No matter 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 do exist certainly. Property rental agencies serving the 23832 area provide a long list of services to help you renting your home. It’s a huge list of jobs that a expert Property Management will deal with; in fact (if you’re a great follow through kind of people person, you may even want to explore a job as a property manager yourself!.) Here’s just a partial 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 tenant
- Deal with legal contracts
- Keep you legal by helping you comply with housing laws
- Show your house to prospective renters in order to rent your house
- Oversee move in and move out
- Collect rental payments and get you paid!
- Handle follow up if payments are late
- Help with evictions
- Deal with renter questions
- And a lot more.
It’s everything from soup to nuts! Issues to contemplate if you are considering if you maybe should rent your house on your own or hire a Property Management near the 23832 area.
DO YOU HAVE A HIGH VACANCY RATE?
Excellent Property Management are capable finding and reviewing tenants quickly and will have a network of capable, cost effective Richmondrepairmen to deal with difficulties. Most certified rental agents will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management ?
You’ve figured out that top notchleasing agentswho provide service to the 23832 area in Richmond aren’t without cost.
Rental management agencies will charge a fee, ballpark, between 5% and 10% of the monthly rents for the home. The usual fee for a single family rental property is estimated at 8-10%. The cost for a apartment of 10 units on up is on average between 3% and 7%.
If your investment property is empty, it’s normal to pay a tenant finding fee to procure 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.
One thing to think about: Having expert professional input on market rents and having a professional handle locating a tenant might mean you can get higher rents, which means a professional leasing agent likely will end up covering all or part of their cost because of increased rents.
HOW MANY RENTAL UNITS IN 23832 DO YOU OWN?
As the total homes you own multiplies, so does your workload. The more renters you have, the more maintenance issues, tenant complaints, and vacancies you will have to handle. Additionally, if your units are dispersed across multiple locations, your time spent will increase as you will have to oversee the cash flow of each single investment home as well as drive from property to property to resolve concerns.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Management ?
You’ve figured out that greatrental agentswho provide service to the 23832 area in Richmond aren’t without cost.
Residential property management companies will charge a fee, ballpark, between 5% and 9% of the monthly rents for the house. The typical fee for a single family investment is about 8-10%. The charge for a building of 10 units on up is usually between 4% and 8%.
If your home is empty, 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.
One thing to keep in mind: Having expert professional input on market rents and having a professional 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 fee because of increased rents.
WILL YOU HAVE THE TIME TO CARE FOR YOUR RENTAL HOME near the 23832 area?
If you have a full-time job while you are looking after a rental property and simply cannot give your your rental home the energy it requires, the profitability of your investment may depend on hiring a professional property management company in Richmond
Additionally, realize that time is definitely money and overseeing a rental home takes time. If you feel like the day to day obligations of leasing management are stepping on on time that could be more profitably spent making more money at your full time job, or looking for other properties, employing an outside property management firm may be the right move for you.
HOW WILL A PROPERTY MANAGER HELP ME MANAGE MY HOUSE NEAR 23832?
Residential property managers who service the 23832 area can do a number of things for you as the home investor, which may include the following areas:
SUGGEST AND SUPERVISE VENDORS
Residential property management pro’s should be able to offer recommendations on repairs and cosmetic improvements that maximize profitability while providing excellent return on investment.
Many they are responsible for setting the length of the agreement and ensuring it has all the needed provisions to protect the owner. This includes determining the amount of damage reserves required.
TAKES CARE OF TAXES
The property manager may assist the house owner with knowledge of how to file taxes for the home. The rental agent may additionally mail in taxes for the property
When a renter does not pay rent or otherwise violates the terms of the lease, the leasing agent knows understands the proper way to file and move ahead with an eviction.
At times when there is a problem needed, the leasing agent may attend to it themselves or will employ someone to take care the issue it. They sometimes have a screened network of reliable electricians,carpenters,plumbers and other vendors.
PERFORM CAREFUL INSPECTIONS
You want to be sure to have before and after photos and written documentation, so you can accurately take care of renter deposits and disputes when they leave your home. Many renters will act dumbfounded when you remove charges from their deposit, so having accurate records will help cut down on the amount of arguing they do with you.
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations leasing 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 physical structure are in need of upgrade, they may use their discretion to order repairs or similar without additional approvals. Upkeep of Records- the leasing agent is required to complete documentation regarding the home. This should include all income and expenses; lists of all inspections, fully executed agreements, repair requests, any problems noted, notation of maintenance done, costs of repairs, maintenance charges, documentation of rent paid and insurance fees.
OFFER WISE REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different policies such as accepting pets, allowing smoking etc. A few things are very specific to the Richmond area, so having a local market expert who knows the 23832 area in particular is crucial.
This is where a leasing agent earns their keep. Rental management companies make sure you get paid by collecting rent each month on time and strictly enforcing late penalties.
Professional property managers are many times engaged to look after vacant houses to make sure there has been no destruction and to oversee routine maintenance. They also make sure vendors and other outsourced workers are finishing their work in a timely manner.
At times when there are repairs needed, the property manager must handle it themselves or may employ a third party to handle the issue it. They many times have a big black book full of licensed electricians,carpenters,plumbers and other vendors.
At times when there are repairs needed, the rental agent may handle it themselves or will hire a third party to handle the problem it. They sometimes have a large black book full of reliable carpenters,plumbers,electricians and other contractors.
RESPONSIBLE FOR MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations leasing agents are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the property managermust operate within the set budget guidelines for the property. In particular emergency situations when the occupants or home are in danger, they may take action to order repairs or likewise without further delays. Upkeep of Records- the leasing agent should keep thorough paperwork regarding the property. This might include all income and expenses; records of all inspections, signed leases, maintenance requests, any complaints, records of repairs, costs of repairs, maintenance expenses, documentation of rent collection and insurance charges.
Provide financial management services Handle payment on behalf of the owner (Mortgage, insurance, homeowner association dues, etc.) Specific accounting of expenses via invoices and receipts Preserve all historical paperwork (paid invoices, agreements, inspection documentation, warranties, etc.) Deliver yearly reports, structured for tax needs as well as required tax paperwork including a 1099 paperwork Educate owner on relevant tax write offs related to their rental property. Prepare easy to read monthly cash-flow statements which provide a detailed breakdown of income and itemized expenses
QUESTION: What are Advertising Charges?
Some property management companies charge a marketing fee. This is an upfront fee to advertise your vacant home. This fee is normally $$150-350. Many companies don’t charge this charge, so shop around!
Empty House charge Some firms charge One month’s payment up front. You could run into this charge if you are attempting to engage the leasing agency while the investment property is empty. This gives them the money to pay a realtor a commission for finding a renter in the property, 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: What is a New Tenant Placement or “Lease up” Charge?
Some rental agencies in the 23832 area might charge a new tenants placement charge or have a extra commission incentive for getting a tenant into an agreement. Afee of 50 to 100 % of the first month’s rent for any new renter placed is not atypical. Nevertheless, you shouldn’t generally bump into high multiple up-front charges.
Normally a lease up fee is not due until the renter is found, meaning you don’t need to come out of pocket to pay this.
QUESTION: How May a Residential Property Management Firm help an owner with the Tenant Move In Process?
- Draw up rental documents
- 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 renter 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: How Can a Residential Property Company Help an owner with Property Standard Maintenance?
Property managers are responsible for managing preventative home maintenance to keep your home in top notch condition. Some of things that can be under consideration:
- Provide and oversee a company maintenance team
- Establish a preventative maintenance policy to identify and handle repair needs
- Identify a network of licensed, bonded and legally insured contractors who have been reviewed for good bidding and good work that is up to code.
- Delegate work to various parties such as (in-house employees, handyman and professional contractors) based on who will do the best job for an excellent price.
- Oversee outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Set up and monitor a 24/7 emergency repair hotline
- Larger renovation or remodeling projects
- Offer suggestions on how the project can maximize rental profits.
- Prep initial pricing estimates
- Get several different quotes for the project
- Act as general contractor overseeing the work
Question: What Is The Normal Term Of A Property Management Agreement?
Usually, a landlord signs a contract with a leasing agency for a certain length of time – 12 or 24 months, for example – with an option to renew. Agreements could be prepared so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the property management company is in the breaking of the contract in any way.
Question: Do all leasing agencies charge basically the same way?
Not all fee structures are identical. Some residential property management in the 23832 area may charge a flat per-month 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 fluctuate depending on the size and number of properties you own.
To illustrate, if you own several houses, you may get a quantity discount that a person with a single unit or apartment might not receive.
QUESTION: Do Rental Agencies Handle Evictions in the 23832 area?
- Preparing relevant documents to start and process an unlawful detainer lawsuit
- Representing owner in court
- Coordinating with police enforcement to remove tenant and renters things from unit
Question: Should I attempt to save cash by going FRBO? Or hiring the least expensive leasing agent possible?
Answer: With the best unit managers, paying a little bit more is a wise investment, because it helps increase the value of your home, and they help retain quality renters; studies have shown employing a investment property agentcan reduce your vacancy rate by 50%. Conversely, going lowball with a property management company can wind up being very expensive.
QUESTION: What is a New Renter Placement or “Lease up” Charge?
Some property management companies in the 23832 area might charge a new tenants placement charge or have a bonus structure for getting a renter into a lease. Acharge of 50 to 100 % of the first month’s rent for any new tenant placed is not abnormal. However, you should not normally bump into high multiple up-front charges.
Normally a lease up fee is not due until the tenant is signed, which means you don’t have to pay out of pocket to pay this.
QUESTION: What types of Maintenance can leasing agencies help with?
Some rental agencies in the 23832 area have their own maintenance crews, full-time. The majority of subcontract this work out to miscellaneous vendors. Some leasing agencies charge a fixed fee to oversee any work done by outside vendors. Some will add on to the contractors invoice. Make sure you know how it works with your property management company!
Question: What are Miscellaneous fees made by property management companies?
At times, you could see some costs passed on to you – especially where the manager is charging a low monthly %. Examples might include an advertising fee in connection with placing a renter, a yearly inspection fee, and some sort of reserve, so that the management firm has some cash on hand to handle unanticipated, but immediate, costs.
You may want to look into how you share pet deposits collected and bad check charges (basically whomever gets stuck with the greatest amount of 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.
What can a RichmondProperty Management Agency Do to Market Your Property?
- Get home ready for rental
- Clean home and maximize interior appeal
- Manage yard to emphasize curb appearance
- Create ads specifically created for the home and marketing platform.
- Some of the platforms often used are:
- For pay and no fee rental listing websites
- Print magazines
- Install a lock box
- MLS listings
- Coordinate with other realtors and property management agents to locate a tenant
- Provide a 24-hour hot-line where potential renters can listen to specific information about the home
- Take phone calls from prospects for questions and viewings
- Meet potential 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 payment
Question: Do all rental agencies charge basically the same way?
Not all pricing structures are identical. Some rental agencies in the 23832 area may charge a flat per-month rate – which again differs according to area, duties performed, and the total value of the house – while others charge a percentage rate, as noted above. Price can also change depending on the size and quantity of properties you own.
For example, if you own a few homes, you might get a “bulk” discount that a person with a single house or apartment might not get.
QUESTION: What is a New Tenant Placement or “Lease up” Charge?
Some residential property management companies in the 23832 area might charge a new renters placement charge or have a bonus structure for getting a tenant into an agreement. Acharge of 50 to 100 % of the first month’s rent for any new renter placed is not atypical. Nevertheless, you should not normally run into significant multiple up-front charges.
Typically a placement charge is not paid until the tenant is found, which means you don’t need to come out of pocket to pay this.