Regardless if you call them a Property Manager, home management firms, or rental property management agencies….it all means the same thing. The focus is normally on residential properties (but commercial property management agencies are out there certainly. Property rental agencies serving the 23069 area provide a long list of services to help you renting your house. It’s a huge list of jobs that a top notch Property Manager will deal with; in fact (if you’re a good follow through kind of people person, you might even want to consider 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?”
Leasing Agent RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Deal with legal paperwork
- Keep you legal by helping you comply with government housing laws
- Open your home to possible renters in order to rent your house
- Handle move in and move out
- Collect rent and get you paid!
- Handle collections if payments are late
- Help with evictions
- Answer renter inquiries
- And so much more.
It’s everything from A to Z! Factors to consider if you are wondering if you maybe should rent your home on your own or hire a Property Manager near the 23069 area.
DOES IT MAKE FINANCIAL SENSE TO PAY A Property Manager ?
You’ve figured out that greatproperty managerswho provide service to the 23069 area in Richmond aren’t without cost.
Rental agencies will charge a fee, roughly, between 5% and 9% of the monthly gross income for the house. The normal fee for a single family investment is estimated at 8-10%. The cost for a building of 10 units or more is usually between 3% and 8%.
If your investment property is vacant, it’s typical to pay a lease up fee to find and place a new renter in your rental home. Depending on the property management company this can fluctuate from 50%-100% of a single month’s rent.
One thing to consider: Having experienced property manager input on market rents and having a professional agent deal with locating a tenant can mean you might get higher rents, which means a professional property manager might end up covering all or part of their cost because of higher rents.
HOW CLOSE IS YOUR INVESTMENT PROPERTY?
The more distance between you and your property,the more stressful it is to manage. If your primary residence is in Florida and your property is in the 23069 area, it will be more difficult for you to find renters,to handle tenant complaints,to quickly react to problems, to handle maintenance issues, and even to guarantee payment is collected in a timely manner.
The total time it takes you to get to the property and the expense of travel will also add up. In situations like these, hiring a goodRichmond property management company can make good sense and actually save you some dough.
DO YOU HAVE THE AVAILABILITY TO OVERSEE YOUR RENTAL PROPERTY in the 23069 area?
If you have a full-time job while you are investing in a rental home and simply can’t give your your rental home the focus it needs, the viability of your investment might depend on hiring a full time property management company in Richmond
In addition, realize that time is definitely money and overseeing a investment home takes effort. If you feel like the real life duties of leasing management are stepping on on time that could be better spent making more money at your full time job, or hunting down other investments, paying for an outside property management company may be the smartest move for you.
HOW MANY RENTAL HOMES IN 23069 DO YOU HAVE TO MANAGE?
As the total homes you own multiplies, so does the time it takes to manage them. The more renters you have, the more maintenance concerns, renter headaches, and empty properties you will have to handle. In addition, if your properties are dispersed across multiple cities, your energies committed will increase as you will have to oversee the issues of each particular investment home as well as drive from property to property to resolve problems.
HOW HIGH IS YOUR VACANCY RATE?
Good Property Manager are skilled at finding and reviewing renters rapidly and will have a network of capable, affordable Richmondrepairmen to deal with emergencies. Most experienced rental managers will also understand landlord-tenant law, thereby reducing the risk of a lawsuit.
HOW CAN A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY PROPERTY IN 23069?
Rental management companies who service the 23069 area may do a lot of things for you as the home investor, which may include the following:
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.
Nearly all agents are paid to address maintenance situations, noise issues and possess the required relationships to deal with emergency situations.
Provide financial management services Handle payments on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Detailed records of expenses via invoices and receipts Manage all past records (paid invoices, agreements, inspection documentation, warranties, etc.) Oversee annual reporting, structured for tax needs as well as needed tax documents including a 1099 forms Counsel owner on relevant tax deductions related to their rental home. Provide formatted monthly cash-flow statements which offer a detailed accounting of income and itemized expenses
OFFER GENERAL REAL ESTATE ADVICE:
Discuss with you the positives and negatives of different policies such as accepting various animals, allowing smoking etc. Other are very specific to the Richmond market, so having a local market expert who knows the 23069 area in particular is important.
DEALING WITH LEASES
Many they are responsible for setting the length of the agreement and making sure it has all the necessary provisos to protect the client. This includes deciding the amount of security reserves required.
RE-LEASE YOUR PROPERTY
Once contract ends ask current tenants to continue their rental agreement for another rental period
RESPONSIBLE FOR OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations rental managers are responsible for managing the budget for the building and maintaining all pertinent records. Managing Budget- the property managermust operate within the set budget guidelines for the building. In certain emergency situations when the tenants or home are in danger, they may move ahead to order repairs or likewise without concern for the budget. Maintenance of Paperwork- the rental agent needs to thorough paperwork about the the property. This might include all income and expenses; lists of all inspections, fully executed agreements, repair requests, any problems noted, records of repairs, charges for fix up, maintenance charges, documentation of rent paid and insurance fees.
This is where a property manager earns their keep. Home management companies make sure you get paid by collecting rent every month on time and strictly enforcing late fees.
Nearly all managers are paid to address repair requests, noise complaints and have the necessary contacts to handle emergency situations.
Nearly all agents are compensated to oversee maintenance requests, noise complaints and possess the required relationships to handle difficult situations.
PROPERTY MANAGEMENT COMPANIES HELP YOU SET THE CORRECT RENT LEVELS
Property managers are responsible for setting the beginning rent level, and collecting rent from tenants. Top level property managers know how to set the market rent level todirect tenants to your rental property. They hopefully have a specific understanding of the Richmond area, where the property is located and have examined at comparable homes in the general Richmond area.
RENTAL MANAGEMENT COMPANIES HELP YOU DECIDE THE CORRECT RENT LEVELS
Property managers are responsible for determining the initial rent level, and collecting rent from renters. Good leasing agents know how to set the correct rent level todirect tenants to your investment property. They hopefully have a specific understanding of the Richmond area, where the home is located and have looked at comparable properties in the general Richmond area.
Provide accounting services Make payments for the sake of the owner (Mortgage, insurance, HOA dues, etc.) Specific documentation of expenditures via invoices and receipts Maintain all past records (paid invoices, agreements, inspection reports, warranties, etc.) Provide annual reporting, structured for tax needs as well as needed tax paperwork including a 1099 form Educate owner on appropriate tax write offs related to their rental home. Prepare simple monthly cash-flow documents which offer a detailed breakdown of income and itemized expenses
TAKE CARE OF PROFESSIONAL INSPECTIONS
You want to make certain to have before and after photos and written records, so you can quickly take care of tenant deposits and disputes when they leave your home. A lot of renters will act amazed when you take out fees from their deposit, so having accurate files will help cut down on the amount of arguing they do with you.
QUESTION: How Should a Residential Property Company Help an owner with Home Routine Maintenance?
Rental property management agents are in charge of overseeing preventative house maintenance to keep your house in good shape. Some of things that might involved:
- Manage and oversee a company maintenance crew
- Decide on a preventative maintenance policy to identify and address maintenance issues
- Provide a team of licensed, bonded and fully insured contractors who have been reviewed for reasonable bidding and quality work that meets code.
- Assign work to various parties such as (in-house employees, handyman and professional contractors) based on who could do an excellent job for a fair price.
- Oversee outdoor areas
- Debris and snow removal
- Removing garbage and debris
- Maintain and oversee a 24/7 emergency repair hotline
- Bigger renovation or remodeling projects
- Offer recommendations on how the project can maximize rental returns.
- Take responsibility for initial pricing estimates
- Get a few different quotes for the work to be done
- Act as general contractor managing the work
Question: What are typical procedures regarding Late Payment Fees?
Occasionally tenants pay date. Read your contract to see if those late payment charges go to you as the owner, to the leasing agency, or are shared somehow.
Question: Do all residential property management charge basically the same way?
Not all fee structures are identical. Some rental agencies in the 23069 area might charge a flat per-month rate – which again varies according to area, activities performed, and the total value of the house – while others charge a percentage rate, as noted above. Cost can also differ depending on the size and number of homes you own.
For example, if you own several apartment buildings, you may get a “bulk” discount that a person with a single house or apartment might not receive.
QUESTION: Do Leasing Agencies Handle Evictions in the 23069 area?
- Preparing necessary paperwork to initiate and process an eviction action
- Representing owner in court
- Working with with police authorities to evict tenant and tenant’s stuff from house
QUESTION: How Can a Lease Management Firm help an owner with the Tenant Move In Process?
- Prep leasing documents
- Pin down move in date with applicants
- 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 tenants sign a report verifying the condition of the property prior to move-in.
- Secure initial month’s rent and security deposit
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are included with your fees. It may be that when something needs repair, some labor costs are included with your monthly fixed rate or percentage charge (for example, changing out lighting switch plates and replacing faucet handles) while others are charged individually (such as replacing broken window panes and installing new sinks).
No matter what, everything should be specifically stated in your agreement. Keep in mind that these charges may require you toincrease your rental rate, which might make finding – and keeping – tenants more difficult. Keep in mind, house management fees can be negotiated. Depending on how much you’re willing to pay, you may be able to get a better price by sacrificing certain services and handling them on your own.
Question What Services Are Included in A Typical Property Management Contract?
Be sure you determine exactly what maintenance services are included with your fees. It might be that when something needs fixing, some labor costs are a part of with your monthly fixed rate or percentage charge (for illustration, changing out light bulb and fixing faucet handles) while others are charged individually (such as replacing broken windows and installing new sinks).
Regardless, everything should be clearly expressed in your agreement. Keep in mind that these fees may require you toincrease your rents, which could make finding – and keeping – tenants more difficult. Keep in mind, property management fees can be negotiated. Depending on what you’re willing to pay, you may be able to get a lower price by sacrificing certain services and dealing with them on your own.
Question: Do all rental agencies charge basically the same way?
Not all pricing structures are identical. Some property management companies in the 23069 area may charge a fixed per-month rate – which again varies according to area, duties performed, and the total value of the property – while others charge a percentage rate, as noted above. Price can also fluctuate depending on the size and quantity of homes you own.
To illustrate, if you own a few homes, you might get a quantity discount that a person with a single investment property or apartment might not receive.
Question: What Is The Normal Term Of A Property Management Agreement?
Normally, an owner signs a contract with a residential property management firm for a fixed length of time – 12 or 24 months, for example – with an option to renew. Contracts 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 leasing agencies help with evictions?
Some tenants just don’t work out. Some get fired and become unable to pay their rent, while others turn out to be irresponsible and a disturbance or nuisance at your house. Most likely a investment property agent will levy a charge to complete the laborious paperwork involved with evicting a tenant which is customarily roughly $300-$600 per eviction, not counting any associated courtroom costs.And an evictionoftentimes go on for several months, so be prepared to not get any rental monies until they move out. In addition, you could find there is repair work to do on your house.
Usually, you are better off providing your renter financial reasons to vacate the home early and skip suing them, as aggravating as that is. You can avoid many difficult situations with painstaking tenant vetting done upfront.
QUESTION: Do Home Management Companies Assist With Move Out?
Yes, a Residential Property Management Agency can Assist With Move outs. Actions might include:
- Inspect investment property. and complete a report on the house’s condition when the tenant moves out
- Provide renter with a copy as well as noted deductions
- Return the balance of the damage deposit to the renter
- Mail any portion of the owner’s share of the tenant deposit to the homeowner or keep in owner reserves for repairs.
- Clean house and perform needed repairs or upgrades
- Re-key all locks
- Re-List house back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Handle systematic inspections (Inside and outside) on a regular schedule looking for upgrade requirements, safety hazards, code issues, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
QUESTION: What are Advertising Fees?
Some rental agencies charge a advertising fee. This is an upfront fee to market your empty property. This charge is typically $$150-500. Most firms don’t charge this fee, so shop around!
Empty Unit fee Some firms charge One month’s payment up front. You may run into this charge if you’re attempting to hire the property management company while the investment property is vacant. This gives them the money to pay a real estate agent a commission for finding a renter in the unit, or to pay the costs of advertising, repeatedly showing the property to potential renters, as well as the expense of preparing lease documents (which can take a long time).
QUESTION: How Can a Residential Property Agency Assist an homeowner with Property Routine Maintenance?
Rental property management agents are responsible for managing preventative house maintenance to keep your house in top shape. Examples of what might involved:
- Manage and oversee an in-house maintenance team
- Establish a preventative maintenance plan to find and handle maintenance needs
- Locate a network of licensed, bonded and fully insured contractors who have been vetted for fair bidding and quality work that meets code.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on whom could do the best job for a fair price.
- Maintain outdoor areas
- Debris and snow removal
- Disposing of garbage and debris
- Set up and monitor a 24/7 emergency repair hot-line
- Larger fix up or rehab projects
- Provide recommendations on how the project can optimize rental profits.
- Prep preliminary pricing estimates
- Solicit multiple different quotes for the work to be done
- Perform as general contractor managing the work
QUESTION: What is a New Tenant Placement or “Lease up” Fee?
Some property management companies in the 23069 area may charge a new tenants placement charge or have a extra commission incentive for getting a tenant into a lease. Afee of 50 to 100 percent of the first month’s rent for any new tenant placed is not abnormal. Nevertheless, you should not typically bump into significant multiple up-front fees.
Normally a placement charge is not paid until the renter is secured, which means you don’t need to come out of pocket to pay this.