Regardless if you describe them as a Property Manager, home management firms, or rental property management agencies….it all means the same thing. The emphasis is typically on residential properties (but commercial property management firms are out there certainly. Property rental agencies serving the 23226 area offer a multiplicity of services to help you renting your house. It’s a long list of tasks that a good 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?”
Leasing Agent RESPONSIBILITIES
- What the owner truly wants: “Rent My House”!
- Find a renter
- Handle contracts
- Keep you out of jail by helping you obey government housing laws
- Show your home to interested renters in order to rent your house
- Deal with move in and move out
- Collect monies and get you paid!
- Handle follow up if payments are timely
- Assist with evictions
- Respond to tenant inquiries
- And a lot more.
It’s everything from soup to nuts! Issues to think about if you are asking if you maybe should rent your home on your own or hire a Property Manager near the 23226 area.
DOES IT MAKE FINANCIAL SENSE TO HIRE A Property Manager ?
You’ve discovered that goodleasing agentswho provide service to the 23226 area in Richmond aren’t free.
Residential property management agencies will charge a fee, on average, between 5% and 10% of the monthly gross income for the home. The usual fee for a single family investment is estimated at 8-10%. The charge for a building of 10 units or more is typically between 4% and 7%.
If your investment property is not occupied, it’s typical to pay a lease up fee to locate and place a new renter in your investment property. Depending on the property management company this can range from 50%-100% of a month’s rent.
Something to think about: Having expert professional input on market rents and having a certified agent handle locating a tenant can mean you can get higher rents, which means a great property manager likely will end up covering all or part of their cost because of higher rents.
HOW MANY INVESTMENT PROPERTIES IN 23226 DO YOU HAVE TO TAKE CARE OF?
As the number of units you own goes up, so does your workload. The more renters you have, the more maintenance issues, renter headaches, and empty properties you will have to handle. Additionally, if your properties are dispersed across multiple cities, your energies committed will go up as you will have to manage the cash flow of each single property as well as drive from property to property to deal with problems.
HOW CLOSE IS YOUR INVESTMENT PROPERTY?
The more distance between you and your investment property,the harder it is to take care of. If your main home is in Texas and your rental home is in the 23226 area, it will be a lot of work for you to find renters,to handle renter complaints,to quickly respond to problems, to address maintenance issues, and even to make sure payment is collected in a timely manner.
The amount of time it takes you to go back and forth the property and the expense of travel will also add up. In situations like these, hiring a greatRichmond property management company can make some sense and will likely save you money.
DO YOU HAVE EVEN A LITTLE BIT OF PROPERTY MANAGEMENT EXPERIENCE?
If you would like invest in Richmondrental homes, but don’t know a single thing about property management, hiring a professional Property Manager can be a good choice for you. Learning as you go can become extremely costly.
For a single family home investor who is starting out, hiring the wrong repairman or taking too long to fill an empty home can rapidly eat into your returns. There are big legal liability problems you can stumble on if you aren’t aware about Fair Housing regulations or Federal real estate law. One lawsuit can pay for a lot of property management fees!
DO YOU HAVE THE TEMPERAMENT TO WORK WITH TENANTS?
Is the challenge of messing with evictions, renter problems and repair issues taking a toll on you? Leasing agents are experienced in handling landlord-tenant conflict. Property Manager have an understanding of Richmond landlord-tenant law and can perform as the middle-man for problems. Additionally, if the tenant knows they are dealing with a third party, they could behave more professionally as well.
You don’t have to employ a property management firm just because you are new to property investing in 23226, have a lot of properties or are having trouble filling vacancies. Many people manage their own homes. Personal experience can often be the best instructor and everyone has to begin learning somewhere. If you teach yourself about residential property investing, ask the advice of others and have a clear desire to oversee your real estate with excellence, its likely, you will prosper.
HOW WILL A RESIDENTIAL PROPERTY MANAGEMENT COMPANY HELP ME MANAGE MY HOUSE NEAR 23226?
Property managers who service the 23226 area may do a number of things for you as the home investor, which can include the following areas:
KNOWLEDGE OF LANDLORD-TENANT LAW AND GOVERNMENT REAL ESTATE LAW
A good leasing agent should have a exhaustive knowledge of state and federal laws relating to the ideal ways to: Screening potential renters. Manage damage deposits End a rental agreement Evict a tenant Comply with home safety protocols Counsel in case of of a legal action or litigation Send owner to a qualified lawyer when needed Be up on and comply with the most recent local, state and federal guidelines that are applicable to renting and maintaining investment properties.
COLLECTING RENTAL PAYMENTS:
This is where a property manager earns their money! Residential property management firms make sure you get your money by collecting rent every month on time and strictly enforcing late fees.
IN CHARGE OF OVERSEEING THE BUDGET/MAINTAINING RECORDS
In most situations leasing agents are responsible for managing the budget for the building and maintaining all pertinent records. Overseeing Budget- the rental managermust operate within the set budget guidelines for the property. In certain emergency situations when the renters or house are in need of upgrade, they may use their discretion to order repairs or similar without concern for the budget. Maintaining Documents- the rental manager needs to detailed paperwork related to the home. This should include all income and expenses; records of all inspections, signed contracts, upgrade requests, any problems noted, notation of maintenance done, amount paid for fix up, maintenance expenses, documentation of rent paid and insurance fees.
At times when there is a problem required, the rental agent must handle it themselves or must hire a third party to take care the problem it. They frequently have a large list of reliable electricians,carpenters,plumbers and other types contractors.
One of the more important duties of the property managers is to oversee tenants. Agents are involved in many roles, from locating the tenants and dealing with complaints to beginning evictions.
RESPONSIBLE FOR TAXES
The property manager may provide the house owner with knowledge of how to file taxes for the home. The rental agent might additionally file taxes for the property
OFFER WISE REAL ESTATE ADVICE:
Chat with you about the pros and cons\pluses and minuses of different issues such as accepting various animals, permitting smoking etc. Some things are very particular to the Richmond area, so having a local area expert who knows the 23226 area in particular is important.
A key responsibility of the rental agents is to oversee tenants. Managers are engaged in all capacities, from finding the tenants and dealing with complaints to initiating the eviction process.
RENTAL MANAGEMENT COMPANIES HELP YOU DECIDE THE CORRECT RENTAL RATE
Rental agents are responsible for setting the beginning rent level, and collecting payment from renters. Excellent leasing agents know how to set the right rent level todirect renters to your home. They hopefully have a specific understanding of the Richmond area, where the home is located and have examined at comparable properties in the general Richmond market.
When a renter does not pay rent or otherwise breaches the terms of the agreement, the rental property management agent knows is experienced with the proper approach to file and proceed ahead with an eviction.
DEALING WITH CONTRACTS
Many agents are responsible for recommending the duration of the lease and making sure it has all the required provisions to protect the client. This includes determining the amount of damage reserves needed.
One of the main responsibilities of the property managers is to oversee renters. They are involved in many capacities, from identifying the tenants and addressing issues to dealing with the eviction process.
Most leasing agents are tasked with for promoting the house to fill vacancies. leasing agentsknow where to market and what to include in their advertisements. Residential property managers also have insight into what is motivating to tenants, so they may suggest making cosmetic improvements to help improve the property.
RE-LEASE YOUR PROPERTY
Once agreement ends get existing tenants to extend their rental agreement for one more rental period
QUESTION: How Should a Property Management Company Assist an owner with House Routine Maintenance?
Rental agents are in charge of overseeing preventative house maintenance to keep your house in excellent shape. Some of things that might involved:
- Provide and oversee a company maintenance crew
- Decide on a preventative maintenance plan to identify and address repair concerns
- Provide a network of licensed, bonded and completely insured contractors who have been reviewed for good bidding and excellent performance that is up to code.
- Assign work to different parties such as (in-house employees, handyman and professional contractors) based on whom may do the best job for an excellent price.
- Maintain outdoor areas
- Leaf and snow removal
- Removing garbage and debris
- Maintain and monitor a 24/7 emergency repair hot-line
- Larger fix up or rehab projects
- Take care of recommendations on how the project can maximize rental income.
- Prep initial pricing estimates
- Secure several independent estimates for the work
- Act as general contractor overseeing the work
Question: Do all property management companies charge basically the same way?
Not all pricing structures are the same. Some residential property management in the 23226 area may charge a fixed monthly rate – which again varies according to area, duties performed, and the total value of the rental – while others charge a percentage rate, as noted above. Price can also differ depending on the size and quantity of properties you own.
For example, if you own several houses, you may get a “bulk” discount that a person with a single unit or apartment might not receive.
Question: How much should I price shop the fees my property management company charges me?
Ultimately, engaging a investment property manager in the 23226 area is entering into a partnership. In the long run, the fees aren’t as critical as the interaction between you and the manager and quality of the service your agent provides. A competent company can take charge of the oversight of the investment property, for example, and turn out providing 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 accomplish.
Question: What do do rental agents cost?
Answer: As you may guess, the answer is “it depends.” Residential property management companies vary a lot, and a good deal of the answer is dependent on what they do for you.. Just what do you want a rental agent to do for you?
Typical Percentage of Rent Agreement. As a baseline, expect to be charged a usual Residential property management company between 6 – 12% of the monthly rent of the property. This is referred to as management fee, or monthly management payment. Usually the greater your rent is, the lower the percentage is. To illustrate if your rental charges are $2,300 per month for your rent house, you will typically pay a lower percentage fee than another person whose house rents for $700 each month.
You do not pay this management charge until payment is collected. Look carefully at your contract regarding whether the management charge is determined by ‘rent collected’ or ‘rent due’. If the charge is tied to rent received, it means the Leasing agency 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 received from the renter normally.
Flat Rate Contract
Some firms may charge, say,$75- $150 each month fixed rate. There is nothing required bylaw in this; it’s decided by the company owner.
You wouldn’t owe money on a fixed rate agreement typically until rent is received.
Question: Should I try to save cash by going FRBO? Or hiring the cheapest property manager I can?
Answer: With the best unit agents, paying a little bit more can be a wise investment, because it helps increase the value of your home, and they help retain quality renters; studies have shown hiring a house 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 types of Maintenance can property management companies help with?
Some leasing agencies in the 23226 area have in house maintenance employees, full-time. The majority of contract this work out to miscellaneous vendors. Some rental agencies charge a flat rate to manage any work done by contractors. A few will upcharge the contractors bill. Make sure you know how it operates with your unit management company!
QUESTION: Do Home Management Agencies Assist With Move Out?
Yes, a Rental management Agency can Assist With Move outs. Activities might include:
- Inspect investment home. and fill out a document on the property's status when the client moves out
- Provide renter with a version as well as estimated damages
- Return the balance of the security deposit to the renter
- Forward left over amount of the owner’s share of the tenant deposit to the owner or hold in owner reserves for repairs.
- Turn over unit and oversee needed repairs or upgrades
- Re-key all locks
- Put the house back on the market for rent
QUESTION: What Inspection Services Do Property Managers Provide?
- Perform timely inspections (Inside and outside) on a predetermined schedule looking for maintenance requirements, safety concerns, code violations, lease violations, etc.
- Prepare owner periodic reports on the condition of the property
Question: What are Random fees made by property management companies?
At times, you could see some fees passed on to you – especially where the agent is charging a small monthly percentage. Examples could include an marketing fee in connection with placing a renter, an annual inspection charge, and some sort of reserve, so that the management agency 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 charges (basically whomever gets hit with the most bank fees should get the bulk 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 Inspections of my home cost?
Some leasing agencies will bill for inspections, others will give you one or more without charge annually. This is a walk through of your home to see how the tenant is treating it. Charges can range from $50-225 per inspection.
QUESTION: How Would a Home Management Company Assist With Renter Screening and Choosing?
Screening Applicants- A residential property agent will sort through the potential renter applications to find the applicant that is the ideal fit for your home. They have a consistent vetting process, which includes running credit checks and criminal background checks, which can reduce your chances of being charged with discrimination. Experienced rental agents have seen many tenants, so they have a good idea of how to identify the right applicants; renters who will pay their obligations on time, have a longer tenancy and create fewer issues. Perform a background check to verify identity, wages, credit history, rental history, etc. Evaluate tenant per pre-defined tenant criteria Inform tenants who may have been declined
Question: What are typical procedures regarding Late Payment Charges?
At times tenants pay after the due date. Read your paperwork to see if those late payment fees go to you as the owner, to the leasing agency, or are shared in some way.
QUESTION: How Should a Property Management Agency help an owner with the Renter Move In Process?
- Prep leasing documents
- Determine move in date with applicants
- Review lease guidelines with tenant 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.
- Secure first month’s rent and security deposit
QUESTION: What are Marketing Fees?
Some rental agencies charge a marketing fee. This is an initial fee to market your vacant house. This fee is typically $$150-450. Most firms don’t charge this fee, so shop around!
Empty Home charge Some companies charge 1 month’s rent up front. You might run into this fee if you’re trying to engage the residential property management firm while the property is vacant. This gives them the money to pay a real estate agent a commission for placing a renter in the house, or to pay the costs of advertising, repeatedly showing the unit to potential renters, as well as the expense of preparing lease paperwork (which can take hours).
Question: How much do rental agents charge?
Answer: As you may guess, the answer is “it depends.” Property management firms vary widely, and much of the response is dependent on what a firm does for you.. Just what do you want a property manager to do for you?
Typical % of Rent Contract. As a ballpark figure, expect to be charged a usual Rental management agency ranging from 8 – 11% of the monthly rental value of the property. This is called a management charge, or monthly management payment. Usually the higher your rent is, the lower the percentage fee is. To illustrate if your rent is $2,500 per month for your rental house, you will typically pay a lower percentage fee than someone else whose property rents for $1000 each month.
You do not pay this percentage fee until payment is collected. Look carefully at your contract regarding whether the management fee is determined by ‘rent collected’ or ‘rent due’. If the charge is based on rent collected, it means the Rental management agency won’t get paid if you don’t get paid. On the other hand, if it’s based on ‘rent due’, then you owe whether or not rent is received from the tenant typically.
Fixed Fee Contract
Some companies may charge, say,$75- $150 each month flat rate. There is nothing dictated bylaw in this; it’s determined by the company owner.
You wouldn’t owe money on a fixed rate contract typically until rent is received.