Regardless if you call them Property Management, home management firms, or rental property management agencies….it all means the same thing. The emphasis is usually on residential properties (but commercial property management companies are out there of course. Property rental agencies serving the 23831 area provide a variety of services to help you renting your house. It’s a long punchlist of tasks that a expert Property Management will handle; in fact (if you’re a detailed follow through kind of people person, you might even want to explore 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?”
Residential Property Management RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Handle contracts
- Keep you out of jail by helping you obey Fair Housing laws
- Open your home to prospective renters in order to rent your house
- Deal with move in and move out
- Collect money and get you paid!
- Handle follow up if payments are late
- Assist with evictions
- Respond to tenant inquiries
- And a lot more.
It’s everything from A to Z! Issues to consider if you are wondering if you maybe should rent your house on your own or hire a Property Management near the 23831 area.
CAN YOU AFFORD TO PAY A Property Management ?
You’ve figured out that goodrental agentswho provide service to the 23831 area in Richmond aren’t without cost.
Rental firms will charge a fee, on average, between 4% and 9% of the monthly rents for the house. The typical fee for a single family rental home is estimated at 8-10%. The charge for a apartment of 10 units on up is typically between 5% and 8%.
If your house is not occupied, it’s typical to pay a lease up fee to find and place a new tenant in your rental home. Depending on the property management company this can range from 50%-100% of one month’s rent.
Something to consider: Having expert professional input on market rents and having a professional agent deal with locating a renter could mean you get higher rents, which means a professional property manager may end up covering all or part of their fee because of increased rents.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondinvestment homes, but don’t know a single thing about residential property management, hiring a certified Property Management can be the right choice for you. Learning as you go can become extremely expensive.
For a property investor who is just beginning, hiring a bad repairman or taking too long to fill a vacancy can easily eat into your returns. There are large legal liability concerns 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 rental management fees!
HOW HIGH IS YOUR VACANCY RATE?
Excellent Property Management are capable finding and reviewing renters quickly and will have a network of reliable, cost effective Richmondmaintenance companies to handle emergencies. Most professional property managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE THE TIME TO MANAGE YOUR RENTAL PROPERTY in the 23831 area?
If you work at a full-time job while you are dealing with a investment home and simply cannot give your your rental home the focus it requires, the success of your investment may depend on employing a great property management company in Richmond
Additionally, realize that time is money and overseeing a rental property takes time. If you feel like the real life obligations of leasing management are impinging on time that could be more enjoyably spent making more money at your full time job, or hunting down other properties, paying for an outside property management firm may be the wisest move for you.
HOW MANY INVESTMENT PROPERTIES IN 23831 DO YOU HAVE TO MANAGE?
As the number of homes you own increases, so does your workload. The more renters you have, the more repair issues, tenant complaints, and empty properties you will have to handle. On top of that, if your units are dispersed across multiple areas, your energies committed will increase as you will have to manage the cash flow of each particular rental as well as drive from property to property to deal with concerns.
HOW WILL A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOME IN 23831?
Property managers who service the 23831 area may do many things for you as the home investor, which can include the following:
TAKE CARE OF CAREFUL INSPECTIONS
You want to be sure to have before and after photos and written documentation, so you can accurately take care of tenant deposits and disputes when they leave your home. Many renters will act amazed when you remove damages from their deposit, so having accurate files will help cut down on the amount of arguing they do with you.
Nearly all agents are compensated to oversee repair requests, noise disturbances and have the necessary contacts to deal with emergency situations.
RE-LEASE YOUR HOME
Once lease ends ask current renters to extend their rental contract for another rental period
HANDLING MOVE OUTS
When a renter ends his tenancy, the rental agent is responsible for inspecting the house, looking for problems and determining what portion of the damage deposit willl be given to the renter. After move out, the property manager is in charge of cleaning the property, repairing any areas of concern and finding a replacement renter.
Most residential property managers are responsible for marketing the home to fill vacancies. Residential property managersare aware of to advertise and what to include in their ads. Rental agents also understand what attracts renters, so they can suggest making minor improvements to help improve the home.
Provide financial management services Handle payment for the owner (Mortgage, insurance, homeowner association dues, etc.) Specific documentation of expenditures via invoices and receipts Preserve all past paperwork (paid invoices, agreements, inspection reports, warranties, etc.) Deliver yearly reports, structured for tax needs as well as needed tax paperwork including a 1099 forms Advise owner on relevant tax deductions related to their investment home. Prepare formatted monthly cash-flow reports which specify a detailed accounting of income and itemized expenses
DEALING WITH PROBLEMS
Nearly all agents are compensated to oversee repair situations, noise issues and have the required contacts to deal with emergency situations.
COLLECTING RENTAL PAYMENTS:
This is where a leasing agent earns their keep. Rental management firms make sure you get paid by collecting rent every month on time and strictly enforcing late penalties.
Many managers are responsible for setting the length of the lease and making sure it has all the needed provisos to protect the client. This includes determining the total of damage reserves needed.
RENTAL MANAGEMENT COMPANIES HELP YOU DECIDE MARKET RENTAL RATE
Rental managers are responsible for setting the initial rent level, and collecting payment from renters. Great rental agents know how to set the right rent level toattract tenants to your rental property. They hopefully have a specific understanding of the Richmond area, where the home is located and have looked at comparable properties in the general Richmond area.
RESPONSIBLE FOR TAXES
The rental agent can assist the house owner with education on how to handle taxes for the investment property. The rental agent can additionally file taxes for the investment property
Provide financial management services Make payments on behalf of the owner (Mortgage, insurance, homeowner association dues, etc.) Detailed records of expenses via invoices and receipts Preserve all historical paperwork (paid invoices, leases, inspection reports, warranties, etc.) Provide yearly reports, structured for tax purposes as well as needed tax documents including a 1099 paperwork Advise owner on legal tax write offs related to their rental home. Deliver easy to read monthly cash-flow reports which provide a detailed accounting of income and itemized expenses
OFFER SOUND REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different policies such as accepting pets, permitting smoking etc. A few things are very particular to the Richmond area, so having a local area expert who knows the 23831 area in particular is crucial.
RESPONSIBLE FOR OVERSIGHT OF OTHERS
Other Employees- if there are other employees in the unit, such as a concierge\desk manager or security personnel, the property manager is in charge of making sure they are doing their job. The rental manager can establish their salaries and even terminate them.
What can a RichmondHome Management Firm Do to Market Your House?
- Get house ready for renting out
- Clean property and optimize interior appeal
- Take care of yard to increase curb appeal
- Prepare ads customized for the property and advertising channel.
- A few of the channels often utilized are:
- Paid and no fee rental listing websites
- Print publications
- Install a lock box
- MLS listings
- Coordinate with other realtors and rental agents to find a renter
- Provide a 24-hour hot-line where interested tenant can listen to specific information about the property
- Take calls from prospects for questions and viewings
- Meet prospective tenants for appointments throughout the week and weekend.
- Provide interested renters with tenant applications that are legally compliant with government regulations
- Gather applications with application payment
Question: Should I try to save cash by going FRBO? Or hiring the cheapest leasing agent possible?
Answer: With the best unit agents, paying a little bit more can be a smart investment, because it helps increase the value of your house, and they help attract quality tenants; studies have proven employing a investment property agentcan cut your vacancy rate in half. Conversely, going cheap with a residential property management firm can end up being very expensive.
Question: What do do property managers charge?
Answer: As you might guess, the answer is “it depends.” Residential property management companies vary widely, and much of the response depends on what a company does for you.. Exactly what do you want a property manager to accomplish for you?
Usual % of Rent Contract. As a ballpark figure, expect to pay a typical Rental management agency between 7 – 11% of the monthly rental value of the home. This is called a management fee, or monthly management charge. Typically the higher you charge for rent, the lower the percentage fee is. For example if your rent is $2,000 each month for your rental house, you will usually pay a lower percentage fee than another person whose unit rents for $1000 each month.
You are not charged this management fee until rent is received. Look specifically at your contract regarding whether the management charge 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. Conversely, if it’s based on ‘rent due’, then you owe whether or not rent is received from the renter typically.
Fixed Fee Agreements
Some agencies may charge, say,$75- $150 per month flat rate. There is nothing dictated bystatute in this; it’s decided by the property management company owner.
You wouldn’t owe money on a fixed rate agreement normally until rent is collected.
QUESTION: What are Marketing Charges?
Some property management companies charge a marketing fee. This is an upfront charge to market your vacant property. This charge is normally $200-350. Many agencies don’t charge this charge, so shop around!
Empty Unit fee Some companies charge One month’s payment up front. You could run into this fee if you’re trying to engage the rental agency while the house is vacant. This gives them the money to pay a realtor a commission for finding a renter in the unit, or to pay the costs of advertising, repeatedly showing the home to prospective renters, as well as the expense of preparing lease documents (which can take a long time).
Question: Should I try to save cash by managing my home myself? Or finding the least expensive property manager I can?
Answer: With the best house managers, paying a little bit more can be a smart investment, because it helps enhance the value of your property, and they help retain quality renters; studies have proven employing a investment property managercan reduce your vacancy rate by 50%. Conversely, going lowball with a rental agency can wind up being very expensive.
QUESTION: What are Advertising Charges?
Some rental agencies charge a marketing fee. This is an upfront fee to advertise your vacant house. This fee is typically $200-350. Many agencies don’t charge this fee, so shop around!
Empty Unit charge Some companies charge 1 month’s rent up front. You could run into this charge if you’re trying to hire the residential property management firm while the home is vacant. This gives them the cash to pay a real estate agent a commission for placing a renter in the home, or to pay the costs of marketing, repeatedly showing the home to potential tenants, as well as the cost of preparing lease documents (which can take a long time).
Question: Do all property management companies charge basically the same way?
Not all pricing structures are identical. Some property management companies in the 23831 area might charge a flat per-month rate – which again varies according to area, activities performed, and the total value of the house – while others charge a percentage rate, as noted above. Cost can also change depending on the size and number of units you own.
To illustrate, if you own several homes, you may get a “bulk” discount that a person with a single house or apartment might not receive.
Question: Do all leasing agencies charge basically the same way?
Not every pricing structures are the same. Some leasing agencies in the 23831 area may charge a flat monthly rate – which again differs according to area, activities performed, and the total value of the house – while others charge a percentage rate, as noted above. Price can also differ depending on the size and quantity of properties you own.
For example, if you own several apartment buildings, you may get a “bulk” discount that a person with a single home or apartment might not receive.
QUESTION: Will Residential Property Management Companies Take Care of Evictions in the 23831 area?
- Filing relevant paperwork to initiate and process an eviction action
- Representing owner in court
- Coordinating with police authorities to remove tenant and tenant’s stuff from property
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 repair, some labor costs are included with your monthly fixed rate or percentage charge (for example, changing out light bulb and fixing faucet handles) while others are charged individually (such as replacing broken window panes and installing new sinks).
Regardless, everything should be specifically stated in your contract. Keep in mind that these fees could require you toraise your rents, which might make finding – and keeping – tenants more difficult. And remember, house management charges can be negotiable. Depending on how much you’re willing to pay, you may be able to get a better price by sacrificing particular services and handling them on your own.
QUESTION: How Can a Property Management Firm help an owner with the Tenant Move In Procedure?
- Prepare leasing contract
- Pin down move in date with applicants
- 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 tenants sign a report verifying the condition of the property prior to move-in.
- Collect first month’s rent and security deposit
Question: Do property management companies 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 flakey and a disturbance or nuisance at your home. Most certainly a home manager will levy a charge to go through the long paperwork involved with evicting a tenant which is usually around $200-$400 per eviction, plus any associated court charges.And an evictionmay take a couple months, so be mentally ready to not receive any rental monies until they the legal action is complete. On top of that, you could find there is repair work to do on your unit.
Generally speaking, you are better off providing your renter incentives to vacate the unit early and skip suing them, as aggravating as that is. You can avoid many difficult situations with thorough tenant screening done upfront.
QUESTION: How Might a Lease Management Company assist an owner with the Tenant Move In Procedure?
- Initiate leasing agreement
- Affirm move in date with tenant
- Review lease guidelines with renter regarding things like rental payment terms and required property maintenance
- Ensure all agreements have been properly executed
- Perform detailed move in inspection with renter and have tenants sign a report verifying the condition of the property prior to move-in.
- Secure first month’s rent and security deposit
QUESTION: What types of Maintenance can residential property management help with?
Some leasing agencies in the 23831 area have in house maintenance crews, full-time. Most contract these jobs out to miscellaneous subcontractors. Some leasing agencies charge a fixed fee to oversee any work done by subcontractors. Some will upcharge the contractors fee. Be certain you understand how it operates with your house management agency!