Regardless if you call them Property Management, home management firms, or rental property management agencies….it all means the same thing. The emphasis is normally on residential properties (but commercial property management agencies are out there of course. Property rental agencies serving the 23860 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 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?”
Home Management RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a tenant
- Handle legal contracts
- Keep you out of jail by helping you follow government housing laws
- Open your property to possible renters in order to rent your house
- Oversee move in and move out
- Collect monies and get you paid!
- Handle collections if payments are late
- Help with evictions
- Deal with tenant inquiries
- And a lot on top of that.
It’s everything but the kitchen sink! Factors to contemplate if you are questioning if you should rent your house on your own or hire a Property Management near the 23860 area.
DO YOU HAVE LIMITED PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondreal estate, but don’t know anything about residential property management, hiring a professional Property Management can be the right choice for you. Learning on the job can become very draining financially.
For a property investor who is starting out, hiring a sketchy repairman or taking too long to fill an empty home can rapidly eat into your potential income. There are large legal liability concerns you can stumble on if you aren’t aware about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
HOW MANY INVESTMENT PROPERTIES IN 23860 DO YOU OWN?
As the number of units you own multiplies, so do your responsibilities. The more tenants you have, the more maintenance issues, renter complaints, and vacancies you will have to deal with. On top of that, if your units are spread across multiple cities, your energies committed will multiply as you will have to manage the cash flow of each individual property as well as drive from property to property to resolve issues.
HOW CLOSE IS YOUR INVESTMENT PROPERTY?
The more distance between you and your property,the more difficult it is to manage. If your main address is in Georgia and your rental property is in the 23860 area, it will be harder for you to find tenants,to handle tenant complaints,to quickly respond to difficulties, to handle maintenance concerns, and even to ensure payment is collected on time.
The total time it takes you to go back and forth the property and the cost of getting there will also start to bite. In situations such as these, hiring a professionalRichmond property management agency? can make some sense and may actually save you some cash.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to deal in Richmondrental properties, but don’t know the first thing about rental management, hiring an experienced Property Management can be the right choice for you. Figuring it out as you go can become very costly.
For a real estate investor who is getting going, hiring a bad repairman or taking too long to fill a vacancy can easily eat into your profits. There are big legal liability concerns you can encounter if you aren’t aware about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Management ?
You’ve discovered that goodrental agentswho provide services to the 23860 area in Richmond aren’t free.
Property management companies will charge a fee, roughly, between 5% and 9% of the monthly rents for the house. The typical fee for a single family investment is estimated at 8-10%. The fee for a building of 10 units or more is on average between 3% and 7%.
If your home is empty, it’s normal to pay a lease up fee to procure and place a new tenant in your rental home. Depending on the property management company this can range from 50%-100% of a month’s rent.
Something to consider: Having expert professional input on market rents and having a pro handle locating a renter could mean you might get higher rents, which means a professional leasing agent might end up covering all or part of their charge because of increased rents.
HOW CAN A PROPERTY MANAGER HELP ME MANAGE MY HOME IN 23860?
Property managers who service the 23860 area may do a number of things for you as the home investor, which could include the following areas:
COLLECTING RENTAL PAYMENTS:
This is where a property manager earns their money! Home management firms make sure you get your money by collecting rent each month on time and strictly enforcing late charges.
Professional rental agents are frequently employed to overlook empty properties to make sure there has been no vandalism and to perform regular maintenance. They also make certain vendors and other outsourced workers are finishing their work in a timely manner.
DEALING WITH EVICTIONS
When a tenant does not pay on time or otherwise violates the terms of the agreement, the rental agent realizes understands the proper approach to legally respond and move forward with an eviction.
OVERSEE MAINTENANCE AND REPAIRS
Rental agents are typically in charge of the physical care of the house, including regular maintenance and unexpected work to be done.
This is where a rental agent earns their keep. Home management firms make sure you get paid by collecting rent each month on time and strictly enforcing late charges.
Nearly all agents are compensated to deal with maintenance requests, noise disturbances and have the required relationships to handle difficult situations.
KNOWLEDGE OF LANDLORD-TENANT LAW AND FEDERAL REAL ESTATE LAW
A experienced rental manager will have a complete understanding of local and national laws regarding the proper ways to: Screening the applicants. Escrow security deposits End a rental agreement Evict a tenant Obey with home safety regulations Advise in case of of a legal dispute or litigation Send owner to an experienced attorney when required Be up on and comply with the most recent local, state and federal laws that apply to renting and maintaining rental properties.
Most property manager are responsible for promoting the property to fill vacancies. Rental agentsknow where to promote and what to include in their ads. Rental agents also understand what is motivating to renters, so they may suggest making cosmetic improvements to help improve the property.
At times when there are repairs required, the property manager must attend to it themselves or will employ someone to take care the problem it. They often have a large list of licensed plumbers, electricians, carpenters and other types contractors.
RE-LEASE YOUR PROPERTY
Once lease terminates ask existing renters to continue their rental agreement for one more rental period
PROPERTY MANAGEMENT COMPANIES HELP YOU DETERMINE THE CORRECT RENT LEVELS
Property managers are responsible for establishing the beginning rent level, and collecting rent from renters. Top level rental agents know how to set the right rent level todirect tenants to your investment property. They hopefully have a specific understanding of the Richmond area, where the property is located and have reviewed at comparable homes in the general Richmond area.
PERFORM PROFESSIONAL INSPECTIONS
You want to be sure to have before and after photos and written documentation, so you can easily handle damage deposits and differences of opinion when they leave your home. A good number of renters will act shocked when you take out charges from their deposit, so having careful documentation will help reduce the amount of disagreeing they do with you.
OVERSEE MAINTENANCE AND MINOR UPGRADES
Rental property management agents are typically responsible for the physical oversight of the property, including regular maintenance and unexpected work to be done.
INCREASING OR ADJUSTING RENT:
The leasing 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.
Question: What are typical procedures regarding Late Payment Charges?
At times renters pay after the due date. Look at your paperwork to see if those late payment fees go to you as the owner, to the property management company, or are shared in some way.
What can a RichmondHome Management Agency Do to Market Your Property?
- Get property ready for renting out
- Clean house and emphasize interior appeal
- Manage landscaping to increase street appearance
- Create marketing materials specifically created for the house and marketing medium.
- Some of the mediums normally utilized are:
- Paid and free rental listing websites
- Print magazines
- Installing a lock box
- MLS listings
- Property fliers
- Work with other professionals and rental agents to find a renter
- Provide a 24-hour hot-line where interested tenant can hear to specific information about the home
- FieldAnswer calls from prospects for questions and showings
- Meet potential tenants for showings during the week and weekend.
- Provide interested renters with tenant applications that are legally in line with government regulations
- Gather applications with application fee
QUESTION: How Can a Property Management Firm Help With Tenant Screening and Choosing?
Vetting Applicants- A residential property agent will screen the potential tenant applications to find the tenant that is the ideal fit for your house. They have a proven vetting process, which includes running credit checks and criminal background checks, which can reduce your chances of being charged with bias. Experienced residential property agents have seen many renters, so they have a better idea of how to choose the ideal tenants; tenants 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 renter in relation to pre-decided renter criteria Communicate with applicants who were turned down
QUESTION: How Can a Rental Property Firm Help an homeowner with Home Routine Maintenance?
Rental agents are responsible for overseeing preventative home maintenance to keep your house in good condition. Examples of what may involved:
- Direct and oversee a company maintenance team
- Decide on a preventative maintenance approach to locate and address maintenance issues
- Identify a network of licensed, bonded and completely insured contractors who have been reviewed for fair bidding and excellent work that meets code.
- Assign jobs to various parties such as (in-house employees, handyman and professional contractors) based on who will do the best job for the best price.
- Maintain outdoor areas
- Leaf and snow removal
- Removing trash and debris
- Set up and oversee a 24 hour emergency repair hot-line
- Bigger fix up or rehab projects
- Offer suggestions on how the project can optimize rental income.
- Prepare initial cost estimates
- Solicit multiple independent quotes for the project
- Act as general contractor overseeing the work
QUESTION: Will Residential Property Management Companies Take Care of Evictions in the 23860 area?
- Preparing necessary documents to begin and complete an eviction action
- Representing owner in court
- Interacting with with police enforcement to evict renter and tenant’s belongings from unit
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, 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. Paperwork can 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 contract in any way.
Question: What are typical procedures regarding Late Payment Charges?
At times tenants pay date. Read your paperwork to see if those late payment fees go to you as the owner, to the property management company, or are shared somehow.
Question: How much do rental managers charge?
Answer: As you may guess, the response is “it depends.” Residential property management companies vary a lot, and much of the answer is dependent on what they do for you.. Just what do you want a rental agent to accomplish for you?
Usual Percentage of Rent Contract. As a ballpark figure, expect to be charged a usual Residential property management company between 6 – 10% of the monthly rental value of the property. This is called a management charge, or monthly management fee. Generally the greater you charge for rent, the lower the percentage is. To illustrate if your rental charges are $2,500 per month for your property, you will usually pay a lower percentage fee than someone else whose unit rents for $900 each month.
You do not pay this management fee until payment is received. Look specifically at your contract regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the fee is tied to rent received, it means the Property management company won’t get paid if you don’t get paid. Conversely, if it’s determined by ‘rent due’, then you pay whether or not rent is collected from the renter normally.
Fixed Fee Contract
Some firms may charge, say,$75- $150 per month fixed rate. There is nothing required bylaw in this; it’s determined by the company owner.
You would not owe money on a fixed rate contract normally until rent is received.
Question: How much do property managers charge?
Answer: As you might guess, the response is “it depends.” Leasing agencies vary widely, and a good deal of the response depends on what a firm does for you.. Exactly what do you want a property manager to accomplish for you?
Normal Percentage of Monthly Rent Agreement. As a baseline, expect to be charged a normal Leasing agency between 8 – 12% of the monthly rental value of the home. This is referred to as management fee, or monthly management charge. Generally the greater you charge for rent, the lower the percentage fee is. To illustrate if your rental charges are $2,100 each month for your rental house, you will usually pay a lower percentage fee than another person whose unit rents for $900 each month.
You do not pay this management fee until payment is received. Look carefully at your contract regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the fee is based on rent collected, it means the Property management company won’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 Agreements
Some firms may charge, say,$75- $150 each month flat rate. There is nothing dictated bystatute in this; it’s determined by the property management company owner.
You wouldn’t owe money on a fixed rate contract usually until rent is collected.
QUESTION: What types of Maintenance can residential property management help with?
Some leasing agencies in the 23860 area have in house maintenance employees, full-time. Most subcontract this work out to miscellaneous vendors. Some residential property management charge a flat rate to manage any work done by contractors. Many will add on to the contractors bill. Be sure you know how it works with your investment property management agency!
Question: What are Random charges made by property management companies?
In some cases, you could see some fees passed on to you – especially when the agent is charging a small monthly percentage. Illustrations might include an advertising fee in connection with placing a tenant, an annual inspection charge, and some sort of reserve, so that the management company has some cash on hand to handle unexpected, but urgent, expenses.
You might want to check into how you share pet deposits collected and bad check fees (basically whomever gets hit with the greatest amount of bank costs should get the lion’s share of this one!) Also, notice who gets to keep the income from vending machines and coin-operated washers and dryers, if any.
Question: What are typical procedures regarding Late Payment Charges?
At times renters pay after the due date. Read your agreement to see if those late payment fees go to you as the owner, to the property management company, or are shared somehow.
QUESTION: What are Marketing Charges?
Some rental agencies charge a marketing fee. This is an upfront fee to advertise your empty house. This fee is usually $$150-350. Many agencies don’t charge this charge, so shop around!
Empty House fee Some agencies charge 1 month’s rent up front. You could run into this charge if you’re attempting to engage the leasing agency while the unit is empty. This gives them the cash to pay a real estate agent a commission for placing a renter in the property, or to pay the costs of marketing, repeatedly showing the home to prospective renters, as well as the expense of preparing lease documents (which can take a long time).
Question: Do property management companies help with evictions?
Some tenants just don’t work out. Some become unemployed and become unable to pay their rent, while others prove to be flakey and a disturbance or nuisance at your unit. Most certainly a unit manager will levy a charge to initiate the tedious process of evicting a tenant which is customarily roughly $200-$700 for each eviction, plus any associated courtroom costs.And an evictionoftentimes go on for a few months, so be ready to not receive any rental monies until they move out. In addition, you might find there is repair work to do on your unit.
Generally speaking, you are better off providing your tenant cash incentives to vacate the investment property early and avoid taking them to court, as maddening as that is. You can skip many problem situations with painstaking renter vetting done upfront.