment buildings, you may get a “bulk” discount that a person with a single home or apartment might not get.
What can a RichmondRental management Firm Do to Market Your Property?
- Get investment property ready for renting out
- Clean property and optimize interior appeal
- Manicure yard to maximize street appearance
- Create marketing materials customized for the property and marketing channel.
- A few of the platforms regularly used are:
- For pay and no fee rental listing websites
- Print magazines
- Install a lock box
- MLS listings
- Coordinate with other realtors and leasing agents to find a tenant
- Provide a 24/7 hot-line where prospective tenant can listen to detailed information about the house
- FieldAnswer calls from prospects for questions and viewings
- Welcome interested renters for appointments throughout the week and weekend.
- Provide interested tenants with tenant applications that are legally in line with government regulations
- Collect applications with application fee
QUESTION: How Might a Residential Property Management Company help an owner with the Renter Move In Process?
- Initiate leasing agreement
- Affirm move in date with tenant
- 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 tenant and have renters sign a report verifying the condition of the property prior to move-in.
- Secure initial month’s rent and security deposit
Question: What Is The Normal Term Of A Property Management Agreement?
Typically, an owner signs a contract with a rental agency for a fixed length of time – 12 or 24 months, for example – with an option to renew. Contracts could be prepared so that they automatically renew if neither party takes actionstopping it. Termination clauses allow for early termination if the property management company is in breach of the agreement in any way.
QUESTION: How Can a Rental management Firm Help With Tenant Screening and Selection?
Screening Applicants- A leasing agent will sort through the potential tenant applications to find the applicant that is the best fit for your house. They have a reliable screening process, including running credit checks and criminal background checks, which can decrease your possibility of being accused of discrimination. Experienced leasing managers have seen many renters, so they have a better idea of how to identify the ideal applicants; tenants who will pay their bills on time, have a longer tenancy and create much fewer issues. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Grade applicant according to pre-defined tenant standards Inform tenants who may have been rejected
Question: Do all property management companies charge basically the same way?
Not every fee structures are the same. Some property management companies in the 23060 area may charge a fixed monthly rate – which again varies 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 quantity of units you own.
To illustrate, if you own several homes, you might get a quantity discount that a person with a single investment property or apartment might not get.
QUESTION: What types of Maintenance can property management companies help with?
Some property management companies in the 23060 area have in house maintenance employees, full-time. The majority of contract this work out to miscellaneous subcontractors. Some leasing agencies charge a fixed fee to supervise any work with contractors. A few will add on to the subcontrcontractor’s fee. Be sure you know how it operates with your home management firm!
Question: What are Random fees made by property management companies?
At times, you could see some charges passed on to you – especially where the manager is charging a small monthly %. Examples could include an advertising fee in connection with placing a renter, a yearly inspection charge, and some sort of reserve, so that the management firm has some money on hand to take care of unexpected, but urgent, costs.
You may want to look into how you share pet deposits collected and bad check fees (generally whomever gets stuck with the most bank costs should get 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.