Regardless if you describe them as Property Management, 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 agencies do exist certainly. Property rental agencies serving the 23112 area offer a long list of services to help you renting your house. It’s a long list of tasks that a good Property Management will deal with; in fact (if you’re a great follow through kind of people person, you may 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?”
Real Estate Property Management RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a renter
- Handle legal contracts
- Keep you legal by helping you follow government housing laws
- Show your property to interested renters in order to rent your house
- Deal with move in and move out
- Collect monies and get you paid!
- Handle follow up if payments are timely
- Assist with evictions
- Respond to tenant inquiries
- And so much more.
It’s everything from A to Z! Factors to consider if you are considering if you maybe should rent your home on your own or hire a Property Management near the 23112 area.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management ?
You’ve figured out that top notchproperty managerswho provide service to the 23112 area in Richmond aren’t free.
Residential property management agencies will charge a fee, ballpark, between 5% and 9% of the monthly rents for the house. The typical fee for a single family rental property is estimated at 8-10%. The cost for a property of 10 units on up is typically between 3% and 7%.
If your house is vacant, it’s normal to pay a tenant finding fee to find 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.
Something to think about: Having expert professional input on market rents and having a certified agent handle locating a tenant could mean you can get higher rents, which means a great rental agent may end up covering all or part of their charge because of increased rents.
HOW MANY RENTAL HOMES IN 23112 DO YOU HAVE TO TAKE CARE OF?
As the number of homes you own increases, so do your responsibilities. The more tenants you have, the more maintenance issues, tenant complaints, and empty properties you will have to deal with. Additionally, if your homes are spread across multiple areas, your time commitment will go up as you will have to oversee the issues of each particular rental as well as drive from property to property to deal with problems.
WILL YOU HAVE THE AVAILABILITY TO MANAGE YOUR INVESTMENT PROPERTY near the 23112 area?
If you work at a full-time job while you are looking after a rental home and simply cannot give your investment home the focus it requires, the profitability of your investment may depend on paying for a good property management company in Richmond
In addition, realize that time is money and managing a investment home takes effort. If you feel like the day to day requirements of leasing management are impinging on time that could be more profitably spent making more money at your day job, or looking for other investments, hiring an outside property management firm may be the wisest move for you.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondreal estate, but don’t know a single thing about property management, hiring a professional Property Management can be a wise choice for you. Figuring it out as you go can become extremely costly.
For a real estate investor who is starting out, hiring a bad repairman or taking too long to fill an empty home can easily 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!
HOW FAR AWAY IS YOUR RENTAL HOME?
The more miles between you and your rental property,the more stressful it is to take care of. If your main home is in Texas and your property is in the 23112 area, it will be more difficult for you to find renters,to handle renter complaints,to quickly react to problems, to handle maintenance issues, and even to ensure payment is collected by due date.
The amount of time it takes you to get to the property and the expense of travel will also add up. In situations such as these, hiring a professionalRichmond property management firm? can make good sense and actually save you money.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY HOME IN 23112?
Residential property managers who service the 23112 area may do a number of things for you as the home investor, which may include the following areas:
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the property, such as a janitor or security guard, the property manager is responsible for being certain they are paying attention to details. The rental manager may establish their wage rates and possibly fire them.
SUGGEST AND SUPERVISE VENDORS
Residential property management professionals should be able to offer recommendations on maintenance and cosmetic improvements that maximize profitability while providing good return on investment.
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 TAXES
The rental agent will provide the house owner with knowledge of how to complete taxes for the investment property. The property manager can additionally mail in taxes for the house
TAKE CARE OF DETAILED INSPECTIONS
You want to make sure to take before and after photos and written records, so you can easily handle renter deposits and disagreements when they move out. A good number of renters will act dumbfounded when you remove damages from their deposit, so having accurate files will help cut down on the amount of fighting they do with you.
Most residential property managers are responsible for advertising the home to fill vacancies. leasing agentsknow where to market and what to include in their advertisements. Residential property managers also have insight into what attracts tenants, so they can suggest making minor improvements to help makeover the property.
Professional rental managers are frequently engaged to look after empty homes to ensure there has been no destruction and to oversee regular maintenance. They also make certain contractors and other repairmen are finishing their work in a timely manner.
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 physical structure are in disrepair, they may use their discretion to order repairs or likewise without further delays. Maintenance of Documents- the rental manager should keep complete documentation regarding the home. This might include all income and expenses; notations of all inspections, signed agreements, maintenance requests, any complaints, documentation of work done, amount paid for repairs, maintenance charges, record of rent paid and insurance charges.
Professional property managers are many times hired to overlook vacant houses to make sure there has been no vandalism and to perform routine maintenance. They also make certain vendors and other repairmen are finishing their work in a reliable manner.
RESPONSIBLE FOR OVERSEEING 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 property managermust operate within the established budget guidelines for the property. In particular emergency situations when the renters or home are in disrepair, they may take action to order repairs or likewise without concern for the budget. Upkeep of Documents- the leasing agent should keep thorough records regarding the house. This might include all income and expenses; notations of all inspections, fully executed agreements, maintenance requests, any complaints, records of repairs, amount paid for fix up, maintenance expenses, record of rent paid and insurance fees.
OFFER SOLID REAL ESTATE ADVICE:
Chat with you about the pros and cons\pluses and minuses of different issues such as accepting pets, permitting smoking etc. A few things are very specific to the Richmond area, so having a local area expert who knows the 23112 area in particular is critical.
DEALING WITH LEASES
Many they are responsible for setting the length of the agreement and ensuring it has all the required provisos to protect the client. This includes determining the total of security deposit required.
INCREASING OR ADJUSTING RENT:
The rental 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.
HANDLE DETAILED INSPECTIONS
You want to be sure to have before and after photos and written documentation, so you can quickly handle damage deposits and disagreements when they leave your home. A good number of renters will act dumbfounded when you subtract fees from their deposit, so having accurate files will help cut down on the amount of fighting they do with you.
Question: What are typical procedures regarding Late Payment Charges?
Sometimes renters pay after the due date. Read your contract to see if those late payment fees go to you as the owner, to the property management company, or are shared somehow.
Question: What do Inspections of my home cost?
Some leasing agencies will bill for inspections, others will give you an inspection 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 $25-200 per inspection.
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 manager is charging a low monthly %. Illustrations could include an advertising charge in connection with finding a renter, a yearly inspection charge, and some sort of reserve, so that the management agency has some money on hand to handle unanticipated, but immediate, expenses.
You might want to check into how you split up pet deposits collected and bad check fees (basically whoever gets stuck with the most bank costs deserves the lion’s share 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: How Can a Rental Property Company Help an investor with Property Regular Maintenance?
Rental agents are in charge of overseeing preventative home maintenance to keep your property in top status. Examples of what might under consideration:
- Provide and oversee company employed maintenance crew
- Establish a preventative maintenance policy to find and handle repair issues
- Identify a network of licensed, bonded and fully insured contractors who have been vetted for good bidding and quality performance that meets code.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on who will do an excellent job for an excellent price.
- Oversee outdoor areas
- Debris and snow removal
- Disposing of trash and debris
- Set up and monitor a 24 hour emergency repair hotline
- Bigger fix up or rehab projects
- Take care of suggestions on how the project can maximize rental profits.
- Prep preliminary cost estimates
- Solicit several different bids for the project
- Act as general contractor managing the work
QUESTION: What are Advertising Fees?
Some leasing agencies charge a marketing fee. This is an initial charge to market your vacant home. This fee is usually $250-400. Many firms don’t charge this charge, so shop around!
Vacant Property charge Some firms charge 1 month’s payment up front. You might run into this fee if you’re trying to hire the leasing agency while the property is vacant. This gives them the cash to pay a realtor a commission for placing a tenant in the home, or to pay the costs of advertising, repeatedly showing the unit to potential tenants, as well as the expense of preparing lease paperwork (which can take hours).
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine precisely what maintenance services are a part of with your charges. It could be that when something needs fixing, certain labor charges are included with your monthly fixed rate or percentage charge (for example, changing out lighting switch plates and fixing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be specifically expressed in your agreement. Keep in mind that these charges may require you toraise your rents, which could make finding – and keeping – tenants more difficult. And remember, unit management charges can be negotiable. Depending on how much you’re willing to pay, you might be able to get a better price by giving up particular services and dealing with them on your own.
QUESTION: How Can a Residential Property Agency Assist an homeowner with House Routine Maintenance?
Rental property management agents are responsible for managing preventative house maintenance to keep your property in top notch shape. Examples of what might involved:
- Manage and oversee company employed maintenance crew
- Decide on a preventative maintenance plan to locate and deal with maintenance needs
- Identify a collection of licensed, bonded and legally insured vendors who have been reviewed for reasonable bidding and good performance that is up to requirements.
- Delegate jobs to various parties such as (in-house employees, handyman and professional contractors) based on who could do the best job for the lowest price.
- Oversee outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Maintain and oversee a 24/7 emergency repair hotline
- Larger renovation or remodeling projects
- Offer suggestions on how the project can optimize rental profits.
- Prepare preliminary cost estimates
- Get a few different bids for the project
- Act as general contractor overseeing the work
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a home manager in the 23112 area is entering into a partnership. In the long run, the fees aren’t as critical as the interaction between you and the manager and quality of the service your agent delivers. A good company can take control of the maintenance of the house, for example, and turn out providing you much more rental value and price appreciation than you might be possible. However, you need to be prepared to get them the resources to accomplish.
Question: What are typical procedures regarding Late Payment Fees?
Occasionally tenants pay date. Read your paperwork to see if those late payment fees go to you as the owner, to the rental agency, or are shared somehow.
QUESTION: What types of Maintenance can residential property management help with?
Some residential property management in the 23112 area have their own maintenance employees, full-time. Most refer these jobs out to miscellaneous vendors. Some residential property management charge a fixed fee to supervise any work with subcontractors. Many will add on to the contractors fee. Be certain you understand how it works with your unit management firm!
What can a RichmondProperty Management Agency Do to Market Your Home?
- Get house ready for rental
- Clean home and optimize interior appeal
- Manicure landscaping to increase street appeal
- Create ads specifically created for the home and advertising platform.
- Some of the platforms normally used are:
- Paid and no charge rental listing websites
- Print magazines
- Installing a lock box
- Multiple Listing Service listings
- Property fliers
- Coordinate with other professionals and property management agents to secure a renter
- Provide a 24/7 hot-line where prospective renters can hear to specific information about the home
- FieldAnswer phone calls from prospects for questions and showings
- Greet prospective tenants for showings 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: How much do property managers cost?
Answer: As you might guess, the answer is “it depends.” Residential property management companies vary quite a bit, and a lot of the response is dependent on what they do for you.. Just what do you want a property manager to do for you?
Normal Percentage of Monthly Rent Agreement. As a ballpark figure, expect to pay a usual Rental management agency ranging from 7 – 11% of the monthly rental value of the home. This is called a management charge, or monthly management charge. Usually the higher you charge for rent, the lower the percentage is. For example if your rent is $2,000 per month for your property, you will usually pay a lower percentage fee than someone else whose property rents for $700 each month.
You do not pay this percentage fee until rent is received. Look carefully at your contract regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the charge is based on rent collected, it means the Leasing agency doesn’t get paid if you don’t get paid. Conversely, if it’s based on ‘rent due’, then you owe whether or not rent is received from the tenant normally.
Fixed Fee Contract
Some agencies may charge, say,$75- $150 per month flat rate. There is nothing dictated bylaw in this; it’s decided by the company owner.
You would not owe money on a flat rate contract typically until rent is received.
QUESTION: Do Rental Agencies Handle Evictions in the 23112 area?
- Filing necessary documentation to initiate and complete an eviction lawsuit
- Representing owner in court
- Working with with law enforcement to remove renter and renters things from house
QUESTION: What types of Maintenance can leasing agencies help with?
Some residential property management in the 23112 area have in house maintenance employees, full-time. The majority of refer this work out to various vendors. Some property management companies charge a fixed fee to manage any work done by subcontractors. A few will add margin to the subcontrcontractor’s fee. Be certain you understand how it works with your house management firm!