Regardless if you call them a Property Manager, 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 agencies do exist of course. Property rental agencies serving the 23005 area provide a variety of services to help you renting your house. It’s a huge punchlist of tasks that a expert Property Manager will handle; in fact (if you’re a great 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?”
Property Managers RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Locate a renter
- Deal with legal contracts
- Keep you legal by helping you obey housing laws
- Show your property to possible tenants in order to rent your house
- Handle move in and move out
- Collect money and get you paid!
- Handle collections if payments are not on time
- Assist with evictions
- Deal with renter questions
- And so much more than that.
It’s everything from soup to nuts! Items to think about if you are asking if you maybe should rent your home on your own or hire a Property Manager near the 23005 area.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Manager ?
You’ve discovered that top notchrental agentswho provide service to the 23005 area in Richmond aren’t free.
Property management companies will charge a fee, ballpark, between 5% and 10% of the monthly rents for the home. The customary fee for a single family investment is estimated at 8-10%. The cost for a property of 10 units on up is usually between 4% and 7%.
If your home is vacant, it’s typical 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 fluctuate from 50%-100% of one month’s rent.
One thing to consider: Having expert professional input on market rents and having a professional deal with locating a renter might mean you can get higher rents, which means a good property manager may end up covering all or part of their fee because of higher rents.
DO YOU HAVE THE AVAILABILITY TO MANAGE YOUR RENTAL PROPERTY in the 23005 area?
If you work at a full-time job while you are dealing with a rental property and simply cannot give your your rental home the attention it requires, the viability of your investment could depend on paying for a full time property management company in Richmond
Also, realize that time is definitely money and overseeing a rental property takes time. If you feel like the day to day duties of residential property management are impeding on time that could be more enjoyably spent making more money at your full time job, or looking for other property to buy, employing an outside property management firm may be the best move for you.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Manager ?
You’ve figured out that greatproperty managerswho provide service to the 23005 area in Richmond aren’t free.
Property management firms will charge a fee, ballpark, between 4% and 9% of the monthly rents for the house. The typical fee for a single family rental home is closer to 8-10%. The charge for a building of 10 units or more is typically between 5% and 7%.
If your investment property is empty, 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 fluctuate from 50%-100% of one month’s rent.
One thing to keep in mind: Having expert professional input on market rents and having a certified agent handle locating a tenant might mean you get higher rents, which means a great rental agent may end up covering all or part of their charge because of increased rents.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you want to invest in Richmondinvestment real estate, but don’t know the first thing about property management, hiring an experienced Property Manager can be a wise choice for you. Figuring it out as you go can become extremely expensive.
For a single family home investor who is getting going, hiring a sketchy repairman or taking too long to fill a vacancy can rapidly eat into your potential income. There are large legal liability problems you can run into if you don’t know about Fair Housing laws or Federal real estate law. One lawsuit can pay for a lot of leasing management fees!
IS THERE THE MONEY TO HIRE A Property Manager ?
You’ve discovered that top notchproperty managerswho provide services to the 23005 area in Richmond aren’t free.
Rental firms will charge a fee, roughly, between 5% and 9% of the monthly rents for the property. The typical fee for a single family investment is estimated at 8-10%. The cost for a building of 10 units on up is usually between 5% and 7%.
If your investment property is empty, it’s not unusual to pay a tenant finding fee to find and place a new tenant in your rental home. Depending on the property management company this can fluctuate from 50%-100% of one month’s rent.
Something to keep in mind: Having expert professional input on market rents and having a professional agent handle locating a tenant could mean you can get higher rents, which means a great property manager might end up covering all or part of their cost because of higher rents.
HOW CAN A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOME NEAR 23005?
Property management companies who service the 23005 area may do a number of things for you as the home investor, which could include the following areas:
OFFER SOLID REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different issues such as accepting various animals, allowing smoking etc. A few things are very particular to the Richmond area, so having a local market expert who knows the 23005 area in particular is critical.
Most property manager are responsible for marketing the property to fill vacancies. Residential property managersare aware of to promote and what to include in their advertisements. Rental agents also have insight into what interests renters, so they may suggest making cosmetic improvements to help makeover the home.
This is where a leasing agent earns their keep. Home management companies make sure you get your money by collecting rent each month on time and strictly enforcing late charges.
RE-LEASE YOUR HOME
Once agreement expires persuade existing renters to re-up their rental agreement for one more rental period
DEALING WITH LEASES
Many managers are responsible for setting the duration of the lease and ensuring it has all the necessary provisions to look out for the owner. This includes deciding the total of security deposit required.
OVERSEE MAINTENANCE AND MINOR UPGRADES
Rental agents are oftentimes in charge of the physical oversight of the house, including regular maintenance and unexpected repairs.
RE-LEASE YOUR PROPERTY
Once contract ends get current renters to re-up their rental contract for another rental period
Most rental agents are tasked with for advertising the property to fill vacancies. Rental agentsare aware of to promote and what to include in their ads. leasing agents also understand what is motivating to renters, so they may suggest making cosmetic improvements to help improve the property.
SUGGEST AND SUPERVISE VENDORS
Home management agents should be ready to recommend vendors to do repairs and small work that maximize monthly rent while providing excellent ROI.
OVERSEEING MOVE OUTS
If a tenant moves out, the property manager is in charge of inspecting the unit, looking for damages and assessing what portion of the damage deposit willl be refunded to the renter. After move out, the manager is in charge of cleaning the unit, fixing any damages and finding a replacement tenant.
RE-LEASE YOUR HOME
Once agreement expires get existing renters to extend their rental agreement for another rental period
Most rental agents are responsible for marketing the house to fill vacancies. Rental agentsare aware of to market and what to include in their ads. leasing agents also have insight into what attracts renters, so they can suggest making cosmetic improvements to help improve the property.
At times when there is a problem needed, the leasing agent may attend to it themselves or must employ someone to take care the problem it. They often have a large black book full of reliable plumbers, electricians, carpenters and other types contractors.
Professional leasing agents are frequently engaged to observe vacant houses to make sure there has been no destruction and to perform standard maintenance. They also make sure vendors and other outsourced workers are finishing their work in a reliable manner.
Question: Do rental agencies help with evictions?
Some renters just don’t work out. Some become unemployed and become unable to pay their rent, while others prove to be irresponsible and a problem or nuisance at your house. Most certainly a house agent will impose a fee to complete the long paperwork involved with evicting a renter which is customarily roughly $300-$400 per eviction, not counting any associated courtroom costs.And an evictionmay go on for several months, so be ready to not get any rental monies until they the legal action is complete. In addition, you may find there is fix up work to be done on your house.
Generally speaking, you are better off offering your tenant incentives to vacate the unit early and avoid taking them to court, as maddening as that is. You can avoid many difficult situations with complete tenant vetting done beforehand.
QUESTION: What types of Maintenance can rental agencies help with?
Some rental agencies in the 23005 area have their own maintenance employees, full-time. The majority of refer these jobs out to miscellaneous subcontractors. Some property management companies charge a flat rate to manage any work with contractors. A few will add on to the contractors invoice. Make sure you know how it operates with your investment property management firm!
QUESTION: How Can a Rental Property Agency Assist an homeowner with Property Standard Maintenance?
Rental agents are responsible for managing preventative house maintenance to keep your home in top notch condition. Some of things that can be under consideration:
- Manage and oversee company employed maintenance crew
- Establish a preventative maintenance approach to locate and address repair concerns
- Provide a collection of licensed, bonded and legally insured vendors who have been vetted for fair pricing and quality work that meets requirements.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on who will do the best job for a fair price.
- Oversee outdoor areas
- Leaf and snow removal
- Disposing of trash and debris
- Maintain and oversee a 24 hour emergency repair hotline
- Larger fix up or rehab projects
- Take care of suggestions on how the project can maximize rental income.
- Prep initial cost estimates
- Secure a few independent quotes for the work
- Act as general contractor managing the work
QUESTION: How Should a Residential Property Management Firm help an owner with the Renter Move In Procedure?
- Prep rental documents
- 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 tenant and have renters sign a report verifying the condition of the property prior to move-in.
- Collect initial month’s rent and security deposit
Question: Do rental agencies help with evictions?
Some tenants just don’t work out. Some lose their jobs and become unable to pay their rent, while others turn out to be flakey and a disturbance or pain in the neck at your house. Most certainly a property agent will levy a charge to initiate the tedious paperwork involved with evicting a tenant which is customarily ballpark cost of $300-$600 for each eviction, plus any relevant courtroom costs.And an evictionoftentimes go on for a couple months, so be ready to not get any rental payments until they move out. In addition, you may find there is fix up work to be done on your unit.
Typically, you are better off providing your tenant financial reasons to vacate the house early and skip taking them to court, as aggravating as that might seem. You can skip many problem situations with painstaking renter vetting done beforehand.
QUESTION: How Can a Residential Property Management Agency Assist With Tenant Screening and Choosing?
Vetting Tenants- A property manager will sort through the prospective renter applications to find the tenant that is the best fit for your house. They have a reliable vetting process, including running credit checks and criminal background checks, which can decrease your chances of being charged with breaking the law. Professional rental agents have seen hundreds, even thousands, of renters, so they have a better idea of how to identify the right tenants; those who will pay their obligations on time, have a longer tenancy and create less headaches. Perform a background check to verify identity, salary, credit history, rental history, etc. Assess applicant per pre-decided tenant standards Inform tenants who were declined
QUESTION: Do Home Management Companies Help With Move Out?
Yes, a Rental management Firm can Help With Move outs. Services might include:
- Inspect investment property. and complete a document on the house’s status when the tenant moves out
- Deliver renter with a version as well as noted deductions
- Return the remainder of the security deposit to the renter
- Transfer remaining portion of the owner’s portion of the tenant deposit to the homeowner or keep in owner reserves for repairs.
- Clean unit and perform needed repairs or upgrades
- Re-do the locks
- Put the house back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Insure timely inspections (Inside and outside) on a predetermined schedule watching out for maintenance needs, safety concerns, code problems, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
Question: Should I attempt to save cash by managing my home myself? Or finding the cheapest leasing agent possible?
Answer: With the best investment property managers, paying a little bit more is a smart investment, because it helps increase the value of your house, and they help attract quality renters; studies have proven employing a property agentcan cut your vacancy rate by 50%. On the other hand, going lowball with a rental agency can wind up being very expensive.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are a part of with your fees. It may be that when something needs repair, some labor costs are included with your monthly flat 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).
No matter what, everything should be clearly stated in your agreement. Consider that these fees may require you toraise your rents, which could make finding – and keeping – renters more difficult. And remember, property management fees 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: Do Rental Agencies Deal With Evictions in the 23005 area?
- Preparing relevant documentation to start and complete an unlawful detainer lawsuit
- Representing owner in court
- Working with with law enforcement to evict renter and tenant’s things from property
Question: How much do rental agents cost?
Answer: As you might guess, the answer is “it depends.” Rental management agencies vary a lot, and a good deal of the response depends on what they do for you.. Just what do you want a property manager to accomplish for you?
Usual % of Monthly Rent Agreement. As a starting point, expect to pay a typical Property management company ranging from 8 – 11% of the monthly rental value of the house. This is called a management fee, or monthly management fee. Generally the higher you charge for rent, the lower the percentage fee is. To illustrate if your rental charges are $2,300 each month for your property, you will usually pay a lower percentage fee than another person whose property rents for $1000 each month.
You do not pay this percentage charge until rent is received. Look carefully at your agreement regarding whether the management fee is based on ‘rent collected’ or ‘rent due’. If the charge is tied to rent collected, it means the Residential property management company doesn’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 collected from the tenant normally.
Fixed Fee Agreements
Some companies may charge, say,$75- $150 per month flat rate. There is nothing dictated bystatute in this; it’s decided by the firm owner.
You would not owe money on a flat rate agreement normally until rent is collected.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a unit manager in the 23005 area is creating into a partnership. Over the long haul, the fees aren’t as crucial as the interaction between you and the agent and quality of the service your agent provides. A competent firm can take control of the maintenance of the unit, for example, and turn out getting you much more rental value and price appreciation than you might be possible. That said, you need to be prepared to get them the resources to do it.
Question: What do Inspections of my home cost?
Some property management companies will charge for inspections, others will give you one or more without charge per year. This is a visual inspection of your home to see how the renter is treating it. Fees can range from $25-175 for each inspection.
QUESTION: What types of Maintenance can property management companies help with?
Some rental agencies in the 23005 area have in house maintenance crews, full-time. Most subcontract these jobs out to miscellaneous vendors. Some rental agencies charge a flat rate to supervise any work with contractors. Some will add margin to the subcontrcontractor’s fee. Be sure you know how it works with your house management firm!