Regardless if you describe them as Property Management, home management firms, or rental property management agencies….it all means the same thing. The focal point is normally on residential properties (but commercial property management companies are out there certainly. Property rental agencies serving the 23842 area offer a variety of services to help you renting your home. It’s a long list of jobs that a expert Property Management will oversee; in fact (if you’re a good 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
- Deal with contracts
- Keep you out of jail by helping you obey housing laws
- Open your property to prospective tenants 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 timely
- Help with evictions
- Answer tenant questions
- And a lot more than that.
It’s everything from A to Z! Issues to consider if you are considering if you should rent your house on your own or hire a Property Management near the 23842 area.
DO YOU HAVE A HIGH VACANCY RATE?
Excellent Property Management are skilled at locating and screening renters rapidly and will have a network of reliable, cost effective Richmondmaintenance companies to deal with difficulties. Most certified rental agents will also comprehend landlord-tenant law, thereby reducing the risk of legal problems.
DO YOU HAVE THE TIME TO MANAGE YOUR RENTAL HOME near the 23842 area?
If you have a full-time job while you are looking after a rental property and simply can’t give your your rental home the attention it requires, the viability of your investment might depend on hiring a good property management company in Richmond
In addition, realize that time is definitely money and taking care of a rental home takes time. If you feel like the every day duties of property management are impinging on time that could be more enjoyably spent making more money at your day job, or hunting down other property to buy, hiring an outside property management agency may be the right move for you.
IS YOUR VACANCY RATE HIGH?
Good Property Management are skilled at locating and reviewing renters quickly and will have a network of reliable, affordable Richmondmaintenance companies to deal with problems. Most certified leasing agents will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management ?
You’ve discovered that greatleasing agentswho provide service to the 23842 area in Richmond aren’t without cost.
Rental firms will charge a fee, ballpark, between 4% and 9% of the monthly gross income for the property. The usual fee for a single family investment is about 8-10%. The charge for a property of 10 units on up is on average between 4% and 8%.
If your home is not occupied, it’s not unusual 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 consider: Having expert professional input on market rents and having a pro handle locating a tenant could mean you might get higher rents, which means a professional property manager may end up covering all or part of their fee because of higher rents.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondinvestment homes, but don’t know anything about property management, hiring an experienced Property Management can be the right choice for you. Figuring it out on the job can become very draining financially.
For a single family home investor who is just beginning, hiring a bad repairman or taking too long to fill an empty home can easily eat into your profits. There are huge legal liability problems you can encounter 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!
HOW WILL A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE NEAR 23842?
Rental management companies who service the 23842 area may do a number of things for you as the homeowner, which could include the following:
RESPONSIBLE FOR OVERSEEING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the rental agentmust operate within the established budget guidelines for the building. In certain emergency situations when the occupants or home are in disrepair, they may take action to order fixup or likewise without further delays. Maintaining Paperwork- the rental manager should keep detailed documentation regarding the house. This should include all income and expenses; lists of all inspections, signed agreements, repair requests, any complaints, notation of repairs, charges for fix up, maintenance costs, documentation of rent collection and insurance costs.
SUGGEST AND SUPERVISE VENDORS
Residential property management agents should be able to recommend vendors to do repairs and small improvements that maximize monthly rent while providing good ROI.
Most leasing agents are tasked with for promoting the home to fill vacancies. Residential property managersare aware of to advertise and what to include in their advertisements. leasing agents also understand what attracts tenants, so they can suggest making cosmetic improvements to help makeover the home.
TAKES CARE OF TAX PAYMENTS
The rental agent will assist the property owner with understanding on how to file taxes for the home. The rental manager might also mail in taxes for the house
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.
At times when there are repairs needed, the leasing agent may handle it themselves or may contract with a third party to handle the problem it. They often have a large team of reliable carpenters,plumbers,electricians and other vendors.
At times when there are repairs required, the rental manager may handle it themselves or must hire someone to handle the problem it. They often have a vetted black book full of trustworthy carpenters,plumbers,electricians and other types vendors.
One of the main responsibilities of the leasing agents is to manage tenants. Managers are engaged in all capacities, from locating the renters and addressing complaints to initiating the eviction process.
RESIDENTIAL PROPERTY MANAGERS HELP YOU DETERMINE THE CORRECT RENT LEVELS
Leasing agents are responsible for establishing the initial rent level, and collecting rent from tenants. Top level rental agents know how to set the market rent level toattract renters to your investment property. They hopefully have a specific understanding of the Richmond area, where the property is located and have reviewed at comparable houses in the general Richmond market.
Nearly all they are compensated to address maintenance situations, noise complaints and possess the needed relationships to take care of difficult situations.
At times when there are repairs required, the rental manager may attend to it themselves or may hire an outside firm to handle the issue it. They many times have a vetted network of experienced carpenters,plumbers,electricians and other types vendors.
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.
SUGGEST AND SUPERVISE VENDORS
Home management pro’s should be ready to recommend vendors to do maintenance and small work that maximize monthly rent while providing good return on investment.
RESPONSIBLE FOR TAX PAYMENTS
The rental agent will provide the home owner with understanding on how to complete taxes for the home. The rental agent may additionally mail in taxes for the home
What can a RichmondResidential Property Management Firm Do to Market Your Property?
- Get house ready for rental
- Clean house and emphasize interior appeal
- Manicure yard to emphasize curb appeal
- Develop ads specifically created for the home and advertising medium.
- A few of the mediums commonly used are:
- Paid and free rental listing websites
- Print magazines
- Installing a lock box
- MLS listings
- Property fliers
- Coordinate with other realtors and leasing agents to locate a tenant
- Provide a 24-hour phone where prospective tenant can listen to detailed information about the property
- Take phone calls from prospects for questions and showings
- Welcome prospective tenants for showings throughout the week and weekend.
- Provide potential tenants with rental applications that are legally in line with government regulations
- Gather applications with application payment
QUESTION: How Can a Home Management Company Assist With Tenant Screening and Selection?
Vetting Tenants- A rental agent will sort through the prospective tenant applications to find the tenant that is the ideal fit for your property. They have a reliable screening process, including running credit checks and criminal background checks, which can reduce your likelihood of being accused of bias. Experienced leasing managers have seen hundreds, even thousands, of tenants, so they have a good concept of how to select the correct applicants; renters who will pay their rent on time, have a longer tenancy and create fewer headaches. Perform a background check to authenticate identity, income, credit history, rental history, etc. Evaluate applicant per pre-decided tenant standards Communicate with applicants who may have been turned down
QUESTION: How Can a Residential Property Management Agency assist an owner with the Tenant Move In Procedure?
- Initiate rental agreement
- Pin down move in date with renter
- 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 initial month’s rent and security deposit
Question: What are typical procedures regarding Late Payment Fees?
At times renters pay date. Look at your agreement to see if those late payment charges go to you as the owner, to the property management company, or are shared in some way.
QUESTION: How Might a Property Management Company Assist an homeowner with House Routine Maintenance?
Leasing agents are responsible for managing preventative home maintenance to keep your home in excellent condition. Examples of what may under consideration:
- Direct and oversee an in-house maintenance crew
- Decide on a preventative maintenance plan to identify and deal with repair needs
- Identify a team of licensed, bonded and completely insured contractors who have been reviewed for fair bidding and good work that meets code.
- Assign jobs to various parties such as (in-house employees, handyman and professional contractors) based on who could do an excellent job for an excellent price.
- Oversee outdoor areas
- Leaf and snow removal
- Removing garbage and debris
- Set up and oversee a 24/7 emergency repair hot-line
- Larger renovation or remodeling projects
- Take care of suggestions on how the project can maximize rental income.
- Take responsibility for initial pricing estimates
- Secure several independent bids for the work to be done
- Perform as general contractor managing the work
Question: What do Inspections of my home cost?
Some rental agencies will bill for inspections, others will give you an inspection or more free annually. This is a visual inspection of your home to see how the tenant is keeping it up. Charges can range from $50-225 for each inspection.
Question: Should I attempt to save cash by managing my home myself? Or hiring the least expensive leasing agent I can?
Answer: With the best property agents, paying a little bit more is a wise investment, because it helps increase the value of your home, and they help attract quality renters; studies have shown hiring a home agentcan cut your vacancy rate by 50%. On the other hand, going lowball with a property management company can wind up being very expensive.
Question: What do do rental managers charge?
Answer: As you might guess, the answer is “it depends.” Leasing agencies vary widely, and much of the answer depends on what a company does for you.. Just what do you want a rental manager to do for you?
Normal Percentage of Rent Agreement. As a baseline, expect to be charged a normal Leasing agency between 7 – 10% of the monthly rent of the house. This is referred to as management fee, or monthly management payment. Usually the greater you charge for rent, the lower the percentage is. For example if your rental charges are $2,100 per month for your property, you will normally pay a lower percentage fee than another person whose property rents for $800 per month.
You are not charged this percentage charge until rent is collected. Look carefully at your contract regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the charge is tied to rent received, it means the Leasing agency won’t get paid if you don’t get paid. On the other hand, if it’s determined by ‘rent due’, then you owe whether or not rent is received from the tenant normally.
Fixed Payment Agreements
Some agencies may charge, say,$75- $150 per month flat rate. There is nothing dictated bylaw in this; it’s decided by the firm owner.
You wouldn’t owe money on a flat rate contract normally until rent is collected.
Question: What do do rental managers cost?
Answer: As you might guess, the answer is “it depends.” Residential property management companies vary a lot, and a good deal of the response depends on what a firm does for you.. Exactly what do you want a property manager to do for you?
Normal % of Rent Contract. As a baseline, expect to be charged a normal Rental management agency ranging from 7 – 10% of the monthly rent of the property. This is called a management fee, or monthly management charge. Usually the higher you charge for rent, the lower the percentage fee is. For example if your rent is $2,300 per month for your rental house, you will usually pay a lower percentage fee than another person whose unit rents for $800 each month.
You do not pay this percentage charge until rent is collected. Look carefully at your contract regarding whether the management charge is based on ‘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. On the other hand, if it’s based on ‘rent due’, then you owe whether or not rent is received from the renter normally.
Flat Rate Agreements
Some firms may charge, say,$75- $150 each month flat rate. There is nothing dictated bylaw in this; it’s decided by the firm owner.
You would not owe money on a flat rate contract typically until rent is collected.
Question: What are typical procedures regarding Late Payment Fees?
At times tenants pay after the due date. Look at your contract to see if those late payment fees go to you as the owner, to the residential property management, or are shared in some way.
Question: What are Other fees made by property management companies?
In some cases, you might see some costs passed on to you – especially where the agent is charging a small monthly percentage. Illustrations could include an advertising charge in connection with finding a tenant, an annual inspection charge, and some sort of reserve, so that the management firm has some money on hand to handle unexpected, but immediate, costs.
You may want to check into how you split up pet deposits collected and bad check charges (generally whoever gets hit with the most bank costs 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: What is a New Tenant Placement or “Lease up” Fee?
Some residential property management companies in the 23842 area might charge a new renters placement fee or have a bonus structure for getting a tenant into an agreement. Acharge of 50 to 100 percent of the first month’s rent for any new tenant placed is not abnormal. Nevertheless, you shouldn’t normally bump into unreasonable multiple up-front charges.
Normally a placement fee is not paid until the tenant is signed, which means you don’t need to come out of pocket to pay this.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a unit manager in the 23842 area is creating into a partnership. In the long run, the charges aren’t as critical as the communication between you and the manager and quality of the service your manager delivers. A competent company can take control of the oversight of the property, for example, and turn out getting you much more rental value and price appreciation than you might be possible. However, you need to be prepared to provide them the resources to do it.
Question: Should I try to save money by managing my home myself? Or hiring the cheapest rental agent I can?
Answer: With the best unit agents, paying a little bit more is a wise investment, because it helps increase the value of your unit, and they help attract quality tenants; studies have proven hiring a unit managercan reduce your vacancy rate in half. On the other hand, going cheap with a leasing agency can wind up being very expensive.