Whether you call them a Property Manager, 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 certainly. Property rental agencies serving the 23120 area offer a long list of services to help you renting your home. It’s an overwhelming list of jobs that a great Property Manager will handle; in fact (if you’re a detailed follow through kind of people person, you might even want to investigate 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?”
Renta Agent RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a tenant
- Handle contracts
- Keep you legal by helping you obey Fair Housing laws
- Open your home to interested tenants in order to rent your house
- Oversee move in and move out
- Collect rent and get you paid!
- Handle collections if payments are late
- Assist with evictions
- Respond to renter inquiries
- And a lot more than that.
It’s everything but the kitchen sink! Issues to consider if you are considering if you should rent your home on your own or hire a Property Manager near the 23120 area.
HOW MANY INVESTMENT PROPERTIES IN 23120 DO YOU HAVE TO MANAGE?
As the total homes you own goes up, so does your workload. The more tenants you have, the more repair issues, renter complaints, and vacancies you will have to deal with. Additionally, if your homes are spread across multiple areas, your time commitment will increase as you will have to take care of the issues of each single property as well as travel from property to property to handle problems.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondreal estate, but don’t know a single thing about rental management, hiring a certified Property Manager can be a good choice for you. Figuring it out on the job can become extremely draining financially.
For a single family home investor who is getting going, hiring a bad repairman or taking too long to fill a vacancy can quickly eat into your returns. 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!
DO YOU HAVE THE TEMPERAMENT TO WORK WITH RENTERS?
Is the stress of dealing with evictions, tenant complaints and repair issues stressful for you? Rental managers are experienced in resolving landlord-tenant conflict. Property Manager have an understanding of Richmond legal issues and can perform as go between for issues that arise. Additionally, if the tenant is aware they are working with a third party, they are likely to behave more civilly as well.
You do not have to pay for a property management agency because you are brand new to real estate investing in 23120, have a lot of properties or are having trouble filling empty units. Many people manage their own homes. Personal experience can often be the greatest teacher and everyone has to start learning somewhere. If you teach yourself about real estate, get the input of others and have a clear desire to manage your property with excellence, chances are good, you will come out on top.
DO YOU HAVE THE TEMPERAMENT TO WORK WITH RENTERS?
Is the pressure of messing with evictions, tenant complaints and maintenance concerns taking a toll on you? Property managers are skilled in handling landlord-tenant difficulties. Property Manager have an understanding of Richmond legal issues and can act as go between for problems. In addition, if the tenant knows they are dealing with a third party, they are likely to act more civilly as well.
You do not have to employ a property management company just because you are brand new to property investing in 23120, have a lot of homes or are having difficulty filling vacancies. Many people manage their own homes. Personal experience can many times be the greatest instructor and everyone has to start learning somewhere. If you educate yourself about residential real estate, get the input of others and have a powerful desire to oversee your investment well, its likely, you will prosper.
HOW MANY RENTAL HOMES IN 23120 DO YOU HAVE TO MANAGE?
As the number of investment properties 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 take care of. In addition, if your units are spread across multiple areas, your time spent will increase as you will have to oversee the issues of each individual investment home as well as physically commute from property to property to handle concerns.
HOW CAN A PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOME NEAR 23120?
Property managers who service the 23120 area may do a number of things for you as the homeowner, which could include the following:
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.
One of the more important duties of the property managers is to oversee renters. Managers are engaged in all capacities, from finding the tenants and addressing complaints to beginning the eviction process.
RE-LEASE YOUR PROPERTY
Once contract ends ask existing renters to continue their rental contract for another rental period
This is where a property manager earns their money! Rental management companies make sure you get your money by collecting rent each month on time and strictly enforcing late penalties.
RENTAL MANAGEMENT COMPANIES HELP YOU SET MARKET RENTAL RATE
Property managers are responsible for setting the beginning rent level, and collecting payment from renters. Excellent rental managers know how to set the market rent level toattract tenants to your rental property. They hopefully have a specific understanding of the Richmond area, where the property is located and have looked at comparable houses in the general Richmond market.
Professional rental agents are many times engaged to overlook empty houses to ensure there has been no vandalism and to execute regular maintenance. They also make certain contractors and other outsourced workers are completing their work in a timely manner.
IN CHARGE OF MANAGING THE BUDGET/MAINTAINING RECORDS
In most situations rental agents are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the property managermust operate within the set budget guidelines for the building. In certain emergency situations when the tenants or house are in need of upgrade, they may take action to order repairs or likewise without concern for the budget. Maintaining Documents- the leasing agent is required to detailed records related to the home. This need to include all income and expenses; lists of all inspections, completed agreements, upgrade requests, any problems noted, records of work done, amount paid for repairs, maintenance expenses, record of rent paid and insurance charges.
DEALING WITH EVICTIONS
When a renter does not pay on time or otherwise violates the terms of the agreement, the leasing agent realizes is experienced with the proper method to legally respond and proceed ahead with an eviction.
IN CHARGE OF OTHERS
Other Employees- if there are other employees in the apartment, such as a concierge\desk manager or security personnel, the leasing agent is responsible for being certain they are on their toes. The property manager often will determine their wage rates and even let them go.
Provide accounting services Handle payments on behalf of the owner (Mortgage, insurance, HOA dues, etc.) Detailed accounting of expenses via invoices and receipts Preserve all past documents (paid invoices, leases, inspection documentation, warranties, etc.) Deliver annual reporting, organized for tax needs as well as needed tax paperwork including a 1099 form Educate owner on qualified tax write offs related to their rental property. Deliver easy to read monthly cash-flow statements which specify a detailed breakdown of income and detailed expenses
COLLECTING RENTAL PAYMENTS:
This is where a property manager earns their keep. Residential property management firms make sure you get your money by collecting rent each month on time and strictly enforcing late fees.
OFFER WISE REAL ESTATE ADVICE:
Discuss with you the pros and cons\pluses and minuses of different issues such as accepting various animals, permitting smoking etc. Other are very specific to the Richmond area, so having a local area expert who knows the 23120 area in particular is important.
SUGGEST AND SUPERVISE VENDORS
Residential property management pro’s should be ready to suggest vendors to do repairs and small improvements that maximize monthly rent while providing great ROI.
Nearly all agents are compensated to deal with maintenance requests, noise issues and have the needed contacts to take care of emergency situations.
QUESTION: What types of Maintenance can property management companies help with?
Some leasing agencies in the 23120 area have in house maintenance employees, full-time. Most contract this work out to miscellaneous vendors. Some residential property management charge a fixed fee to manage any work done by subcontractors. Many will add margin to the subcontrcontractor’s bill. Be certain you understand how it works with your investment property management firm!
QUESTION: Do Property Management Agencies Assist With Move Out?
Yes, a Rental management Agency can Help With Move outs. Services might include:
- Inspect rental property. and complete a document on the home’s status when the tenant moves out
- Provide occupant with a photocopy as well as estimated deductions
- Return the balance of the damage reserves to the renter
- Mail remaining amount of the owner’s share of the tenant deposit to the owner or keep in owner reserves for work to be done.
- Clean house and oversee required repairs or upgrades
- Re-key all locks
- Put the home back on the market for rent
QUESTION: What Inspection Services Do Rental Managers Provide?
- Perform systematic inspections (Inside and outside) on a predetermined schedule noting repair requirements, safety hazards, code issues, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
QUESTION: What are Marketing Fees?
Some property management companies charge a marketing fee. This is an upfront charge to advertise your vacant property. This charge is normally $$150-400. A majority of agencies don’t charge this fee, so shop around!
Vacant House charge Some firms charge 1 month’s rent up front. You might run into this fee if you’re trying to hire the residential property management firm while the home is vacant. This gives them the cash to pay a realtor a commission for finding a tenant in the property, or to pay the costs of marketing, repeatedly showing the property to prospective renters, as well as the expense of preparing lease paperwork (which can take a long time).
Question: What do Inspections of my home cost?
Some leasing agencies will charge for inspections, some will give you an inspection or more without charge per year. This is a walk through of your property to see how the tenant is treating it. Fees can range from $75-200 per inspection.
Question: What are Other 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 low monthly %. Illustrations might include an marketing fee in connection with placing a tenant, a yearly inspection charge, and some sort of reserve, so that the management company has some cash on hand to take care of unexpected, but immediate, costs.
You may want to check into how you share pet deposits collected and bad check fees (generally whomever gets hit 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 do do property managers cost?
Answer: As you might guess, the response is “it depends.” Property management firms vary widely, and a good deal of the response is dependent on what a company does for you.. Just what do you want a rental manager to do for you?
Typical % of Monthly Rent Contract. As a ballpark figure, expect to be charged a usual Leasing agency ranging from 8 – 11% of the monthly rental value of the house. This is called a management charge, or monthly management fee. Generally the higher your rent is, the lower the percentage is. For example if your rent is $2,300 per month for your rental house, you will typically pay a lower percentage fee than another person whose unit rents for $700 per 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 Leasing agency doesn’t get paid if you don’t get paid. Conversely, if it’s determined by ‘rent due’, then you owe whether or not rent is received from the renter typically.
Fixed Payment Agreements
Some firms may charge, say,$75- $150 per month fixed rate. There is nothing required bylaw in this; it’s determined by the property management company owner.
You would not owe money on a fixed rate contract normally until rent is received.
QUESTION: What types of Maintenance can residential property management help with?
Some rental agencies in the 23120 area have in house maintenance crews, full-time. Most subcontract this work out to miscellaneous subcontractors. Some leasing agencies charge a fixed fee to oversee any work with subcontractors. Some will add margin to the subcontrcontractor’s bill. Make sure you understand how it operates with your investment property management company!
Question: How much should I price shop the fees my property management company charges me?
Ultimately, hiring a unit manager in the 23120 area is entering 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 manager delivers. A good firm can take control of the oversight of the investment property, for example, and turn out providing you much more rental value and price appreciation than you thought possible. That said, you need to be prepared to get them the resources to accomplish.
Question: What are typical procedures regarding Late Payment Charges?
At times tenants pay date. Read your agreement to see if those late payment fees go to you as the owner, to the residential property management, or are shared somehow.
QUESTION: How Should a Residential Property Agency Assist an owner with Home Routine Maintenance?
Rental agents are responsible for managing preventative house maintenance to keep your property in top status. Some of things that might under consideration:
- Direct and oversee an in-house maintenance team
- Decide on a preventative maintenance policy to find and address maintenance concerns
- Provide a network of licensed, bonded and completely insured vendors who have been vetted for reasonable bidding and excellent performance that meets code.
- Delegate jobs to various parties such as (in-house employees, handyman and professional contractors) based on who could do a good job for a fair price.
- Oversee outdoor areas
- Debris and snow removal
- Disposing of garbage and debris
- Set up and oversee a 24/7 emergency repair hotline
- Bigger renovation or rehab projects
- Offer recommendations on how the project can maximize rental income.
- Take responsibility for initial cost estimates
- Get multiple independent estimates for the work to be done
- Perform as general contractor overseeing the work
QUESTION: How Would a Home Management Firm Help With Tenant Screening and Selection?
Screening Tenants- A rental agent will review the potential renter applications to find the tenant that is the best 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 discrimination. Professional property managers have seen hundreds, even thousands, of renters, so they have a good idea of how to identify the best renters; renters who will pay their obligations on time, have a longer tenancy and create fewer issues. Perform a background check to confirm identity, income, credit history, rental history, etc. Assess tenant according to pre-decided applicant standards Inform tenants who may have been declined
Question: What Is The Normal Term Of A Property Management Agreement?
Typically, a landlord 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. Agreements can be prepared so that they automatically renew if neither party takes actionopposing it. Termination clauses allow for early termination if the rental agency is in the breaking of the agreement in any way.
QUESTION: Do Residential Property Management Agencies Help With Move Out?
Yes, a Rental management Company can Assist With Move outs. Actions might include:
- Inspect investment property. and complete a report on the home’s condition when the renter moves out
- Give tenant with a copy as well as noted damages
- Return the remainder of the security reserves to the renter
- Forward remaining amount of the owner’s portion of the tenant deposit to the owner or keep in owner reserves for repairs.
- Turn over unit and handle required repairs or upgrades
- Re-do the locks
- Re-List home back on the market for rent
QUESTION: What Inspection Services Do Rental Agents Provide?
- Insure periodic inspections (Inside and outside) on a predefined schedule looking for maintenance needs, safety hazards, code problems, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
Question: Should I attempt to save cash by going FRBO? Or finding the cheapest leasing agent possible?
Answer: With the best home managers, paying a little bit more can be a wise investment, because it helps enhance the value of your home, and they help retain top notch renters; studies have proven employing a investment property managercan cut your vacancy rate in half. Conversely, going lowball with a residential property management firm can wind up being very expensive.