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 normally on residential properties (but commercial property management companies are out there certainly. Property rental agencies serving the Hopewell area offer a variety of services to help you renting your home. It’s an overwhelming punchlist of jobs that a good Property Management will deal with; in fact (if you’re a detailed follow through kind of people person, you may even want to consider 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?”
Long Time Property Managemet RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Handle contracts
- Keep you out of jail by helping you follow Fair Housing laws
- Open your home to interested 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
- Help with evictions
- Respond to renter questions
- And a lot on top of that.
It’s everything from soup to nuts! Factors to consider if you are considering if you should rent your house on your own or hire a Property Management near the Hopewell area.
HOW MANY RENTAL UNITS IN Hopewell DO YOU HAVE TO MANAGE?
As the number of homes you own multiplies, so does your workload. The more tenants you have, the more maintenance issues, renter complaints, and empty properties you will have to deal with. In addition, if your homes are spread across multiple cities, your time commitment will go up as you will have to oversee the issues of each individual rental as well as drive from property to property to handle issues.
IS THERE THE MONEY TO PAY A Property Management ?
You’ve figured out that goodleasing agentswho provide service to the Hopewell area in Richmond aren’t without cost.
Residential property management companies will charge a fee, roughly, between 4% and 10% of the monthly rents for the home. The usual fee for a single family rental home is about 8-10%. The charge for a property of 10 units or more is on average between 3% and 8%.
If your home is not occupied, it’s not unusual to pay a lease up 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 one month’s rent.
Something to consider: 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 professional rental agent likely will end up covering all or part of their charge because of higher rents.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondreal estate, but don’t know a single thing about leasing management, hiring a professional Property Management can be a good choice for you. Figuring it out on the job can become very costly.
For a property investor who is just beginning, hiring a sketchy repairman or taking too long to fill a vacancy can quickly eat into your profits. There are huge legal liability concerns you can stumble on if you aren’t educated about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of property management fees!
HOW HIGH IS YOUR VACANCY RATE?
Excellent Property Management are capable finding and screening renters quickly and will have a network of capable, cost effective Richmondmaintenance companies to handle difficulties. Most certified property managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
DO YOU HAVE ANY PROPERTY MANAGEMENT EXPERIENCE?
If you want to deal in Richmondrental properties, but don’t know anything about property management, hiring a professional Property Management can be a smart choice for you. Learning on the job can become very costly.
For a single family home investor who is just beginning, hiring a bad repairman or taking too long to fill an empty home can quickly eat into your potential income. There are huge legal liability issues you can encounter if you don’t know about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of rental management fees!
HOW WILL A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOME NEAR Hopewell?
Residential property managers who service the Hopewell area may do many things for you as the home investor, which may include the following:
One of the main responsibilities of the residential property managers is to manage renters. Managers are engaged in all roles, from finding the renters and dealing with complaints to beginning evictions.
OVERSEEING MOVE OUTS
When a renter ends his tenancy, the agent is responsible for inspecting the house, looking for issues and determining what portion of the security reserves willl be refunded to the renter. After move out, the rental agent is in charge of cleaning the home, fixing any issues and finding a new renter.
SUGGEST AND SUPERVISE VENDORS
Home management agents should be ready to suggest vendors to do repairs and cosmetic work that maximize monthly rent while providing good return on investment.
IN CHARGE OF OVERSEEING THE BUDGET/MAINTAINING DOCUMENTATION
In most situations property managers 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 tenants or property are in need of upgrade, they may use their discretion to order repairs or likewise without concern for the budget. Maintaining Documents- the rental agent is required to thorough documentation about the the house. This might include all income and expenses; notations of all inspections, fully executed leases, upgrade requests, any problems noted, records of repairs, charges for repairs, maintenance costs, documentation of rent collected and insurance fees.
Provide accounting services Make payments on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Detailed documentation of expenses via invoices and receipts Preserve all past paperwork (paid invoices, agreements, inspection reports, warranties, etc.) Oversee annual reporting, organized for tax needs as well as mandatory tax paperwork including a 1099 forms Educate owner on appropriate tax deductions related to their rental property. Provide formatted monthly cash-flow reports which offer a detailed accounting of income and detailed expenses
SUGGEST AND SUPERVISE VENDORS
Residential property management professionals should be able to offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing great return on investment.
RE-LEASE YOUR HOUSE
Once agreement terminates persuade current renters to re-up their rental agreement for another rental period
This is where a rental agent earns their money! Rental management agencies make sure you get paid by collecting rent every month on time and strictly enforcing late penalties.
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.
Professional leasing agents are often engaged to observe vacant houses to ensure there has been no destruction and to perform regular maintenance. They also make sure contractors and other repairmen are finishing their work in a timely manner.
RE-LEASE YOUR INVESTMENT HOME
Once agreement terminates get existing tenants to continue their lease for one more rental period
DEALING WITH MOVE OUTS
If a tenant moves out, the agent is responsible for inspecting the unit, looking for problems and determining what amount of the security deposit willl be returned to the tenant. After move out, the property manager is responsible for cleaning the home, fixing any issues and finding a new tenant.
PROPERTY MANAGEMENT COMPANIES HELP YOU DECIDE MARKET RENT LEVELS
Rental managers are responsible for setting the initial rent level, and collecting payment from tenants. Top level rental agents know how to set the market rent level todirect renters to your home. They hopefully have a specific understanding of the Richmond area, where the home is located and have reviewed at comparable homes in the general Richmond area.
Most rental agents are tasked with for promoting the home to fill vacancies. Residential property managersknow where to promote and what to include in their advertisements. Rental agents also understand what is motivating to tenants, so they can suggest making cosmetic improvements to help makeover the property.
Question: What are Miscellaneous fees made by property management companies?
At times, you might see some charges passed on to you – especially when the manager is charging a small monthly %. Illustrations could include an marketing fee in connection with finding a tenant, an annual inspection charge, and some sort of reserve, so that the management firm has some cash on hand to handle unexpected, but urgent, expenses.
You may want to look into how you split up pet deposits collected and bad check charges (basically whomever gets stuck with the most bank costs deserves 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 Services Are Included in A Typical Property Management Contract?
Make certain you determine precisely what maintenance services are a part of with your fees. It may be that when something needs repair, some labor charges are a part of with your monthly flat rate or percentage charge (for example, changing out light bulb and fixing faucet handles) while others are billed individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be clearly stated in your agreement. Keep in mind that these charges could require you toincrease your rental rate, which could make finding – and keeping – renters more difficult. And remember, house management charges can be negotiated. Depending on how much you’re willing to pay, you may be able to get a lower price by giving up particular services and handling them on your own.
QUESTION: What are Marketing Charges?
Some leasing agencies charge a advertising fee. This is an initial fee to market your empty home. This fee is normally $250-400. Many agencies don’t charge this charge, so shop around!
Vacant Home fee Some companies charge One month’s rent up front. You could run into this charge if you are attempting to hire the residential property management firm while the unit is vacant. This gives them the cash to pay a real estate agent a commission for placing a tenant in the house, or to pay the costs of advertising, repeatedly showing the unit to prospective tenants, as well as the cost of preparing lease paperwork (which can take a long time).
QUESTION: Will Leasing Agencies Handle Evictions in the Hopewell area?
- Filing necessary documents to initiate and complete an eviction lawsuit
- Representing owner in court
- Coordinating with law enforcement to remove renter and renters belongings from property
Question: Should I attempt to save cash by managing my home myself? Or finding the cheapest rental agent possible?
Answer: With the best property managers, paying a little bit more can be a smart investment, because it helps increase the value of your home, and they help attract top notch tenants; studies have proven hiring a unit managercan reduce your vacancy rate by 50%. Conversely, going cheap with a property management company can end up being very costly.
QUESTION: Will Leasing Agencies Take Care of Evictions in the Hopewell area?
- Preparing relevant documentation to start and complete an eviction action
- Representing owner in court
- Coordinating with law enforcement to evict tenant and renters possessions from house
Question: Do residential property management help with evictions?
Some renters are deadbeats. Some lose their jobs and become unable to pay their rent, while others turn out to be irresponsible and a problem or pain in the neck at your investment property. Most certainly a unit agent will levy a charge to initiate the tedious process of evicting a renter which is typically roughly $350-$500 per eviction, not counting any relevant legal fees.And an evictionoftentimes take a couple months, so be prepared to not receive any rental income until they are out. On top of that, you could find there is repair work to be done on your home.
Typically, you are better off giving your tenant cash incentives to leave the unit early and skip taking them to court, as aggravating as that might seem. You can avoid many difficult situations with painstaking renter screening done beforehand.
QUESTION: How Might a Residential Property Management Company Help With Tenant Screening and Selection?
Screening Applicants- A property manager will sort through the potential tenant applications to find the applicant that is the best fit for your property. They have a consistent vetting process, which includes running credit checks and criminal background checks, which can decrease your possibility of being charged with discrimination. Professional residential property agents have seen many tenants, so they have a better idea of how to identify the correct applicants; those who will pay their obligations on time, have a longer tenancy and create much fewer issues. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Grade tenant per pre-defined renter standards Communicate with tenants who were declined
Question: What do Inspections of my home cost?
Some leasing agencies will charge for inspections, some will give you one or more without charge per year. This is a visual inspection of your investment property to see how the renter is treating it. Fees can range from $100-175 per inspection.
QUESTION: What types of Maintenance can property management companies help with?
Some property management companies in the Hopewell area have their own maintenance crews, full-time. The majority of subcontract this work out to miscellaneous vendors. Some rental agencies charge a flat rate to manage any work with subcontractors. Some will add on to the contractors invoice. Make certain you know how it works with your property management firm!
Question: What are Miscellaneous charges made by property management companies?
At times, you might see some costs passed on to you – especially where the agent is charging a small monthly percentage. Illustrations could include an marketing charge in connection with finding a renter, a yearly inspection charge, and some sort of reserve, so that the management agency has some cash on hand to handle unexpected, but immediate, expenses.
You may want to look into how you split up pet deposits collected and bad check fees (generally whomever gets stuck with the greatest amount of bank fees should get the bulk 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 are Other fees made by property management companies?
At times, you may see some costs passed on to you – especially where the agent is charging a low monthly %. Illustrations might include an marketing fee in connection with finding a tenant, an annual inspection fee, and some sort of reserve, so that the management firm has some money on hand to take care of unanticipated, but urgent, costs.
You might want to check into how you divide pet deposits collected and bad check fees (generally whoever gets stuck with the most bank costs should get the bulk 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: How Might a Residential Property Management Firm Help With Renter Vetting and Selection?
Vetting Applicants- A residential property agent will screen the potential renter applications to find the applicant that is the best fit for your house. They have a reliable vetting process, which includes running credit checks and criminal background checks, which can reduce your likelihood of being accused of discrimination. Professional leasing agents have seen many renters, so they have a good concept of how to identify the correct tenants; tenants who will pay their bills on time, have a longer tenancy and create fewer issues. Perform a background check to authenticate identity, wages, credit history, rental history, etc. Grade renter per pre-defined renter criteria Communicate with tenants who were turned down
Question: What are typical procedures regarding Late Payment Fees?
Occasionally 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 somehow.